The New York herald., 1878-12-16
$173,674,l7O 36

T
Add to this the deficiency appropria-
tions for fiscal year 1877. ........... 2OO3 1851 o7
And then add amount to pay approved
DIis. 3217,73s T6
For our navy there has been expended the very
large sum Of over $500 000 000 Of which the sum Of
S4l6,7s5.272 OF has been expended since the year
1864 and the sum Of $lS2. .496, ,G33 4S in money-to
which is to be added millions of accumulated ma
teria.-within the last eight years 1t would be natu
rally expected from this vast outlay of public money
that should have navy in it's condition comment
surate with and responsive to the sums of money so
expended. But is such the fact?
CONDITION OF our NAVY.
In comparison with the leading naval Powers of
the world we occupy very hnmliating and unsatis-
precate it now and if possible. provide the remedy
than be startled by the revelation at period of i'm
pending danger Confronted with this exhibit of
the navy and demand from the Secretary (exSecre-
tary Robesonl for an appropriation of $2.OG S6l 81
to meet certain deficiencies. together with state
mcnt from the present Secretary Of the Navy that
there existed an actual Indebtedness of various bu-
reaus Of the department amounting to
the sum Of $32l7.73s 70 and q contingent
liability of $3,60o,263 90 more arising from
certain agreements made by his predecessor in Office
for which he had found no adequate appropriation.
and hence had suspended your Committee undertooI
the work of investigating the mode and method by
which this unhappy state Of affairs and condition Of
the navy was brought about In doing so they asked
Of the present Secretary exhibit from the bureaus
so indebted of the manner in which contracts had
been made since 1870, the manner in which this in
debtedness had been created, and the manner in
which public property and money had been disposed
OF, anu AZ the same time asked the Secretary detail
certain officers who should be charged with the duty
of inquiring to these matters and how far the
interests of the government had been guarded and
protected by the agents OF the government. Tables
were prepared so as to formulate the information
sought from the records in the Navy Department
under these heads, towit-
Contracts &C., other than those included in the
annual lettings. and submitted TO Congress in the
annual reports Of the bureau. &c
Statement of Indebtedness of bureau to January
l. 1873
Disposition of public property by bureau other
that disposed of by sale. barter and exchange
1871 in part payment for work performed material
furnished or to DO furnished
''Sale Of ships and destruction of ships"
These as well us other essential tables being
submitted were answered fully and infinitely by
officers OF the department and appear with their
testimony do the reports Of the officers dcsig-
mated to perform the duties requested by this com
mittce.
THE TABpIArgp TESTIMONY
This tabulated testimony shows a constant and al.
most ceasclcss disregard and violation of sections
3 Tug BIS and .T22 Revised Statutes which provide
that all purchases and contracts for supplies or
services in any department Of the government except
for personal services. unless immediate delivery
performance is required by the public exigcncy will
not be allowed, and that the should be- let the
lowest bidder who is regular dealer in or manufac
turcr of the article which he offers to supply. And
under these contracts. agreements orders it Is
shown by these tables that very large amount of
sections reaching over s90OO00O0. And let Il be re-
membered this does not include the equally large
masters The effect Of this disregard Of the law is 70
drive from among the customers of the department
regular dealers and manufacturers and to encourage
the production of middle men and favoritss. at the
time depriving the government of the benefits
and advantages of healthy competition.
II is argued that the discretion OF the enicer in
making purchases is the best safeguard OF the public
treasury. This may be SO IL the officer IL faithful
safeguard. But. without argument. it is safe for
your committee to say that the law does not admit
of such discretion or argument
Provisions of the law in harmony with the letter
and spirit of our constitution and which in
tended to prevent the use OF public money unless
sress % and to keep public officers from oGn in
volving the government in any liability
Ssyo"a and snos
shown by the testimony already referred to and in
the facts exhibited in the report made to the House
mittcd by the Hon. Mr. Goodc. in regard the diver
sion OF the League Island appropriation so termed
over 900 TO pay certain claims Of indebtedness
In which the government had been involved by the
acts Of certain officers. to whom special reference will
hereafter be made.
DETAIL OF TRANSACTIONS
IT is shown that thirtyonc ships, whose original
cost was $l3T7bs37 81 sold for S542 54 Az and
twenty ships that cost the 800 As
were broken up and sold for $541 s1 1G from which
take the sum OF SIO1 s47 A. cost OF destruction Ma
terias whose cost is not ascertanable, have been
sold. bartercd and exchanged for comparatively |
triiing sums and these sums have been ap- |
From all this it is submitted by your |
committee that it is shown that large amount of the
public money ana pubic property has bcen ufilaw- |
fully disposed of Before inquirng ~ to who are |
the parties responsible for this condition Of things
your committee deem IL proper to refer to certain |
other testimony taken before them, which makes il |
manifest. in their opinion, that due regard |
for the protection Of the public interests
did not mark the administration of |
the trusts committed to these parties
der whom created this Indebtedness. !
connected with the sae of the Delaware and severn;
with the contracts made with Hatch, Loud Il Co.: |
with the suspicious accumulation Of red oak knees at
Portsmouth IN. Hl Navy Yard, where only the books