The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-06-18
Gross Violations of Law in Pur-
chases and Sales.
LEGAL ACTION RECOMMENDED
Irregularities in the COnSl ruciOn ard PrOyi-
siOns and Clothing Bureaus.
THE LOSSES TO THE GOVERNMENT.


WASHINGTON June IL, 1910
Tho House Committee Naval Affairs have con-
cluded their investigation OF the late administration
OF tho Navy Department. and by the vote OF tho
democratic members thereof have adopted the fol-
lowing resolutions for tho action OF the House OF
rescntatives:-
Resolved, That the acts and conduct Of tho late
Secretary OF the Navy, George NJ kobeson; OF tho
CONSTRUCTION aud Repairs and Provisions and Cloth
ing in the sale and disposition OF puolic
property, in thor method oil making contracts
aud in involving the government in indebtedness over
and beyond The appropriateness made by Congress Tor
tho support OF the navy dsscrvs and should receive
tho severcst censurc and nation, aud that in
addition thereto SAID parties, as well as all others
niding anu aoetsing therein, should be punished TO
Resolved further, That shall be tho duty Of tho
Clerk OF The House OF Representatives, 70 deliver
certified copies OF the testimony taken before the
Committees on Naval Affairs and Naval Expenditures
OF tho House TO tho President OF the United ~ es
and the Attorney General, with tho Recommendation
that the parties shown ny this testimony 10 have
violated the law and especially IN regard 70 the IN
lawui disposition OF pubic property and money
may DC triea and punished as prescribed by law.
FACTS IN EVIDENCE.
The committee in presenting these resolutions
state that evidence which thoy have Obtained Is
Tor tho most part taken IRON Official reports and
records Of tho department., which are submitted 10
tho House
The following is a condensed statement or the more
important facts evidence before the committeo:-
OF the rebellion over S4OU 900 600 have been ex
pended tor account OF the naval service They
Ind that VI this FULLY SlS2 00O, 0OO have been ex
pended during tho administration OF Secretary Isobe
" IL also found that during his ADMINISTRATION
$50, DOC, 600 of public property, winch should ny law
have bccu turned into tho Treasury, have bcen.cx
pended III aud Tor tho Navy Department
Sec0ad-Ihe committee nnd that every protective
ana pronDltive enactment OF law made tor tho SEQ a.
r,ty OF pubic money and pubic properly hns
as result of these violations Of law
excessive prices have been paid icr property which
has been bought without advertisement or compcti
ton; that vest amounts of LuJc operiy have been
disposed OF secret and improper ways, and the pro-
cceds applied 10 naval accounts instead OF being
turned into Treasury that great quantities OF
necessary supplies have becn purchased that u hus
mo: wit, the evidence OF irrsguarly extrav. gan CO
and fraud at every STEP aud that vast sums VI the
public money and amounts OF the pubic property
have been wasted, expended, without any compensat-
ing benefits
The committee say
In tho face these millions Of dollars OF wasted APP
preparations with the number OF ships aud material
disappearing from tho service shown by this test
mony: with the law disregarded AT evory step al
most; with tho Treasury Of the government involved
In the payment Of liabilities OF IRON $4,000. 600 to
81 600 900 created by agents oil the government,
We hesitate to pronounce their acts illegal and GRIM
naiy wrong, anu 10 cali upon that department OF tho
government clothed with the execution OF The laws
arraigu and bring these parties to tho condemnation
which these laws may visit on them : Your commit
tee deem this to be thor duty and IN doing SO call
tent,on 70 section !, 43y, which is as foilows:-
livery person who steals or cmbexzes
knowingly applies to bis own S,s or WHO n"iw sails
clothing. subsistence stores money or other property OF
naval service shall be punished as prescribed In the
ceding section.
THE RESPONSIBILITY
Aud In the further discharge OF thcir dnty your
committee say that for the existing Indebtedness
oil the Navy Department aud that Tor the unlawful
sale and disposition OF large amounts OF valuable
properly be longing to the naval SERVICE aud the IN
lawful disposition Of large sums u OF the public
George N. Robson, late Secretary OF the Navy
w. W. Wood, late chief Of tho Bureau OF
Steam Engucerngi Isaiah Hanscom, iaie Chief
OF The Bureau OF CONSTRUCTION and Repairs
and James IL. wattmouth, late Cniei OF tho Bureau
OF Provisions and Clothiog chiefly responsible.
There are other agents OF the government whose
duct pubic service deserves to Ue inquired INTO
by the Executive Department and ihcy Chief En-
rineers stewart Fithian and Henderson, whose hasiy
exam nation oil material NJ the Boston Navy Yard
docs not evince very high interest ~ or regard Tor
referred and also the conduct OF the late
raymas,er General Bradford.
IL is claimed aud urged that the abuses for which
the 80 parties nrrngned existed with their prede
ccssors and hat presidents should cxtenuaic Their
conduct form Tor tneir action. IL Is re-
pcd by that II Is not shown that any
Of their predecessors involved their government IN
liabilities In excess OF appropriations reaching from
s5 900 600 10 $1,000 600 and the Of 1872,
bcrcinboiorc referred to- these ana but these parties
former OF the govern men', nor can
be, that large an amount Of public property has
been disposed OF at private sale and oy barter and
exchange. nor at any time, under bny govornment
clsming the protection OF law such an utter disre-
gard vi It's authority
LEGAL ACTON SUGGESTED.
Therefore, Ia the opinion OF your committee, that
tho law may vindcated and respect for us man
aa,cs mai aincd II is the duty OF House
its OF this illegal Practices OF these Tor
ucr officers OF the Navy Department, and to recon-
mend to the Executive Department OF The govern
pcut tho arrangement and ral OF the parties herein
named 3cioro naval and criminal tribunals OF tho
country. the end that II, SUCH trial, they arc
found guilty they may be punishcd aud accordingly
your committee submit Tor the favorable considera-
ton OF the House, The above resolutions
Third-rhc committee nnd that contracts 10 the
amour Mt Of $40 600 600 have been made by tho
heads Of three bureaus IN tbs Navy Department.
VIZ. steam engineering, construction and provisions
ana clothing, under what arc termed bureau orders
or bureau acccptanccs, without any regard 10 tue re-
qu,rcmcnts OF law IN the manner 81 making thein.
This does lot include pn equal or larger amount OF
purchases made under what is known as tho open
purchase system II appears that the re-
SUIT OF those practices that the govern
incpt has uniformly PAID higher rates tor
supplies than other buyers that these
prices have often been enormously excessive and
mat Wine there has been great reduction ~ tho
prices OF materials during the pastew years there has
been no reduction IN the cost of naval supplies lbc
evidence shows that all competition IN oidiDg tor
supplies discouraged and resisted by the depart.
hero contractor at regular aud legal biddngs pro-
posed 10 Iurnisn white oak TIMBER ~ forty cents
cubic loot, but was permitted by the head oil the
Bureau OF Construction 10 Withdraw MS BID, aud
IN rough another favored contractor TO supply tho
same imocr 10 the department Al sxty-;wo conts
cubic foot.
F5urfh--rhc committee end that unnecessary aud
undcfna ndcd supplies we're purchased at cxorDtant
prices 10 the amount OF milltOns Of doIars great
amount Of timber oil character and description not
demanded by any pressing probable future exgcncy
OF tho service purchased anu stored IN The navy
yards, where 1t Is now rotiing. Ihey mud as tho
nccu mutation OF 1.-Two oak timber that the principal
purchases have been OF ruch description aud
character be really OF no value 10 tho govern
incnt aud upon this point tho cjmmiitcc have tho
opinion OF the best experts OF the navy. vast
quantity OF live oak timber ~ accumulated which
could never be used In tho construction OF any out
very small vessels, and which consequently the
government should have purchased or paid Tor
a all
E,ah--Tnc committee find from the Official tables
and reports supplied bv tho department. that vessels
hch cost the government Of the United States over
sl3 900 900. whose appraised value al tho time oil
thor safe was 81, QUO, were sold Tor about
$500 OOJ They also ind that vessels tnat cost tho
Government IN tho aggregate over $4,000 900 were
cot 10 aud sold OLD MATERIAL tho proceeds Of which
amounted, alter paying tue cost Of destruction, TO
saIOOO0 From this appears that property that cost
tbe government $26c0000O we're sold tor less Than
Al QUO 0C0, the government under an honest ad
min, tratioa might have realized several millions
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