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:J Sl 'IX -1 I s -,'X X- ■ ‘ . 1 > j : e ' <>< u . r th, At. ■ •* • ’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'