The Sunday herald. [volume] (Washington [D.C.]) 1866-1887, 1885-07-19
ADMIRAL upsHuR's ORDER.
Explanation OF Ills Controversy With tho Fay


MASTERS.
tSau Francisco Call, June IL, isS5.l
The following statement gathered from an of,lcer
OF the Navy, and zone who knows" VIII explain the
recent controversy between Rear Admiral upshur
and some OF the paymascrs:
"Scvcra papers Ot late have published articles In
which they attempt 20 explain what they call a con
trovcrsy or scandal between Rear Admiral j. n.
Upshur, United States Navy, and some OF the pay
masters OF vessels which were under his command,
and In the CAL Ot June an article appeared copied
from the ARMY AND NAVY HERALD OF Washington.
In order that the public may fully understand tho
case, the following facts, on record IA sworn evi-
dencc, are given, and comparison with what has
heretofore appeared In print Will show how crrone-
ous some of these articles have been:
"Breny, the facts are rs follows: Whcnthc United
States lagshtp Hartford arrived IN Callao Peru, 1t
was learned that the paymastcrs Of vessels had been
70 the q nae OF purchasing supplies PIC M ron me % one
far In excess Of market prices that irregularities
were suspected and an investigation was ordered by
"The investigating board Investigated the ease
thoroughly and made is report In writing TO The
Admiral, who Immediately ordered couitoi inquiry
to substantiutc the report OF the board, etc. The
findings OF this court were In keeping with the re-
port OF the board. aud then the Admiral ordered a
the paymasters, which charges OF 'culrablee
lnenlciency aud negligence In the performance Of
duty were proved against the paymasters, and the
court sentenced them TO suspension from the Navy,
and to be reprmanded by the Secretary Of the Navy
And then follows the peculiar part OF the whole pro
ceedngs, inasnuch as the paymasters, on arriving
had been unjust TO them, and had some personal
spite against them. 10 show how this was brought
about Is easy enough, anu the following explains
itself:
"The Navy regulations require that before pur-
chases are made bids shall he received from firms OF
dealers, and that the lowest bids from reliable
dealers shall be accepted In Caao, since January
l. 1885, this had never been done, and the one house
Of Grace Bros Co. had always furnished supplies
without having bids rendered them and without OPP
position, since bids not solicited by tine pay
masters from any other firms. As natural consc.
al " n II.
paymasters seem TO know little (?l about thcir
duties that they paid these prices. The prices
paid for articles from this tirm by the paymasters
ranged from 90 to 200 per cent. above market
rates. and the amount OF money annually lost the
Government In one year was nearly Sl0D,oD0.
state that the prices paid are the lowest market
rates. and for period of several years before tbs
investigation they had continually certified that the
eXorbitant prices which they had paid were the
lowest market rates.
"When the above facts were proven beyond doubt
by sworn testimony, the Admiral issued IN order
that the paymasters should not deal with Grace Bros
d Co, and made a contract with the house OF A. 4
Shute Co., after having received bids from III,
leading houses of Callao. furnish supplies to IN,
United States naval vessels at prices much below
those formerly paid When this was made known
TO Grace Bros. X Co. they Immediately offered sup
plies below the contract prices, which contract price
their vouchers stated the contract prices were no
the lowest market rates aud that they could get sup
plies much cheaper. Before the investigation TOOL
place they had never thought oi trying to hay,
prices lowered, hut AS soon as they were on the cv
of court -,artal they iI all In their power to gc
Admiral Upshur In trouble 10y pretending that hi
contract prices were In eXreHs Of market rates
when indeed, they were very low rates"