Remission of Forfeitures.

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for the amount of duties, which, in pursuance of the Secretary's decision, being deducied from the

sum of seven thousand and eighty-eight dollars [Communicated to the House, April 28, 1802.]

and eighty-eight cents, net proceeds of the vessel The Secretary of the Treasury, to whom was re- and cargo, leaves, for the whole amount which ferred the petition of Ferdinand Mullenheim, might have been claimed by the petitioner, a sum by his agent, Anthony Lamarlere, respectfully of four thousand four hundred and fifty-seven dolreports :

lars and ninety-five cents. He has already reThat the petitioner, a native subject of Den- ceived three thousand four hundred and pineteen mark, and resident at St. Thomas, was the owner dollars and seventy-five cents, and there has been of the schooner Nymph, and of the greater part of paid into the Treasury, on account of the duties, a cargo, consisting of 48,676 lbs. (French weight) five hundred and thirty-four dollars and seventyof coffee, 18,817 lbs. of brown sugar, and 317 pieces seven cents. of logwood, which was laden ai Port de Paix, on The balance due to the petitioner is - $1,038 20 13th day of April, 1799, by the said A. Lamarlere. That due to the United States for duties 3,096 16 That William Smith, the commander of the said vessel, which was bound from Port de Paix to St. Thomas, ran away with the said vessel, and, hav

Making, altogether,

$3,134 36 ing entered the Chesapeake, did land and sell, at Norfolk, a part of the cargo, consisting of the Which sum has not yet been recovered, the late whole of the sugar, and 6,682 lbs. of coffee, on Marshal of Maryland, who had no sureties, having which the duties were paid, and afterwards at- died insolvent, without having paid the sum of tempted, with the assistance of David Porter and two thousand iwo hundred and seventy-five dolothers, io smuggle the remainder of the cargo. lars and three cents, left in his hands; and the That, having been detected therein, the vessel and balance of eight hundred and fifty-nine dollars part of the cargo were seized, libelled, condemned, and thirty-three cents, being still in the possession and sold for seven thousand seven hundred and of the informer, to whom it had been paid, as his seventy dollars and ninety-five cents; from which, legal share, before the Secretary had remitied the deducting six hundred and eighty-two dollars and forfeiture. seven cents costs, left a sum of seven thousand

From that statement of facts, it is evident that and eighty-eight dollars and eighty-eight cents for the petitioner has no just claim, unless the Secrethe net proceeds of the sale.

tary's decision should be supposed not to have been That'a certain Lascamela having laid claim to sufficiently favorable. a part of the said cargo, a sum of two thousand

In the opinion of the present Secretary, that two hundred and seventy-five dollars and three decision is grounded on just principles. Howcents, part of the net proceeds above-mentioned, ever unfortunate the barratry and subsequent conwere, by order of the court, retained by Jacob duct of his captain may have proven to the owner Graybill, then Marshal of the District of Maryland, of the vessel, he, and not the United States, must until a decision had taken place on the said claim; bear the loss resulting from that misconduct. and that, by subsequent decree of the court, the said The duties on the whole cargo, consumed within claim was set aside.

the United States, are justly due to them, whether Under those circumstances, the petitioner applied, the merchandise was smuggled or entered accordunder the provisions, and in the manner directed ing to law; and nothing more can be required by law, for a remission of the said forfeitures; from them, than a restoration of what may be rewhereupon, the Secretary of the Treasury being covered, after deducting the amount of those duof opinion that the said forfeitures were incurred ties. It also appears, that the manner in which in consequence of the barratry and fraud of Wil- the former Secretary's decision has been carried liam Smith, master of the schooner Nymph, and into effect, is more liberal than the petitioner had, sundry mariners, and without intention of fraud strictly, a right to expect, as the duties ought, or wilful negligence on the part of the owners of perhaps, to have been deducted from the specie the said schooner and her cargo, did, on the 27th on hand, leaving him the chance of recovering day of December, 1800, decide, that, “ deducting what he could from Mr. Graybill's estate and the duties on the merchandise shipped at Port de from the informer. Against this last, a suit has Pais for the Island of St. Thomas, (which mer- been instituted, and the amount, if recovered, will chandise was presumed to have been brought to be paid to the petitioner. But the eventual loss of the United States) and all costs, the proceeds of the sum which was left in the hands of the late the sales of the vessel and cargo, which had been marshal, although it arises from the act of one of forfeited, and which have or may be recovered, the owners, will fall, almost exclusively, on the be restored to the respective owners.

United States. The duties on coffee shipped at Port de Paix From a view of all the circumstances of the amount to two thousand nine hundred and ninety- case, the petitioner does not seem to be entitled to eight dollars and forty-four cents, of wbich sum any legislative relief. three hundred and sixty-seven dollars and fifty

All which is most respectfully submitted. one cents were paid on account of the parcel landed at Norfolk, leaving a sum of two thousand six

ALBERT GALLATIN. hundred and thirty dollars and ninety-three cents TREASURY DEPARTMENT, April 26, 1802.


Application of Public Money. APPLICATION OF PUBLIC MONEY. sequent warrants and appropriations, and the com

mittee do not discover that it has been productive

of an injurious consequence to the United States. [Communicated to the House, April 29, 1802.]

The Secretary of the Treasury, in his communiMr. Nicholson made the following report: cation of the second of March, having expressed The committee appointed “to inquire and report a doubt whether the moneys advanced on account whether moneys drawn from the Treasury have of the removal of the seat of Government from been faithfully applied to the objects for which Philadelphia to Washington, had been authorized they were appropriated, and whether the same by any previous law, the committee directed their have been regularly accounted for; and to report, aitention to the object, and now offer the result. likewise, whether any further arrangements are The law establishing the permanent and temnecessary to promote economy, enforce adherence porary seat of Government (passed on the 16th of to legislative restrictions, and secure the accounta- June, in the year 1790) provided, "that all offices bility of persons entrusted with public money;" attached to the seat of Government, should be resubmit the following report:

moved to this District on the first day of December, In order to ascertain, generally, in what manner in the year one thousand eight hundred, by their and under what checks, moneys were drawn from respeciive holders," and declared that the necesthe Treasury of the United States, and were after- sary expenses of such removal should be defrayed wards expended and accounted for, the committee out of ihe duties on imports and tonnage. This applied to the Secretary of the Treasury, stating appropriation is indefinite in its nature, and, perthe several objects to which they intended to di- haps, some contrariety of opinion may exist, as to rect their inquiry; his answers, under date of the the extent of the expense it was intended to cover; second of March and the ninth of April, are an- but the committee conceive that a strict adherence nexed to this report; to which, as well as to the to the letter of the law would confine the approstatements of the Accountants of the War and priation to the expenses actually incurred in reNavy Departments, on the same subject, they beg moving the books, papers, records, and furniture, leave to refer.

of the respective officss. From the document The committee deemed it sufficient to state, marked G. hereto annexed, it appears that the sum here, that all public moneys are drawn from the of fifteen thousand two hundred and ninety-three Treasury in virtue of warrants signed by the Sec- dollars and twenty-three cents were paid for the retary of the Treasury, and countersigned by the transportation of the books, papers, records, and Comptroller, and are paid to the officers or agents, furniture of the several offices, and the furniture to whom the same are due, or who are entrusted of the President; and the sum of thirty-two thouwith their application; or, when relating to the sand eight hundred and seventy-two dollars and War or Navy Departments, they are placed in the thirty-four cents for expenses incurred by the offihands of the Treasurer, as agent for those Depart- cers and clerks for the removal of themselves and ments, who disburses them on warrants drawn by families. In general, the vouchers produced in the Secretary of the Department, and countersign- support of these last mentioned expenses, are the ed by the respective accountants.

stated accounts, and the declarations of the officers For the general construction heretofore given and clerks, to whom the same were allowed. Tranby the Treasury Department to the various ap. scripts of the accounts of the officers only, are anpropriation laws, the committee refer to ihe com- nexed, those of the clerks being too numerous to munication made to them by the Secretary of the be detailed. From these accounts (which are

Treasury, on the second of March, and more par- marked G 1 to G 12, inclusive) it will be seen that ticularly, for the construction given to the annual the charges consist of travelling expenses, losses appropriations for the support of the Navy and on the sale of articles thought too inconvenient to Army, respectively, they refer to a report made remove, packing, breakage, and transportation of by the late Secretary of the Treasury, on the furniture, house rent in Philadelphia, and extra day of May, one thousand seven hundred and expenses after their arrival at the city of Washninety-six, to the Committee of Ways and Means. ington. As all the officers and clerks were, at the From both of these, it appears that the appropri- time, in the service and pay of the Government, ations for the Army and Navy, respectively, have and received the full amount of their salaries, esbeen considered as constituting but one general clusive of these extraordinary allowances, and as fund for each of these objects, although, in most the act of June, 1790, provided only for defraying of the laws making appropriations, a variety of the expenses incident io the removal of the offices. heads of expenditure were distinctly specified. If the committee are of opinion that this sum of the general construction be correct, it may, per- $32,872 34 was drawn from the Treasury and exhaps, be said that, in most instances, moneys have pended without any legal authority. been drawn from the Treasury in the manner The manner in which moneys drawn from the prescribed by law. Some irregularities are stated Treasury, under previous appropriations, bare io have occurred, where moneys have been ad- been afterwards applied, presents a subject of invanced upon the simple application of the Secre- quiry of more difficulty and importance. tary of the Treasury, by letter, without the form- The expenses in relation to the civil list, being ality of a warrant, and, sometimes, even without chiefly for salaries, are not otherwise liable to abuse, a previous appropriation; but, in these cases, the than in cases where moneys advanced to agents irregularity has been afterwards covered by 'sub-l have not been applied to the objects for which the

Application of Public Money.

advance was made, and have, not been, afterwards, The moneys which have been advanced to the regularly accounted for. Amongst the subordi- several Secretaries of State, have been remitted nate agents, to whom moneys have been advanced by them principally to Ministers, Consuls, and for miscellaneous objects, óf a civil nature, some other agents abroad, whose accounts are not yet appear to be delinquents, and some not to have rendered, (although many of them are of an old rendered their accounts, as will be seen by a refer- date,) and the committee cannot say how, or in ence to the document marked D, herewith reported. what manner, the money has been expended.

The moneys necessary to defray the expenses The advances necessary for defraying the exincident to the intercourse with foreign nations, penses of the Military and Naral Establishments, have, till lately, been paid to the Secretary of were formerly made, in part, to individuals who State, who used to disburse the same. The ac- have accounted directly with that department; but counts of Messrs. Jefferson, Marshall, and Madison, since the law of the 16th July, 1798, the whole of who have, at various periods, filled that appoint- the moneys have been paid to the Treasurer, as ment, have been settled, and no balance is due agent for these two departments, and have been thereon. A suit, not yet decided, has been insti- subject to the drafts of ihe respective Secretaries. tuted against Mr. Randolph, formerly Secretary The letter of the Secretary of the Treasury, under of State, for a balance unaccounted for by him. date of the 9th of April, -, accompanied by sunThe accounts of Mr. Pickering are not yet finally dry abstracts, (marked from A 1 to À 9, inclusive) settled. He remains charged with a sum of together with the statements of the two account$3,383 20, erroneously paid by him for the freight ants (E, E 1, E2, E3, and F, respectively) hereof a vessel supposed to have been employed by ine with reported, exhibit the amountadvanced, settled, Consul at Tripoli, and with another sum of $3.289 and remaining unaccounted for, in each'depart50, being the balance of an advance made to Sam- ment. From these it appears, that, from the 1st uel Hodgdon, for the purpose of being remitted to day of January, 1797

, to the end of ihe year 1801, Mr. Humpreys, at Madrid, in part of his salary, the advances made by the Treasury on account of which Mr. Humphreys did not receive. Both the War Department, have amounted (exclusively these sums, it is believed, may, and will be recov- of a sum in the hands of the Treasurer) to $9,846,ered from ihe persons to whom they were respec

963, 29. tively advanced. But the principal reason which of which, there have been paid to individuals who appears to have prevented an ultimate settlement have accounted with, or are accountable to the with him, arises from tbe circumstance of his not Treasury, a sum of

$1,390,238 21 having applied the whole of the money drawn by And there have been paid, by virtue him from the Treasury, to the specific objects for

of the warrants of the Secretary which it was appropriated by law. For the ex- of War, or to individuals accounttent and result of this misapplication, the com

able to the War Department, the mittee refer to the statement marked C, accompa

sum of

8,456,725 07 nying the communication of the Secretary of the Treasury, under date of the second of March. Making an aggregate equal to 9,846,963 29 From this statement it appears

, that Mr. Pickering To which is to be added, a balance drew from the Treasury, under the appropriations

remaining unaccounted for, on the made “for defraying the expenses incident to the

books of the accountant, of the 1st intercourse with foreign nations, for negotiating

of January, 1797

1,756,391 36 treaties with the Barbary Powers, and for the contingent expenses of Government,” the sum of Making, in the whole, a sum char$63,999 57 more than he applied to those several geable to the War Department, objects, which together with the sum of $14,588 54, from the year 1797 to 1801, (both gained by him on the purchase of bills of exchange

inclusive of

- 10.213,116 43 for the use of the Government, form an aggregate of $78,588 11. The same statement C will show Of which, the accountant has settled and renthat the whole of this sum was expended by him dered to the Treasury, accounts to the amount of on objects of a public nature, (as far as the com- $6,335,923 93; leaving a balance of $3,877,192 50 mittee can ascertain the fact,) but this expenditure unaccounted for, or not yet settled. having been made from appropriations designed The moneys advanced to the Navy Department, for other objects by law, the misapplication of the from its establishment in 1798, to the 1st March, money has prevented the Comptroller of the Trea- 1801, exclusively of the sum paid by the Treasury sury from settling his accounts.

to individuals, amount to

9,982,313 72 Although the committee will not say that there Of which sum, accounts have been are no cases in which a public officer would be settled by the accountant, and renjustified in applying moneys appropriated to one dered to the Treasury, to the amount object, to expenditures on another, yet they are of of

5,810,691 98 opinion that, in every deviation, the necessity for the application ought to be for some obvious ben- Leaving an unseliled balance of 4,170,951 75 efit to the United States, and, in every such case, a disclosure thereof to Congress ought to be made, These sums differ in amount, nominally, from at the next session which should immediately those contained in the statement annexed to the thereafter ensue.

letter of the Secretary of the Treasury, of the 2d Application of Public Money.

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March, but the difference is explained, and the ceive that no authority was given, by law, nor actual amount proved to be the same in the letter any appropriation made, except for the two docks and statements of the 9th of April.

above-mentioned, as the sum of one million dolThe statements of the accountants, although lars was appropriated by the act of 1799, for buildthey exhibit balances apparently unaccounted for, ing or purchasing the ships only, and the sum of to a large amount, will, likewise, show that ac-two hundred thousand dollars for the purchase of counts have been rendered for a considerable por- timber. As public ships of war had been before tion, which are in a train of settlement but not fi- built under a similar authority, for the use of the nally closed.

United States, at private yards, and as Congress The late hour at which the voluminous docu- did, at the same time that they authorized the ments accompanying this report were received by building or purchasing the ships, provide for the the committee, (upon the 9th of April) and the erection of two docks only, the committee are labor necessary to investigate such a mass of ac-of opinion that four of the navy yards were purcounts, and of advances unaccounted for, par- chased without authority, and ihe money misapticularly in the War and Navy Deparıments, em- plied which was paid for them. bracing an expenditure of twenty million of dol- In the War Department, there likewise appears lars, have rendered it impossible for the commit to have been a transaction equally unauthorized. tee, consistently with their attention to their other in the year - a pile of buildings was commduties, to form an opinion as to the manner in menced, under the directions of the then Secrewhich this sum has been expended. But, from tary of War, on the banks of the Schuylkill, pear the partial view which they have taken they the city of Philadelphia, which have since been beg leave to present some facts and principles, carried on in a maner highly expensive. These which they believe to be worthy of the notice of buildings have been called a Laboratory, and, alCongress.

though yet in an unfinished state, have already There are two previous requisites which are cost the United States $152,608 5, which sum has necessary to justify the expenditure of public mo- been paid out of the appropriations beretofore ney, and, without which, no legal expenditure can made for the quartermaster's department. The be made: First, that the expenditure for the ob- committee are of an opinion that this expenditure ject to which it is applied, should be authorized by of money could not be justified at any time, but law; and, secondly, that an appropriation should more particularly at a moment when the United have been made to cover that authorized expense. States were borrowing money, at a high rate of In the War and Navy Dapartments, this rule does interest, to meet objects which ihe Legislature connot appear to have been strictly adhered to in all sidered as necessary, and had sanctioned by law. cases; but, for the reasons above assigned, the The committee beg leave, likewise, to refer to committee have been unable to ascertain how far an important principle formerly settled by the Exit has been departed from. The most prominent ecutive, and actually practised upon in the War instances which have yet presented themselves

, Department, in relation to the expenditure of pubare, herewith, stated.

lic money, which they deem improper, in a Gor: By an act passed on the 25th day of February, ernment like ours, where taxes cannot be imposed in the year 1799, an authority was given to the but by public consent, and where moneys arising President of the United States to cause to be built from taxes, cannot be disbursed but upon the ausix ships of war. to be armed with, and carry not thority of a law previously passed by the Repreless than seventy-four guns each, and to build or sentatives of the nation. By an act

, passed op purchase six sloops of war, to be armed with the 9th of February, in the year 1793

, the Presi eighteen guns each. In part of the necessary dent is directed to cause the moneys drawn from expenditures for these objects, a sum not exceed- the Treasury, for the purpose of intercourse will ing one million of dollars was appropriated by the foreign nations, to be settled, by ca using the same same law. And by another act, passed on the to be accounted for, specifically, in all cases where same day, it was declared that two docks should in the expenditure thereof may, in his judgment, be erected, in suitable places, under the direction be made public; and by making of the President of the United States, for the con- certificates, or causing the Secretary of State o venience of repairing the public ships, and the make a certificate or certificates of the amount o sum of fifty thousand dollars was appropriated for such expenditures, as he may think it advisable that purpose ; and by another act, passed on the not to specify; and such certificates are to be same day, the sum of two hundred thousand dol- taken as sufficient vouchers for the sums es presed lars was appropriated to be laid out in the pur- to have been expended. The policy of this bar chase of growing or other timber, or of land on the committee do not intend 10 question, but it is which timber is growing, suitable for the Navy, clear that it extends only to cases of compensation and to cause the proper measures to be taken ió for what are usually termed " secret services" ihan have the same preserved for the future uses of the may be rendered to the United States in their bir Navy. Under this authority. only, the then Secre- tercourse with foreign nations. The section above tary of the Navy expended ihe sum of $135,846 92 recited has been engrafted into two laws, pasal in the purchase

of six navy yards, at Portsmouth, in the respective years of 1798 and 1900, but le Charlestown, (Mass.) New York, Philadelphia

, every law on this subject, it has been express Gosport. (Virginia,) and the City of Washing: confined to foreign intercourse, and in the act of ton. For this expenditure, the committee con- | 1800, is farther limited to the contingent expenses

a certificate of

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Application of Public Money.


only of foreign intercourse. It has not, therefore, part of the Constitution which provides that "no been without considerable surprise that the com- person holding an office under ihe United States mittee have seen the same principle applied to the shall be a member of either House of Congress." expenditures of the War Department.

Mr. Tracy was, at the time of receiving the apIn the instructions given by the Secretary of pointment, during the whole of its continuance, War to the Accountant of the War Department, and has ever since been, a member of the Senate in his letter of the 28th of December, 1797, here of the United States; and, from an inspection of with reported and marked L, a rule is positively the pay roll of the Senate ihe committee find that, laid down, that expenditures for secret services, for ihe last seventeen days of the five months of rendered in relation to the duties of the War De- his service, under the above appointment, he not partment, are to be admitted. And on the 20th only had his expenses borne by the public to a conday of December, in the year 1799, the Secretary siderable amount, and received likewise eight dolof the Treasury made a report on this subject to lars per day, but that he had at the same time rethe President of the United States, (subjoined and ceived, as a member of the Senate, six dollars per marked M) in which the principle is again recog- day for travelling from Litchfield, in Connecticut, nised as applicable to the Department of State, to the seat of Government-a distance of tbree War, and Navy. On the subsequent day the hundred and forty-four miles—twenty miles bePresident accordingly signed two certificates as ing allowed for travelling one day, vouchers for moneys said to have been expended James McHenry, Esq., former Secretary of in relation to the duties of the War Daparıment, War, resigned that office, it is believed, in the which certificates are annexed to this report, and month of May, 1800, and the document marked R, are marked N and O. The committee entertain hereto annexed, shows that, in the month of April no doubt as to the illegality of this measure, as it preceding, Mrs. Ariana French leased a house to is authorized by no law whatsoever, and they had him for one year, to commence from the first of flattered themselves that the Federal Government June following; that an award was made berequired no services of any nature which ought to tween the parties, by which it was declared that be concealed from the officers of the Treasury, or Mr. McHenry should pay to Mrs. French $208 95, from the Legislature. They consider these facts for damages sustained by her by reason of his not as coming properly under the head of expenditures occupying her house agreeably to the contract; not authorized by law.

and that, in conformity to the opinions of the Two other cases of exceptionable expenditure Secretary of the Treasury and the Secretary of in the War Department have been sufficiently ex- the Navy, and by the direction of the Secretary amined to warrant a report upon them. The first of War, this sum was paid to Mrs. French, out of relates to an appointment conferred by the late the fund for defraying the contingent expenses of President on Uriah Tracy, Esq., in the Summer the War Department. of the year 1800, while he was a member of the Upon the whole the Committee are of opinion, Senate of the United States: the second relates that considerable sums of public money have been to a payment made, from the contingent fund of greatly misapplied, and that much expense has the War Department, to Mrs. Ariana French, of been incurred without any legal authority; but, Georgetown, in the month of July, 1800. Neither for the reasons before assigned, it has been imposof these are very extensive in amount, but both sible for them to make a complete investigation. deemed important for the precedents they may Nor do they believe that an investigation entirely hereafter furnish.

satisfactory can be made, unless the House should It appears from a document herewith exhibited, think proper to appoint a committee for this purand marked P, that Mr. Tracy was appointed "to pose, to sit during the recess, with directions to visit and examine into the actual state of the gar- make a report to the next session of Congress. risons, Indian trading-houses, factories, &c. in the The committee deem it their duty to observe, Northwestern Territory, on the Mississippi, and that appropriations for the contingencies of the on the frontiers of Tennessee and Georgia," and War and Navy Departments are, at all times, that Mr. Tracy received for this service the sum of liable to abuses, not only from the very large one thousand nine hundred and eighty-five doilars sums usually appropriated therefor, but, also, from and five cents; seven hundred and fifty-three dol- the impracticability of specifying by law the prelars and five cents being for travelling and other cise objects to which such sums are applicable; incidentalexpenses, and twelve hundred and thirty- and the committee are of opinion, that giving two dollars for his compensation, from the sixteenth publicity to the accounts of the expenditures of of June to the sixteenth of November, in the year money appropriated for contingencies, would have one thousand eight hundred, at eight dollars per the most direct tendency to correct the latitude of day.

construction formerly exercised in that respect, From the account exhibited by Mr. Tracy for by the heads of those Departments, to promote his expenses, it will be seen that, during these economy in, and attach a proper degree of confifive mooths he visited Pittsburg, Presqu’ Isle, Ni-dence to, the future proceedings in those Departagara, Detroit, and Michillimackinack, but did not ments. And the committee can discern no possi. fulfil the other objects of his mission.

ble inconvenience in a disclosure of that nature, The committee cannot forbear to remark, that since they believe that there is no necessity nor Mr. Tracy's acceptance of this appointmeni has propriety for applying the principle of secret serthe appearance, at least, of inconsistency with that vice money to either of those Deparments: and at

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