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:J Sl 'IX -1 I s -,'X X- ■ ‘ . 1
> j : e ' <>< u . r th, At.
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•* • ’I t .»•* *:ug C» .« ii *■ -e ft! the j
♦- Uj. j if’vei uu DcLilcr . ;m. to !
'Li* r. iii country has fit cu locking wih j
deep R*x to. so. .j h.j .s j i-t. made a report j
so tU‘j ii'.'iso, through their chairman. Mr. liar- J
lao. 1 ..e rep* f loltimnious. but so reduced I
tjsy-teni ii u. . and arr.ttu»>-!T»> ct ol I
tirts ns will ivtiU'-r uui *s e * * fr ,* -as !
wull a> easy of -.or ■j. . \Ve have l i p |
pL'-is-ire «.»f prrrcati i; * , U ui *.jj i.i the si b- !
jo.*r; , l e-.trtie prefatory re.mi: .s ol' the re- !
port, auJ the cokclusvi- s which the conunittee j
UeJuteU tioiii tLe lestfieony take., by them.— I
These speak i>i t- rms •.,* •! inning reprebeti*iofiin !
io regard t • 1 * ■ i ,i : hue. >
executed th duties of sereia] oi t’ <: fniinnry |
©bices of tin* Got- ;; .• ,r. . ;c • i,the efficiency <f |
'V h >sv ad.ans'istiMiiii.i the si-cii/ity of !he nati-nal i
treri.-::re !H'i.-t le-pend. Ilut, not binng bad ,
th’t- to read ; teuhvely the body of the report. j
cannot attempt To say Low far, if at ail, the !
conclusions exceed the ilrengu of their prei'ii- j
oi. We gonsequeutly cannot do more now ti m I
promise a recun inure" to the sublet at an e»Uv
Uav. ' |
The taiparity cf th" committee dso submit;? i j
a report, tlit* leading features oi whiih, so far n» j
they fall short ot a clear implication of officers j
o! Govemini’*;;, einhody, we understand, some j
singular pysiiions, well worthy of notice Lt-reiff I
ter i.i our columns.
PREFATORY REMARKS OF THE COM
MITTEE’S REPORT.
The Select Committee, chosen bv the House
of Representatives on the 17:1; and 19th ultimo,
to investigate tbe defalcations, of tlielate collector
ofthe cm i in* tl cjoi t«• >tw York, and of
other odicers, h ive devoted to the f .itbfu! di*
charge of the duties assigned them the limited
time ai! >*-1 Vrie nirpise by tiia shortness of
the present session of Congress.
It was most obvious, however, that the whole
field of inquiry presented by the resolution ap
pointing tin* Committees, could not bo properls
traversed to report thereon, eith r satisfactorily to
the country or o the Commit, o , during the short
remainder of the present Congress. This im
pressed upon the Commi'tee at once a resolutin ,
which has been rigidly adhered to, of limiting the
investagaticn to such branches of the subjects
referred to them as had most deeply excited pub
lic anxiety and alarm, and to undertake only so
much o* these as might be thoroughly exhausted
within the allotted period of »h<* Committee’s
researches. Rut the;important results which
have been attained, notwithstanding the disad
vantages adverted to, cannot tail to inspire the
country wit' a confident hope, that the high ob
ligation which w : H rest upon the successors of the
present Congress in the Legislature of the na
tion, to resume and complete the great work of
investigation and reform of ?be alarm in. 7 enu
d t ;n and abm* ■- of the .Executive departin' tits
o’ the Qavcrrma.it, fr - \ the highest to the low
cv, uu 1 icon the n • u ; ,t to the remotest func
tionaries, will engage the prompt an 1 efficient at
tention w hich its magnitude demands.
Quide l solely by the character of the develop
ments which the investigation imposed upon
the 11 by the House has cluci.l fid, the committee
cannot resist the conviction, that -,t no period m
the history of the Federal Govermru t»t has there
been deeper or better founded cause than exists
at the present moment,for sverv pa>ri<4 hear g, de
sire a prompt eonsumation ofthats gna! “lath of
r form" which public scitirnfnt man if .v.irJsinre in
trribcJ on the lif tof E.rccutire duties, in charac
ters too legible to be overlorded, reqnirinv, “panic
nlarly, the correction of those abuses that have
brought the patronage of the Federal Govern
merit into conflict with the freedom of elecfim s.
and the ro'mfer tetion of those causes which
have disturbed the rightful course..of onuointwent,
and h/n'e placed our r< niinurd power to t?*sfaith
ful Or I.XCOIPKTKNT fTANOS.’’ *
The first procedure of the committee, after or
ganizing itself for business, was to visit the city
of New York, to inspect there, in person, the
original records and papers of the custorn-hou e,
in conjunction with the examination of such wit
nesses as might be supposed capable of shedding
light upon the inquiry involved by the defalca
tions of 'dr. Swartwoiit. Thenceforward this
branch of the investigation was conducted pur
stunt to ’he resolution of the House, viz.: to as
certain “the causes and extent” of these defalca
tions ; the length of time they have existed : ihe
( orrectness of the returns which have been made
by Mr. Swart.vont, and by the naval officer at
New Yoyk, and by other officers connected with
the adjustment of his accounts.
Concurrently with the investigation of Mr.
Stvartwout’s defalcations, those of William M.
Price, late district attorney in New York, were
likewise kept in view ; and the fullest practicable
extent of information respecting them Las been
obtained, and will be adverted to in the sequel of
this rt-poit
Th" correctness of the returns which have been
made by ihe present collector of customs and the
naval o*sc»r at the port of New Vori , was also I
sou ht to be examined bv the Committee w! ib
in that city. “Considering that the customs rei
looted at N°w York equal nearly two third:; o:
tlia whole amount in all the United States,” as 1
slated in the special report of the Secretary of j
tin* Treasury on Mr. Swartwout’s defalcations,
(House doc. 13, p- (», of the present session.)
the Cos mittp" did not suppose that they should
fuitli/uly discharge their duty to the House, or
pay a proper deference to that patriotic disgust
which pervades the country at the present time
in regard to the affairs of the coMom-bouse at
New York, were they to iimit their inquiries to
the returns of the late eoilertcr and naval officer,
nod neglect entirely those of their successors,
which must, at all times, be to. the country cf
equal interest with the former, and, tit the pre
sent state, of. even more immediate importance to
the security of the national Treasury. But. in
the execution of so much of ibis pert of their
inquires as related to the present collector of
New York, they were compelled to encounter
most unexpected obstacles, interposed by the
colb cur hioi.«ejf and setting at defiance the an
thorny neieg,.i.ju io me Uomputfep bv the Hoie-p,
l .ie tact* ftomiycted with- the. batih-d endeavors
ot tho vJouijniitee to obtain iuliindation for the
1 1 0115*5 and Coiiptry from this officer of the e>:
executive hunch of the 1 ,v rnoi">if. who is in
iinuLovl.ate ebariro of, and contro' over pnltiic
moneys that "equal nearly iwo ihi-ds of the whole
amount" col.eeted from cunnrrr, "in all the Uni
* Inaugural addles* of President Jackson,
>l.ir<.h 4, a629‘
•' > ml! be mere specially detailed io a
uy-‘ jyc.it portion of this report.
i>■ » i inn .itee c. dljrmaiK iiere, that, in the
onset of It.t :lives t I. :uioii they have mode, they
supposed 11 both jirojicr and safe to place iheiti
sclvt * somewhat cotifidingly under the guidance
of ti.e several special repcits which have been
made to the House upon the subject of Mr.
Swart woofs defalcations, by the Treasury offi
cers, previous to the appointment ot the Com
mittee-- combining, in litis view, reportslrom the
.'*ecretary oi the Treasury, the First Comptroller,
die Solicitor, and First Auditor of the Treasury,
** exhibited in House document 13. It, however,
very soon became evident that those reports w« re
ot io be. imt'hcitly relied on as auxiliaries io
finding out cither the law or the facts of the case:
and that, on the contrary, they furnished but an
oblique view of both the causes and duration of
-Mr. Swart.vout’s defalcations, as also of ihr* law
1 nd inuny material fact* which develop the due
' :ar 1: *r of those defalcations. Os necessity,
ti-ir. . e, these reports, although emanating
o n t.n hiidie.-t orders of official Utnctioiia
nes e;i ; In) and in the the collection and dtsburse
iiiei.t of tlm public revenues, became the sub
j< cts ii as cautious and critical examination as
•J.iy cilie"- portions of evidence which the cos*-
| resi*;.|ed, and as such it will be obligatoiy upoi:
liit* Comuiitiee t 1 trea. them is this report.
In reviewing the details of their labors, so that
tk.'' progress and results of them thnv be pre
s.'rir*. J in the simplest form, the Committee pro
pose to consider :
Fa»t E The defalcations ol Mr. Swarlvvouf.
Pat.r 11. Ti e defalcations of Mr. Price.
Part Hi. The correctness of the returns which
h ive been made by ihe present collector and na
val otfieef ot the port ol New York, respectively.
Part IV. ’! h** defalcations among receivers
of the public money.
Part V’. The tac ts connected w ith the fore
going defalcation**, and deemed material to de
velop the!** true character.
Each of the divisions thus proposed will p;o
peily involve the biw appertaining to it, as the rp
propriate adjunct of its facts. And as the lan
gtiu jc ot the law itself will in each instance be
fit. Jin de 1 ! t!i i! r$ authority anil injunction
•nay be correctly understood by every one, so the
i<u u.; ;e of th* individual testimony relied on in
each instance will be adduced, that its import and
force mav he I*■'* neither to uncertain construc
tion or do. tf*. inti rence. The increased
fidelity of th ii- report, in the estimation of the
Committee, wdi t»e. by tliis mode, an ample offset
to its consequent vidargement.
Before proceeding to the general topics of tl>is
report, as already laid down, it may be proper
her * to expre s the deep sense of disappotntment
:<»"! regret who ' the (Uinmittec teel, in not being
ah..? to coirmuinicafe to the House one document
that was called for at an early day, regarded as
ttavtng art important and interesting influence
n , . , .v) th** in hjment wh<ch ti.e House might form
cm the subject ol ilelah-ations among public offi
. is, ai.- ! the causes w 1 ich liavg led to their nml
tpi. a on. It ilb.•c ci ied from tho fol
!(/tv:ng leiier, that the < 'ommittee availed it
selt iff the earliest period after their organization
to make a crill upon the President to furnish a list
of the defalcations that have taken place among
collectors, receivers, and disbursing officers of
public money, and other public officers, since
the 4th of Match 18.9, showing the amount of
cat }), Ac.
More tii in four weeks have now elapsed since
that call was made upon tlie President, and the
oily information which the Committee has ob
tained to report upon to the House is contained
in the following l‘*tter; tin* distinguishing feature
of which information is. that still more time than
even the whole rcntntider of the session will be
requisite to answer the call. From this the Com
mittee at" compelled reluctantly to infer, either—
-Ist i hat the accounts and records of the sev
er;;l Departments, in general, are so incomplete
and detective as not to exhibit, without great la
bor and delay, the true relations of collectors,
rectsveres, and divbursers of the public money,
and ol other officers of the Government, as to
distinguish debtors from Defaulters, and credi
tors from both.
2dly. That the number of the defaulters have
multiplied so rapidly since 1829, under the sys
tem ol accountability pursued towards collectors,
receivers, and tlisbursers of the public money,
and other officers, as to preclude the practicabili
ty ot receiving an account current of their defal
cations with all the clerical force at the command
of tho e Departments, under existing laws and
nppr priatinns.
It cither inference be’just, (and none other of
equal weight skeins to be fairly dedncible fioui
the filter of ti.e Secretary of the Treasury,) it
m.uiil s!s a laxity of administration which de
mands )hc earliest application of suitable reme
dies within tiie reach of Congress and of the
country.
For the papers Nos. 1 and 2, referred to in the
subjoined letter, reference is respectfully made
to the journal of the committee p. 470 and on
ly ltd.
Treasury DurAnTHE-vr. Feb. 13,1839.
i ~ —The President, on the 23d ultimo, refer
-1 v :t 1 this 1 ‘cnartmcnt the lollowitg resolution,
: *>.*••• - .-d iiv th Investigaring committee :
1 ••>, -1 i, .and, That the President of the United
| States I o n-m;‘--ieil to cause this committee to be
1 turn- hed b. tin* proper Executive Department
1 with a table s ow ing the defalcations which have
occurred among the collectors, receivers, and
disburse; sos public money, and other public offi
cers, since the 4th day" of March, 1829; the
names of the defaulters; the amount of eacii de
falcation ; when eaeh case occurred ; the length
if time rat h case has 1 xisted; what steps have
been taken by the proper departments or officers
to prosecute the dafaulters and to secure the
Utu ted States, in each case ; and what defaulters
an* retained in ihe same offices in which they be
came defaulters, or have been appointed to other
offices.”
lie accompanied it with a request that all the j
information desired should be procured eariv as :
S ractu'ablc. and submitted by me to the commit
tee. Accordingly, on the same day, I enclosed
copies of it to the other Departments, and also to
the proper bureaus in the Treasury Department, j
and desired that replies ought to be furnished, so I
fir as in their power, to the several inquiries made. '
1 further requested the bureaus connected with j
this Department to employ any extra assistance |
that could be advantageously applied in hasten- ]
ing their answers.
f would now inform the committee that great j
progress has been made in respect to those parts
of the answers connected with the Register’s of- j
lice, and all which rouid be made, consistent with 1
’b' difficulty and <ten» ofthe labor, in the!
Third Attcftrar's office. But it is feared that, .
THE GEORGIA 31 ERROR,
on account of this lauu , and tile great mass of;
j 1 vious calls by comnittees and bv the fvo '
Houses ol Congress, which are also to be an
swered, besides transacting the current business
h) tut- inffereut bureaus, the whole details aud the
tabular statement requHed cannot be completed
dniiug the session. Every effort, however, which
under all the cirtumstancvs, can be made, is be
lieved to be exet.ed to uit tt the call at the earliest
d..y practicable.
in respect to ib" last branch of the resolution,
asking -what defaulters are tvtained in the same
offices in which they became defaulters, or have
been appointed to other offices,” 1 am able to
present the report of the Register, fiom his of
fice, which exhibits such names itsare un Lis books
connected with the State aud Treasury Depart
ments. It is annexed, aud contains nu name as
to tuis, and Out one a* to the State Department.—
That one is Commodore D. Porter; and by the
correspondence, annexed, it will be seen that he
dots not consider himself a de aulter, ibou h he
stands charged on the Register's books lor a vou
siiiviable sum on account of prize money, as ex
plained lit tite papers (Nos. 1 and 2.)
Respectfully,
LEVI WOODBURY,
Secretary of the Treasury,
mm. Jam is Harlan,
Chairman of Investigating Committee.
PA JI T I—DE FA LCA Tl n\S OF MR.
AiI'ARTWOUT.
1- Till-. LXTE.NT OF MR. SVVAr.TWCUT’# DIIFALCA
TIO.'S.
Oonclu. tons oj the Committee
Ist. That Mr. Swartwout is a defaulter to the
Government, as appears by his own returns, as
adjusted Irom time at the Treasury Departtmi t,
a. the sum of one million two hundred and twe.i
ty live thousan i sevt-11 hundred and live dollars
and sixty-nine cents.
2d. 'i i.at this amount of indebtedness has aa
cumulated upon the lace of the quartet !y accounts
regularly rt turned by him tor adjustment at the
1 reasury Department, without the omission ot
any oi either items, debt or credit thereon, until
it became an absolute defalcation.
2. THE DURATION OF MR. SttABTWOCT’S
DEFALCATIONS,
Conclusions of the Committee.
Ist. 1 fiat all moneys received by Mr. Savarf
wout as collected prior to 1837, were regularly
accounted for by linn in Lis quarterly returns to
the Treasury Department.
2d. That so much of all moneys received by
Mr. Swartwout ptior to 1837, aud mounted lor
to 14e Treasury Department in his quarterly re
turns, as were not paid by him into the Treasury,
were retained by him under the tacit acquiescence
of the accounting officers of the 'Treasury; and
regularly carried forward, debited to himself, in
the balance of each subsequent quatteuy account
rendered by him to tiie Treasury Department to
the 1 lose oft lie term of Ims office.
3d. That his omission to carry a debit to him
self of the moneys received by him from the
1 reasury, or front other sources, prior to 1 837,
to the close of accounts kept only at the custom
house, called his cash accounts , and his carrying
a debit to himselt of any such items to anv 01 in 1
class of accounts kept only at the cue! -house,
called suspense and unsettled accounts, or by rny
other 1 ante, would noi ojjeratc as a concealmen:,
innocent or fraudulent, from the Treasury De
partment, of the true cash balance in bis ffimds.
First, because neither his cash account, nor his
suspense and unsettled account, nor any other
subordinate account, kept at the custom-house,
.was ever exhibited to, or formed the basis of my
quarterly settlement made by him with the ac
counting officers of the Treasury. Sr-'ovdlp, be
cause, in his quarterly accounts settle;! ;it tin*
Treasury Department, the aggregate! and true
balance ot all his subordinate accounts kept at the
ettston -house, including both his cash account
and suspense account, was uniformly, prior to
1837, carried into hist quarterly account undt r
the item of "cash and unsettled accounts.''
4th. That the defalcations of Mr. Swartwout.
by means of fraud arid false -returns, commenced
in 1837, and not sootier, and have existence since
that period ; and defalcations thus accruing, ad
ded to the moneys previously retained by him,
iciordiim to his returns to the Tteasury Depart
in' ut, and by the silent acquiescence ot the offi
cers of that Department until the close of his
term of office, constitute the aggregate of his
defalcations at the present period.
3d. THE CAUSES or MR. RWARTWOUT'S DEFALCA-
TIO.N'S
Cause ]. The irresponsibility of Mr. .Swart
wont iti pecuniary -character at the time of h s
appointment to office.
Conclusions of the committee.
Ist. That at the time of Mr. Swartwout’s ap
p.oiu'ment arid of his reappointment to office, he
was wholly irresponsible in pecuniary reputation,
and was involved m debt.
2d. That at the time of his appointment and
of his reappointment, and for the whole period
he was in office, he was notoriously engaged in
large and hazardous speculations, and deeply em
barrassed by them.
3d. That his pecuniary responsibility and con
sequent involvements by hazardous speculations,
constitute one of the primary causes of his de
falcations to the Government.
Cause 11. Culpable disregard of law, and neg
lect of official duty, by the late naval officer at
New York.
Conclusions of the Committee.
Ist. That the late naval officer at the port of
New York, throughout the term of his sen ice,
from 1829 to 1838, wholly disregarded the re
quirements of law prescribing the duties of his
office.
2d. That said naval officer, for the same pe
riod, wholly disregarded the instructions of tbe
Comptroller of the Treasury of November 10,
1831.
3d. That said naval officer, by so disregarding
the requirements of law and the instructions of
tiie Treasury Department, culpably neglected to
keep the accounts and records appertaining to
his office, ami thereby rendered the office nuga
tory asa check on the accounts of the collector.
4th. That if the duties of said naval officer, as
authorized and directed by existing laws, had
been executed with proper care and vigilance,
they would have rendered it impracticable for any
fraud or error in any of the ac counts of the col
lector ot said port to escape immediate detection.
sth. That tiie culpable disregard of the plain
requirements of law and of Treasury instructions
prescribing til" duties of naval officers, bv said
naval officer, and Ins continued neglect of official
duty, is a primary causa of the immense defulca
tio.iis of the late coPeckot of New York.-
C ti'SK 111. Culpable disregard of law aud neg
1* ct of official duty by the first Auditor of tiie
Treasury.
Conclusions of the Covtmitl c.
Ist. That the First Auditor of tlieTresury has
been guilty of culpable disregard of law ami"neg
lect of duty, in examining and certify mg to the
correctness of the accuui t -of the laic collector
at New York wi.hotn TL.nus* compared th>-ni
thoroughly with the voucher, accompanying tne
same; and also in transmitting said accounts to
the First Comptroller, certified, for r< vision w fide
the most important vouchers thereof were n tuned
in his own office.
2d. That no fraud practised by the said colli c
tor in bis w eekly n turns of cash to the Secret.uy
of the Treasury could afliftt the ju»t aud tri o
settlement of the accounts of said collector at
the Auditor’s office, as sai I weekly returns form
no part of the basis of the settlement of said
quarterly accounts by the auditor; and therefore
furnish no apology lor the neglect of the Auditor
to examine the same thoroughly.
3d. That, without the aid of the register of
bond accounts of collectors, required by law and
; Treasury circular to be kept by the Auditor, to
enable him to detect frauds and defalcations, it
any exist, the said Auditor could have thorough
ly examined said Swartwout's quarterly accourts
during any quarter said Auditor 1 as been in ofiit e,
inasmuch as the origiual quarter'y accounts w* re
retained, against law, in bis rfficc, and furnished
the same means of comparison as u register wot Id
have furnished.
4th. That, in ti.e culpable disregard of law and
neglect of duty, as aforesaid, by sattl Auditor, is
found a primary cause why the defalcations ol
said Swartwout in 1837, and subsequently, es
caped early detection, a; and have resulted in t ic
probable loss of tbe ruLlic treasure.
Cause IV. Culpable disregard of law and neg
lect of duty by tlm late and present Cos np-ioll
cf the Treasury.
Conclusions of the Committee.
Ist. That the late Comptroller of the Tieasu
rv, George Wolf, Esq., now collector of the port
of Philadelphia, was ptiiby, while m. said office
of Comptroller, ol 1 ulpable disregard of law arui
neglect of duty, both in tegaid to the bonds of
collectors filed in his office, and the records
thereof required by law, and in settling and c> r
tifyiug to the Register the accounts ol Samur
Swartwout, late collector, without having trims
tnitted to bil l the vouchers thereiof lequiied j\
positive injunctions of law.
2d. That the present Comptroller of the Trea
sury has been guiiity of culpable disregard 01
law and neglect of duty in setting and cert if yin
to the Register the quarterly accounts of Samuel
Swartwout. late collector, without hating trails
mitted to him the vouchers therefor required l \
positive injunction of law.
3d. That said Comptroller is also guilty o
culpable disregard of law and neglect of tints—
-Ist. in not having sought and ascertained from f, e
••invoices and a»proi*-*ment M at the custom-'-oust
1 either through the Solicitor of the Treasury or
otherwise, the true airmunt of Swartivout’s claim
upon the §201,000. retained by hitu in going out
of office, as suggested in the letter »,(' the dtMri* t
attorney that was before him, dated \--ril 2b
1838. 2dly. In not causing the accounts of sad
Swartwout to be forthwith stated, or instilutu 2
measures therefor, immediately on the neglect at
said Swartwout to return and settle his accounts i
at the expiration cf trie time allowed him hr 1 n
far that purpose, to wir: in the early part of Jul
1838. 3ril\. In. continuing the same neglect, am;
forbearing to issue warrants of distress against
said Swartwout and his sureties from the 31st .
August, when apprised by the 1 -tier of 1 he
Firs! Auditor that said accounts still remained
unsettled, until tho month of November, when
the detection of Swartwout s larger and .ideation
was co.iimu- i' - .red from New Yt .
4th. '1 !. t the administration <•' it is marked
with such signal inefficiency, as w ell as neglect o(
duty, as Fonder nugatory many of the most im
portant checks upon the First Auditor, and col
lectors, receivers, and dist-ursers of ti.e public
moneys, which the laws creating and regulating
its duties contemplated and have sufficiently pro
vided.
sth. That in said disregard of law -in ! neglec t
of duty bv the said Comptrollers, and inefficiency
of the office as now administered, is to be found a
primary cause of the imm nse defalcations ofthe
late collector at the port of New Y'ork. and eon
sequent loss c f public money.
Cause V. The discontinuance of the use of
banks as depositories of the public moneys, anil
permitting the same to accumulate in the Finds
of Mr. Swartwout.
t > Cause VI. The negligence and failure of th*
Secretary of the Taeasnry to discharge his dut\
as the head of the Treasury Department, ehaiyec
by law with the superintendence of the collec
tion of the revenue.
Conclusions oj iht ComniiUct.
Ist. That, ot late years, important booh!, tn
records, designed to contain a couuuusi U Mate
ment of the accounts and liabilities 01 collector:,
of customs, weekly, monthly, and quarterly,
have been permitted to tall into disuse m tbc
Department of the Secretary of the ucasury,
and thereby render nugatory many ot the essen
tial checks upon the'detalcations of that class of
officers nvisingo.il frouiexisting laws and i reasuiy
regu!atiosn.v.
2d- That negligence and failure of the Secre
tary of the Treasury to discharge his duty, as the
head ot the Treasury Department, charged by
law with the superintendence of the collection oi
tlie revenue, and his want of a correct appreciation
of the before-named reeords in the superinten
dence ot the collection of the public revenues,
and the consequent neglect to continue and com
piste them, are justly regarded as a primaiy
cause of the escape from detection, for so long a
period, of the immense defalcations of the late col
lector at the port ofNew York.
3d. That the Secretary of the Treasury lias
been wanting in a proper discharge of his duty
in office, in permiuing Samuel Swartwout, late
collector ol New York, quicflv to retain the sum
of SgOl ,000 after being out of office, uhrier pre
text of indemnifying himself against claims of
importers for duties paid him under protest, and
liable by him to he refunded, while it was known
to the Secretary of the Treasury, within a few
weeks thereafter, that said Swartwout was neg
lecting to refund such protest money, as he claim
ed to do, and that the seine were being refunded
from necessity, oat of oiher accruing resources
ot the Government by said Swart wont's succes
sor in office.
4th. That the Secretary of the Treasury has
been wanting in n proper discharge of 1 1 is duty in
office, m permitting the present collector at New
York to retain under his own control, and sub
ject to his own use, contmTucled, with sdhl codec
tor's private tuuds, large Jtid accumulating suog»
of the public money collectcj tor duties p.,jj Ua
der protest, un i ag.uuai the detl.ireJ opinio , ui
a..id Sh cic-tary, anti ihe declared opiuion ot .j ,
Attorney iteucral ol tiie United .States on tiro
subject, also uga.nsi tiie former u,aj*s u; tp..
Department, ind tu.-le.id ot causing the same to
he paid into the Treasury o! tiie Untied fciutes.
PART 11. THE DEFALCATIONS OF
WILLIAM M Tit ft E.
Coucluiio, sft e Committee
Ist. 1 hat \\ 1; iatn M. I’r.c as district attor
wey, is aib n-alcir to ue n jii-n...a ..1 io j |j t ,,,
sum.
‘2*l That his defalcations are uttiil-urabie to
the notorious irresponsibility and want o; chat
acti-rctsaid Pri. eat le}t: co ei 1 1- ;j ; < j : .[.
ut t nd rs-appoin ntem at 1 during his entire
term ol otbee, und to tin* cmitinutd uegiect oi a
proper and efficient ciisthaige oi duties.it the of
fice ot Solicitoi ol tlif "lie-.-ury by tht late and
present incumb i ts o! that office.
i A fll ill.— It IE COl . 1. E( 'TSLS& OF
TH i idrr-i vs win 11 hate bee v
MADE BY THE
TOJi A.\ l> RATAL ( El 1C Ell Ob' THE
iOh '1 Ci ALII \LLL, 1,1 Zl’EL'lH E
< ovclu 'o, s oj the Com n il/e, •
Ist. That tiie returns of the collector of cus
toms at the port ot New-i --rk h.ne not been cor
rect, as they have uot at all rime embraced, as paid
st.to the | uhiic r l rcasur , the moneys received by
him lor utiasi eriaiiicd tliMits, .u.d at no t me lor
duties paid ttr.der protest.
2d That said collector, in his returns, has vio
lated tbe instructions of the Treasury Depart
ment . has put t deliauce the duties assigned
him by ho §Ol retarv of th<* Treasury: has re
pudiated the official decision of the responsible
law-officer ol the Executive I 'epartment ; aud is
guilty ot an illegal retention and use of the pub
lic money, in the amount then held by him for
protest and unascertained duties.
3 1 That the C ommittee has been prevented
from ascertaining what s the extent ofthe illegal
retention aud u.* e ot the pntd.-c meney by the
present collector ofthe port ofNew-York, either
in funds collected under protest, or fer unascer
tained duties, or in other funds collected by him
bt, ausci of his refusal to exhibit his own bock
of cash dep.o-ites in bank, or to permit the l acks
used by him as depositories to exhibit their ac
counts of his deposites.
, h. That the public moneys received by said
collector are mingled with his own moneys on dt
posite, and are not kept by him, nor by ius hunks
ol de| os;te. distinct and separate from the indi
vidual moneys of the collector am! of his 'pro
fessional clients and his returns cannot, there
iore, be founded upon them as a separate and in
dependent fund, t « cutting © Government,
iioigh in his keeping.
s:h. That, as appears by tl e letter of Gor
ham A. Wurth, the cashier of the < ity Bank, the
present collector has deposited public moneys in
iiis hands with a bank w hich could not, uncivi the
law prohibiting the selection of any bank as a de
pository which has issued notes under the de
nomination ot five dollars, be selected by the Se
cretary of the Treasury himse lt as a depository of
moneys carried to the credit of the Treasurer
of the United States.
€th. That ti.e mode adopted and practised by
the said collector, of keeping „nb making returns
of the public money collected by him for unas
certained duties and undt r protest, in the lan
guage of the present Attorney General of the
United States, “could never have been the inten
tion of Con ires and being "tolerated," it has
.nade it. n th* language ofthe same high officer,
“the interest of the collector to postpone the as
certai; meet of duties, as in the mean time he
would have the uncontrolled use ot the money.”
ltd as, also, in fulfilment of the r- asoning of the
Attorney General, increased, “the danger of
faithlessness in the collector, by permitting large
amounts of money to remain with him, and un
der his individual control, instead of being in the
Treasury ofthe United States.”
7th That, in the language of the Attorney
General, “the tenor and spirit of all our revenue
hwsseem to inculcate the idea that the intention
ol Congress has, at all times, been, that money col
lected tor revenue should be piomptlv placed in
the Treasury, and not be permitted to remain in
the hands of tt.e collector.’
Bth. That the returns ofthe naval officer in
New York have not been correct, as it is found
in the testimony of the present deputy naval offi
«er, “that ihe naval officer, under its existing
system, is not enabled, either to determine what
mount of bonds has been t -kenby the collector
for duties in any quarter, or who are the paitiev
to saiil bond*, the duties of said bonds, or w het;
they are payable, or when such bonds are paid,
or whether the collector does or «.joe- r.ot ac
count truly for such bonds.”
PA T 1 V.—DEFALCA TWys AMO MG
RECEIVERS'OF PUBLIC MONEYS.
Tlif* Committee, in fulfilnu nt of that portion
of the duty assigned them. In ufiuli rhev were
directed to inquire into “airy defalcations "among
receivers, Ac., which may ‘ U; w exist.' s a pmt to
the House, that the limit .-d pet od wnte.h they
had for a thorough ini nstigation ot tl e subje.'..
with which they were charged, ami the time ne
cessarily consumed in ihe examination of the
late collector and district attorney of N- w ) ork,
have prevented a minute investigation 01 the ex
tent, nature, and causes of the defalcations qi re
ceivers of public ryoncys, arising from the sales
ot public lands. ( lie Committee have, however,
prepared, from reports made by the Secretary of
t e Treasury at the last and present session of
( impress a fi.bu'ar statement exhibiting the
names of such defaulters, the amount due irom
eaeh, when due, and the penalties of their offici
al bonds respectively: also, the correspondence
had between the Treasury Department and fif
teen of the, individuals whose names appear on
said statement— the Committee having called foa
and been furnished bv the Department, with the
answers of the receivers so the letters of the Se
cretary of the Treasury, ns contained in H"M sa
doe.un-i nt No. 297. These fifteen cases ate re
ported specially, as examples merely ofthe man
ner in which the President of the United States
and the Secretary of tbe Treasury have executed
the laws in respect to the public money and oth
er property of the United States in the hands of
this class of r.oblir officers, and in respect to their
official duty.
The law provides for the apppoinfment by the
Executive with the concurrence of the Senate,
of a receiver of public moneys at each of th** pla
ces respectively where the public and private
sales of the public lands are to be made, who shall
give bond, with approved security, for tbe faithful
dijeherge of bis trtrtft; wlm shaft transmit, with'