closed in the evidence or record that will, in my judgment, affect the validity of the claims or preclude the Secretary from recommending an appropriation for their payment. The other claims referred to in the said letter and your indorsement, accompanying my report and marked Exhibits C and D, should, in my opinion, not be appropriated for, nor should payment be made, because the facts disclosed by the record and the evidence as to the claims marked Exhibit C (although these facts are not new) affect the validity of the claims and are such as, in my judgment, preclude the Secretary from recommending an appropriation for their payment; and as to the claims in Exhibit D the decision of the Supreme Court of the United States in the case of Mouat (124 U. S. R., 303) holds that claims of this character should not be paid. My reasons for these conclusions are fully given in the accompanying report on each claim and class of claims. The claims specified in said Report No. 2,750 as claims allowed and reported by the Sixth Auditor have been referred to that officer, together with a copy of said letter and indorsement, with the request that he examine them and report to you. I have the honor to be, very respectfully. Hon. WILLIAM WINDOM, Secretary of the Treasury. B. F. GILKESON, Comptroller. EXHIBIT A. The following claims are just, due, and unpaid, and should, in my opinion, be appropriated for by Congress: Louis Von Hoffman et al., $18,430.65. There seems to be some confusion in this case as to whom the money should be paid. This arises from the fact that a question exists as to whether a certain sale made by the trustees appointed by the court, to Oscar Von Hoffman, is such as would entitle him to receive rent from the date of such sale. It appears by an affidavit of W. H. Newman that Oscar Von Hoffman purchased the property for the firm of Louis Von Hoffman & Co.; that said firm was composed of several members, all of whom subsequently disposed of their interest to the firm of Louis Von Hoffman & Co. It is claimed that W. H. Newman became the sole owner of the claim by certain assignments. Newman is now dead. In view of these facts, I recommend that an appropriation be made to the heirs of William H. Newman, deceased, and Louis A. Von Hoffman & Co., to be paid by the Secretary of the Treasury as the interests of the said heirs of W. H. Newman and the late firm of Louis A. Von Hoffman & Co. shall hereafter be legally made to appear. This will enable all parties to present their claims to the Department, and have them settled before payment is finally made. The Baltimore and Ohio Railroad Company, $32,788.48, for transportation service rendered in the fiscal year 1861-from April 23 to May 19-while the road was in the possession of the United States, and by agreement operated in connection with the Annapolis and Elk Ridge Railroad, by the military authorities of the United States. Eliza Taylor, mother of James Carrol Taylor, deceased, seaman on gunboat Tyler, $17.43. The amount stated is the sum that was due the seaman at the date of his death. As it has never been paid, it should be now paid. St. Paul, Minneapolis and Manitoba Railroad Company, $13.20. This is a balance of a claim of $5,139.30 allowed to the said company as 50 per cent. of land-grant earnings previously withheld. The sum of $5,126.10 has been paid; the balance, $13.20--two items, one of $6, sleeping-car berths for three officers and transportation for two invalid pensioners, $7.20-should be appropriated for and paid. Inland and Seaboard Coasting Company, $24.13. A bill for services rendered the Quartermaster's Department, from September, 1877, to December, 1879, seems to be correct and should be paid. Chicago, Milwaukee and St. Paul Railroad Company, $178.64. There was, at the time this service was rendered the United States by the above company in May and June, 1879, an agreement that it should be treated, so far as its services to the Government were concerned, as though 156 miles of its road were land-grant. In conformity with that agreement the earnings of that 156 miles of. the road were held up and deducted out of the amount of the total earned. The amount thus deducted was $357.29. Under the decision of the courts and the rule adopted for settlements with landgrant roads, this company is now entitled to 50 per cent. of that amount, or $178.64 retained. Therefore an appropriation should be made for it. Morgan's Louisiana and Texas Railroad and Steamship Company, $334.05. This is for transportation of freight between New Orleans and San Antonio in September, 180, and February, 1881. The bill is for $387.81, $53.76 of which was over land-grant portion of the road, and is deducted. Hence the balance should be paid. Frank T. Eastman, lieutenant, Fourth Infantry, $10.50. This officer, in obedience to an order from his superior, traveled from Omaha, Nebr., to Salt Lake City, Utah. Instead of procuring transportation from the Quartermaster's Department, as it was his duty to do, he obtained mileage from Major Staunton, amounting to $70.50; but as the route from Omaha to Ogden was over the Union Pacific Railroad Company, it was not proper for this officer to pay his fare on that road; he should have procured transportation over it. He was compelled to refund the $70.50 to Major Staunton: The Utah Central is not a bond-aided or land-grant road, and having paid his fare over that road he is entitled to have it, as well as his sleeping-car fare, paid. Therefore this claim of $10.50 should be paid. William J. Jarrell, $13.25. This is for quartermaster stores furnished the quartermaster of the Twenty-third Kentucky volunteers during the late war. The quartermaster of that regiment, Lieut. W. W. Air, gave vouchers for the property, which are presented for payment. The amount should be paid. George Peoples, $14. This is for transporting two men, belonging to the Army, from Bismarck, Dak., to Fort Yates, Dak., by stage, and was made up, on a regular transportation request and should be paid. Catharine Ransom, administratrix of Giles T. Ransom, deceased, assistant engineer on the steamer General Bragg, $105.33. This man was an assistant engineer on the United States steamer General Bragg, and died in the service. The amount above stated was due him at the date of his death and should be paid. B. F. GILKESON, Comptroller. EXHIBIT B.-NAVY CLAIMS. I have reëxamined the claims embraced in House Report 2750, Fifty-first Congress, first session, at page 5, commencing with No. 6046 and extending down to and including No. 6107. These claims are for difference between actual expenses and mileage for officers of the Navy while traveling under orders, and were allowed under the decision of the Supreme Court in the case of the United States vs. Graham (110 U. S. R., 219). These claims were settled by the accounting officers and reported to Congress in House Ex. Doc. 55, Forty eighth Congress, second session, pages 26, 27. By the act of March 3, 1885 (23 Stat., 477), Congress refused to make appropriation for their payment. On March 2, 1886, by direction of the Secretary of the Treasury, these accounts, with others, were reëxamined. A report of that examination was published in House Ex. Doc. 210, Forty-ninth Congress, first session, pages 32, 33. By the act of August 4, 1886 (24 Stat., 303), there was appropriated $10,673.79 to pay the claims reported on page 33 of the last above-mentioned documents. It was held by Comptroller Maynard, July 11, 1885, that under the provisions of section 7 of the act of July 17, 1862 (12 Stat., 594), when an officer was furnished with transportation by orders of the Navy Department or a superior officer, mileage could not be allowed, as the officer in that case did not travel at his own expense. That decision has since been modified; and if the claims of the following-named officers for difference between actual expenses and mileage were settled under the present rulings, they would be allowed the amounts set opposite their names: (Schedule A of Ex. Doc. 210, Forty-ninth Congress, first session.) (Schedule showing difference between amount originally allowed and amount allowed by act of August 4, 1886, and paid, leaving the balances hereinafter set forth due and still unpaid.) The Magnolia Fire and Marine Insurance Company, of Cincinnati, Ohio. The Magnolia Fire and Marine Insurance Company, of Cincinnati. No. 5000, of 1884: Eureka Insurance Company, of Pittsburgh, Pa. Phoenix Insurance Company, of St. Louis, Mo. No. 5068, of 1884. American Insurance Company, of Cincinnati, Ohio. United States Insurance Company, of St. Louis, Mo. No. 5201 of 1885: Eureka Fire and Marine Insurance Company, of Cincinnati. Ohio. American Insurance Company, of Cincinnati Ohio. Magnolia Fire and Marine Insurance Company, of Cincinnati, Ohio. American Central Insurance Company, of St. Louis, Mo. No. 4813 of 1884 : The Sun Mutual Insurance Company, of New York. The Commercial Mutual Insurance Company, of New York. No. 5085 of 1884: The American Insurance Company, of Cincinnati, Ohio. The above claimants filed their several claims for amounts paid upon the loss of the several steam vessels hereinafter mentioned, Some of these claims were considered by Hon. J. M. Brodhead, while Second Comptroller, and disallowed. All of them were afterwards examined, considered, and allowed by Hon. W. W. Upton while Second Comptroller. All were afterwards examined and disallowed by Hon. I. H. Maynard while Second Comptroller. They were afterwards submitted to Hon. S. Butler, while Second Comptroller, who refused to take jurisdiction. They are now referred to me for examination and report by the Secretary of the Treasury, upon a reference to him by the chairman of the Committee on Appropriations of Congress. I have the honor to submit the following facts and conclusions: I have not taken the trouble to point out and designate the particular vessels each insurance policy was on, because the facts and circumstances surrounding the loss of each vessel are practically the same, and the decision of one settles all. I have below given a summary of the facts surrounding the loss of each vessel, so that the committee can determine for themselves the correctness of my conclusions: The steamer Osceola was chartered by the Quartermaster's Department October 19, 1861, to transport a cargo of Government freight from New York to such port as should be designated by the assistant quartermaster at Old Point Comfort. The owners assumed all marine risks. While prosecuting the voyage she had contracted to perform she was destroyed in a storm by being driven ashore. She was in possession of the officers put on board of her by her owners at the time of the loss. The officers and crew had the exclusive control of her navigation. The steamer Wm. L. Ewing was, on the 23d day of November, 1864, while at St. Louis, ordered by Captain Metcalf, assistant quartermaster, to receive on board a cargo of military stores. This was done, and it was agreed that the compensation the boat was to receive should be $410 per day. While the first order might have been an impressment, it is quite clear that a contract was finally entered into before the troops and stores were received on board. While the steamer was on the voyage from St. Louis to Cairo, the port to which it was bound, under the command and control of her owners and officers and crew, she struck some obstruction in the river, sunk, and was lost. The Steamer Forest Queen.-This boat was impressed into the service December 16, 1862, and remained in the service until the latter part of August, 1863. About March 1, 1863, a contract was made between Captain Lyman, assistant quartermaster, and the master of the boat, by which her future service was performed under a contract. It was then agreed that the owners should receive $275 per day for her services, both those rendered before and after the contract. This steamer being one of those which passed the Vicksburg batteries, she was ordered to Cairo to disembark the furloughed men then on her, and to go to St. Louis or any other place desired. She was taken to St. Louis for repairs. The Government agreeing to pay $4,000 on her repairs, Captain Metcalf entered into a contract with the owners to do the work at that price on the 24th of September, 1863. The boat had been turned over to the owners before that time. On the 4th day of October, 1863, she was destroyed by fire, at St. Louis, while undergoing repairs. The Steamer Neptune was navigating the Ohio, Cumberland, Tennessee, and other Western rivers. About the 1st of February, 1862, her master contracted to transport a part of the Seventy-eighth Ohio from Cincinnati to Paducah. While on the way down the river she was met with an order to transport the troops on board to Fort Donaldson. After landing the troops she took on board a cargo of rebel prisoners, who were delivered at Cairo. The master took the boat to Louisville, and took on board a cargo of Government freight and transported it to Nashville. On the return trip from Nashville the boat ran against one of the railroad piers at Clarksville, Tenn., and was lost. The steamer was being controlled and navigated by the owners and their officers and crew. The steamer Champion. This steamer was navigating the Mississippi and other Western rivers, especially between St. Louis and New Orleans and intermediate points. On the 21st of September, 1863, the master of the boat, upon arrival at Memphis, was ordered to unload such freight as he had on board, and take on board a cargo of Government stores and proceed to Vicksburg, one of the ports he was in the habit of visiting in his regular business. The boat was loaded, and just as it was about to hack out into the river to go to the woodyard to get fuel it was discovered to be on fire. It was totally destroyed. The evidence shows that the fire originated in the hold, and also that the hatches had been shut down for more than a half day before it is said the fire was discovered. It seems to be almost impossible that the fire should burn in the hold of the vessel for that time without the owners, officers, and crew in possession having discovered it. It certainly does not indicate that the vessel was lost without fault or negligence of the owners. The steamer D. G. Taylor.- This steamer was regularly employed in the carrying trade on the Ohio and other Western rivers. About the 1st of February, 1864, while at Louisville, the master received an order to unload whatever private freight the boat might have aboard, and take on board a cargo of Government freight for Nashville. The owners and officers at the same time advertised for passengers and private freight for Nashville. They remained in control of the vessel. While loading she was discovered to be on fire on the night of the 5th of February, 1864, and was destroyed. It was agreed between the quartermaster and owners that the per diem wages of the vessel should be fixed after she made one trip. The fire that destroyed the vessel was first discovered by some person on another boat at the landing. The evidence clearly shows that the officers and crew were both careless and negligent, and that the boat was destroyed because of such carelessness and negligence of the owners, their officers and crew. The steamer Louisville struck a snag in the Missouri River near Decatur, Nebr., about May 24, 1864, and was lost, while on a trip down the river to Rulo to transport a cargo of corn from that place to Fort Union. The evidence shows that about the 1st of May, 1864, the master and owners contracted with Captain Parsons, assistant quartermaster, to take 2,121 sacks of corn from Rulo to Fort Union. The owners took on so much private freight at St. Louis that when the vessel arrived at Rulo it was decided by the master and other officers that the water was too low to take on board the corn. They then gave a receipt for it as though shipped, and put it in a warehouse and insured for themselves. The boat then proceeded on her voyage to Sioux City. Upon arriving there without the corn, General Sully ordered the master to go back to Rulo and get the corn and bring it up as he had contracted. In attempting to reach Rulo the vessel was lost. The Each of the above vessels was being navigated and controlled by its respective owners or by a master and crew placed on the vessel by its owners or agents. owners or agents had in each case taken out insurance on their respective vessels. When the loss occurred, in each case (except the Osceola), as soon as it took place a protest was made to save the insurance. In each case the loss was covered by the insurance policies held by the owners on the respective vessels, and each insurance company paid the loss or risk it had taken. It is, in my opinion, evident that the respective owners of these vessels, at the time of loss, regarded such vessel as in the service of the owners. It is also to me clear that the United States were not the special owners of either of the vessels lost as herein set out. The insurance companies paid only what they contracted to pay, and what they received full consideration for paying in the event of the happening of the events insured against in their several policies. In my opinion these claims should not be paid. B. F. GILKESON, EXHIBIT C-CHARTER PARTY. The following claims are for sums alleged to have been erroneously deducted from the earnings of the several steam vessels hereinafter named for time lost when making repairs when vessels were under charter parties to render service to the United States during the late rebellion: Randolph Barton, truseee of the Powhatan Steamboat Company, for earnings of the steamer George Peabody, $19,175. Elizabeth P. Richardson, administratrix, for earnings of steamer Massachusetts, $:00. Appleton Sturgis, administrator for steamer Achilles, $600. Edward Ray and John Brewster, trustees, etc., for the steamer Edwin Forest, $440. The New York and Boston (Baltimore) Transportation Line, for steamer Octoraru and steamer Elizabeth, $1,400. The New Haven Steamboat Company, for steamer South America, $5,200. Edward Ray and John Brewster, trustees, for steamer Fairy Queen, $200. Stephen and Condit Transportation Company, for steamer Maryland, $800. Susan L. Stetson, administratrix, for steam tug D. L. Stetson, $405. Randolph Barton, receiver, for steamer Pioneer, $1,600. William A. James, administrator, for steamer Suwanee, $6,000. R. Loper Baird and Preston K. Erdman, assignees, for steamer Thomas Sparks, $2,900. Nathaniel McKay, Alfred D. Foster, administrators, and Samuel Bell and Anna B. Hunt, administrators, for steamer C. W. Thomas, $1,100. |