The Committee on Claims, to whom was referred the petition of Lewis Johnson, Lewis J. Davis, and David Walker, bankers, of the city of Washington, composing the firm of Lewis Johnson and Company, praying to be reimbursed for certain moneys paid by them on a check drawn by Paymaster Benj. F. Gallaher, United States Navy, submit the following report:

Benjamin F. Gallaher was a paymaster of the United States Navy. He stands charged as a defaulter to the Government, on the books of the Fourth Auditor of the Treasury Department, to the amount of $113,582 06. This balance is due the United States for money drawn by bim from the Treasury in the year 1861; and for his failure to account for the same he was dishonorably dismissed from the naval service in August, 1862.

He gave a bond as such paymaster, on October 30, 1857, in the penal sum of $25,000. Suit was instituted thereon against him and his sureties, on November 19, 1863; and judgment was recovered on July 2, 1866, for the amount of the penalty, $25,000; but so far nothing has been realized; and the Fourth Auditor expresses the opinion that nothing will be collected in the future.

On the 4th day of September, 1861, Mr. Gallaher, as such paymaster, drew his draft or check on the Assistant Treasurer of the United States at New York, payable to himself, for the sum of $1,500. The following is a copy of the bill:

No. 99.]

WASHINGTON, September 4, 1861.

ASSISTANT TREASURER OF THE UNITED STATES, New York:
Pay to B. F. Gallaher, or bearer, fifteen hundred dollars.
$1,500

B. F. GALLAHER, Paymaster. This bill was indorsed by Gallaher and purchased by the petitioners at its par value in coin, on the same day it was drawn, and remitted to New York for collection. The amount ($1,500) was passed to Gallaher's credit on their books. On the 6th of September, the Park Bank caused this bill to be presented for payment to the Assistant Treasurer, but he had been previously instructed from Washington not to honor any more drafts of Gallaher, and in consequence payment was refused and the bill was regularly protested for non-payment, and returned to and taken up by the petitioners.

After the sale of the check and this sum had been placed to his credit as so much money on deposit with the petitioners, Gallaher drew out of bank the sum of $443 10. This was done before notice of the dishonor

of the bill. On the 9th day of September they were notified by the Acting Secretary of the Navy that Gallaher was a defaulter and under arrest, and to hold any deposit in their hands to his credit subject to the claim of the Government.

They now claim they should be reimbursed in coin for this sum of $443 10, no part of which has ever been collected back, and the costs and damages they have been subjected to in consequence of the dishonor of the bill; and that they should be indemnified against any claim Gallaher may make for the balance standing on their books to his credit.

The memorial is sworn to by Lewis Johnson, and the original check or bill, the instrument of protest, and letter of the Assistant Secretary of the Navy are appended as exhibits.

It appears from the letter of the Fourth Auditor to the Secretary of the Treasury, in evidence, that no part of the sum raised by the sale of this bill to the petitioners was expended for the benefit of the United States, but, on the contrary, it is presumed that it all went to Gallaher's personal benefit.

These are the facts, and the question is, to what extent, if any, should the petitioners be relieved by Congress. The committee are of opinion, from the evidence, that they pur chased this bill in the ordinary course of business, without any knowl edge of Gallaher's defalcation, and that the same would have been paid by the Assistant Treasurer but for the order of the Secretary of the Navy. The bill was drawn by one officer of the Government upon another, whose duty it was to honor his drafts. The Government had clothed Mr. Gallaher with this authority. Third parties had ordinarily no means of knowing the state of his accounts, and had a right to presume he was acting within his authority and drawing his drafts for a lawful purpose. It does not appear to the committee that there was anything in the transaction to excite suspicion, and they are of opinion that the petitioners should be reimbursed the $143 10; and they accordingly report a bill for their relief and respectfully recommend its passage.

IN THE SENATE OF THE UNITED STATES.

JANUARY 25, 1871.-Ordered to be printed.

Mr. PRATT made the following

REPORT.

To accompany bill H. R. No. 2535.]

The Committee on Claims, to whom was referred House bill No. 2535, entitled "An act for the relief of Noah Fisher," submit the following report:

It appears from the memorial of Mr. Fisher to Congress, which is sworn to, that he was, at the outbreak of the rebellion and for nearly four years thereafter, a loyal citizen of the county of Guilford, in the State of North Carolina; and that during all this period, and up to the time he made his escape from the State, he suffered great persecution and damage in person and property from the enemies of the United States, So much so that no alternative was left but to espouse their cause or flee to the North. He chose the latter. During his journey North, with his family, he was overtaken by a band of rebels, and plundered of everything they could make available, except two wagons and four mules, with the necessary harness. With this remnant of his property he succeeded in making his way within the lines of the Union Army at Norfolk, Va. At this place, on the 25th day of Febuary, 1864, he took and subscribed the oath and parole required by General Orders No. 49, for a loyal citizen of the United States residing in a State ever in rebellion, and turned over the above-described property to the assistant quartermaster at that post.

The following is a copy of the order of that officer and the receipt of the wagon-master:

H. C. KELLEY, Wagon-Master:

OFFICE ASSISTANT QUARTERMASTER,
Norfolk, Virginia, February 25, 1864.

You will receive from Noah Fisher 4 mules, 4 harness, 2 wagons, and give him receipt for the same, to be presented at this office. By order of

Received the above teams &c., this day.

CAPT. NELSON PLATO, A. Q. M.
WM. VAN DUZEN, Clerk.

H. C. KELLEY.
Per FRANK BURKE,

Assis't Wagon-Master.

Mr. Fisher swears that the value of this property was $840. His claim was presented to the Quartermaster General's Office for adjustment, but that officer declined making settlement, in consequence of the inhibition of the act of Congress of February 9, 1867.

By that law it was declared that the provisions of chapter 240 of

the acts of the 38th Congress, first session, approved July 4, 1864, should not be construed to authorize the settlement of any claim for supplies or stores taken or furnished for the use of or used by the armies of the United States, nor for the occupation of or injury to real estate, nor for the consumption, appropriation, or destruction of, or damage to, personal property by the military authorities or troops of the United States, when such claim originated during the war for the suppression of the southern rebellion in a State or part of a State declared in insurrection, &c. Mr. Fisher's case being within the terms of this law, claim was correctly overruled by the Quartermaster General; and, as the Court of Claims is inhibited exercising its jurisdiction over claims of this character, the only forum where Mr. Fisher can apply for redress is Congress.

man.

his

The proofs are full that Mr. Fisher was and is a thoroughly loyal He now lives in the State of Indiana. The Government has had the use of his property since February, 1864. He estimates its value at $840. The bill gives him one-half this sum and without any interest The committee recommend its passage.