Year: 1862

vessels when sent forward, from conviction, and
also from such information a. could obtain, that
and wrote Commodore Bresse that should not
order payment until the original bills produced
or verified BY oath wha.svsr therefore there Is Of
department., nor 70 its policy its agent but 10 the
naval officer whose professional skill the committee deem
indisI easabe to "successfu transactions and
70 that system which they commend preferable to
commercial usage deem II important that the CORES
pondence between the and Commodore Breese
At the tme In relation this matter should be publish
cd In order that all the facts may be known, and accord
ngy annex copy Of that correspondence 70 this re-
port


II s proper to add that copy OF this correspond
snce forwarded by me TO the Investigating Commit
last do not perceiye, however, that any allusion is
made to it in their reporan omission which, consider
ing the character of the report and the character Of tho
correspondence, Is certainly remarkable.


Among the large number of purchases that were made
under the mercantile usage which the report alluded to
denomnates remarkable arrangements that of tho
Stars and Stripes selected furnishing the point
cd testimony that the policy Of the department
wrong and the agent an improper 70 be selected
for that duty As presented by the committee, and in
point Of fact Is probably the strongest and perhaps
only that be adduced in their behalf. The COM
mtttee say they desire to present.


simple deception practsed upon Mr. Morgan
IN the sale to him of vessel the Stars and Stripes
sos
charter to the United States in that two months net
o wss es Of s
Ar. Morgan believe that Il cost 100000 to build her.





commended to the department by naval officers
particularly well adapted TO perform effective service
In the blockade Mr. Morgan was therefore directed to
purchase her, II he could, reasonable terms To do
this attended with some difficulty, for the vessel
at tho time under charter to the War Department
for $4,000 per month Mr.. Morgan succeeded, how
ever, in purchasing her for $55, ,0O0 The committee
state that she had actually cost the but 000
and there doubt that under an com
binaton Of circumstances, when business stagnant
material and labor cheap with engine constructed
for another vessel offered them at greatly reduced
price, the OF the vessel built her remarkably
low rate. But this to their advantage and know
not that 1t should be made point Of assault on the
Navy Department that the had under favorable
circumstances, bunt the vessel economically and at
. reduced price. The true question is, what she
worth when purchased. This be best ascertained,
Perhaps by comparing her with the vessels purchased at
about the same time by naval officer, who is endorsed
BY the committee and which procured under that
fJTtem, which they commend greatly preferable to
that which tho department adopted.


The Stars and Stripes q steam screw pro-
paer, Of 407 tons burthen, bought under mercantile
sssge which the committee condemn in general this
transaction in particular, for $55 900.


The Pengain, steam propeller, three years old,
with machinery considerably worn, burtheH 3S9 TONS
was bought by Commodore Breese, naval officer Of
professional skill spresumed to know what serv viCe Is
required Of such vesses-the officer and the system
both commended by the Investigating Committee as pre-
ferable to that which the department had adopted For
the Penguin which Of less tonnage than the Stars
and Stripes and two years older, Commodore Breese


The Abatross, another steam propeller OF 375
TONS three years old Of the class also the Stars
and Stripes except her age which is greater and her
tonnage which is less was bought by the same naval
officer, under the same system, for s7o ,OOo.


These tho facts in relation to these purchases under
the two systems, by merchant under mercantile usage,
and by naval officer under the system commented
by the committee The Stars and Stripes they select
as the most Objectionable purchase under the policy Of
the department and the action Of its agentshe Penguin
and Albarogs have introduced in and character
approaching that vessel, and they pur
chased by naval officer under the opposite system.


In the statement censuring the department for its
purchase Of the stars and stripes objection is made
N N haf fhn nf vad
large prodt-one item Of which "$15 000' net
der charter. Although this is made OF
that the charter was not with the Navy but with the
War Department; and, in all probability, that profitable
charter compelled the Navy Department to pay higher
made by the naval officer the price paid for the stars
and Stripes cannot be considered cxtravagant. doubt


she could be duplicated at this time for the money paid
Tor her.


is represented in the report which led to the adop
tion OF the resolution by the Senate that OF
opposition to commercial usage in purchasing vessels,
and had been notified that the aggregate commissions for
fact had been asceraned and brought my knowledge
ss early as the 9th Of September. Although have no
recollection Of any such notification, and can find
cord Of It In the department, do not TO question
the fact in the receipt Of constant daily advice
and suggestions from many on almost every phase Of tho


On the eth Of September and for somo days thereafter
was in Connecticut. distinctly recosct
tion general in its character but know not the date,





more than one present when the subject mentioned
intended TO object TO the system Of mercantile
usage which the department. had adopted, and to urge q
return to purchases by al officers did under
stand H. and had been aware that such the object my
conviction and experience were 80 directly Opposite that
could not with all my the gentlemen aban
doned system which knew was rapidly securing to
the government good vessels at low prices, and which,
m oil in arrangements and details was incomparaoly
and satisfactory than that which they pleased
70 intimate they desired should prevail


l.oJ
been sninently unsatisfactory and would, had it
tinued been expense Of hundreds Of thousands OF
TO the $ oyrr snd wna. has Sen
would the navy have been 30 rapidly and efficiently aug
mentsd.


MR.. xoRoAx's QUALIFICATIONS


Tho report which expresses dissatisfaction that
adopted mercantile agency In procuring ships also de-
nSunces the agent who they say "had never had the
which he was called upon 70 discharge either in tho
naval service the building buying and selling Of ships,
or In any pursuit calling for knowledge OF their
struction capacity vsue having spent hour
h either"


l have personally known Mr. Morgan, who is
thus represented, from his youth, and for the last
twenty years active business member Of q
Arm largely engaged in importations-a CONNER
cia house owning, purchasing, selling and charter
ING vessels, and who had himself acquired o for.
tune In successful business pursuits. II Is a
qualification that every business ho has expressed
opinion the subject takes entirely different
view from the report, and inconsderabe portion OF
the largest shpowners and merchants have borne von



Morgan for this smployment--hs skill integrity and
great energy Of character While the report dcpreca,es
hb capacity and ability eminent merchants Of New York
me that "the purchases made for the Navy De-
partment In this city by Mr.. George d. Morgan
made with integrity, economy and ability and to the
great advantage Of the and the commission
Be received from the sellers was In accordance with the
usual mercantile custom.


The opinion Of these practical men, whose largo expc
rience gives weight their declaration strong
tfast with the report, and confirms In the policy Of
adopting In such case this mercantile usage TO tho
requirements Of the government They have recently
addressed me- and state that tho plan you adopted in
this business believe has resulted your obtaining
good vessels and lower prices than have usually been
paid by the government"


annex 10 this communication Of the many testi-
mouials from responsible merchants, cnmmcndng aud
approving my course beneficial In its results to the
government. II Is not necessary that should say such
assurances, from such men, at such time, are most
grateful


f. CONCLUSIONS.


In conclusion think II right TO state that those points
IN my plan Of procedure in the purchase Of for
the government which most fixed and absorbed my
attention aud throughout the whole transaction do
not appear to be equally prominent and principal before
the minds OF all those who profess 10 have Investigated
"a h~.- .~ktl. ..I. .-tt,..