Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1878-05-11
OUR ROTTEN NAVY,
REPORT OF HOUSE COMMITTEE ON
EXPENDITURES.

Startling Expose of Extravaganza and Dis
regard of Law OF the Robeson's of the De-
partment--Millions of the Peoples Money
Misappropriated and Squandered and
Honest Debts Left Unpaid.
WASHINGTON May 10.-The committee ON ex-
penditures in the navy department made a
report to-day. They say that extravaganza
and disregard of legal restraints have been rec
ognized at almost every step of their inquiry;
and previous to the beginning of the present
administration of the department. At the out
set they were staggered by the immense sums
apparently owing by the several bureaus, reach
ing to a sum of more than 81, 0OO, 900, and this,
too, notwithstanding the enormous appropri-
ations made annually, from 1860 to 1876, both
inclusive, aggregating an amount of $149, O00,-
OOO. To compensate the vast outlay, We have
navy contemplate even In comparison with
those of the Sd and 4th rate powers: Notwith-
standing the plain terms of the law, purchases
have been chiefly made by which the navy de-
partment has been supplied with materials not
in obedience OF expediencies, but vastly in ex-
cess of its MEANS This violation of law, with
out warrant in precedent or authority or de-
plcted treasury, has been to the extent of mil
lions of dollars, and has been the food on
which pampered favorites have fattened, while
it has prevented payments of money due
meritorious class of creditors, to such an ex-
| tent that many have been involved in bank
ruptcy, and all of them subjected to irreparable
loss.
am cunt of purchases and bureau orders within
the last few years aggregated more than $780,
100000, and the advantage of open markets
have been ignored, fair competition avoided
and both the spirit and letter of the law disrc-
garded. Alarge share of the Indebtedness of
| the department is due account of contracts
for repairs, more properly for rebuilding the
Puritan, Amphitite, Terror, Monadnock, and
| Miantonomach intended to be double
| turreted monitors. The cnotracts con-
change of new for old material. This involves
| a violation of the law the part of the
secretary of the navy. The sum which has
| been paid or remains due on contracts for con-
struction of said vessels, is 81 ,3l6,25O.
One of the largest contingent liabilities of the
| 1865 government, grows out of orders for tim.
Der and iron-clads, and boilers, suspended by
the present secretary of the navy.
| The majority of the committee report that
| the indebtedness which they have mentioned
is owing to certain parties the amounts op.
| posite their respective names III the bureau OF
engineering, aggregating l,423,5 SIG; in the
| bureau of construction and repair, 1928, 534
| amounts due for timber in the bureau of con.
struction and repair, $4l6.392; bureau of pro
visions and clothing SAT, 1886, making tota
of SO, 217, 1913.
In conclusion, the majority recommend thu
adoption of the following resolution Thai
the committee on appropriations be and il
hereby instructed to report an appropriation il
the sum of $3,l77,73S or SO much thereof a
may be necessary, to enable the secretary to
pay the claims mentioned to the respectiv,
parties.
mn
hereby instructed to cancel the contracts dated
March Sd, 1877, with Phineas Burgess, for the
completion Of the Monadnock, 1896,
900; with Vim. Camp & Sons
for the completion of the Terror
1913, 900; with Harlin Il Hollingsworth, fo
completion of the Amphetite, $1,000; will
John Roach, for the completion of the Puritan
S1,4l7 642. Also tho contracts with the Soutl
Boston Iron company, dated respectivel.
March 7th and 10th, 1877, for the construction
Of boilers, together amounting to 1856, 0O2. 63.
This report is signed by Representatives vii
lis, Whitthorne, Carlisle and Pridemore.
The minority report of the committee signe
by Representatives Page, Hubbell and AS
Williams of Oregon, says the report of the ms
iority of the committee has the great defect @
, ignoring the testimony taken by the commit
tee the plain conclusions to be drawn from il
to create an occasion for undeserved censur.
They believe the truth is desired by Congress
well to substitute unsupported assertions an
assumptions for sworn evidence. They hav
8 therefore, not been able to agree with the mi
jority in their presentation of the results {
this investigation and the sweeping censure
all concerned, and then give their own concl'
t sions derived from the testimony.
Il The principal part of the indebtedness of Il
= navy department is for the rebuilding of III
II double turreted iron clads. 1t is difficult
4 see where any reason is found, either in law
- testimony, to criticize any contracts for I
building of these great war vessels, on Il
ground that such contracts were not in purs
ance of advertisements. Such matters are n
subject to advertisement, and cam
practically be more so, and not
is ing in the provisions Of the law govern
er purchases for supplies and services in the ma
ia department, has any application to such co
If tracts. The practice has been to secure col
~ petition among bidders by advertisement
by personal notice, and the testimony taxi
shows this was done before the contracts
building the iron clads were given out, and II
rates were secured from competent parties, b
Of from the foundation of the government it h
I'd not been held that the law requires such wor
ir to be advertised and let to the lowest bidt
:, secured by such advertisement.
- With regard to open purchase of suppl
~ and tervices, the testimony is uniform that
government gets better articles at cheaper ra
:" than where it is done by advertising.
ment, as the law required, the exception be
where Immediate delivery or performance
~ necessary.
I'm In conclusion, the minority say the ex
his amount of the Indebtedness of the navy
Lis partment is $3,217,738. The creation of
us indebtedness arose largely from the chang
th. policy by Congress, by which the approp
lions for the working bureaus of the dep
ment were greatly reduced, leaving the "
h. contracted for and necessary to be finished
an incomplete state. There was nothing CT
w. inal or improper in the mode this indebtedr
as, arose. and nothing has been concealed Fl
dy Congress. Parties dealt with may well C.
ploin that the government disregarded its
obligations by leaving them unpaid.
The minority agree with the majority in
l; recommendation for the payment of this q
and present a resolution instructing the Sc
uf- tary of the navy to examine the contracts
the completion of the Monadnock, Ter
Amphilite, and Puritan, and also the contr
with the South Boston Iron company for
construction of boilers, together amounting
cu- So, COO, 263 and on being satisfied that the s
are with responsible parties and for pr
80 prices, to confirm and carry out the same,
an appropriation be made therefor.
let Reports ordered printed and recommittet
rue
col Miscellaneous.
,eh- WASHINGTON, May 1O.-The Senate conf,
An tho following nominations to-day: Or
ter States marshals-G. Schnelger, Iowa, for
om- Territory Of Wyoming; c. s. Chase, Wisco
ten Territory of Idaho; Norman Buck, Mime
rom | rr;%o1 Gfa%oo attnrnov for the TerritOr,