NORFOLK NAVY YARD

Marcus W. Robbins, Historian & Archivist
Copyright. All rights reserved.

Birth of the Gosport Yard & into the 19th Century

Books & Publications:
Note: Numbers in brackets indicate page numbers of the original document.

 

27th Congress, Doc. No. 205, Ho. of Reps.
2d Session.

NAVY YARD, NORFOLK.

LETTER
from
THE SECRETARY OF THE NAVY,
TRANSMITTING
Reports of the Commissioner appointed to make an investigation
at the Gosport Navy Yard, &c.

March 4, 1842.
Referred to the Committee on Naval Affairs.

May 5, 1842.
Committee discharged, laid on the table, and ordered to be printed.

CONTINUATION (pp 183 - 224)

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[196] H 6.

Copy of correspondence between B. Homans and J. H. Butler, Commissioners, and George Loyall, Navy Agent, and others, Norfolk, Virginia, May, June, and July, 1841.

UNITED STATES NAVY YARD,
Norfolk, May 13, 1841.

Sir: Complaints having been made to the Navy Department of the exceptionable manner in which public supplies have been procured, and of the exorbitant prices paid therefor, I have been empowered by the Secretary of the Navy to examine the books and vouchers in your office, with a view to ascertain the truth of the representations.

In the course of the ensuing week, I shall probably have occasion to call at your office in the performance of the duty assigned to me.

I am, very respectfully, your obedient servant,

B. HOMANS, Comm'r.

GEORGE LOYALL, Esq., Navy Agent.

* * * * * *

NAVY AGENT'S OFFICE, NORFOLK, May 17, 1841.

Sir: I am advised, by your note of the 13th instant, that you may "probably have occasion to call at this office, in the course of the present week, in the performance of the duty assigned to you." In reply, I have to say that, upon the production of your authority from the Secretary of the Navy, the books and vouchers in the office will be submitted to any proper examination, with a view to ascertain the truth of the representations referred to.

I am, respectfully, your obedient servant,

GEORGE LOYALL, Navy Agent.

B. HOMANS, Esq., Comm'r, Navy Yard, Gosport.

* * * * * *

Navy Agent's Office, Norfolk, June 14, 1841.

Sir: In reply to the call, made upon me just now by your secretary for copies of certain accounts, to be used out of the office for purposes unknown to me, you are hereby informed that I do not regard your commission as conferring upon you any such authority; nor, indeed, have I any right to permit copies of books, accounts, vouchers, or letters to be taken from the office, except so far as they may be deemed material as a part of the statement of facts which you are instructed to make to the Secretary of the Navy.

I am, respectfully, your obedient servant,

GEORGE LOYALL, Navy Agent.


B. HOMANS, Esq., Comm'r.

[197] Norfolk, June 14, 1841.

Sir: I have received your letter of this day's date, in which you say that you do not regard my commission as conferring upon me any authority to make copies of books, accounts, vouchers, or letters, to be taken from your office, except so far as they may be deemed material as a part of the statement of facts which I am instructed to make to the Secretary of the Navy.

It is for the very reason that I do consider these extracts from your books, and copies of vouchers, not only as "material," but as absolutely essential, to enable me to make up a report or statement of facts to the Navy Department, that I have commenced taking them.

A reference to my commission and authority will show that complaints have been made to the Department on two points—

1st. That a few persons have been permitted to monopolize the public supplies; and

2d. That extravagant or exorbitant prices have been paid for the same. It is to ascertain the truth or foundation of these complaints that I have been sent hither; and I do not perceive how I can accomplish the objects of my mission, without either making these extracts and copies, or bringing unauthorized persons into your office to examine the originals. The latter course I had not proposed adopting out of respect to yourself.

You must be perfectly aware that copies of any vouchers could be obtained from Washington; and a denial of your permission to make copies in your office, and take them away, would only compel me to report the fact to the Department, and apply to it for the required copies.

If, upon further consideration, you think proper to refuse permission to take from your office copies of such vouchers as appear to me to be necessary, I will thank you to give me early information thereof that I may desist at once.

I am, very respectfully, your obedient servant,

B. HOMANS, Comm'r.

GEORGE LOYALL, Esq., Navy Agent, Norfolk.

P. S. As Mr. Butler is associated with me, I would respectfully suggest that communications be addressed to us as joint commissioners.

B. H.

* * * * * *

NAVY AGENT'S OFFICE, NORFOLK, June 14, 1841.

I received this morning, by your secretary or clerk, a verbal message for permission to make copies of certain accounts in this office, to which I replied that I did not regard your commission as conferring authority for any such purpose unknown to me; and, further, that I have no right to permit copies of books and accounts to be taken out of the office, except so far as they may be deemed material as a part of the statement of facts which you are instructed to make to the Secretary of the Navy.

In answer to this, you say that "extracts from the books and copies of vouchers in the office are not only material, but absolutely essential to enable you to make up your report or statement of facts to the Navy Department." This being your view of the just and proper mode of ex- [198] ercising the authority granted to you, in the present stage of the examination, I am unable to perceive the ground upon which permission has been asked to make the copies and extracts referred to, when all the books, accounts, vouchers, or other documents in the office have been open for your inspection, without any sort of restraint or limitation whatsoever, since the first moment of the production of your commission, and this, too, without the most distant hint from you as to the course of examination proposed, or inquiry being made of me upon a single point touching the alleged complaints.

If, in the present stage of the examination, it is considered essential to the object of your mission that extracts from the books and vouchers should be taken from the office, and it be right and proper to do so, in discharge of the duty prescribed by the terms of your commission, why has it occurred to you that my permission is at all necessary in the case? And, if extracts and copies from the books and vouchers were not made and used before permission was asked, rumor has certainly done you injustice.

Your intimation that "copies of any vouchers could be obtained in Washington" is uncalled for in any thing contained in my note of this morning, as none in this office, of any description, have been withheld from you for a single moment for a purpose made known to me; and, in order to prevent in future all cause of difficulty and delay on this score, I shall interpose no objection to your making copies of the vouchers, holding you responsible for the use to be made of them.

Such course as may be proper to accomplish the legitimate objects of your mission will encounter no impediment whatever from me; but that mischief might result from circulating abroad at this time extracts and copies from our books and vouchers, with any secret or other view than that already indicated, you cannot fail to perceive; and it was solely to guard, if possible, against this mischief that my note was written.

The message for copies of the accounts came to me informally, in the name of Mr. Homans, and my reply was therefore addressed to him.

I am, respectfully, your obedient servant,

GEORGE LOYALL, Navy Agent.

* * * * * *

Messrs. B. HOMANS, and J. H. BUTLER, Commissioners.

NORFOLK, June 16, 1841.

Sir: Your second letter of the 14th inst. was received yesterday, and an immediate reply would have been made but for the absence of one of us, the whole day, at the Gosport navy yard.

We hasten to correct an erroneous impression, under which you appear to labor, with regard to the copies of certain vouchers in your office. During every day that we have been engaged in examining your books and accounts we have taken copies of such vouchers as appeared to us necessary. When we left your office on Saturday afternoon it was too late to copy some half a dozen which had been selected from a particular quarter. We therefore suggested to our clerk, Mr. Pearce, who resides in the vicinity, to go to your office on the Monday morning following and ask for the [199] vouchers, that he might continue the copying, and not wait for our arrival, as we were anxious to conclude such copying as we should require without unnecessary delay.

The request made through Mr. Pearce, therefore, was not for permission to make copies of certain accounts, but for the accounts themselves, that the copies might be made. You appear to have understood the message differently. We did not suppose that our right to take copies and extracts could for a moment be doubted, and we were therefore not a little surprised to learn by your first letter of the 14th that that right was questioned: hence the remark (which was intended in no spirit of discourtesy ) that a denial of your permission to make copies and extracts would compel us to report the fact to the Department, and apply to it for the required copies. This denial, had it been persisted in, would have amounted to a virtual close of our labors for the present, or until the views of the Department could be made known to us.

While we have no wish to conceal from you our intentions, it did not seem to us requisite to anticipate them by their annunciation to you before we could possibly determine, by a thorough examination of your management of the agency, what plausible grounds existed for the complaints that had been made to the Department. We therefore acknowledge in a spirit of candor that our purpose in taking copies of accounts is to submit them to respectable persons in the same line of business, and take their testimony, under oath, whether the prices charged were fair and reasonable, or "unusual and exorbitant," at the various periods during which the articles were furnished.

So soon as we were prepared to commence the examination of persons on these points, it was (and still is) our intention to have invited you to be present, that you might put cross-interrogatories to them if you thought proper to do so.

If you can point out a different course by which we can arrive at the information which will enable us to make up a statement of facts for the Secretary of the Navy, it shall receive our respectful consideration; but our unaided judgment suggests no other by which we can attain the objects of our mission.

We are, respectfully, your obedient servants,

B. HOMANS, J. H. BUTLER, Commissioners.

GEORGE LOYALL, Esq., Navy Agent, Norfolk.

* * * * * *

NORFOLK, June 22, 1841.

Gentlemen: We are well informed that, in the examination of oar accounts with the Government of the United States, about to take place before you, an effort will be made by interested individuals, bearing the title of witnesses, to establish against us charges which, if proved, would damn us forever in the estimation of all good and honorable men. We demand, therefore, to be present for the purpose of hearing the testimony, and showing its falsity in such a manner as we would not have equal opportunity to do at a later period.

As men who value their good name above all other things, we ask it as [200] citizens of the republic we claim it as our right to be present at this investigation, and trust we will not be denied.

Very respectfully, your obedient servants,

E. J. HIGGINS & BROTHER.
EUGENE J. HIGGINS, per JNO. A. HIGGINS, his agent.

Messrs. B. HOMANS and J. H. BUTLER, Commissioner.

* * * * * *

NORFOLK, June 29, 1841.

GENTLEMEN: Your letter of the 22d inst. was received on the day of its date. Our departure for Washington on the succeeding day has delayed a reply thereto.

Without entering into an argument to remove the impression which you have imbibed, that an attempt is about to be made to establish charges against you, we have merely to remark that, in the examination of the navy agent's official conduct, the Government does not hold you or other persons furnishing supplies as responsible for the fairness of charges. In this respect, it looks only to its own authorized agent.

After due reflection, we have resolved to adhere to our original determination to exclude all persons except the navy agent, his clerk, and the witness.

We are, respectfully, your obedient servants,

B. HOMANS, and J. H. BUTLER, Commissioners.

Messrs. E. J. HIGGINS & BROTHER, Norfolk.

* * * * * *

NORFOLK, June 29, 1841.

SIR: We are authorized and directed to close our investigation of your official conduct as speedily as possible, and to continue to take testimony at all hours that may suit our convenience, allowing you, as a matter of course, and your chief clerk to be present, but no other person or persons whatever. Taking into view, therefore, the ascertained wishes of the Department and our own earnest desire to complete our labors, we shall proceed, from and after this day, to take the testimony of those gentlemen who shall appear upon our invitation from 9 o'clock A. M. until half past 2 o'clock P. M., and from 4 o'clock P. M. until sun set. So soon as the examination of the witnesses on the part of the complaints shall have been finished, we shall be ready to hear the witnesses on your side.

We are advised that we are under no obligations to keep a record of our proceedings, and, even if we were, that you can claim no right to examine it. The taking of the testimony in your presence will afford you the opportunity to determine the bearing which it may have upon the points of complaint, and to offer such counter testimony or explanations as may seem to you just and proper.

Any cross-interrogatories tending to embarrass the witness, or not relevant to the matter at issue, will be objected to.

[201] In order that the investigation may be prosecuted with all possible despatch, and to avoid misunderstanding, we have thought it incumbent upon us to make this explanation to you.

We are, very respectfully, your obedient servants,

B. HOMANS, and J. H. BUTLER, Commissioners.

GEORGE LOYALL, Esq., Navy Agent, Norfolk.

* * * * * *

NORFOLK, July 6, 1841.

SIR: For reasons I cannot well make known, but which are satisfactory to my own mind, I must respectfully decline your invitation (under date of 3d instant) "to attend at commissioners' room to give information respecting the prices of ship chandlery in this borough."

In deciding upon this course, I am well pleased to be relieved from all fears of doing injustice to either of the parties interested in the commission, by the reflection that the information can be obtained from other sources, and may have already reached you through the gentlemen formerly associated with me in the ship-chandlery business, who, I learn, have been before the commissioners.

Very respectfully, your obedient servant,

JOHN HIPKINS.

B. HOMANS, Esq., Commissioner.

* * * * * *

NORFOLK, July 7, 1841.

SIR: Your note requesting my attendance at commissioners' room, for the object therein specified, I respectfully beg to be excused from complying with.

Your obedient servant,

THOMAS KEATING.

B. HOMANS, Esq., Commissioner, Walters's Hotel, Norfolk.

* * * * * *

WALTERS'S HOTEL, NORFOLK, July 12, 1841.

Sir: Herewith you will receive a copy of all the depositions that have been taken before us respecting your official conduct. They have all been sworn to except those of Mr. Jordan, naval storekeeper, and Doctors Cornick and Blacknall. Mr. Jordan desired to make an amendment or two, which he has since done. We have propounded a few additional interrogatories to Mr. Jordan, which he will answer in writing, and return to us in the course of the day.

We shall hold ourselves prepared to hear your witnesses daily, from 9 A. M. until half past 2, and from 4 P. M. until sunset.

Very respectfully, your obedient servants,

B. HOMANS, and J. H. BUTLER, Commissioners.

GEORGE LOYALL, Esq., Navy Agent, Norfolk.

[202] WALTERS'S HOTEL, NORFOLK, July 14, 1841.

SIR: I enclose herein a copy of the answers of M. Jordan, Esq., naval storekeeper, to the additional interrogatories propounded to him.

This closes the testimony in your case, with the exception of a question or two to Mr. John Hipkins, respecting a conversation which, it is understood, he held with Mr. Jordan, in 1838, respecting the contract for cheese. Mr. Hipkins will attend at any moment, and I will send him notice whenever it may suit your convenience.

I will thank you to inform me when your witnesses will be ready.

I am, respectfully, your obedient servant,

B. HOMANS, Commissioner.

GEORGE LOYALL, Esq., Navy Agent, Norfolk.

* * * * * *

NAVY AGENT'S OFFICE, Norfolk, July 15, 184L

SIR: I received last evening, at half past six, your letter, enclosing "a copy of the answers of M. Jordan, Esq., naval storekeeper, to the additional interrogatories propounded to him," which you say "closes the testimony in my case, with the exception of a question or two to Mr. John Hipkins," &c. At any moment you may think proper to examine Mr. Hipkins for the purpose indicated, it will "suit my convenience to attend." There has been no moment since you entered upon the execution of your commission that I have not been fully prepared to repel the charges alleged against this office; and I have now to say that "my witnesses will be ready" whenever I am duly informed that the testimony collected on behalf of the complaint is finally closed, and you shall have furnished me with copies of such extracts from the accounts as may appear to require explanation.

I am, respectfully, you obedient servant,

GEORGE LOYALL, Navy Agent.

To B. HOMANS, Esq., Commissioner.

* * * * * *

WALTERS'S HOTEL, NORFOLK, July 15, 1841.

SIR: In compliance with the request contained in the closing paragraph of your letter of this date, I transmit herewith the following papers:

The original minutes, taken from your books, of the "abstract of disbursements" made by you during the years 1837, 1838, 1839, and 1840, under the several heads of appropriation.

"Aggregate of disbursements" during the same period, and including the first quarter of 1841.

"Aggregate of payments" made to E. J. Higgins, John Capron, N. C. Whitehead, and Whitehead & Beale, during the same periods.

"Statement of amounts paid on contracts," &c., from 1837 to the close of the first quarter of 1841.

[203] Copy of the several items in the accounts of John Capron for iron delivered upon the indent, dated December 31, 1838.

I am, respectfully, your obedient servant,

B. HOMANS, Commissioner.

GEORGE LOYALL, Esq., Navy Agent, Norfolk.

* * * * * *

NAVY AGENT'S OFFICE, NORFOLK, July 16, 1841.

I received on yesterday your letter enclosing certain papers taken from the books of this office, together with a copy of the deposition of Mr. John Hipkins, which, I understand, closes, on your part, "the testimony respecting my official conduct."

The several accounts and matters which have been submitted to examination, in the discharge of the duty assigned to you, I shall take up on to­morrow, the 17th, and to that end have requested the attendance of some of the witnesses at 10 o'clock A. M.

I am, respectfully, your obedient servant,

GEORGE LOYALL, Navy Agent.

B. ROMANS, Commissioner.

* * * * * *

WALTERS'S HOTEL, NORFOLK, July 22, 1841.

SIR: If my recollection serves me, you stated, in a conversation with me, that the cost of grinding or mixing dry white lead in oil did not exceed one cent per pound. Will you be pleased to state in writing whether my recollection is right, or correct me if I am wrong?

I am, respectfully, your obedient servant,

B. HOMANS, Commissioner.

Mr. JOHN HOBDAY, Master Painter, Gosport Navy Yard.

* * * * * *

GOSPORT NAVY YARD, July 22, 1841.

SIR: You are correct. I did state, in a conversation with you, that the mere operation of grinding white lead would not exceed one dollar per hundred; but this dont necessarily regulate the price of lead after being ground, as much would depend upon the price of oil used in the operation of grinding.

I am, very respectfully, your obedient servant,

JNO. HOBDAY.

Mr. B. HOMANS.

[204] WALTERS'S HOTEL, NORFOLK, July 26, 1841.

SIR: I will thank you to give me all the information on the following points which your books or recollection will afford:

First. Have the wrought-iron nails, which were furnished by E. J. Higgins in 1839, and rejected, been replaced by others?

Second. Were the 36 deck lights, furnished by E. J. Higgins in April, 1840, and declined in consequence of being received too late, afterwards taken on public account?

Third. For what cause were the sperm candles, furnished by E. J. Higgins in June, 1841, condemned or rejected?

Fourth. For what cause were several boxes (and how many) of raisins, furnished by E. J. Higgins in June or July, 1841, condemned or rejected?

Fifth. For what cause was a part of a lot of beans, (and how many bushels,) furnished by E. J. Higgins in July, 1841, condemned or rejected?

Sixth. What were the circumstances attending the indent for 144 deck lights, which were furnished by E. J. Higgins in April, 1841?

Seventh. If an examination of your books, since your depositions were sworn to, furnishes any additional information respecting the delivery of 200 boxes raisins, under the indent of November 3, 1840, will you be pleased to give it?

I am, very respectfully, your obedient servant,

B. HOMANS, Commissioner.

M. JORDAN, Esq., Naval Storekeeper, Gosport Navy Yard.

* * * * * *

UNITED STATES NAVY YARD, Gosport, July 26,1841.

SIR: Your letter of this day's date, propounding to me certain interrogatories, has been received. In answer to the first, I have to say that, upon examination of my books, I find the iron-wrought nails, furnished by Mr. Higgins under requisition of March, 1839, and rejected, were afterwards replaced, which, after proper inspection, were received on account for "public stores."

The 36 deck lights, furnished by Mr. Higgins in April, 1840, were required I believe for the Potomac. They were sent over too late for her use, and I therefore refused to take them. Mr. H. was so informed, but he neglected to take them away, although they were at his risk and subject to his order. Some four or five weeks ago, the carpenter of the Delaware made a requisition for three dozen deck lights, which were wanted as early as practicable: he saw those of Mr. Higgins, which he said were just such as he wanted; and, as we had none others of that kind, we delivered them to him, and they were charged to that ship.

I do not know, of my own knowledge, the cause of the rejection of the sperm candles, raisins, and beans, lately furnished by Mr. Higgins. I heard the inspecting officers say they were not of good or proper quality. The rejected beans we did not measure, but returned them in the same [205] casks and bags we received them in. I think 56 boxes of raisins were rejected out of the 200 furnished.

Mr. Williams, master ship joiner, informed me it was necessary to keep on hand a few dozen deck lights, as he frequently had to wait before they could be furnished of the proper or suitable kind, and at the same time gave me an estimate of twelve dozen, and the kind to be kept on hand for "public stores." A requisition was accordingly made and approved by the commandant that quantity, and an indent sent over [to] the navy agent the next morning for them. They were furnished by Mr. Higgins some time afterwards—I presume upon his authority.

An examination of the receipt book this morning shows that my evidence in relation to the 200 boxes of raisins, furnished by Mr. Higgins under the indent of the 3d November, 1840, is strictly correct; for although articles required for public stores are entered upon it, yet it is done without regard to the time when they were received into store. A certificate from my chief clerk, herewith enclosed, will show the reason why they are so entered. I should, however, be extremely glad, if your time will allow, for you to come over before you leave, and examine the the receipt book yourself, when we could better explain the matter to you.

This is all the information I am enabled to give, either from recollection or on examination of my books.

I am, sir, very respectfully, your obedient servant,

M. JORDAN, Naval Storekeeper.

B. HOMANS, Esq., Commissioner, &c., Norfolk.

* * * * * *

UNITED STATES NAVY YARD, Gosport, July 26, 1841.

SIR: Although the receipt books in the naval store show the receipts or entries of articles for public stores from time to time, yet they do not contain the date in which they are received into store, as such entries are generally made at the end of the months in which they are required, if furnished, or such part as may be furnished, to allow the closing of the requisitions upon which said articles have been delivered; and said entries are made, from the "day book," in part or in whole, as the case may be, when the date of the receipts do not appear.

L. W. BOUTWELL, Clerk.

WALTERS'S HOTEL, NORFOLK, July 26, 1841.

SIR: A domestic calamity, intelligence of which I received yesterday, renders my return to Washington necessary at the earliest possible day. I therefore request that all the witnesses, whose testimony you desire, may attend to-day and to-morrow.

Fair copies of all the depositions already taken have been made, and can be sworn to at my room, or at your office, or, if more agreeable to the [206] parties, can be left with them respectively, and sworn to before any magistrate of borough or county.

I am, respectfully, your obedient servant,

B. HOMANS, Comm'r.

GEORGE LOYALL, Esq., Navy Agent, Norfolk.

* * * * * *

NAVY AGENT'S OFFICE, NORFOLK, July 27, 1841.

SIR: Your letter of yesterday informs me that, in consequence of recent intelligence, your return to Washington is rendered necessary at the earliest possible day.

My regret that any domestic calamity should thus unhappily intervene is in no degree alleviated by its occurring at a point of time exceedingly critical to a just and full discharge of the responsible duty assigned you. Your investigation of my official conduct commenced on the 7th of June and closed (with the testimony finally arranged on the part of the complaint) the 15th instant, as will appear by your letter of that date transmitting copies of certain papers taken from the books of the office. On the 17th, for the first time, opposing testimony was introduced, and, before the lapse of ten days, including two Sabbaths, I am advised that your official labors here are about to terminate. How far this may be proper, in view of the course and direction you have given to the examination, and of the various and pregnant matter of record, must be left to your own decision. I have only to add that the attendance of some of the witnesses, whose testimony (for the sake of truth and justice) I had deemed essential, may not be practicable within the brief space allotted by your letter.

I am, respectfully, your obedient servant,

GEORGE LOYALL, Navy Agent.

B. HOMANS, Esq., Comm'r, Walters's Hotel, Norfolk.

* * * * * *

WALTERS'S HOTEL, NORFOLK, July 27, 1841.

SIR: I have received your letter of this day's date, in answer to mine of yesterday. It occurs to me that you have had ample time, since the commencement of the investigation, to secure the attendance of all the witnesses whose testimony you consider important or essential to your justification. But a portion of the business hours that have elapsed since the commencement of the examination of your witnesses has been consumed in that duty. You were present at all the examinations of witnesses for the complaints, and you or your chief clerk have taken notes of the testimony and the proceedings, and could certainly have known, from time to time, what points in that testimony would require explanation or justification. Your witnesses have been prepared, before they appeared, with information as to the questions that would be put to them, and they appear all to have come ready with their answers; and the briefest time possible has been consumed in putting cross-interrogatories [207] to elicit information that was but partially communicated by the answers to direct interrogatories.

I have been prepared at all hours to hear your witnesses. I have frequently detained witnesses for the complaints until you could be sent for, and have taken the trouble to notify you that they were in waiting. I have gone beyond the line of my duty, or what could have been required of me, to furnish you with correct copies of all the depositions, and in various ways have imposed upon myself additional labor—all, that you might have no cause to allege for delay on your part; and I do not conceive, and therefore cannot admit, that you have any just grounds to allege that I have not afforded you ample time to present your witnesses or other testimony. In a letter addressed to you on the 29th of June, by Mr. Butler and myself, we stated "We are authorized and directed to close our investigations of your official conduct as speedily as possible." I have underlined the word "directed" in this quotation, because the intimation was given in a manner to convince us that a speedy termination was expected. Four weeks have elapsed, and I now learn that your witnesses are not all ready; nor have you informed me to a certainty when they will be.

In view of the necessity which exists for my immediate return, and of the time which has already been allowed you to summon witnesses, I cannot consent to postpone my departure. If you will furnish me with a list of the witnesses whose attendance you have requested, and a copy of the interrogatories which you propose to put to them, an arrangement might be made by which their depositions could be taken.

I am, respectfully, your obedient servant,

B. HOMANS, Comm'r.

GEORGE LOYALL, Esq., Navy Agent, Norfolk.

P. S. I wish to put another interrogatory or two to Mr. West, and to examine Mr. Gatewood.

* * * * * *

NAVY AGENT'S OFFICE, NORFOLK, July 27, 1841.

SIR: I desire that the following interrogatories be propounded to Mr. Butler:

Did you know that you had been recommended to the Secretary of the Navy as a suitable person to act as commissioner? or had you any intimation upon the subject before the receipt of your commission?

At the time of your appointment, had you a wager or bet depending upon the result?

I am, respectfully, your obedient servant,

GEORGE LOYALL, Navy Agent.

B. HOMANS, Esq., Comm'r.

* * * * * *

NAVY AGENT'S OFFICE, NORFOLK, July 27, 1841.

SIR: You will be pleased to state, upon the papers purporting to be explanations of Messrs. Toy & King, that they are true copies, and were [208] taken from the said Toy & King without notice to me, or any knowledge whatever on my part.

I am, respectfully, your obedient servant,

GEORGE LOYALL, Navy Agent.

B. ROMANS, Esq., Comm r.

* * * * * *

WASHINGTON, D. C., July 30, 1841.

SIR: Among the letters received from you under date of the 27th inst., prior to my leaving Norfolk, was one handed to me by Mr. West, about 6 o'clock in the evening, expressed in an authoritative tone, the propriety of which I cannot recognize or tacitly submit to. The examination of Mr. Butler and yourself immediately followed the delivery of the letter and occupied my time until sunset, when it became necessary to complete the arrangements for my departure.

The letter to which I allude directs me, in a peremptory manner, to do certain acts. I have never been placed under your orders or subject to your control; and, although I might have performed the act designated as a matter of courtesy, I would never consent to do it as one of duty.

During the progress of the investigation, many of your requests to me were preferred in the shape of positive commands; and if I failed to notice them at the time, it was because I had formed a resolution to avoid the least manifestation of feeling that could afford the slightest pretext for that acerbity of manner which was displayed from the very outset and continued until the close.

The haste with which my letter to you of the 27th was written, prevented my replying to one or two points, which, on a second perusal of your first communication of that date, seem to me material.

Our examination of your official conduct commenced on the 10th, and not on the 7th June. We did not wait upon you until Wednesday, the 9th, and then only to exhibit our authority and notify you of our intention to commence the next day. From that day until the 17th, inclusive, we were occupied in examining your books and papers, and in making extracts therefrom. On the 18th, business connected with my previous examinations called me to the navy yard. We commenced the examination of witnesses for the complaints on Saturday, the 19th, and continued it on Monday, the 21st, when it was suspended, for reasons unnecessary to be repeated, until Wednesday, the 30th. One day was lost, waiting for your return from Washington; and the two days, July 12th and 13th, that we were engaged at your office, might have been saved if Mr. Pearce had been permitted to complete the extracts referred to in my letter to you of June 18th.

You were informed verbally, on the 9th July, that the examination of witnesses on the part of the complaints was then closed, and that we were ready for your witnesses. The delay which subsequently occurred was occasioned by your calling for fair copies of all the depositions, and of the extracts made from your books, with neither of which was it our duty to furnish you.

Instead of dating from the time allowed you to collect testimony from the close of the examination of witnesses for the complaints, it should [209] have been from the commencement, as it was very apparent that the tutoring of witnesses had its origin from a very early period. This makes a material difference; and, moreover, I date the close on the 9th instead of the 10th July.

Between the 19th June and the 9th July, embracing in all ten working days, seventeen witnesses were examined for the complaints, occupying; altogether about 38 hours, or an average of little more than two hours to each. From the 17th to the 27th July, embracing nine working days twenty-one witnesses were examined in your defence, occupying altogether only about twenty-one hours, or an average of one hour to each. In both instances the time calculated includes all that during which you and Mr. Gatewood were present, a part of which was occupied in conversation, and in waiting for witnesses whose arrival was momentarily looked for.

I directed Mr. Pearce to furnish you with copies of the explanatory statements of N. C. King and T. D. Toy, and of the depositions not previously delivered; but, as I stated verbally, I decline certifying them.

Respectfully, yours,

B. HOMANS, Commissioner.

GEORGE LOYALL, Esq., Navy Agent, Norfolk.

* * * * * *

NORFOLK, June 29, 1841.

SIR: In compliance with your request, I called at the navy agent's office on the 24th instant, to continue certain extracts from the books in that office, which were commenced previous to your departure for Washington. I was, however, denied permission, Mr. Loyall thinking it unnecessary that further extracts should be made.

On the return of Mr. Butler, I called again in company with him; this call was attended with the same result.

I am, very respectfully, your obedient servant,

J. A. HAZARD PEARCE.

B. HOMANS, Esq., Commissioner, etc.

* * * * * *

I.

NAVY DEPARTMENT, October 20, 1841.

SIR: The report of Commissioner Homans, relative to your official conduct, has been laid before the President, and he directs me to inform you that, in conformity with your request, no action will be taken on it until you shall have had time to offer such explanations as you may think proper to submit to him.

I am, respectfully, &c.

A. P. UPSHUR.

GEORGE LOYALL, Esq., Navy Agent, Norfolk.

[210] NAVY AGENT'S OFFICE, Norfolk, January 15, 1842.

SIR: I return herewith the report of Commissioner Homans relative to my official conduct, with such remarks as appear to be called for by the tone and character of this extraordinary document. Although I have to regret that a full disclosure of all matters connected with the inquiry was denied me, by your urgent and numerous engagements, during my visit to the city, I cannot doubt that a careful examination of the testimony taken will satisfy you that every material fact of the case has been withheld or grossly distorted.

The commissioner opens his report by slating that "the complaints alleged against the navy agent, as set forth in his commission, were two-fold:

"First. That certain persons have been permitted in a great measure to monopolize the Government supplies at the Norfolk navy yard and station; and

"Second. That the supplies have been procured in an exceptionable manner and paid for at unusual and exorbitant prices," and adds that, "in order to ascertain what ground existed for the first complaint, the books and accounts of the agent were examined from the time of his first appointment, in March, 1837, until the close of the first quarter 1841. This examination was commenced on the 10th, and was continued until the 17th of June last, from which it appealed that the whole amount of disbursements by the agent, from March, 1837, to March, 1841, was," (see the accompanying statement marked A.)

"This statement, (the commissioner then informs us,) derived from the books of the office, would seem to be sufficient to determine, without one word of comment, whether certain persons have been permitted in a great measure to monopolize the Government supplies at the Norfolk navy yard and station."

Were this statement entirely correct in point of fact, it would hardly seem to be sufficient to establish any abuse or impropriety against the office, upon the bare allegation of a monopoly, if, in procuring the supplies, under the several heads enumerated, it should appear that the public interest had been honestly consulted. But the statement thus gravely affirmed to be derived from the books of the office is directly contradicted by the books which, from the 16th March, 1837, to the 31st March, 1841, exhibit the result, (see A, the paper already referred to.)

It will appear, then, that, instead of $448,282.26, the amount stated by the commissioner as disbursed by the agent at his discretion, for the purchase of articles not contracted for, the actual amount disbursed, during the period referred to, was $624,089.28, a difference of $175,801.02; and, deducting from this sum the amount paid to the three individuals or firms named, ($269,332 .11,) leaves $354,757.17 for purchases made of other individuals, instead of $118,319.27, according to the commissioner's estimate—showing a difference of about three hundred per cent.; and of the $269,332.11, $28,394.22 being for purchases prior to the 16th March, 1837, leaves of that amount $240,937.89 for purchases since. The annexed statement (believed to be strictly accurate) is presented in juxtaposition with those of the commissioner simply to show the commendable caution and fairness with which the investigation was conducted. In order to ascertain what grounds existed for the first complaint, [211] the books and accounts of the office were examined, to find, it seems, the amount paid to three individuals or firms; and, as the three individuals or firms were believed to have been permitted, in a great measure, to monopolize the Government supplies at this navy yard and station, the sum total paid for purchases to all others is ascertained in like manner, and the first being made greater than the last in despite of the books and accounts, the complaint is thus entirely sustained "without one word of comment."

We next find the same sweeping, summary process adopted by the commissioner, under this head of complaint, in relation to payments made to Messrs. N. C. Whitehead & Co. and Whitehead & Beale for medicines and hospital stores, &c. He says, of the whole amount disbursed by the agent, under the head of medicines and hospital stores, three firms have received more than one-half. The paper C explains, at once, how the whole sum paid to Messrs. N. C. Whitehead & Co. and Whitehead & Beale is made up—the medical supplies proper constituting but a small portion of the aggregate, and being really less than the amount paid to other druggists. All articles in bills of this description, except medicines and instruments, are charged at cost, and, of course, impose additional trouble, without compensation, upon the druggist procuring them. But with respect to all supplies in this line, whether for sea-going -ships, hospital or other service, the complaint that the agent has "permitted certain persons to monopolize them at this yard and station'' is utterly destitute of a shadow of support. Under an order from the Board of Navy Commissioners, issued more than five years ago, the surgeons of the yard and hospital purchase their own supplies; and, the reasons for this order applying with still greater force to surgeons attached to sea­going ships, (the supplies being larger in quantity and more various,) these also make their own purchases, being deemed more competent to judge of the quality as well as the prices of the articles required, it must, then, appear perfectly obvious, touching this matter of complaint, that, if any thing in the slightest degree approximating the form or character of a monopoly has existed at this station during the period in question, the surgeons themselves are accountable, and doubtless, in every case, would be at no loss to furnish ample ground for the preference, which is now for the first time distorted into grievous cause of complaint. The agent, it is certain, has never attempted to advise, recommend, or interpose in any manner as to the individuals or firms from whom the supplies should be obtained; yet the commissioner, in this part of his report, reiterates the complaint in the most offensive form by stating that "Messrs. Whitehead & Beale are at this time engaged in putting up the medical supplies for the U. S. ship Cyane, no change in the system having been yet effected by the investigation recently set on foot." The simple truth of the ease stated is this:

The surgeon of the Cyane, (Dr. Clymer,) whom the agent had never before seen, called at the office within a few days after his arrival for his traveling allowance, and, in the course of conversation, inquired for the name of the druggist by whom medical supplies were usually furnished for ships of war. He was informed, in reply, that the surgeons (who were believed to be best informed upon the subject) made selections for themselves, and that he would accordingly be left to pursue that course. He then added that, having been advised by a medical friend upon the [212] station from whom he had better obtain his supplies, the inquiry was made merely to get the name of the druggist, which had for the moment escaped him. The agent still declined giving any name, stating that, as the town was not large, he could readily ascertain all the dealers in that line, and thus be enabled to procure all the supplies required for the ship in a manner most satisfactory to himself and upon the most favorable terms. This occurred in the presence of the clerks in the office, during the investigation; and whilst it would seem to be sufficient of itself to repel effectually the idea of any sort of interference, on the part of the agent, in order "to permit certain persons to monopolize these supplies," it has been fastened upon by the distempered vision of this most just and charitable commissioner as a marked aggravation of the alleged complaint. The fact that Messrs. Whitehead & Beale were engaged in putting up the medical supplies for the Cyane at the time the commissioner's report was in course of preparation, or perhaps within a few hours after this conversation in the agent's office, was, doubtless, owing to information and advice obtained by Dr. Clymer from some one or more of his medical friends upon the station, or from his own inquiries among the several dealers in the town.

With regard to the supplies of ship chandlery and hardware, which figure so conspicuously in the report under this complaint, the accompanying letter (marked B) from the agent to the Board of Navy Commissioners, dated 26th January last, explains fully the mode of procuring them and the reasons for its adoption. Whether this mode be deemed expedient or otherwise, as the letter was addressed to the board many months prior to the investigation, it can hardly be imagined that any motive or desire has, at any time, existed to suppress or withhold information upon the subject, when a great deal more was communicated than seemed to be called for. And as the mode of purchase as well as the prices of the various articles were distinctly stated, it doubtless met the entire approbation of the board; or, at any rate, no disapproval has ever been intimated. This mode of purchasing ship chandlery and hardware is considered the best, and indeed the only one that can be adopted, to secure the supplies required at this station, at all times promptly, of the description and quality called for, and upon the most favorable terms. If not pursued since the first establishment of the agency, it certainly has been during the last twenty years—embracing the terms of my two predecessors—under three different administrations. And if, at any time, upon a fair, impartial inquiry, it should appear that prices of certain articles range higher here, or, on an average, exceed the prices paid at the stations to the North, it must be recollected that nearly all the supplies (except timber) are brought from the Northern cities, and come to us burdened with the increased charges of freight and insurance; besides, exchange always against us, and not unfrequently within the last few years mounting as high as seven or eight per cent. It is confidently believed, however, that our prices for all articles will bear a favorable comparison with those paid at other naval stations, and, with respect to many articles purchased in Northern markets, are even lower at this station: whilst it is doubtful if a single instance can be stated of an article which has ever been furnished for the service at a Northern station at a lower price than that paid here.

The view thus briefly presented will show in what manner and to what extent the interests of Government are involved in the monopoly com- [213] plained of; which will also derive additional light from the testimony introduced to sustain the second ground of the complaint, "that the supplies have been procured in an exceptionable manner and paid for at unusual and exorbitant prices." The limits assigned to this communication forbid any extended remarks naturally suggested by this part of the report, tending to illustrate the strange character of the proceeding, and especially of the instruments used to accomplish the main object in view. I shall notice such points only as are deemed at all material, omitting the vast mass of irrelevant matter, obviously designed to swell the volume of the report or for some worse purpose. In support of this complaint, the commissioner first introduces three dealers in drugs and medicines, (Messrs. R. S. Bernard, N. C. King, and T. D. Toy,) who, after looking over certain accounts of Messrs. N. C. Whitehead & Co. and Whitehead & Beale, for medicines and hospital stores, testify:

R. S. Bernard, "That the articles charged in those accounts are generally higher than he charges;" "many of them are much higher—some five, some ten, and some one hundred per cent, above his prices:"

N. C. King, "That there are some articles charged at one, two, and three hundred per cent, above what similar articles cost him:" and

T. D. Toy, "That he could have furnished the medicines charged in one of the bills for half the money, and in two others for two-thirds of the prices charged."

The degree of credit due to what these dealers say can be determined only by a careful scrutiny of their depositions, taken in connexion with those of Drs. Cornick, Blacknall, Baylor, and Balfour—the several parts of which, bearing directly upon the point of inquiry, are studiously kept out of view by the commissioner. It will be found, upon an examination of the depositions, script of the gloss thrown around them, that the witnesses all concur in showing that these dealers speak of but a small portion of the articles charged in the accounts submitted to them. Of the rest, they neither profess to be, nor could they be, informed as to description, quality, price, or any other matter; that, with respect to such articles in the accounts of which they do venture to speak as being overcharged, the accounts of other druggists, including some of their own, paid at the office, were produced to prove that similar articles are charged, almost in every case, as high, and in many at higher rates; that two of the three accounts selected as exorbitantly charged, at the request of the commanding officer of the station, were subjected to a searching examination by surgeons of the navy, and ascertained to be fair and reasonable, before approval—one of these surgeons (Dr. Cornick) distinctly stating in his deposition that, upon a diligent comparison of prices charged in the accounts of Whitehead & Beale, for the supplies of the Yorktown, with prices charged by other druggists, (and two of these the same who are brought forward to testily upon this very account, the other being out of the question, for reasons well understood in this community,) the result was in favor of Whitehead & Beale, and that "one of the firm had requested him to say to the commodore that, in settling his accounts for medicines, &c., he would be glad if he would assign to the surgeon of the yard the duty of examining his bills, previous to their being brought to him for approval." Dr. Blacknall (at perfect liberty, by the direction of the board of commissioners, to purchase for himself) states, moreover, that his supplies for the hospital are regularly furnished under his own eye "by [214] Whitehead & Beale and Watts & Co., and that, upon a comparison of the prices, those of the former are less, though neither are higher than they should be." Independently of their high professional standing, Dr. Cornick and Dr. Blacknall are distinguished by a scrupulous care of every interest committed to them. The former was attached to the Delaware, destined to the Pacific, when examined before the commissioner upon the accounts of Whitehead & Beale; and at that very time two-thirds or three-fourths of his supplies were furnished by that firm. What these surgeons of the navy say derives still further confirmation from the testimony of Drs. Baylor and Balfour; yet it is alleged that the medical supplies are procured in an exceptionable manner, and paid for at unusual and exorbitant prices. Until, by law or regulation of the department, to some competent medical officer of the service shall be assigned the duty of providing the supplies in this line for the several classes of vessels, under such restrictions as may be deemed proper, the course pursued at this station is believed to be liable to as little exception as any that can he adopted.

Having disposed of the accounts for medical supplies, the commissioner informs us that the next in order for examination were those of ship chandlery, hardware, and iron-mongery; and, to show that these supplies also have been procured in an exceptionable manner and paid for at unusual and exorbitant prices, two leading witnesses (Messrs. J. Dickson and J. F. Hunter) are introduced, who, if not utterly discredited by their own depositions in the cross-examination, are conclusively so by the production of their bills, which were thoroughly examined and particularly referred to by other witnesses, unimpeached and unimpeachable. But, in proof of the wretched mockery of this part of the investigation, the commissioner confined his testimony to less than fifty enumerated articles of ship chandlery, when there are not less than two hundred and forty or fifty enumerated in contracts, and more than twice the number non-enumerated; and in iron-mongery contracts there are found some two hundred and thirty enumerated articles, and the non enumerated about double that number, whilst the testimony taken upon these amounts to about seven. The commissioner says "that, to disprove the evidence of Messrs. Dickson and Hunter, two witnesses were produced, who had compared the bills of E. J. Higgins against the United States with those of other ship chandlers against merchant vessels. One of these witnesses (Mr. Tunstall) is out of business, and resides in the country, and the other (Mr. Wilson) has not been engaged in the ship-chandlery business for twenty-two years. Neither of them, therefore, could speak of prices from their own knowledge, but only by a comparison of one bill with another." Whether the fact that Mr. Tunstall resides at present some three or four miles from town is calculated to detract from his testimony, I cannot venture to determine. At all events, his duties as an officer of one of the banks require his daily attendance here, (except on the Sabbath,) thus relieving him in a great degree from the contaminating influence of the country air. He is well known as one of the purest men in this community, and was called as a witness on this occasion on account of his unquestioned probity, general intelligence, and more especially of his intimate acquaintance with the subject, having been, until within the last few years, engaged in the ship-chandlery business in furnishing supplies for the navy. Although Mr. Wilson relinquished this particular line of business some years ago, he is perfectly familiar wish it, in all its details, [215] and testifies to facts too plain to be misunderstood or perverted. The testimony of these gentlemen was deemed the more important for the very reason of their entire freedom from all influences tending in any manner to mislead or deceive. Their depositions must speak for themselves, and certainly afford more information upon the matters submitted to them than the commissioner seems disposed to allow.

Immediately following this notice of the testimony of Messrs. Tunstall and Wilson, the commissioner says: "So, also, as in the case of Messrs. King and Toy, justice to Messrs. Dickson and Hunter demanded that they should be allowed the opportunity to explain portions of their testimony, and they have accordingly prepared a joint statement," &c.

A very few words will suffice to disclose the whole truth in regard to this matter. In consequence of the dilemma in which Messrs. Dickson und Hunter, as well as Messrs. King and Toy, had involved themselves under the counter testimony, confounded as well by their own bills and charges as by the manifold discrepancies and contradictions appearing in their depositions, it became, necessary that some effort should be made to extricate them; and accordingly these statements were resorted to. It is enough that they were prepared and sworn to without any knowledge on my part—therefore surreptitiously; and I should have continued utterly ignorant of their existence but for an incidental inquiry of the commissioner just at the moment of his departure, as will appear by the affidavit of Mr. R. Gatewood, hereto annexed. This discovery was then made only as to the statements of Messrs. King and Toy; for it was not until the commissioner's report came into my hands that I was aware that a similar statement had been actually prepared by Messrs. Dickson and Hunter, which statement I have not yet seen, and of course know not what it contains. Whether or not justice to any party concerned demanded a procedure like this, no one can hesitate to determine. It appears from this joint statement of Messrs. Dickson and Hunter (as we are informed by the report) that "the prices charged by them and referred to by Messrs. Tunstall and Wilson were for articles in small quantities," &c. The commissioner takes especial care to forget here that some of the bills in which these articles are charged are considerable in amount, (see deposition of Mr. Tunstall,) and also that a large portion of the articles selected from the bills of E. J. Higgins, to which the testimony was more particularly directed, were furnished in very small quantities, being generally the case for supplies of ship chandlery and iron-mongery, as will be seen most clearly from the memoranda marked D and K.

As it was obvious, however, that this plea of the charges in the bills of the witnesses, being for small quantities, would not avail, the commissioner kindly endeavors to get them out of the strait by adding that "the articles were sold to merchants on credit, and the prices enhanced by the risk of bad debts." But here again he takes care to forget that, to the questions propounded to Messrs. Dickson and Hunter as to the prices of certain articles in the accounts submitted to them, they reply distinctly and without qualification that the prices are too high, and higher than the prices for which they had sold similar articles at the same periods: when, in addition to other evidence showing that the charges in these accounts were fair and reasonable, the bills of these very persons are produced to prove that the prices actually charged by them for articles under the same name, at the periods referred to, are generally higher, without any [216] allowance for risk or expense of delivery at the navy yard, or any regard whatever to the particular description of articles required, their several qualities, &c.

It further appears that, from accounts for iron-mongery and hardware, running through more than four years, some seven or eight articles were picked out by two witnesses called by the commissioner; and of these little or nothing is said at all material as to description, quality, or price. (See C. F. Stone's deposition.) As to what is stated by one of them, W. D. Roberts, concerning tin, brass wire, charcoal, &c., (and the other, E. P. Tabb, was introduced, peradventure, to give color to the only specification contained in the document exhibited as the commissioner's authority, but which he has not thought proper to set forth in the report,) it is in these words, under the second head of complaint: "that an unusual and unnecessary quantity of files, costing the sum of fifteen hundred dollars, or thereabouts, was not long since purchased on public account by said agent, and, by connivance of the armorer and plumber of said yard, received into his department, after having been offered to and refused by the master blacksmith of the said yard; and that large quantities of copper wire and sheet tin, greatly beyond the wants of the service, have been procured at prices exceeding those usually paid for such articles."

There has not been a single file, nor piece of copper wire or sheet tin purchased by the present agent since the commencement of his term of service, except on requisition duly approved, and at a fair and reasonable price, of the description called for; and the charge thus made, being without a shade of evidence to rest upon, is really one of the foulest calumnies ever invented by malice and falsehood. As well might the agent have been arraigned for peculation, or forgery, or any other high crime.

It will be found, upon a review of the depositions, that the foregoing remarks embrace all matters of any consequence connected with the alleged complaints. A particular notice of the testimony taken upon other articles referred to in the report as overcharged would, I am aware, encroach too much on your time, already sufficiently taxed: with respect to those, comparatively unimportant, required as they generally are in very small quantities, the rates at which they are charged, (depending materially upon the actual description, qualities, sizes, &c.,) whether reasonable or otherwise, can only be accurately known by reference to the accounts themselves at the time the purchases were made. All circumstances considered, it is confidently affirmed that these, as well as all other articles of the first quality, (and none others are received at the yard,) have been furnished at a fair market price.

Amongst other matters paraded to the prejudice of the office, the commissioner says: "In April, 1837, Messrs. Higgins and Keating delivered 10,396 pounds of pine-apple cheese, which was charged at 22-1/4 cents per pound; and during the same year E. J. Higgins delivered other parcels at a similar price. Inquiry was made whether this was a contract article, but no contract could be found. Having been informed that this same lot of cheese was bought by Mr. Keating in New York, at less than half the price charged, an invitation was addressed to him to appear before us, but he declined."

In regard to this statement, I need only say that vague assertions have no claim to credit, and if they had would amount to no proof. It will be seen, by reference to Mr. Keating's deposition, that he testified to an im- [217] portant fact, involving Messrs. Dickson and Hunter in flagrant contradiction; and, as to the information upon which the commissioner has thought fit to make this statement, the affidavit of Mr. Keating, hereto annexed, exhibits its true character.

After the abortive attempt to discover any just ground of complaint in the transactions of the office already noticed, it became necessary to hunt up some other pretext; and hence we find the report embellished with the narrative of Mr. Richard Vermillion, concerning a lot of oars, and also that of Mr. Bucktrout, about some pine logs: the one stamped with deliberate falsehood by papers in the office, and the other, to use no harsher term, utterly preposterous, as the deposition of Mr. T. B. West will clearly show.

It is perfectly obvious, from the whole tenor of the report, that the commissioner's invention was continually upon the strain to devise something that might by chance create an impression unfavorable to the office. As a striking instance, among others, we are told that Mr. Jordan, naval storekeeper, in his letter to the Secretary of the Navy, dated June, 1841, says: "The interest of the service requires a constant supply, upon a liberal scale, of the greater number of articles used in the service, so that the different mechanical departments can be supplied promptly and without waiting, as well as the ships fitting for sea;" and, further, "that Commodore Shubrick, in conversation, informed me that a year's supply of imperishable articles was not too large." If this was meant to cast censure upon the agent for failing to provide ample supplies for the navy in advance, the commissioner should have pointed out his authority to do any such thing, or indeed his right to suggest the expediency of supplying any article beyond such as, from time to time, may be called for by requisitions from the yard or the board of commissioners. If meant to convey the idea that Commodore Shubrick and Mr. Jordan, or either of them, gave countenance in any manner to the complaints against the agent, or to the commissioner's course of proceeding, it must have been upon the principle that "some disguised falsehoods are so like truths that it would be judging ill not to be deceived by them."

An effort was made, in various ways, to extract from the naval store­keeper something that might, either directly or indirectly, implicate the agent: with what success, his answers to the several interrogatories propounded by the commissioner will determine.

As to the commanding officer of the station, instead of the loose fragment of a conversation here insidiously presented, why was he not invited by the commissioner and questioned directly upon the subject-matters of inquiry? Commodore Shubrick's professional standing and high sense of honor, as well as his fidelity and vigilance in all things, as far as possible, to save the Government from waste and loss, rendered it peculiarly proper that he should testify in the case; and accordingly the agent did not omit to call upon him. It would appear, however, that his testimony was considered unworthy of the commissioner's notice, as we do not find the remotest allusion to it in the report. Two plain, direct interrogatories were propounded to him by the agent:

Question. "Do you recollect what passed at the navy agent's office, a short time after your arrival to take command of the station, in relation to accounts presented for your approval?"

Answer. "I well recollect your expressing a wish that I would particu- [218] larly examine the prices and satisfy myself that they were reasonable, and, that I would inform you when any charge came under my eye that I thought too high."

Question. "Have you any reason to doubt that the supplies of every description are furnished upon fair and reasonable terms?"

Answer. "None at all. I have in one or two instances thought that charges were exorbitant, but upon inquiry satisfactory explanations have been given."

An officer of rank and character inferior to none in the navy was in command when the agent came into office, and continued until Commodore Shubrick took charge of the station. Accessible at all times to the Department, he may be freely consulted in relation to the agent's course during his term of service.

There are various matters connected with this investigation (some of which are deemed worthy of the commissioner's attention, and others are passed over without notice) that do not fall within the scope and compass of these remarks, or need not be touched at this time. From the multifarious transactions of the office, extending through a period of more than four years, and to disbursements amounting to largely upwards of four millions, (and, so far as it involves a moneyed trust, the whole amount has been disbursed by the agent, and to the last cent strictly accounted for,) the accounts of Messrs. N. C. Whitehead & Co. and Whitehead & Beale, E. J. Higgins, and J. Capron, are selected to show, first, that these individuals or firms "have been permitted, in a great measure, to monopolize the Government supplies at this navy yard and station; and, secondly, that the supplies have been procured in an exceptionable manner and paid for at unusual and exorbitant prices." What detriment the Government has sustained in the premises, or what degree of credit the labors of the commissioner to establish the complaints may justly claim, will appear from the papers and facts already referred to, and from a careful examination of all the testimony taken, to which attention is especially invited. At present I have no desire to trouble you further on the subject.

Against the coarse insinuations so profusely spread through the commissioner's report, I cannot descend to offer any defence; nor will a due sense of self-respect, and that decorum on all occasions proper in addressing the Department, allow me to speak of it in terms suited to the spirit and temper lurking under its flaunting capitals. It might not be strictly just to state that it was manufactured to order, or in pursuance of a contract between parties (Those by whom the complaints were made are yet unknown to the agent.) having purposes to serve in nowise connected with the interests of Government; yet, "beginning as it does without substantial data, seeing a little, presuming a great deal, and then jumping to a conclusion," it will not be considered harsh towards the commissioner to say that his report savors strongly of the old adage, "what we wish we readily believe." At all events, granting all that he may justly claim on the score of fairness and impartiality, it certainly required greater parts than those of Mr. Homans to sustain complaints originating in defamation and malevolence.

The commissioner closes his report by acknowledging the valuable assistance he had received from his associate. It is highly probable that, [219] but for this happy conjunction, no inconsiderable portion of the rare materials of which this document is made up would have been lost. The, excitement of which the commissioner speaks as "produced among the citizens of Norfolk," if it actually existed, was occasioned, not by the "circumstance that an investigation had been ordered," but from the manner of conducting it—the course pursued—setting justice at defiance, and violating every principle of right. The intimation that "threats or arguments were resorted to by the political and personal friends of the agent to dissuade" those disposed to give information of supposed abuses from attending, like most of his statements, unaccompanied by proof, is believed to be entirely gratuitous and calumnious.

I am, very respectfully, your obedient servant,

GEORGE LOYALL, Navy Agent.

Hon. SECRETARY OF THE NAVY, Washington.

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Of this a large proportion has been paid for oakum, piles, wharf logs, poles for staying, shingles, and other lumber, in small parcels, occasionally required, but at prices previously agreed upon by the commandant and agent, with numerous persons, without distinction or preference, personal, political, or otherwise; for milk, bread, groceries, and various stores, for navy hospital, at prices fixed by the surgeon and agent; for furniture of ships, cabins, and wood rooms, at prices fixed by the tables from the Department; for that of steam and pilot boats, and other incidental transportation, at customary rates; court martial expenses according to special orders from the Secretary or Fourth Auditor; and for large purchases of white pine boards and plank, mahogany, spars, stores, cement, and numerous articles required in the joiners', blacksmiths', painters', coopers', constructors', and other departments of the navy yard, after public notice, through the medium of four newspapers in Norfolk and Portsmouth, and upon especial requisition by the commandant of the station, and not without.

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B.

NAVY AGENT'S OFFICE, Norfolk, January 26, 1841.

SIR: The old forms of offers for ship chandlery and hardware, accompanying your letter of the 16th instant, are herewith returned, "filled up with the prices paid opposite the several articles," as requested.

To the inquiry, directed by the board, whether all the articles are purchased of any particular house, or indiscriminately, as they can be best procured, I have to reply that, at the period of my appointment to the agency, most of the articles of ship chandlery and hardware were supplied by Mr. E. Higgins and Mr. J. Capron, though many (embracing as they do a great number and variety) were purchased of other persons, competent to furnish them upon fair terms, according to the requisitions. For several years prior to 1835, all these articles were supplied by Messrs. Higgins and Capron, under special contract made by the board of commissioners. In that year, it appears, the board declined entering into contracts for the supply of this station; and, as these gentlemen were the only ship chandlers in the place dealing in articles in their line suitable for the navy, and who, from many years' experience, had become familiar with the wants of the service, they were deemed, I understand, by the agent, the proper persons to make his purchases of, upon a fair understanding of the terms and limitations previously designated by the commandant, with reference to the existing state of things, at the time articles might be required. Accordingly, it was agreed upon verbally that purchases would continue to be made of them, of such articles as they could supply for the navy, at a fair market price, the necessary expenses of delivery at the yard, in all cases, being at their charge and risk. This course has been pursued, in procuring the principal supplies in their line, since my appointment, not only in consequence of the better knowledge these gentlemen have of the particular articles required for the service, (different, as it often happens, in quality, pattern, and finish, from those for private [221] service,) and which, it is believed, they furnish upon terms as favorable as the same can be had elsewhere, but that they had acquired the entire confidence of the commandant, who, on more than one occasion, directed the agent to "purchase all the articles not enumerated of Mr. Higgins, provided he would furnish them as low as any other person." As Mr. Higgins and Mr. Capron were no longer obliged, by special contract, however, to keep articles so numerous on hand for the navy, which might or might not be required, (many of them have not for years been called for,) purchases have constantly been made, upon the best terms, of others having the articles at the time of suitable quality. Upon a mixed indent calling for many articles from different persons, the prices being understood, the whole is often included in one account, but never without knowing that each is to be paid his proportion furnished as promptly and satisfactorily as if he was paid at the office; and no complaint has ever been intimated to that course. This is done to simplify vouchers, and to prevent the multiplication of accounts, always required in duplicate for each specific appropriation, and for each vessel separately; but the prices are always those actually agreed upon and deemed reasonable and fair.

Some little time has been required for the examination of bills, and to ascertain the prices annexed to the various articles in the forms, which, it is confidently believed, will bear a comparison with the current market prices, and those paid (referring to the time of purchase) for similar ones at other stations. Many of those enumerated have not been called for within the past year or more, and, indeed, are superseded by others (patent) greatly improved, and more costly.

I am, sir, very respectfully, your obedient servant,

GEO. LOYALL, Navy Agent.

Commodore CHARLES MORRIS, President of the Navy Board, Washington City.

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C.
Memorandum.

In the contract for ship chandlery, made by the commissioner in 1835, there are 243 enumerated articles; the non-enumerated articles must be double that number.

Testimony was taken upon only 45 articles in all.

In the contract for iron-mongery and hardware, in 1835, there are enumerated 230 articles, and the non-enumerated articles must also be double that number.

Testimony was taken upon only seven articles in all. Of amount purchased of Higgins (not contract) - - $192,226.59

Testimony was taken on accounts amounting only to - - 37,701.12

Amount purchased of Capron - - $50,663.92

The accounts examined amount only to - - 9,206.34

Amount purchased of Whitehead & Co. - - $26,441.60

The accounts examined amount only to - - 5,339.62

[222] Of the amount of all Whitehead's bills - - $26,441.60

There are for glass houses in the navy yard - - 5,165.50

Leaving for medical supplies in the aggregate - - $21,276.10

And of this amount it is estimated that about three-fourths are for surgical instruments, groceries, crockery, preserved meats, mattresses, pillows, sheets, &c., for hospital and ships; furniture, &c. - - 15,957.00

Leaving for medicines proper about - - $5,319.04

While in the same period there was paid to other druggists for medicines - - $5,873.00

Under the order of the commissioners, dated May 6, 1836, authorizing the surgeons of the yard and hospital to select their own medical supplies, the same privilege has been extended at the office to the surgeons of ships in commission, who are supposed to be the best judges of such articles, both as to quality and price.

There has been no contractor for medicines for the navy since 1829, and for ship chandlery, and iron-mongery, and hardware, none since 1835; nor have there been at any time contracts at the discretion of the agent, but especially under the control of the commissioners.

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D.

Wanted, as per requisition in the gunners' department United States frigate United States—

1 pair dividers, 1 pair scissors, 6 lbs. of rotten stone, 4 lbs. salamoniac, 4 lbs. sewing thread, 3 lbs. camphor, 4 bass drum heads, 4 snare heads and 4 baiter heads for tenor drum, 1 gallon spirits of wine, 4 sides bellows leather, 1 coil 3-1/2 inch manilla rope.

Understanding that it has been stated to Mr. B. Homans that I purchased cheese for Mr. E. J. Higgins, in New York, at 10 cents per pound, and that he charged the same at 22-1/2 cents to the Government, injustice to Mr. H. as well as myself I pronounce the authors of the assertion as base and wilful asserters of what is not true. Given under my hand and seal this day, the 4th of August, 1841.

THOMAS KEATING, [L. S.]

Test: S. W. HARTSHONES.

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[223] E.

Memorandum of articles required at the navy yard in small quantities.

1 to 5 lbs. sewing twine, 1 to 10 lbs. chrome yellow, 1 to 5 lbs. glue, 6 to 10 lbs. twine, assorted, 1 hair broom, 1 lb. camphor, 1 to 2 planes, 1 to 4 lbs. cotton, 1 to 4 lbs. lamp wick, 5 to 11 lbs. scupper nails, 2 to 5 lbs. of yarn, 5 gallons neat's foot oil, 1/2 gallon spirits of turpentine, 3 yards blue nankeen, 4 lb. thread, 2 lbs. shoe thread, 2 log lines, 4 lbs. of pepper, 2 lbs. of camphor, 4 lbs. of saltpetre, 4 lbs. of borax, 2 lbs. of choct, 10 lbs. of ice, 1 M pump tacks, 5 yards of baize, 5 yards of velvet, 5 yards of blue or green cloth, 5 to 10 lbs. of brass tacks, 10 lbs. of soap, 5 to 10 hickory and corn brooms, 10 yards of bunting 5 lbs. of beeswax, 1 grind stone, 500 to 1,000 hoop poles, 1 M shingles, Sand paper, sheep skins, leather, tar, pitch, &c.

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Affidavit of R. Gatewood.

On the afternoon of the 27th of this month, I went with Mr. Loyall before Mr. Homans, as commissioner, to take the testimony of Commodore Shubrick, which being done, and Commodore Shubrick having withdrawn, Mr. Loyall said to Mr. Homans that, being informed of his intention to leave town that evening, it occurred to him to ask whether any other paper or documentary evidence had been received by Mr. Homans, or would be filed with the testimony which had been taken, than such as had been received in their presence, and of which Mr. Homans had furnished Mr. Loyall with copies.

Mr. Homans replied that, since they had last met, he had received some papers from two of the witnesses who had given "conflicting testimony," upon whom he had called for explanations, and he expected some others, which were not yet received. He then produced two papers purporting to be explanations of the testimony of Mr. Toy and Mr. King, and said the others he had called upon for similar explanations of "conflicting testimony" were Mr. Dickson and Mr. Hunter, and that these papers he should attach to the record.

Mr. Loyall expressed great surprise that Mr. Homans should have called for and received such papers without his knowledge, and promptly required Mr. Homans to furnish him with copies of these explanations, certified to have been required and furnished without notice to him, or any evidence of their existence until that moment. Mr. Loyall and myself then left the room, and a note was immediately sent to Mr. Homans re- [224] questing these acknowledgments, when the copies were sent to him; but, when they were received, this request was not complied with.

Soon after this, in the evening, a note was received from Mr. Homans, informing Mr. Loyall that Mr. John H. Butler (late an associate commissioner) was present, and ready to answer certain interrogatories Mr. Loyall had left with Mr. Homans to be propounded to him, but that Mr. Butler wished Mr. Loyall should be present on the occasion. Accordingly, I returned with Mr. Loyall to the commissioner's room, where Mr. Butler was reading Mr. Loyall's questions, and was called upon to answer them. Mr. Butler said, before he would answer these questions, he wished to know if Mr. Loyall would answer certain questions Mr. Butler had to put to him. Mr. Loyall answered he would enter into no agreement, nor make any compromise with witnesses; the questions to Mr. Butler were fair, and warranted by common report, and he might answer them, yes or no, as he pleased.

Mr. Homans, as commissioner, was then requested to put the questions to Mr. Butler, who again said, without Mr. Loyall would agree to answer his questions, he would decline answering Mr. Loyall's. The latter reiterated he would make no such compromise, but said, when Mr. Butler had answered, if the commissioner thought proper to put any interrogatories to him, at all pertinent to the present inquiry, he would freely answer as many as he pleased.

Mr. Butler then read his questions to Mr. Loyall about subscribing to certain newspapers and attending political meetings during the late election, &c. Whereupon Mr. Loyall asked Mr. Butler emphatically if he thought he could be deterred by such means from spending his own money by subscribing to any newspapers or periodicals he thought proper to read, or from obtaining public information in any manner he pleased for his own advantage; and, addressing Mr. Homans, Mr. Loyall asked if he, as commissioner, felt authorized to put such questions to him, or came here with instructions from the Secretary of the Navy to make such an inquiry.

Mr. Homans, after a pause, said he had collected himself to give a proper reply, and then answered, Yes, I do say I have authority to put such questions to you.

Mr. Loyall replied, Very well, then, put them.

Mr. Butler's questions were then put by the commissioners, and promptly answered by Mr. Loyall; not, however, until his interrogatories to Mr. Butler had been fully answered.

R. GATEWOOD.

Sworn to before me this 31st July, 1841.

JOHN SUNIS [TUNIS], Alderman.

THE END.


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