business in these departments of the public
service in New York city, into which the com-
mittee were directed to make enquiry, they
would say in conclusion, that there are more or
less abuses of the administration of a system so
vast and varied as that under consideration.
Some of these abuses have probably crept in
by a lapse of time, hy cupidity on the part of
officials, and occasional lack of vigilance. But
the committee deem it but just to add in this
connection that these abuses were more numer-
ous now than they have been heretofore.

E. B. WASHBURNE, Chairman.
R. E. FENTON,
WM. S. HOLMAN,
H. L. DAWES,

W. G. STEELE."

TESTIMONY AND FACTS.

The following, though but a small moity of the testimony and facts, will give some clue to the nature of the patriotism of the office-holders

A. Five per cent. from the harbor masters, tree per cent. from the health officers, and two and a half the Seamen's Hospital.

Q. What would be the average value of these commismissions?

A. I should think about $300 a month.

Q. Do you know whether the moneys so received are in any way accounted for by the collector to the government, or are they simply regarded as a compensation from the officers of the State of New York for the services perA. It is simply a compensation from those particular officers, and the general government has no connection with

formed?

the matter.

Q. And therefore he makes no report of the money so received?

A. None whatever.

It will be seen by the foregoing statements, that the receipts of the collector for the first twenty months of his official career were $45,571.08, to which let there be added the cotton ing to $6,762.91, and the alleged profits realagency commissions for eight months, amountized by the "professional" services of one of his law partners, not less than $1,200 per month-although accounts already published place this profit as high as $2,500 per month. In addition to these amounts we find in the tes

Samuel G. Ogden sworn, says: The compensation received from the government by the three officers the collector, naval officer, and surveyor, is limited by law. The collector, $6,400; naval officer, $5,000; surveyor, $4,900.-timony of Mr Ogden the following:

These officers also receive each one-third of the half of the net proceeds of all forfeitures, fines, penalties, &c. I have been acting in the capacity of auditor since 1842. In all such cases the money is paid to me, and I distribute it according to law. The collector, naval officer, and surveyor exercise the authority of adjusting the cases of seizures, &c. Question. What is the object of that mode of adjustment?

Answer. To save costs and delay.

Q. Are not these violations of law sometimes adjusted or compromised for the purpose of avoiding the publicity of legal proceedings; and if so, through the intervention of what officer is such compromise effected? What data are furnished to your office in such a case, and by whom is the money paid to you?

A. To avoid publicity may be an inducement to settle in that way. I have no data of such cases, and am not aware of any such compromises being made, beyond the mere fact of receiving the money, which is always paid in the same way.

Q. No sum of money, then, is ever paid to your office, except in one of two ways: either the money comes through a regular judgment of forfeiture, or through what would be called a compromise of the transaction, without

the publicity of legal proceedings?

A. It comes in one of these two ways.

Q. If property is seized, then, it is either condemned or released, or the value of the property is paid into your office?

A. Yes, sir.

Q. Will you furnish to the committee a statement of the moneys paid into your office, showing the amounts paid to the collector, naval officer and surveyor? A. I will furnish such a statement.

From the statements subsequently furnished by the auditor, the following is compiled: From April 1, 1861, to December, 1862-one year and eight months-the collector received for salary..

For distributive share of fines, penalties, and seizures.......

Through the hands of the cashier the collector receives some $300 per month for services rendered by virtue of his office to the state officers, which adds to the above twenty months.

$10,667 00

28,514 98

6,000 00 "In reference to which the following testimony was taken:

Wm. D. Robinson sworn, says; I am known as the

cashier of the Custom House.

Q. What commission does the collector of this port receive for the collection of those dues for the state officers?

Q. Is the collector entitled to a share pending in case of seizure, &c., not disposed of at the time of his retiring from office?

A. Yes, sir. If the case of confiscation was commenced by him, and not disposed of before the expiration of his term of office, he receives his share whenever it is disposed of; that is to say, the emoluments from confiscations, fines, penalties, &c., go to the collector in whose term of office the prosecutions were commenced.

Q. You have no means of telling what will finally be received by the collector from pending cases?

A. No, sir. Nobody can tell that; we never can tell what the courts will decree, or our juries will decide. Q. How does the amount received by the collector, during his term of office, compare with the amount received by his predecessors?

A. It is considerably larger than was received by his predecessors generally.

"On the subject of the proceeds from the prosecutions commenced during the term of the collector, it will be necessary to quote from a report of the Secretary of the Treasury. It

says:

Statement of suits brought in the Southern District in the State of New York, for the recovery of fines, penalties and for forfeitures for violation of the revenue laws, &c., during the year: 843 suits were brought for the recovery of $1,323,996.93, The total amount reported collected was $332,433.62-leaving still pending and undecided in this district 233 suits. The chief cause of their not having been brought to trial has been the inability of the

judges sitting within the district to hear and determine the immense number of cases brought before them.

"The collector's distributive share of these suits then will amount to $55,405 60, or in the same proportion for twenty months it will reach the sum of $92,342 67. This business has unquestionably been much larger during the term of the present collector.

"In addition to this we have other testimony from the auditor, who says that under the act of July 13, 1861, the fees resulting to the collector, naval officer, and surveyor have amounted to about (at the time he testified) $4000 each, and then further payments were discon

tinued.

Q. Have there been a great number of vessels of that character seized (Vessels belonging to disloyal persons.)

A. There have been many seized.

Q. A process of court is pending against them?
A. In many cases.

"It is alleged that over three hundred vessels were seized, worth, at an average valuation, $400,000, one-sixth of which is claimed | by the collector, one-sixth by the surveyor, and one-sixth by the naval officer-being to each $66,666 for the operations in this line during the years 1861 and 1862, which will no doubt be received by the revenue officers if Congress does not make an investigation into the subject.

"The office of the collector of the customs is worth in one year, then, on the authority of the foregoing testimony:

During the first year of office siezures of vessels belong-who, without difficulty, purchased cattle, to be ing to disloyal persons, by the act of the 13th of July, $66,666.66 "Cotton agency" commissions for eight months 6,762.91 $73,429,47

ulations. He employed a clerk, of whom he knew nothing, and had never seen before. In his evidence, at first, he did not know who recommended him; then he thought he was recommended by Thurlow Weed; and finally said, 'I remember now that Mr. Weed told me that he knew all about him, and upon his recommendation I took him.' This clerk, Mr. Cummings suffered to do all the business, and make all the purchases, except what were made by Geo. D. Morgan.

Charter of the Cataline.

"Mr. Cummings next appoints Capt. Comstock to purchase or charter vessels. The Captain, with a friend, goes to Brooklyn, inspects the Cataline, and learns that her price is from $15,000 to $20,000. Instead of purchasing, or chartering, or recommending Cummings to do so, from the owners, his friend suggests to Mr. Develin that there is a nice opportunity to make something by good management.' Capt. Comstock knew that Cummings was agent for the War Department, still he counsels freely with Mr. Develin about the value of the Cataline, and gives an opinion what will be paid for her charter. Had she been cheap at $18,000, his government was entitled to the purchase. After yielding to Mr. Develin all the time required for the negotiation, on the 25th the boat was chartered by Col. Tompkins, he relying upon Captain Comstock, the author. ized agent of Cummings, the agent of the War Department, paying for her use $10,000 per month for three months, and if lost by war risks, the Government to pay $50,000. Col. Tompkins would not sign until Capt. Comstock assured him that she was worth $50,000, and that it was all right. The testimony of Capt. Comstock shows the vast number and almost unlimited power of persons at that time assuming to act as agents for the Government. He

says:

"I was sent for by Mr. Weed to come to the Astor House about the time of the commencement of these troubles.

for that purpose.

*

*

*

*

*

He stated that he was agent of the Government, and had troops and munitions of war to go to Washington by way of the Chesapeake, and that he wished to charter vessels "Afterwards Cummings called on me and showed me the same authority that Weed had shown. It had been transferred to him to perform the same service." * ** "I should think that Weed chartered from six to ten vessels.'

"This testimony was given on the 28th day of December, and up to that time the committee had no evidence or intimation that Mr. Weed had been an agent for the government, or acting as such. The committee are not able to show by whom the vessel was loaded. But Collector Barney swears that, on the 27th April, Mr. Stetson,in whose name the tittle had been taken called on him, declaring a clearance to Annapolis. When asked how she was loaded, and to whom the cargo belonged, he replied, she was loaded with provisions, and belonged to several of his friends. Mr. Barney refused to clear her. Stetson then said the provisions were for the army. Mr. Barney replied that, as the property was not government property,

but property of individuals, he would not clear
her except at the request of some Government
officer. It is just to say here, that Mr. Develin
was evidently induced to purchase the vessel
at the suggestion of those who were acting for
the Government, and that Mr. Stetson, in eve-
ry thing he did, was frank, candid, and made
no concealment.
no concealment. When Mr. Stetson again call-
ed on the collector "he brought a note from
Mr. Weed, stating that the cargo consisted of
supplies for troops, and requesting a clearance"
Mr. Barney declined, but saw Mr. Weed and
explained why a clearance could not be grant-
ed. Mr. Weed said "it was all right and would
be arranged in some other way."

"A pass was obtained from Gen. Wool,
which he regretted, for he sent an order to the
Collector revoking it; but the fugitive had es-
caped. Her voyage was an unfortunate one;
after two nonth's service she was destroyed by
fire. The question recurs, who were the
friends referred to by Mr. Stetson as the own-
ers of the cargo? Mr. Freeman, who had one-
tenth interest in the profits, swears, after de-
clining to do so, that he received as part secu-
rity for the purchase money of the Cataline,
four notes of $4,500 each, as follows: One
note by John E. Develin, endorsed G. C. Da-
vidson; one note by Thurlow Weed, endorsed
John E. Develin; one note by G. C. Davidson,
endorsed O. B. Matteson; one note by 0. B.
Matteson, endorsed Thurlow Weed. The only
other person besides the captain and crew,
was James Larkin, who went on the boat, he
said, as purser, although he finally concluded
bis duty was to act as clerk for the captain.
This man was appointed by Mr. Develin, upon
the recommendation of Mr. Davidson. No one
seemed to take any interest in loading the ves-
sel except Mr. Develin. Col. Tompkins knew
nothing of her cargo. The Union Defense
Committee knew nothing of her cargo; and
Dr. Cummings was asked if he knew anything
of her cargo. $2,000,000, by the Secretary of
the Treasury, were placed in the hands of a
committee of high-toned, honorable men, to be
paid out on the order or requisition of Mr.
Cummings, without his producing to them any
vouchers. Strange as it may appear, while
this money was there to respond to his requisi-
tion, he draws $160,000 and deposits it in his
name, with his private account, in one of the
his agency had ceased, he leaves no vouchers
city banks. Stranger still, four months after
with the War Department. The War Depart-
tlement nor an inspection of vouchers.
ment, in its generous confidence, seeks no set-

General Mania for Stealing."

"The mania for stealing seems to have run through all the relations of government. Even in the matter af the purchase of two sailing vessels, two men of New York, to the crime of larceny, added the sin of perjury, that they might rob from the Treasury $8,000. In the case of the Stars and Stripes, the President of ` the New Haven Propeller Company, after taking from the Government $19,000 more than she cost, took of that amount nearly $8,000 to

to write a letter to Gen. Ripley, the head of the Ordnance Department, to divide the contracts for powder between the states manufacturing. It is somewhat strange that the Secretary should appoint Mr. Weed as his messenger to carry his wishes to the different bureaus. Mr. Smith understood that he was to pay Mr. Weed five per cent. Mr. Laflin also testified that his powder firm demurred to paying Mr. Weed five per cent.; that Mr. Weed gave them authority to make 1,000 barrels of powder, but they preferred having the authority from the Government. He also testifies that the patriot Dwyer, who figured in the cattle contract, in May or June, at Washington, told him if he would give five per cent. he would sell all the powder he could make; but Laflin declined.

line his own pockets, and, in excuse to his com- to Mr. Weed, who took them to Mr. Cameron. pany, pretended that he had to bribe an ex-The result was that Mr. Weed was authorized Member of Congress to gain an audience to the head of the Bureau; and from that institution an honorable, high-toned ex-Member of Congress in Connecticut had been subjected to calumny. The President, before the Committee, testified that after taking $19,000 in profits from his country, he was so anxious to serve her in this, the hour of her extremity, that he appropriated nearly $8,000 of his colleagues' money to his private use, so he could devise some machine to take all the Southern cities and no one get hurt. The Department which has allowed conspiracies, after the bidding had been closed to defraud the Government of the lowest bid, and by allowing the guilty to reap the fruits of their crime, has itself been particeps criminis. Who pretends any public exigency for giving out by private contract, without bids, over $1,000,000 muskets, at fabulous prices? Who pretends a public exigency to make a private contract for rifling cannon to the amount of $800,000..

Horse Contracts.

!

"My colleague on the committee (Mr. Dawes) a few days since spoke of the peaceofferings of Pennsylvania politicians, and referred to the horses of Col. Williams' regiment. There is yet another case. A contract not made upon the responsibility of the Bureau, as the late Secretary said, but by his express order, and refused to be made until so ordered. I refer to the contract to purchase 1,000 horses, to be delivered at Huntingdon, Penn. Such a horse market the world never saw. Horses with running sores, which were seen by the Inspector, and branded; and if one outraged common decency he would be rejected, an opportunity sought the same day to pass and brand him. Immediately the horses were subsisted by private contract to favorites, at 39 cents per day, and they sub-let to farmers at 24 to 26 cents. Over 400 of these horses were sent with Col. Wynkoop's regiment, and the papers at Pittsburg report some actually so worthless they were left on the docks. The remaining 500 were left at Huntingdon for the benefit of contractors. In that single transaction over $50,000 were stolen from the gov

ernment.

Contract Brokerage.

"The testimony of Mr. John Smith, of Kingston, N. Y., powder manufacturer, shows that in the month of May he proposed to give Mr. Weed a per centage for a powder contract; that he went to the Astor House, met Mr. Davidson, whom he had never seen before; inquired of him for Mr. Thurlow Weed. During the conversation he asked what Mr. Smith wanted of Mr. Weed; on being told, he enquired of Mr. Smith what he could afford to pay; he replied, five per cent.. Mr. Smith also says that Mr. Weed asked him what he could afford to pay. That afterwards. at Washington, he handed his propositions for powder

The Treasury Department.

"Even in the Treasury Department-pure and upright as I believe the Secretary to bewhat business man could justify, or who, in his own transactions, would allow that a contract of over half a million expenditure should be competed for by only two firms, who could combine and unite? It is no answer to say that the work is done as cheaply as before; the spirit of the law has been violated, and the millionaire enriched; besides the products of all departments of labor are cheapened by the stagnation of business. In this matter of the bank note contract, as in some others, underlings control the affairs of the departmentthey say who shall approach within the charmed circle, they say whose papers shall be put on file, and whose shall be gladdened by the eyes of the Secretary.

+

The Purchase of Arms.

"Another remarkable transaction was the sale by the Ordnance Bureau to Mr. Eastman, of 5,000 Hall's carbines, as an arm which needed some alteration to be useful, for $3.50 each. This private sale was made at a time when the Department was buying arms which had been condemned, and sent from the arsenals of Europe. After an expenditure of from 75 cents to $1.26, they were sold to Simon Stevens for $12.50; then to Gen. Fremont for $22. No wonder our expenses are $2,000,000 per day-Government sells at $3.50, and in a short time buys back at $22. Dr. Cummings bought 700 of the same carbines for $15. The evidence of Maj. Hagder shows that Mr. Stevens was an agent or aid of Gen. Fremont. This Mr. Stevens denies. However, the relation was one of a warm personal character. He had probably just left him with instruction to purchase. His dispatch to Fremont was just such as an agent would send, or one who had the assurance of the necessities of the West, and that the arms would be taken. At all events, the bargain was an unconscionable one whereby Stevens was to make about $90,000 in one day, without încurring any risk or invest

ing any capital. Mr. Van Wyck next referred to the Department of the West, and charged that Child, Pratt & Co., made from 25 to 50 per cent. on a contract of $1,000,000.

Geo. D. Morgan's Operations.

313

"Our cause may be betrayed,
Our dear loved country made
A land of carcasses and slaves,

One dreary waste of chains and graves.".

"Mr. Geo. D. Morgan has prepared an elaborate paper, showing the benefits of his agency, and relies upon the fact that in nearly every instance he paid a less price than the owner asked. We can test the strength of his posi-en has light, or earth has graves.

tion by the Stars and Stripes To build her cost $36,000; by her charter the owner realized $15,000 from Government; they then asked $60,000. Mr. Morgan paid $55,000, $5,000 less than they asked, but $19,000 more than the cost. While with the Potomska and Wamsutta the owners realized $53,000, the Government paid $60,000, although Mr. Morgan's papers allege he was asked $80,000. This seems the reverse of the prosition. The Onward was offered to private parties for $26, 000; Mr. Morgan was asked $30,000, and paid $27,000. These are not the only instances, as the committee will show by a further examination, to which they are invited by the Secretary, and directed by a resolution of this. House. Mr. Van Wyck proceeded to give many instances of extortion in the purchase of vessels, and then referred to

Army Transportation.

"Another item of reckless expenditure was the order of the War Department allowing two cents per mile for the transportation of troops, and liberal prices for baggage and horses. So enormous were the profits that railroad companies in the west bid and paid from $1,500 to $2,500 to nearly every regiment for the privilege of transportation. It is remarkable that the late Secretary, who was himself, by long experience and observation, so conversant with the management of railroads, who rejoiced in

the confidence of a friend who was intimate

with railroad connections, especially in Pennsylvania, should have allowed railroad companies such large amounts that they could lavish thousands for the transportation of a single regiment. Having referred at length to the magnitude of the struggle, Mr. Van Wyck concluded as follows:

"The dead past from out the page of history is looking down upon us; the living present, throbbing with hope, trembling with fear, is looking down upon us. The oncoming future,

the echo of whose millions' footfals in the cor

ridors of time we can almost hear, looking upon, beckoning us, and in silent prayer beseeching that we may be true to ourselves, the great legacy our fathers bequeathed, to the trust placed in our hands, to enjoy and transmit, not to tarnish and destroy. By all the memor ies of the past; by all the prospects of the present; by all the hopes of the future, let us rid ourselves of the sappers and miners at home; conquer this rebellion and subdue the traitors Do you say we may not succeed? Then let us perish in the attempt. We may vainly dié for 21

"We cannot, we dare not yield, while heav

"No-rather houseless roam,

Where freedom and our God may lead, Than be the sleekest slave at home, That crouches to the conquerer's creed.' "No such dreadful fate can be ours, if we are only true to humanity and the God who guides the destinies of nations, the movements of arms, as he does the sparrow in its fall.Here we make our stand; 500,000 men, a wall of human hearts, to guard the land we love, the flag we honor. the ocean and the lakes, we there will stand If driven hence, even to "Until the last red blade be broken, And the last arrow in the quiver.'

COL. VAN WYCK'S TESTIMONY. In the speech of Col. VAN WYCK, on the subject of Custom House and other frauds, he said: We quote from his speech, as published in the N. Y. Tribune, of March 7, 1863. In allusion to the selection of Mr. BARNEY to be cotton agent at that port, the speech says:

t

"When the Secretary of the Treasury appointed Barney government cotton agent, he did that for which unless explained, he' deserves the censure of the people. In the name what has Hiram Barney done for this nation of a divided country and bankrupt treasury, that he should have a carte blanche to dive into the treasury as far and as often as he desires? Forty thousand dollars per annum! Must I submit to so glaring an outrage, and be told, as I often have, that the revelation will injure my party and political friends? This is not my party, these are not my political friends, who will allow or tolerate such practices. Did not the Secretary know that the arduous duties of the collector had rendered his mind very weak? Why impose the labor of taking nearly $7,000 more from the treasury on a man already overburdened? It was cruel, indeed it was. Mr. Chase must have known that the colchants of New York, and many believe that he lector was very obnoxious to most of the merchants of New York, and many believe that he is entirely incompetent for the duties necessary by virtue of his office. Why then superadd those of cotton agent? Sir, there is but very little difference whether rebels destroy us in front, or polished, amiable gentlemen eat out our subsistence in the rear.

Of the general order stores a Republican member of Congress comments in this wise: "Mr. Barney is wrong when he says he se