favor, and indeed necessarily lead to, the creation of a class of "middlemen," most of them mere speculators and adventures, to whom, instead of to the manufactures themselves, orders for supplying the wants of the Government have been often directly or indirectly granted. To this evil we have already,in a report recently printed, accompanying case No. 72, adverted at length. The class of men referred to are generally rapacious and unscrupulous, and thrust themselves between those whose interest it is to deal, and who ought in every case to deal, directly with each other - the government in need of arms and the manufacturer producing them. Having thus,through unavowed instrumentalities, obtained their contracts, many of them at once put them on the market for sale. A large manufacturer, who has failed to get a contract for muskets, assures us that within a few days past such contracts to the amount of 200,000 guns have been offered to him by these traders in Government patronage. Under a system of open competition invited by public notice, as contemplated by law, no such interposition could take place and no such class of men could exist. A few illustrations of the practical workings of the system, as it has prevailed in the Ordnance Department, may be here stated.

A holder of one of these orders or contracts for Springfield muskets appeared before the commission, as did a member of the United States Senate, and from their testimony we learned that the order had been obtained from the Secretary of War by the Senator, and that for the service he had charged and is to receive $10,000. It seems to have been in contemplation by the principal party to pay him 5 per cent. commission, being $50,000; but it was finally settled, so far as his partners were concerned, at the sum named. For this he holds the notes of the parties, who are responsible, and will no doubt make payment at the maturity of the paper in August and September next.

A large manufacturing firm being anxious to secure a contract for their pistols, and being satisfied, from some cause, that their personal application would be unavailing, employed as "middleman" or agent an individual who represented that he could obtain it for them. His success as one of the partners in a heavy beef contract given out soon after the commencement of the rebellion seems to have inspired confidence in his representation, and no doubt led to his retainer. He did not overestimate his influence; for on the 16th of October, 1861, an order was issued by the Chief of Ordnance to the firm, addressed to him, for 5,000 pistols at $ch the firm paid him $10,000. Subsequently, on the 25th of October, 1861, this firm made a written application to the Secretary of War for a contract for 10,000 of the same pistols, which, having been referred to the Chief of Ordnance, was by him reported against on the 31st of October, upon the ground that the pistol was not, in his opinion, "a desirable one for the service;" and so the application failed.

Some time afterward a person well known to the country as having neither official position nor capital, but who had probably ascertained the preceding facts, visited the same manufactures at their establishment and asked them if they did not want an additional pistol contract, to which they answid. He then inquired what they were willing to give for it. As a little while before they had paid $10,000 for an order for 5,000, it probably occurred to them that the same rate of compensation would be expected in this case and it was accordingly

13 R R-SERIES III, VOL II