The morning news. [volume] (Savannah, Ga.) 1887-1900, 1889-07-09
THE CARTER-CURTIS CASE
THE FULL TEXT OF INSPECTOR
HUGHES REPORT.


With in Detail-The Charges Pro-
nouuced to be Without Foundation
An Interesting Review of the Work
Of the Engineer IN Charge of the
Rivers and Harbors on This Part OF
the Coast.
SAvANNAH, Ga June 25, 1889
The Inspector General, United States Army,
Washington, D. c.:
SRI respectfully submit the following re-
port or the invest alton of the case referred TO
me by your Endorsement Of the 18th instant
Il the first place | called upon Mr. James At
kins, attorney-at-law. and requested him TO give
me any clews be might be posse ssed Of that
would be of assistance TO me IN unraveling any
EVIDENCE or circumstances that would establish
tue fact of the existence OF a ring" or comb
nation such as is limited at in his letter to his
EXcellency, the President, of 3lst ultimo. Mr..
Atkins informed me that he knew nothing more
imam what he had stated in his letter. and that
ne possessed nothing that could possibly be Of
any assistance in the work assigned TO me.
L VIII dispose or his letter with the following
remarks; 1t intimates first, that Capt. Benja-
min ID. tTreen3, formerly Of the Corps of Eng
neeTS OF the United States Army, resigned for
the purpose OF becoming a government con-
tractor. The fact being That at the time B. D.
Greene resigned his commission as CAPTAIN in
the army 1t was for "a avO we'd purpose of con-
structng railway in the state of South Caro-
lima.
The second suggestion in the letter is TO the
effect that ring exists which, by some
means not defined, throws fat contracts into the
handS or H. ID. Greene & Co. There seems to
be good evidence in the records Of this office
(coples OF the papers inclosed and marked A.
that Is. ID. Greene & Co have had most of the
engineer contracts for large amounts that have
Deen let IN this engineering district since Capt.
dre ne r9rlgned. A careful examination of the
proposals for engineer work shows that these
contracts were awarded to Nessrs. B D. Greene
q 20. in accordance with law by reason Of their
having put in the lowest bids Copies of the
abstracts Of proposals for all contracts let in
TINS district during the past ten years are at
t2cned ana the successful bidders are indicated
IN rod ink, ocd it is to be noticed that in each
and every instance the contract has been let to
the lowest bidder
VIII now proceed to take up the newspaper
articles submitted to me, beginning with that on
page !. which appeared in the issue of the Sd-
VInndh DAILY Times OF the Sd instant. Although
tnls IS the latest attack upon the engineer de
partment the accusations refer to transactions
that took place longer ago than those referred
to IN the previous articles
TWO ACCUSATIONS.
The accusations made in this article are two
l. That in proposals for a contract submitted
and opened October 26, 1882, (see appendix b
Mr.. f. A. Smith and Mr.. Robert S. Burnett
were the lowest bid Iers but we're defeated in
getting the contract, the bids being set aside by
the authorities in Washington and new bids
called for, and the contract found its way into
tine han Is of Messrs Greene & Co, ,ohere IL had
oeeh Intended 10 place it probably at first.
q hr 4. A. Smith was given notice that he
should have the contract for 20, 900 tons OF stone
TO he used on the Savannah river, and that he
could arrange accordingly, but at this stage of
things Capt Greene resigned aud Smith ,OdS
INFORMED that his bid tgGS set aside, ana Greene
had the pleasure Of delivering he rest of the
stone and Of pocketing the profits
Inc article opens with the announcement
that Capt. Greene first showed his hand and
b had inf
ington by me ms of tchich he could obtain con-
tracts unjlGstIy several years before Lieut..
Carter was placed ia charge here"
The first case cited have traced by witnesses
70 proposal. open d in New York city by Lieut..
Col Q. A. Gilmore. corps of engineers, on the
26th day of October 1882 At that opening Mr.
E. A. Smith of savannah, Ga, and Mr. Robert
). Burnett, assistant engineer, then employed
by Lieut.. Col. Gilmore, were found to be the
lowest bidders. See appendix B.. There was
a defect or mistake in the b md accompanying
the proposal of Smith & Burnett, (see appendix
O., but Lieut.. Col Gilmore reported that this
was OF no importance, (see appendix c., mas
much, as they We're prepared to sign the CON
tract at once, and furnish contractors bond
for $4,000 with two good sureties This report
OF Lieut. Col. Gilmore seems to have been based
upon the telegraphic report of Mr.. ]. r. Gill
more, who was one Of Col Gilimore's employees
and to whom he had telegraphed asking him to
examine and report by telegraph on sufi-
cheney of Burnett & Smiths bondsmen."
KEY hSIhD BY SMITH q BURNETT
This action Of Lieut.. Col. Gilmore was in &C
cordance with the telegraphic request of Messrs.
Smith & Burnett themselves. (See COPY Of tele-
gram attached and marked d. In this connec-
ton would invite attention to telegram marked
E and letter marked of the appendix Other
bidders finding that the bidders bond" of
Smith & Burnett was defectiv protested against
their receiving the contract. Protests we're
made by Messrs Newton & Eckstein and by
Mr.. Ames Hewlett (See appendices G aud II J
The matter was brought before the Secretary
of War. (See appendices and j. All the bids
were rejected for cause (See letter of Nov g,
1882, from the once of the cnief of engineers,
copy appended marked k Upon this decision
and the authority for short advertising as shown
in telegram copy attached and marked L. pro-
poSals were a gain called for and were opened
on the 18th of November copy of abstract ap-
pended and marked Nj. All the bidders on the
first proposals are represented in this abstract
for although Mr.. Burnett do not appear, he
was party to the proposals OF Messrs. Smith
& Whiteslde aud Lieut.. Col. Gilmore required
him to resign his position before bidding (See
appendices and %, and note that while Mr.
Burnett's resignation bore the date of Oct. %,
1892, it was not received by Lieut.. Col Gilmore
until the Gotta of Move nber
In this set of proposals that of Eli T. Bangs
of Fayetteville. n. Y, was the lowest and the
contract was awarded To him.
AS to the second count in this article the
facts are as follows: Proposals were asked by
the engineer department for furnishing
materials for the con struction of dams in the
Savannah river. These proposals were opened
oy Lieut. Col. . A Giilm re, corps of en- Sineers,
in New York on the 3lst of August, 1889. There
were five proposals tsee appendix P), and Mr.
Elton A. Smith was the lowest bidder. In trans
uniting these proposals to the chief Of engineers
Lleut. Col Gilmore says, in his lister OF Sep
tolnber 4: II am not prepared to make any
recommendations with resp set to procuring log
mattresses and brush With regard TO rip-rap
stone, TO be used in the construction of wing
dams, recommend That be- authorized to
make an O Agreement, without bonds, with Mr.
Elton A. Smith Of Savannah, Ga. for the pur-
chase from him of 15, 600 cubic yards of stone
more or less, delivered on barges at the city of
Savannah suitably piled for measurement at
81 W pr cubic yard" (Soe copy of letter
marked O.
On September 7, the Acting Chief of Engi-
neers authorized Lieut.. Col. Gilmore to make
an agreement with Mr.. Elton A Smith of Sa-
vannah, Ga, the lowest bidder. for the purchase
from him of 1900 cubic yards of stone, more
or less, and continues, but in regard to bond
your attention is invited to par 1875, A. R.
1881" Copy of letter attached, marked r
On September % ind letter of Lieut.. Col
Gilmore to the Chief of Engineers copy ap-
pended, marked s.. which shows that there
was complaint by other bidders of want of fair
ness in the agreement made with NTH and he
recommends tlat all bids be rejected, and that
the work be read, ertised.
In this letter change of programme is in
tended, as it reads: II want to make another
effort 10 oct the WORK done, as lCeu as the ma
tertGts furnished By contract"
NO FOUNDATION FOR THE INsrNUATIoN.
On the same day Lient Col. Q. A Gilmore
sent the tele gram copy attached and marked
IT, to Mir. Elton A. Smith, Savannah. Ca. :
Suspend shipment of stone for Savannah river
[Signedl .. \. Gilmore"
A copy Of the letter referred to is attached