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New York Custom House Investigation

New York Custom House Investigation image
Parent Issue
Day
14
Month
June
Year
1872
Copyright
Public Domain
OCR Text

WASHINGTON, June 10. - The viaws of S-."i:itin Bayard and Casjorly were submitted to the Senate to-day on tho alleged abuses in the Now York Custom Houso. Tlioy dissent entirely from the conolusions oi' the majority, and adduce tho testimoJiy of largo numbers of tho leading merohants of New York toprove that tho exoessiro extortions undor the general orUer busiuess, after it becamo a monopoly in the hunda of Leet & Stocking, were intensified, so that there can be no doubt that under tho privilege of Collector Murphy it was a monstrous abuse and scandakme systera ot' robbory. They cite Leet's own deposition to show that be talked ■with Gen. Grant in regard to the general order business two nionths before nía mauguralion. Leet, Porter and Babcock were thun messmates at the govorntnent expense. The others knew that Leet was going into the warehouso business at New . York. After tho inauguration of Granfc tho latter gavo Loet a letter in tho strongest terms addrossed to Mr. Grinnell. Loet was so far intrusted with Grant's secreta f kat he knew Grinnell was to be collector, and first iuformed him of it in New York. After Grinnell's installment Leet again presented hiinself and demanded the business, for which he said tho letter should be oonsidered au order. Grinnell offered him $5,000 per annum if he would go back to bis place in the army and not iutorfere witih New York politics. Loet declined. He then made his arrangemonts with Bixby, obtaining $3,600 a year in exchange tor the intiuence contained in Grant's letter to Grinnell, but ho soon oomplained to his friend Lindsay and others that this sum was insurficient for his íhare in the mess, and coiisequently he set to work to obtain tha whole general order business from Grinnell. This Grinnell was un willing to accord him, and only cave him a part. Ho threatened Grinnell with removal if his wishes wero not oomplied with, and Grinnell not complying, in July, 1870, he was removed and Murphy appointed in his place. During all this period, says the minority, Loet arers that neither Grant, Porter nor Babcook had any knowlodge of his connection with the general order business, which is more remarkable from tho fact that he had discussed the matter ■mth Grant beforo he obtained it, and thon otily obtained it through Grant's personal intiuence within a few weeks after Murphy received his commission. Leet & Stocking had the whole general order business on the North River sido of ïw York. The first time the merchants protestad in vain. The Socretary of the Treasury backed their application, but öfollector Murphy turnedu. deaf ar and sustainod Leet aud Stocking in their systematio extortions, which uontinued until the comuiittee :net in New York. No one knew better than the Pyosident, Leet's relations to the general order business, and nö one knew better how Loot obtained it, for he iiad given him the only letter which produced tho result. It is proved that A. T. Stewart on more than one occasion informed President Grant of the abuses practicod by Leet & Stocking, and bogged him to reform it, but no attention vra paid whatever. No o0.cau dny that one word from tho PVèsident would havo coused the withdcawal of the general order privileges frorn their stores, but ho did not check the abuses, and, thercfore, sustaincd thoin, and is, therofore, responsible for the abusses of tho general order syatoui in New York. The minority hold that the testimony fullyestablishes tho fact that gratuities and fees for extra, services were regularly pid in these dopartments. Steamsbip companies were compolled to pay a regular rixed charge on every occasion of discharge, part inoney aud part rations in food and spmts. The system of weighing is thoroughly corrupt, bcing always intrusted entirely to laborers picked up on the shore, upon whose accuracy the government bas to rely. The system of political assessments upon custom house employees is condemned as demoralizing. In tho system of seizures and oinrjromiseSihoDOrable merchants are shown to be the subjects of plurnter by-spsciai agente of the treasury under their gang of informers, one special agent, Jayue, being Bhown to have recci ved in a year and a half f125,000 for his share of plunder. The collectors, naval officers and surveyors sharu the nioiety with the informer, and have salaries moro than doublé that of the President. Tiie niiuority spoak of the detestable níethods resorted to by Jayne and others to terrify witnes?e3, or compel parties to confess, and assei t that it is fully established tlmt undcr this system no conviction or punishment for alleged frauds uponihe roven uo has ever occurred, but, on the oontrary, the paymentof these suins of money in comprumise resulta in compounding the felouy or condoning tho misdemeanor. The influence and action of the custom house officers in controlling the last State Convention in New York, and the anxiety of the President to control State Conveiitions is fully set forth. Proofs aro abundant of the most proflígate bargains and sales of custom houso offices by Murphy, who is uttoily destitute of any sense of the greatness of the trust devolved upon him, His own deposition provcs him totallyignorant of the plainest duties of his plueev Onder such a regiino nothing but cariiiptiancouldbo-espeotedrand the loss to the guvornment cannot well be estiinated. The minority, nevertholess, recogni certuin officers as valuablo and faithful puluTrJ'eorvunts, and recommend the tenure ot' good 'bjliavkir. They close by stating that no depurtnU'nt of the Now York Custom House is tree from tho {sint of demoralization cntailed by the rnlo of Murphy, and tho utter unfitness and iiioomjjeteiicy of those placed in high places of the civil government.

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Subjects
Old News
Michigan Argus