The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-07-25

a. fulnlmcut ~ their contracts. when II ts APP
u rcut ttat their failure to do 10 originates from
a fra duent urpose. That Il to say, under the
REVEALING system q inviting BIOS at the regular
annual iet ings. different classus are made, some
~ whtch include IN the schedule IA number aud
y rlUty Of articles. a knowing or favored COM
tractor viii IKE a certain proper ion Of the
sirly In excess demanded, and upun these he
will fix large tronts Upon the remaining ar
tcles he will Tx prices far below cost. knowing
thev Will not oV demanded or hat he will be re-
heved from performance. An honest bidder,
not So well posted. atringes his bid WITH teason
ahle profit on each article. AT the department,
both blds being Ouened. both are scaled aud
/ Hvefa ed, and Vt II discovered that IN the aR.
pregatc tho "knowng" BIDDER Ia the lowest,
aud when the day Of performance comes ne
proves To he fortunate bidder, In this, that the
department excuses nm IN his ulufe To- de-
liver cert I'm aril les. wniie he takes care that
those delivered shall be articles ON winch he
makes the LARGEST prOnis.
Itisagro.s fraud M abuse to send away
from their regular pllce OF duty INSPECTORS OF
tint Der. &C.. Us was done by the department III
the cases Of Constr ,ctors Brown ana ligler,
/ OrNtll Or. nj. ana q L. Wall ce. Constructor
! Hart Il. no saws th8 practice Is "A new one. aud
! Of decided advantage To the cOutr ict0rl. was
sent to the swans ~ Louis g. Inspect I'VE
| o. k under a contract made 10y :. Il. Brown, aud
sod al a profit 10y him to J. Bloler the alleged
purpose being to Protect tue Government anu
/ save expense yet II Is 10 be noted th"t "nis
/ llartt certified u the department it Is one
| amount. the department paws Bigler Tor another
end larger 9ne, .mcunt,ns TO- ss,e,a tn1us,nd
! taken, why send him there or why pay the ex-
| cesslvo bill without arst requiring AN expiana-
this, uerpetrHted by the Inspector at Mare Island
nav, yard, and with the active or positive con-
nivance Of tue chief OF the bureau.
he timber Inspector at the Philadelphia Navy
Yard Ia permitted 10 ~ into the state OF Della.
ware to Inspect live oak Knees for Mr.. Orvil
Grant, the expenses Of sad Inspector being paid
bs MIR, urant. And the timber Inspector lMr
to so ou o. on Sns Ns for a ssso
VINO paws his expenses. II there be no other
corruDion la this than the mere favoritism
shown, this sOne Is sufficient to make IT grave
abuse. what rights or privileges should these
gentlemen have over other coulractorsf Or, u
It be hight In Itself. why not send tue inspectors
OF timber IN every instance and to every con-
tractor1
STRAW BIDS AND THE LIKE.
Akin to the above Is the practice and ruling
of the department that In case of failure
Of the lowest bidder to comply with tue
terms of his lid or contract, the departing ut IL
not bound to 10 to the next lowest responsible
bidder. out may select whom they please. aud
tSSy see TEope nosse Instance Of TITS
is the case of southland swift, already referred
20. ise House WI feao'y see what u a wide
Illustrate, 10 Is a favorte, or rs cumInissioH-re
ceiSer Possesses iuhuence at naval headquar-
ters. II procures man OF straw To bid 80 low
as to secure the contract. lie. OF course, fails
TO comply with his DID tnere1,on his contract
| 10 annulied. and under the ruling aud practice
Of the department Is secures his showing for
the job.
| A very great abuse, almost ~ not altogether
Grimm In It's character, exists In the fact that
| contractors rule ana govern. IT, very large
tent. the designation OF officers to df, rent posts
| OF du1y aud tue appointment Of clerks an
EMPLOYEES to places where they may be useful
| 70 them. inis Is evident from the fact tnst tue
Cattels are found recommending BraufOid,
| anu that Catteli recommended the appointment
| OF Hall. tue prncip cleik To- tue paviLbst, at
| Philadelphia. Matthews recoinis nds Gu ct for
| paymaster at New York, and aisO upon his,
| M.tthews's, recomme dalton, Blood, Que OF the
priucipA Clef ks III that flee, Is indors by tho
| paymaster aud appOinteI BY tue secretary -
tue Navy. At the Instance OF tue contractor
| Thckey, Lenthsll, tue enter Of tue Bureau OF
| G Instruction, Is removed. The Inspector Of
timber at New York Ia dlstasteful to contractor
purchasing paymaster at san Francisco Is made
| dependent upon the retention OF Plnney hs
| clerk. Consti uctor Easily. known for his watch
| fuln.s and lntesrity Is suspiciousy ordered
| away from Norfolk on tour Of ins pectOn wnen
| contractor swift mas unoer 10 deliver there,
| and again Is ordered away from Hoston when
the same contractor Il about TO deliver timber
| at that point Donald Mckay, q contractor to
| build one Of the eight sioops of war. lie. BY the
| terus Of his contract, to obtain timber and
| lumber from tue navy yard at Boston. Directly
| aferw ard his brot her Is appOtnted to posi-
ton IN tue navy yard, one OF bis duties being To
| measure and deliver timer and lumber TO his
1 brUther, tue contractor.
| The dependent relation of creditor and debtor
to speak of II In iss nIiidest form-existing be-
| tween contractors und the officers CLERKS, and
| employees, with wnom such contractors are
| Brought IN contact In their business With tue
| Departments, your committees regard as a vctv
| serious abuse, most cnrrupting N its tendency
| anu iuhueuce. That this abuse exis.- To d very
| disgraceiui extent In the Bureau Of Provision,
| anu Go hing Is app trent from the testimony 81
| Mr. Matthews. Who tostines that his urva.e &c J.
| ings with The v.rous purchasing ia, masters at
|
and that he sells goods to all orefs. clerks. and
| employees cOnnectedwitn the Nav, Department.
| aud NJ h the pUrch4sing and lnspectng pay
masters oflce at New YORK, and wan the u r.
| termaster. assistant qIarterlnaster, and chief
clerk Of tue ouarte master upon the most
| favorable terms INA =, way, Sust
| AMI nve per cent aided, with Indefinite
uy such officers To nis co-pTtnefs. aud leaving
| tue very serious sGsplc,on tuat such oil were
rs sndarstsnd h . Il .tes that Mr Mathew
| has sold TO the Government provisions, CLOTH
ing' E, since 1911 Amounting TO near'y TIRE
uiiiions Ot d"liers, aud now IL h'ppens tnat az
private sale he purchases the entire stock II
condemned clothing belcnging 10 tue United
81 ties Navy. In this matter Mr.. Matthews seems
| u have .cted upon the maxim ~ TIA eminent
nnancisr. Rnow" TO fame through the American
| Credit Mooilier, which WIS " o place your mo
uey where II would do the most good"
Merely 10 euumerate every case Of abuse az
fraud discoverea by your committee in their
prolonged Investigation wouid I'll AN ordinary
| volume but, IN addition 20 those already r.
| fefred to, mention m.y be made Of a lew others,
| sucn - the Discharge u q one armed soliler at
| the New YORK Navy 1.rd TO maze rOs IN Tor
| brother OF = naval cons trucLor; the discount
made by contractors on their sales Of goods To
officers aud employees In the naval service tue
system Of undertaking 4 pawn - els lettings
| where the amount Of TIE bid, Just one cent be-
| low the next highest compettor, Is PLAIN eyi
dence II tricAerb anu fraud; tue buying n ol
successful biuders, ard The collecting OF fees OF
| coutrin ulions 10 political funds from contrsc
tors the charging of items To- unusual and i'm
proper accounts cases ia which mecnan g nave
pad ices COR oblaLths lheII pozl lyls IA tu'
yrds. and cases wherein par les have fur
|
OrUitAnt rates. Your Committee must no
fail 10 call attention also tOa a-e Of attempt
ed fraud 10y tue nedI II tue bureau OF StesuI
| Engineering. man named NJ. NJ. ksiehn wa
directed by the Secretary Of the Wy to be en-
rolled al tue Washing on Navy Yard ia the dc
pnrtment of steam engine ring a. a mechanic Il
| the rate of s. % per day, although he was at h'
same lime clerk In tue l. nd ONCE IN tue DE
pa tment of - Inferior. 1t Is tne eIstence o
abuses Ike these that gives ground Tor sucl
atements - the following, Y loted from to-
testimony OF the Admiral Of Tue Navy:
estimate that the money nov squandered IN IN
navy ards Ia payment OF worthless Iiccha los Ia uu
neccs AIRY OuL.}s, would buid ANNUALLY Two heaV
irunclais The present abuses are the result of ~
Imperfect syten OF aoinin tratlon aud tne lmprOpe
crference u pontcans, wulch would rhlp~reek Al
| puDhe W private estabiishnlen t IN eIlste-ce.
| ILLEGAL PURCHAsIS
| Under various acts oil Congress relating 10 tn
naval service, running from March >, lSih Il
ApTil II, lsj and more partlcul iriy referring Il
tho mode aad manner of IN KING purchases ano
contracts, IL ~ IN de the duly OF The Navy d.
IaTt.nent, in the puronaso OF supplies or max
lnK Contracts 10 lvertt-e a 81 lcirnt time pre-
NiOusly for pre- pOsaIs respecting the same, AIl'
la CASE Of &c rtaIu materials. 1nur weeks ia OH
or more principal papers published Ia the plac
where the ARTICLES IRE to be furDisned.' unes
time VIII not permit, OF the immediate DENY
efy or performance Is required ny tue pdbli'
eNigency.'
Your committee submit statement from