committees of both Houses and received favorable action, the House Committee on Claims reporting upon each case separately, instead of making provision for all by a general bill.

Seven of these cases passed the House in the latter part of the Third session, one only passing the Senate and becoming a law, and that case is now under investigation by the Court of Claims.

The last Congress also passed a bill to pay the heirs of George C. Bestor, of Illinois, the sum of $125,000, " for extra work done, delays, and damages and expenses caused by such delays, on the part of the Navy Department, in the completion of his contract for the construction of an iron-clad steam-battery," (see vol. 17, Statutes at Large, page 733,) and as illustrating the narrow scope of investigation to which the "Marchand Board" held it was restricted, it may be stated that it awarded Mr. Bestor, whose claim was before it, nothing.

The committee, therefore, report back the bill with the following amendment, "Provided, That this act shall not be construed to apply to the claims of Secor & Co., Perrine, Secor & Co., Harrison Loring, Miles Greenwood, and George C. Bestor, who have already received specific relief by act of Congress," and, as thus amended, recommend its passage.

APPENDIX A.

"Distrustful of our ability to discharge this duty, which the law requires should be performed by three skillful naval officers, we approach the subject with diffidence, having no experience and but scanty knowl edge in this branch of naval architecture.

"The plans submitted are so various, and in many respects so entirely dissimilar, that without a more thorough knowledge of this mode of construction and the resisting properties of iron than we possess, it is very likely that some of our conclusions may prove erroneous.

"The construction of iron-clad steamships of war is now zealously claiming the attention of foreign naval powers. France led off; England followed, and is now (September 16, 1861) somewhat extensively engaged in the system; and other powers seem to emulate their example, though on a smaller scale. Opinions differ among naval and scientific men as to the policy of adoping the iron armature for ships of war. For coast and harbor defense they are undoubtedly formidable adjuncts to fortifications on land. As cruising vessels, however, we are skeptical as to their advantages and ultimate adoption. But while other nations are endeavoring to perfect them, we must not remain idle. The enor mous load of iron, as so much additional weight to the vessel, the great breadth of beam necessary to give her stability, the short supply of coal she will be able to stow in bunkers, the greater power required to propel her, and the largely increased cost of construction, are objections to this class of vessels as cruisers, which, we believe, it is difficult successfully to overcome. For river and harbor services we consider ironelad vessels of light draught, or floating batteries thus shielded, as very important; and we feel at this moment the necessity of them on some of our rivers and inlets to enforce obedience to the laws. We, however, do not hesitate to express the opinion, notwithstanding all we have heard or seen written on the subject, that no ship or floating battery, however heavily she may be plated, can cope successfully with a properly constructed fortification of masonry. The one is fixed and immovable, and though constructed of a material which may be shattered by shot, can be covered, if need be, by the same or much heavier armor

than a floating vessel can bear, while the other is subject to disturbances by winds and waves, and to the powerful effects of tides and currents.

"Armored ships or batteries may be employed advantageously to pass fortifications on land for ulterior objects of attack, to run a blockade, or to reduce temporary batteries on the shores of rivers and the approaches to our harbors.

"Wooden ships may be said to be but coffins for their crews when brought in contact with iron-clad vessels, but the speed of the former, we take for granted, being greater than that of the latter, they can readily choose their position, and keep out of harm's way entirely.

"It has been suggested that the most ready mode of obtaining an ironclad ship of war would be to contract with responsible parties in England for its complete construction; and we are assured that parties there are ready to engage in such an enterprise on terms more reasonable, perhaps, than such vessels could be built in this country, having much greater experience and facilities than we possess. Indeed, we are informed there are no mills or machinery in this country capable of rolling iron 4 inches thick, though plates might be hammered to that thickness in many of our work-shops. As before observed, rolled iron is considered much the best, and the difficulty of rolling it increases rapidly with the increase of thickness. It has, however, occurred to us that a difficulty might arise with the British government in case we should undertake to construct ships of war in that country, which might complicate their delivery; and, moreover, we are of opinion that every people or nation who can maintain a navy should be capable of constructing it themselves.

"Our immediate demands seem to require, first, so far as practicable, vessels invulnerable to shot, of light draught of water, to penetrate our shoal harbors, rivers, and bayous. We, therefore, favor the construction of this class of vessels before going into a more perfect system of large iron-clad sea-going vessels of war. We are here met with the difficulty of encumbering small vessels with armor, which, from their size, they are unable to bear. We nevertheless recommend that contracts be made with responsible parties for the construction of one or more iron-clad vessels or batteries of as light a draught of water as practicable, consistent with their weight of armor. Meanwhile, availing of the experience thus obtained; and the improvements which we believe are yet to be made by other naval powers in building iron-clad ships, we would advise the construction, in our own dock-yards, of one or more of these vessels upon a large and more perfect scale, when Congress shall see fit to authorize it. The amount now appropriated is not sufficient to build both classes of vessels to any great extent.""

VIEWS OF THE MINORITY.

Messrs. Lawrence, Holman, James Wilson, and A. Herr Smith, from the Committee on War-Claims, to whom was referred bill (H. R. 217) for the relief of certain contractors for the construction of vessels of war and steam-machinery, submit the following as the views of the minority:

The execution and completion of the several contracts for the construction of the vessels and machinery referred to in the pending bill coversa period extending from the 16th day of May, 1862, to the 3d day of February, 1865.

It appears that while the contracts in each case provided for the payment of a specific sum of money to the contractors by the United States, modifications were subsequently made of the plans of construction of the several works, which in some degree delayed the completion of the contracts and the cost of the work, and the duty devolved on the Government not only to pay the original sum stipulated for in each contract, but such additional sum as the contractors should be fairly entitled to in consequence of such modifications. These contracts were made under the laws by the Secretary of the Navy, were to be fulfilled under the supervision and inspection of the Navy Department, and upon that Department, from the nature of the contracts, the experience and the intimate knowledge of its officers in the details of the work, and their constant supervision of its execution, devolved the duty of adjusting the claims of these contractors upon the Government, on the completion of their contracts.

The undersigned find that each of these contractors submitted to the Secretary of the Navy claims for extra compensation for the work done by them in fulfilling these contracts; that upon each contract an extra compensation was allowed by the Secretary of the Navy, less, however, than the amount claimed, and that the original sum stipulated for in each contract and the additional sum which the Secretary of the Navy decided each of the contractors entitled to was paid by the Department to the respective contractors and was received by them.

The aggregate sum contracted to be paid to these several parties for the vessels and machinery, the contracts for the construction of which are covered by the pending bill, is the sum of $14,201,000, and the aggre gate of the extra sums allowed by the Secretary of the Navy on these contracts is the sum of $5,302,847.91.

These parties now ask the passage of an act to confer upon the Court of Claims jurisdiction to open up and readjust their respective claims for extra compensation under these contracts.

The undersigned believe that common justice to the whole people requires that the jurisdiction of a tribunal organized to determine questions of law or fact between citizens and their Government should be uniform and equally applicable to all; and that if exceptions should be allowed to this general rule it should be to enable the citizen and the Government to obtain the legal interpretation of an ambiguous contract or the determination of questions of fact and of law where the subject-matter

was not within the immediate supervision of either of the Departments of the Government. The contracts involved in this inquiry are clear and specific, and the facts connected with the execution of each contract your committee find were in detail before the Navy Department, when the claims for the extra allowances were considered by the Secretary of the Navy and the extra allowances made. Each contract was under the supervision of an agent of the Department who made biweekly reports on the progress of the work to the Department.

The undersigned are impressed with the belief that, under ordinary circumstances, a Department of Government is the proper tribunal to adjust the claims of citizens growing out of contracts made through such Department in matters which by law are placed under its control, and for which its chief and his subordinates are held responsible. With this view and to aid in securing justice, alike to the citizen and the Gov. ernment, the Department of Justice is charged with the duty of advising the heads of the other Departments touching the law. In the determi nation of such matters, a Department of the Government has the same motive for good faith and impartiality that should actuate a court of justice.

On account of the magnitude of these transactions, after the adjustment of these claims by the Navy Department, Congress thought proper to require a re-examination of them by the Secretary of the Navy, and passed the following act which was approved on the 2d day of March, 1867:

AN ACT for the relief of certain contractors for the construction of vessels of war and steam-machinery.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Secretary of the Navy is hereby authorized and directed to investigate the claims of all contractors for building vessels of war and steam-machinery for the same under contracts made after the first day of May, 1861, and prior to the first day of January, 1864, and said investigation to be made upon the following basis: He shall ascertain the additional cost which was necessarily incurred by each contractor in the completion of his work, by reason of any changes or alterations in the plans and specifications required and delays in the prosecution of the work occasioned by the Government, which were not provided for in the original contract; but no allowance for any advance in the price of labor or material shall be considered, unless such advance occurred during the prolonged time for completing the work rendered necessary by the delay resulting from the action of the Government aforesaid, and then only when such advance could not have been avoided by the exercise of ordinary prudence and diligence on the part of the contractor; and from such additional cost, to be ascertained as aforesaid, there shall be deducted such sum as may have been paid each contractor for any reason heretofore over and above the contract price; and shall report to Congress a tabular statement of each case, which shall contain the name of the contractor, a description of the work, the contract price, the whole increased cost of the work over the contract price, and the amount of such increased cost caused by the delay and action of the Government as aforesaid, and the amount already paid the contractor over and above the contract price: Provided. That the Secretary of the Navy, under the resolution, shall investigate the claim of W. H. Webb for constructing the steamer Dunderberg, applying the provisions of this resolution in such investigation, except that proper consideration shall be given to the increased cost incurred by said Webb by reason of any alteration in the plans and specifications for the Dunderberg made during the progress of the work, whether such alterations were provided for in the original contract or not, when payment for the same was not embraced in the contract price.

Approved March 2, 1867.

To carry this act into effect the Secretary of the Navy, on the 6th of July, 1867, appointed a board consisting of three officers of the Navy, including its chief engineer.

These claims were before the board in detail, as also such information

as the records of the Department furnished, including correspondence and the reports made from time to time to the Department by its agent charged with the superintendence of each work of the progress of the same. One member of the board at least was personally familiar with the facts involved in these inquiries by reason of his official relations with the execution of the several contracts.

The important inquiry, being the same raised in the first instance and on which the extra allowances had been made, was "what was the increased cost of the vessel or machinery caused by the action of the Government?" This was clearly the proper inquiry. These parties were certainly entitled to demand and receive from the Government the contract price for their vessels and machinery, and any increase of the cost to them of the vessels or machinery occasioned by the action of the Government, the Government was bound to pay. This was the real inquiry which the act of March 2, 1867, directed the Secretary of the Navy to make. It furnished the basis on which the Secretary of the Navy had in the first instance allowed and paid the extra compensation to the amount of $5,302,847.91.

This board made their report, which was transmitted to Congress by the Secretary of the Navy, and which is embodied in the following table :

Letter of the Secretary of the Navy, communicating report of the board appointed July 6, 1867, to "examine the claims of certain contractors for the construction of vessels of war and steam-machinery," under act of Congress approved March 2, 1867.

DECEMBER 4, 1867.— Read, referred to the Committee on Naval Affairs, and ordered to be printed.

NAVY DEPARTMENT,

December 4, 1867.

SIR: An act of Congress approved on the 2d of March last directs the Secretary of the Navy "to investigate the claims of all contractors for building vessels of war and steam-machinery for the same, under contracts made after the first day of May, eighteen hundred and sixty-one, and prior to the first day of January, eighteen hundred and sixty-four," and to "report to Congress a tabular statement of each case, which shall contain the name of the contractor, a description of the work, the contract price, the whole increased cost of the work over the contract price, and the amount of such increased cost caused by the delay and action of the Government aforesaid, and the amount already paid the contractor over and above the contract price."

To comply with the requirements of this act, it became necessary to convene a board of officers for the examination of the several claims presented. Commodore J. B. Marchand, Chief Engineer J. W. King, and Paymaster Edward Foster, were assigned to this duty, and their report is herewith transmitted.

I have the honor to be, very respectfully,

Hon. BENJF. WADE,

GIDEON WELLES,

Secretary of the Navy.

President of the Senate pro tempore.

NAVY DEPARTMENT,

November 26, 1867.

SIR: We have the honor to report that, in obedience to your order of July 6, 1867, we have carefully scrutinized each of the claims presented under the act of Congress approved March 2, 1867, "to investigate the claims of certain contractors for building vessels of war and steam-machinery," and respectfully beg leave to inclose, herewith, the tabular statement called for by said act of Congress.

Messrs Harlan & Hollingsworth, of Wilmington, Del., did not present a statement of their claim for delays occasioned by the Government while constructing the harbor