In the instances of fraud against the States government to which Iam about to allude, I shall take all my facts from the report made to the House of Representatives at Washington by a committee of that House in December, 1861. "Mr. Washburne, from the Select Committee to inquire into the Contracts of the Government, made the following Report." That is the heading of the pamphlet. The committee was known as the Van Wyck Committee, a gentleman of that name having acted as chairman.
The committee first went to New York, and began their inquiries with reference to the purchase of a steamboat called the "Catiline." In this case a certain Captain Comstock had been designated from Washington as the agent to be trusted in the charter or purchase of the vessel. He agreed on behalf of the government to hire that special boat for 2000l. a month for three months, having given information to friends of his on the matter, which enabled them to purchase it out and out for less than 4000l. These friends were not connected with shipping matters, but were lawyers and hotel proprietors. The committee conclude "that the vessel was chartered to the government at an unconscionable price; and that Captain Comstock, by whom this was effected, while enjoying THE PECULIARCONFIDENCE OF THE GOVERNMENT, was acting for and in concert with the parties who chartered the vessel, and was in fact their agent." But the report does not explain why Captain Comstock was selected for this work by authority from Washington, nor does it recommend that he be punished. It does not appear that Captain Comstock had ever been in the regular service of the government, but that he had been master of a steamer.
In the next place one Starbuck is employed to buy ships. As a government agent he buys two for 1300l. and sells them to the government for 2900l. The vessels themselves, when delivered at the navy yard, were found to be totally unfit for the service for which they had been purchased. But why was Starbuck employed, when, as appears over and over again in the report, New York was full of paid government servants ready and fit to do the work? Starbuck was merely an agent, and who will believe that he was allowed to pocket the whole difference of 1600l.? The greater part of the plunder was, however, in this case refunded.
Then we come to the case of Mr. George D. Morgan, brother-in-law of Mr. Welles, the Secretary of the Navy. I have spoken of this gentleman before, and of his singular prosperity. He amassed a large fortune in five months, as a government agent for the purchase of vessels, he having been a wholesale grocer by trade. This gentleman had had no experience whatsoever with reference to ships.
It is shown by the evidence that he had none of the requisite knowledge, and that there were special servants of the government in New York at that time, sent there specially for such services as these, who were in every way trustworthy, and who had the requisite knowledge. Yet Mr. Morgan was placed in this position by his brother-in-law, the Secretary of the Navy, and in that capacity made about 20,000l. in five months, all of which was paid by the government, as is well shown to have been the fact in the report before me. One result of such a mode of agency is given; one other result, I mean, besides the 20,000l. put into the pocket of the brother of the Secretary of the Navy. A ship called the "Stars and Stripes" was bought by Mr. Morgan for 11,000l., which had been built some months before for 7000l. This vessel was bought from a company which was blessed with a president. The president made the bargain with the government agent, but insisted on keeping back from his own company 2000l. out of the 11,000l. for expenses incident to the purchase. The company did not like being mulcted of its prey, and growled heavily; but their president declared that such bargains were not got at Washington for nothing. Members of Congress had to be paid to assist in such things. At least he could not reduce his little private bill for such assistance below 1600l. He had, he said, positively paid out so much to those venal members of Congress, and had made nothing for himself to compensate him for his own exertions. When this president came to be examined, he admitted that he had really made no payments to members of Congress. His own capacity had been so great that no such assistance had been found necessary. But he justified his charge on the ground that the sum taken by him was no more than the company might have expected him to lay out on members of Congress, or on ex-members who are specially mentioned, had he not himself carried on the business with such consummate discretion! It seems to me that the members or ex-members of Congress were shamefully robbed in this matter.
The report deals manfully with Mr. Morgan, showing that for five months' work--which work he did not do and did not know how to do--he received as large a sum as the President's salary for the whole Presidential term of four years. So much better is it to be an agent of government than simply an officer! And the committee adds, that they "do not find in this transaction the less to censure in the fact that this arrangement between the Secretary of the Navy and Mr. Morgan was one between brothers-in-law." After that who will believe that Mr. Morgan had the whole of that 20,000l. for himself?
And yet Mr. Welles still remains Secretary of the Navy, and has justified the whole transaction in an explanation admitting everything, and which is considered by his friends to be an able State paper. "It behoves a man to be smart, sir." Mr. Morgan and Secretary Welles will no doubt be considered by their own party to have done their duty well as high-trading public functionaries. The faults of Mr. Morgan and of Secretary Welles are nothing to us in England; but the light in which such faults may be regarded by the American people is much to us.