The Council then examined specimens of the four several qualities of uniforms furnished, and from careful examination have found, and do find, upon the basis of the sample of uniform shown to the regiment-the sample being of the first quality and valued at the contract price of $8.75 per suit-that the different qualities are of the following values, per suit, of coats and pants:

First quality, per suit..........

Second quality, per suit

Third quality, per suit....................

Fourth quality, per suit

$8 75

7 3792

5.90

5.00

The Council do further find that the shirts furnished to the enlisted men of the regiment were of the value of seventy-five cents each; and that the socks furnished the regiment are of the fair average value of fifteen cents per pair, a large proportion being moth-caten and worthless. In relation to the number of coats furnished to the regiment, the Council find that there are four less than charged to the regiment by the Quartermaster General of Indiana.

JOHN GERBER, Lt. Col. 24th Regt. I. V.
CYRUS C. HINES, Maj.

THOMAS JOHNSON, Capt.

66

66

Council of Administration."

There were the following indorsements and approvals on the claim

as filed with the Committee:

"Received the above,

D. B. HUNT."

"Correct according to contract.

J. II. VAJEN, Q. M. General."

"The above goods have been received and inspected by me, and found equal to sample now in my office. The contract was made at public letting.

M. MURPHY, Ins'p Gen'l."

The Committee in ordinary cases would not have required any further evidence, but as the good faith of the claimants had been called in question, it determined to make a thorough and careful examination of all the facts and circumstances connected with the transaction. The Committee examined the following witnesses, namely: C. C.

Hines, formerly Major of 24th and a member of Council of Administration, but then Col. of 57th Ind.; Gen. J. H. Vajen, who was at the time the contract was made and the clothing delivered, Quarter Master General of the State; Col. Miles Murphy, who was at the time the goods were delivered, Inspector General of the State, and inspected the clothing in controversy; Major John Clemn who was employed in Quarter Master's Department when the clothing was delivered; John W. Blake, Colonel of 40th Regiment of Indiana Volunteers; L. Noble, Adjutant General of the State, and who had seen and examined the clothing; Hon. D. C. Branham, Chairman of late Military Auditing Committee; and B. Simons, a member of the firm of G. Simons & Son.

The testimony of these witnesses were reduced to writing in the form of depositions, the witnesses being cross examined by the Attorneys for claimants. These depositions marked " A, B, C, D, E, F, G and H," are hereby submitted as a part of this report. The claimants gave notice that they intended to take the deposition of certain witnesses in Cincinnati, Ohio; the Committee appointed the Hon. John C. New, a member of the Committee, to attend the taking of the depositions and to cross examine the witnesses, which duty he performed to the entire satisfaction of the other members of the Committee. The depositions of Isaac Levy, Matt. Stadler, William Krauss and Casinier Banman, of Cincinnati, Ohio, were taken. These depositions marked "I, J, K and L," arehere with filed, and made a part of the report. The claimants also gave notice of their intention to take the depositions of certain witnesses in the city of New York, from whom they had purchased the cloth from which the clothing in controversy was made. The Committee deemed it inexpedient to incur the expense of sending some person to attend the taking of such depositions. The depositions of James J. Leavitt, of the firm of Stanfield, Wentworthy & Co., and Nehemiah Hight of the firm of Hoyt, Sprauges & Co., were taken. These depositions marked M and N, are herewith filed and made a part of this report. The claimants also filed the affidavits of Henry Lenitter, Casinier Bauman and Isaac Levy, which marked "O, P and Q," are filed herewith. The claimants also filed the certificates of W. W. Northop, Chief Inspector of Ohio, and Miles Murphy, Chief Inspector of Indiana, which marked "R and S," are filed herewith.

The Committee has neither the time or space to analyze the evidence of these various witnesses, as the testmony is very voluminous. The Committee is well satisfied that the evidence will fully

sustain and justify its action in the premises. The Committee would have been justified, by the evidence, in allowing the entire claim, but it was unwilling to go behind the finding of the Council of Administration, as the officers and soldiers of the regiment were presumed to be the best judges cf the quality and value of the clothing. The Council of Administration fixed the value of the clothing at $6,276 45. As the State should have paid that sum at that time, the Committee deemed it just and equitable to allow the claimant interest from the finding of the Council of Administration to the time of auditing the claim. The Committee allowed seven thousand and twenty-nine dollars and sixty-two cents ($7,029 62).

The question may be asked, why has this claim been singled out and commented upon at such length? The answer is, the former Military Auditing Committee not only rejected the claim, but charged the claimants with the deliberate purpose of defrauding the soldiers. and the State. This Committee, after a very careful and thorough investigation, was compelled, by the evidence, to yield its prejudice against it, and allow a portion of it. The Committee felt that it was due to the General Assembly and its members that it should state fully its action, and the evidence on which it based its decision. The decision of this Committee casts no reflection on the former Committee. The action of that Committee was right, with the evidence before it, and as soon as its members became convinced that they had been in error, they promptly and magnanimously corrected their mistake, and did justice to the claimants.

CLAIMS FOR THE EXPENSES OF OPERATING THE INDIANA ARSENAL.

When the Committee met and organized, it found in existence and in active operation the Indiana Arsenal, under the control and management of Col. II. Sturm, who had been commissioned and assigned to that duty by Governor Morton. The question was presented to the Committee whether it would examine and audit claims growing out of and connected with such Arsenal. A portion of the Committee were opposed to taking any jurisdiction of these claims, upon the ground that the Legislature of the State had not, in express terms, authorized the Governor to establish and operate the Arsenal. On the othar hand, it was insisted that an act passed at the extra session of 1861, conferred on the Governor full power and authority to manufacture arms and munitions of war. The act was in these words, namely:

CHAP. VI." An Act to provide for the defense of the State of Indiana, to procure first class arms, artillery, cavalry and infantry equipments and munitions of war, making the necessary appropriations therefor, and authorizing the Governor to borrow money," approved April 1, 1861.

"SECTION 1. Be it enacted by the General Assembly of the State of Indiana, That for the purpose of putting the State of Indiana in a condition of defence, and for supporting the Government and maintaining the laws of the land, the Governor is hereby directed and authorized to procure immediately a supply of first class arms sufficient for twenty thousand men, including such as are now on hand and fit for service, and such as he may be able to procure from Government, consisting of artillery, cavalry and infantry equipments, and munitions of war, and that an agent or agents be sent immediately to procure the same.

"SEC. 2. That the sum of five hundred thousand dollars is hereby appropriated for the purpose of procuring the said arms and munitions of war; and that the Governor be authorized to borrow money for that purpose, and to pledge the faith of the State for the payment thereof.

"SEC. 3. That an emergency exists, this act shall, therefore, be in force from and after its passage."

It was claimed that, inasmuch as this act did not require the Governor to purchase arms and munitions of war, but only directed and authorized him to procure immediately arms and munitions of war, and that inasmuch as it was at that time impossible to purchase munitions of war, the Governor was authorized to cause the same to be manufactured.

It was also claimed that the Arsenal had been recognized and treated as an institution of the State, by both branches of the Legislature of 1863. The following resolution was adopted by the Senate, and was concurred in by the House, with only one vote in the negative, upon a call of the ayes and noes, and a committee on the part of the House, consisting of Messrs. Harney, Puitt, Tarkington, Spencer and Kilgore, was appointed to act in conjunction with the Senate committee.

"WHEREAS, it is especially due to the people, while the burdens and sacrifices of a dire civil war are fearfully taxing their energies, that rigid investigation should be made of the official conduct of their public servants, to whom the control of public monies may have been intrusted; and

WHEREAS, The people of the State of Indiana demand of the Legislature a faithful and fearless discharge of such duty, therefore, "Resolved, That a special committee of five be appointed by the President of the Senate to investigate the expenditures in the State

Quartermaster's Department, the purchase of arms by the State, and the management of the State Arsenal; and that said committee be authorized to send for persons and papers, and report the result of their investigations, in which the concurrence af the House is requested; and the President of the Senate has, on the part of the Senate, appointed on said committee Senators Brown of Wells, Cobb, Downey, Brown of Randolph, and New."

This joint committee, after a careful and thorough investigation of the management of the Arsenal, reported that the same had been safely, prudently, and economically managed, and that its continuance was essential to the public service. The following resolution was adopted by the House of Representatives, and Messrs. Harney, Roberts, Tarkington, Baker, Collins, Kemp of Vigo, Marshall, Milroy and Anderson, were appointed such committee.

Resolved, That a committee of seven be appointed to make personal examination of the Arsenal or Arsenals in this city, which are under the control of the authorities of this State, and that they report their condition, and such other facts as they may deem important, to the Legislature or the people of the State, as is compatible with the public good.

J

The Committee submitted the following report, which was unani mously adopted:

The select committee, appointed for the purpose of making examinations of the State Arsenal, and report any facts they might deem necessary, connected therewith, have performed that duty, and submit the following report;

The Committee visited the Arsenal, which is situate one and a half miles east of the city. The buildings are mostly of a temporary character; sufficient, however, for the purpose, and built out of the profits of the institution, so that it pays no rent. At the time of the visit there were employed in one room about ninety females, and in another about forty, all employed in making ball cartridges, and preparing caps. In another building the men were moulding bullets, preparing shells, round shot, &c.

The committee were much gratified with the system and economy, and also the neatness and dispatch with which the business was conducted.

In reference to the operation of the Arsenal since its commencement, the Committee would refer to Captain Sturm's report, which contains a full account of its past transactions, and its present con

dition.

The Committee take pleasure in complimenting Captain Sturm upon the very satisfactory condition of his accounts, the readiness. with which he has furnished us with any desired information, and the