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23d Cong. 1st Sess.)

Affairs of the Post Office Department.

stead of 26,854,485, being 5,697,641 miles less than the still more remarkable. Your committee have set forth a Postmaster General has reported it.

few of these instances by way of example. Thus, by underrating the amount of transportation at The Postmaster General, in his report of the 18th of the time he came into office, and exaggerating it since April, 1832, (Doc. 212, p. 12,) states that Stockton and that time, the Postmaster General has fallen into an Neil had contracted to carry the mail on routes Nos. 1201, error, as to the amount wbich he bas increased the trans- 1202, 1389, 1390, and 1400; that is to say, from Cumportation of the mail, of no less than 7,206,680 miles. berland to Wheeling, Washington to Steubenville, Balti

Your committee, not having performed personally the more to Cumberland, Washington, D. C. to Frederick, labor of this part of the examination, cannot vouch for and from Frederick to Winchester, at 7,000 dollars per the accuracy of the above estimates, but they believe annum. them to be nearly correct; and, if they err, that the error By the advertisement, these routes were to go into will be found to be in approaching too near, rather than operation on the 1st of January, 1832. in departing too widely from the statements in the official In his report to the Senate of the 3d of March, 1834, reports of the Department.

(Doc. 138, p. 204,) be states the same contract at 15,950 The annual expense of transporting the mail, under dollars per annum, exclusive of enormous extra allowexisting contracts, with all improvements, was, by the ances, which, as they do not relate to the branch of the report of the Postmaster General of the 30th November, subject now under consideration, we pass by for the pres1833, set down at

$2,033,289 42 ent. The difference between the report of this contract The Blue Book of September, 1833, gives

in April, 1832, and March, 1834, is 8,950 dollars per the aggregate of all mail contracts and

annum, amounting, in four years, the duration of the extra allowances at

1,992,920 14 contract, to 35,800 dollars.

In bis report of April 18, 1832, (Doc. 212, p. 17,) he Making a difference of expenditure not ac

states that R. C, Stockton and William Neil are contractcounted for, of

$40,369 28 ors to carry the mail on routes No. 1,501 and others, in.

cluding a large number of routes, principally in Ohio, at This difference is wholly unexplained. No answer has an annual compensation of

$30,000 yet been given to a call made by the Senate, on the 11th In his report of March 3, 1834, (Doc. 138, day of March last, on a resolution offered by one of your p. 210,) he states that Wm. Neil & Co. committee, for a statement of the sums paid for transpor are contractors on the same routes, at an tation and extra allowances, if any, omitted in the Blue annual compensation of

50,410 Book, wbich would have enabled them to present an ex

Making a difference in favor of the contract. planation of the discrepancy; and we can perceive of no mode of accounting for it, consistent with the correct ad

or, per annum, of

20,410 ministration of the Department, and a careful and accu.

During the contract, of

81,640 rale examination of the papers which issue from it, and under its official authority, Your committee has also caused to be selected from states that Reeside and Slaymaker are contractors for car

In his report of April 18, 1832, (Doc. 212, p. 4,) le the report (of extra allowances) made by the Postmaster General to the Senate on the 3d day of March last, all rying the mail from Philadelphia to Pittsburg, at an an. that have been there set down as subsisting allowances From Pittsburg to Washington

nual compensation of

$7,000

1,250 since the 29th day of June, 1833, which ought to include all that are embraced in the Blue Buok.

$8,250 Their aggregate, by that report, amounts to $351,573 30 Making in the aggregate Their aggregate, by the Blue Book, is 377,947 66

In his report of March 3, 1834, (Doc. 138, p. 199,) he Making a difference of

states the contract as from Philadelphia to Pittsburg, $26,374 36 from Pittsburg to Washington, and from Washington to

$27,000 Thus the Blue Book gives an aggregate less than the Wheeling, at an annual compensation of annual report, of 40,369 28 Making a difference, per annum, of

$18,750 And the report of March 3, 1834, less than

And in four years, of

$75,000 the Blue Book

26,374 36

The line from Washington to Wheeling is included in Error between the annual report and the

the contract of Stockton and Neil, in the report of April, report of March 3d, 1834,

$66,743 64 1832. (Doc. 138, p. 204.) It is not mentioned as a part

of the contract of Reeside and Slaymaker. The Postmaster General, in his annual report accom In his report (Doc. 212, p. 2,) of the 18th of April, panying the President's message of December 1st, 1832, 1832, the Postmaster General states that James Reeside states a surplus of available funds, after detraying all the is the contractor for carrying the mail from Philadelphia expenses of the Department down to the 1st of July, to New York daily, at an annual compensation of $6,000. 1832, at

$202,811 40 In his report (Doc. 138, p. 186) of March 3, In his report of November 30, 1833, be

1834, he states the same contract at twice a says that, instead of having bad on hand

day, and the compensation per annum at 20,500 that amount of available funds, the De. partment was at that time really indebted

Making a difference, per annum, of .

$14,500 beyond the whole amount of its resources, including its credits, 2,844 40 And in four years, of

$58,000 Showing an admitted error in that report of $205,655 80

These are but a few of a numerous class of cases,

many of which will be set out at large in a subsequent In descending to the items, and comparing one by one part of this report. From them your committee have been the contracts, as set forth and certified in one report of constrained to draw conclusions most unfavorable to the the Postmaster General, with the same contracts as set general accuracy of the Department, and though all, or forth in another of his reports, the discrepancies become nearly all, of the cases which follow bave been differently

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o represented in different reports of the Department, they week from Gallipolis to Colesmouth, on horseback, for

are not selected with a special view to that circumstance. the yearly compensation of $2,600. On the back of this * We detail them because they form parts of transactions paper is endorsed, in the handwriting of the Postmaster

with individuals, some, it is true, of small importance, General, “ Allowed to take place from the 1st of Januand others of greater magnitude, but together involving ary, 1832.” All these papers, and the filing and entries almost every conceivable variety of abuse; some of them upon them, are without date, and the officers of the De in direct violation of law, and some subversive of the partment can give no account of the time of their execucommon principles of justice and fair dealing between tion. Some accidental writing in pencil on one of the man and man.

papers does, however, lead to the conclusion that they The first case examined by your committee was a con are all of very recent origin, and the contract, which was tract with General George House, of Gallipolis, in the at last executed pursuant to this proposition, appears by State of Ohio, and the following is the transaction, some- the jurat to have been executed on the 27th day of April, what in detail, as it appeared in evidence.

A. D. 1833. At the lettings (Doc. 117, p. 5) in October, 1830, Thus were there two contracts transferred from their route No. 1975, from Colesmouth to Gallipolis, was taken legal owners, against whom there was no complaint, to by John Black, at the yearly compensation of $394, com. George House, at a clear loss to the Department of mencing on the 1st of January, 1831, and ending the $1,106 a year, amounting in the four years to $4,424, 31st December, 1834.

which sum is, in effect, a gift to that individual, made in On the files of the Department is a letter from House violation of law, and under a succession of pretences to the Postmaster General, dated at Washington, Jan. which had no foundation in fact. uary 28, 1831, in which he proposes to carry the mail By the act of the 15th day of June, 1832, a mail route three times a week in a steamboat from Charleston, Ken was established from Chicago to Green Bay, in the Terhawa, to Gallipolis, at $30 per mile, per annum, to com. ritory of Michigan; but in the proposals published by the mence as soon as his boat should be ready in the spring; Department on the 24th of July following, this route is and he adds, that his proposition is made in pursuance of not included, and no notice whatever was published by a request or directions of the Department made to Judge order of the Department for proposals on that route. Hayward, in December (then) last. The estimated dis. 0. B. Brown, an officer in the Department, who made tance, sixty-four miles, equal to $1,920 a year.

out the list of proposals, being sworn, stated it as his beIn a communication from 0. B. Brown to the Postmas- lief that the omission happened in consequence of the ter General, da'ed the 11th of February, 1831, he states law establishing the post routes not having been publishe the offe: of George House at $1,000 for carrying the mail ed at the time he made out the advertisement, and that twice a week in a steamboat on the same roure, and that he took it from a copy of the bill, wbich afterwards under. the steamboat will be ready, "say the 1st of April." He went alterations. It appears that the law was approved suggests that the contract with Black may be suspended, on the 15th day of June, 1832; the advertisement was and asks, "Shall it be done?" The Postmaster General signed by the Postmaster General on the 24th of July fol. endorses on the paper, “Let it be done;" and thereupon lowing; and it further appears, that this route was upon Black received orders to discontinue his route from the the bill as it was first introduced into the House, and was 1st of April, 1831. No contract appears to have been ex never struck out, or underwent the slightest alteration ecuted by House, and Black continued to carry the mail during its progress. on horseback as his sub-contractor. The effect of the whole John T. Temple, then a clerk in the Department, made transaction was to shift the contract out of the hands of out a bid in the name of Asahel Savery, of Michigan, by Black, and place it in the hands of House, who is well which he offered to transport the mail on horseback on known as an active and influential political partisan. A that route once in two weeks, for $3,000, or once a week letter written by House to the Postmaster General, on the for $3,500 a year, which was accepted. There was after2d of August, 1831, states that he had not yet got his wards a representation made by Asahel Savery, in the steamboat prepared, and did not know when he should; handwriting of John T. Temple, stating that the bid was and it seems that he never did get it prepared; for the too low, and that he would suffer very beavy loss by the mail is still carried on horseback on that route.

contract. The distance is two hundred and fifty miles. At the letting of contracts in October, 1831, route No. the fair value of the service does not exceed 1,200 or 1,588, from Chillicothe to Gallipolis, was bid off by A. L. 1,500 dollars. Ross, at $1,100 per annum, the mail to be carried three The Postmaster General, upon this representation, times a week in four-horse post coaches. His bid was ac- made an additional allowance of $1,000 a year, and the cepled, and, in the report (Document 212, page 20) of contract was accordingly executed by Savery, and asthe 18th of April, 1832, he appears as the contractor. signed to Temple.

On the 7th day of October, 1831, a letter was written In this manner Dr. Temple, by means of his situation by O. B. Brown to Ross, informing him that the accept in the Department, obtained a contract giving him $4,500 ance of his bid was suspended, and that the Department for carrying the mail 250 miles on horseback weekly, for wished him to give it up, as it was important that the which service it is believed $1,500 would be a very large stage line from Chillicothe to Gallipolis should be con- compensation; much more indeed than the state of things nected with the steamboat line from Gallipolis to Charles-would justify. The route is an unimportant one; the nett ton. Ross reluctantly yielded to the requisition, and the amount of postage received upon it, after leaving Chica. mail upon that route was carried by House for some time, go, to its termination at Green Bay, inclusive, falls short but no evidence which can be procured from the Depart of the one-tenth part of the sum given to Temple on this ment shows how long, without any contract, and without contract; which aggregate sum equals, it is believed, the any written and accepted offer. There was exhibited to nett proceeds of postages received in the whole Territory your committee a letter from House to 0. B. Brown, of Michigan. without date or postmark, in which he says he has carried Prior to the lettings in October, 1831, Lindsay and the mail from Chillicothe to Gallipolis, and from Gallipolis Sheaffer were contractors for carrying the mail from Hato Colesmouth, since the 1st of January, 1832, without any gerstown to McConnellsburg, and at those lettings they contract; and in this letter was enveloped and filed a pa. again bid to carry the mail three times a week, in four. per, also without date, containing a proposition by House horse post coaches, at $300, or daily at $600 a year. io carry the mail three times a week in four-horse post James Reeside bid for the same at 40 or 99 dollars im. coaches from Chillicothe to Gallipolis, and three times a I proved. The bid of Reeside was accepted, and he is set

.

23d Cong. 1st Sess.]

Affairs of the Post Ofice Department. down, in the report of the Postmaster General of the 18th mail facilities, (document 138, page 253,) the "increasof April, 1832, as the contractor, at $40 a year. In the ed expedition” is reduced at $1,595 yearly; and, on exreport of extra allowances of the 3d of March, 1854, no amination of the books of the Department, it appears that extra allowance on this contract is noted; but in that part the contractor did in fact receive on that route $3,495 of the same report which gives a statement of the re- yearly, instead of $1,900; to which sum, and no more, trenchments ordered, this route is noticed thus, (in page he was entitled by fair and legal contract. 253:) “1231, Hagerstown to McConnellsburg, James The increased expedition was of importance to the conReeside, four weekly trips, reduced $700. Not under tractor, to enable bim to compete with other rapid lines in standing precisely bow $700 could be deducted from $40, the transportation of passengers, but it does not appear to without first adding something to the lesser sum, a mem. have been of any considerable value to the public; and ber of your committee, who happened to discover the had it been of importance, the increased compensation is discrepancy, gave to their clerk a written paper, stating much too great for the additional service rendered. the difficulty, and requesting an explanation, and asking It is stated in the report of the 18th of April, 1832, also for a copy of some papers, which it was supposed (document 212, page 2,) that James Reeside is the conwould show the true nature of this and one other transac. tractor for the transportation of the mail on the route from tion. There was much delay and prevarication before Philadelpbia to New York, in four-borse post coaches, any distinct answer was given to the inquiry, and then waily, at an annual compensation of $6,000, for four years the Postmaster General declined answering it, because it from the 1st day of January, 1832. was not signed by the chairman of the committee. This By the report of the 3d of March, 1834, the contract is difficulty was removed. The chairman signed the paper, stated at twice a day, and the annual compensation (docu. and, some few days after, and after the arrival of James ment 138, page 185) at

$20,500 00 Reeside, (the contractor in the city,) the Postmaster He was allowed, (page 187,) for extra serGeneral sent in his answer on the 15th day of May, 1834, vices, a yearly compensation of

5,125 00 which accompanies this report. In this, he says, that after the contract was adjudged to

Increasing the compensation on this route from Reeside on his bid of $40 or $99 improved, he was order and an express mail was ordered to be run on

$6,000, the legal contract, to

25,625 00 ed to run daily instead of tri-weekly, and the amount of

the same route, at a yearly compensation of 3,150 00 compensation for increased service was left unsettled.

The report goes on to state that Reeside represented to Makirg the grand total, yearly, - 28,775 00 the Postmaster General that there had been iwo mistakes in his bid; that he had made it out in percil marks, and bis clerk had blundered in copying it; that the $40 was page 13,) the Postmaster General states that James Clark

In his report of the 18th of April, 1832, (document 212, intended for $1,400, and the $99, which occurred twice, is the contractor for carrying the mail from Bedford to was intended for $1,999; and the Postmaster General adds Blair's Gap, and from Bedford to Cumberland, once a that 0. B. Brown reported to him at another time these week, on horseback, from the 1st January, 1832, to the sayings of Reeside, and stated that there were no other bid 31st December, 1835, at a yearly compensation of $275. on this route. Mr. Reeside was therefore allowed to correct his bid, making it $1,400 and $1,900, instead of $40 In the report of the 3d March, 1834, (document 138, and $99. The report proceeds to say that Mr. Brown page 198,) James Ree: ide, is reported to be the contractor also was mistaken; that there were in fact several other bids, 1230,) from Cumberland to Blair's Gap, three times a

for carrying the mail on these routes, (Nus. 1215 and and that, as soon as this was made known to the Postmas- week, in four-horse post coaches, at an annual compenter General, he promptly informed the contractor that his

sation of contract should be reduced to the amount at which it And on the 25th of February, 1833, he was

- $4,500 00 would have been fixed had be known of the other bids at the time it was arranged. The time at which this discov.

directed to run daily between Bedford and ery was made, and the notice given, not being named in

Blair's Gap, at an additional compensation of 2,911 72 the report of the Postmaster General, your comınittee in- Thus the legal contract for $275 has increas. quired of him on that subject, and he stated that it took

ed to

7,411 72 place after he received the before-mentioned informal inquiry from a member of the committee.

James Reeside and S. R. Slaymaker were contractors It is proper to add that other inquiries, informal as that for carrying the mail from Philadelphia to Pittsburg, for when first presented, had been theretofore answered with a yearly compensation of

$7,000 00 out objection; and your committee cannot resist the con. From Pittsburg to Washinglon, Penn., 1,250 00 clusion that the hesitation at first manifested, and the refusal at last to answer, was merely for the purpose of

Aggregate,

8,250 00 gaining time, and waiting the arrival of the contractor, As by the report of the 18 h of April, 1832, (doument (who had been subpænaed by your committee,) that a 212, pages 4 and 11.) better countenance might be put upon the transaction

In The report of the 31 of March, 1834, (document 138, than its naked features exhibited.

page 199,) they are stated to be contractors for carrying James Reeside is also contractor for carrying the mail, the mail on the same routes, and, in addition thereto, from from Baltinore to Chambersburg, 77 miles daily, in four- Washing'on to Wheeling, in Virginia, (which is also corborse post coaches, at $1,900 a year, from the ist of Jan-ered by the contract of Stockton and Neil,) at an annual uary, 1832. The schedule was so changed on the 29th compensation of

$27,000 00 December, 1831, as to lessen the time, and, consequently, on the 5.h of May, 1833, there was made on to increase the speed; but the difference was so slight as

this route a yearly extra allowance from to be wholly unnoticed by a sub-contractor on a part of

April 1, 1832, of

- 10,000 00 the route, who was examined by your committee; and on And there was ordered an express mail on the the 18th of April, 1832, long after this change of the

same route, to be run by Jumes Reeside, from schedule, the contract is reported to Congress (document

Philadelphia to Pittsburg, at a yearly allow212, page 15) as subsisting at $1,900. In the report of

ance of

3,150 00 the 3d of March, 1834, which professes to give all the extra allowances, there is none slated on this roule; but Increasing the compensation on this route from in that part of that report whicb gives the curtailment of $8,250, yearly, to ·

$40,150 00

1

Affairs of the Post Office Department.

[23d Cong. 1st Sess.

The above are but a few out of the many contracts held Some time in the year 1832, 0. B. Brown applied to by James Reeside and others, his partners. The allow- Slaymaker for a small loan of money, (300 dollars,) which ances in the above cases, beyond the amount of their open Slaymaker accordingly lent him, but took no note, and bids and fair and legal contracts, is $62,316 78 a year; made no memorandum of the transaction, which took place amounting, during the continuar.ce of their contracts, to in the presence of no one but themselves. At another time, the enormous sum of $249,267 12, which is given to these Mr. Brown asked Slaymaker if he could lend him three contractors by the Department, without advertising, and thousand dollars at the usual rate of interest. Tbis also without competition.

was promised; and sometime after, about the first of JanThe amount of those allowances was somewhat reduced uary, 1833, Mr. Brown renewed his request, and said he on the 1st of December last, in consequence of the insol- had made a purchase of the property of Doctor Temple, vency of the Department.

on the faith of the promised loan. The witness stated It will be noticed in these and many similar cases of fa- before the committee, that, at that time, he had not the vored contractors, that, where they are concerned, com required sum of money at command, but undertook to petition is absolutely put down, and the notice published raise it, and accordingly did raise it, by means of drafts, pursuant to law, inviting competition and the public bid. These drafts were two in number, for fifteen hundred dings, are but mere masks to cover their secret transac. dollars each, drawn by Samuel R. Slaymaker on 0. B. tions. The route is not advertised as it is to be run; and Brown, and endorsed by James Reeside, and payable at before it is put into operation, some improvement, gene. ninety days date. They were negotiated at the Western rally comporting with an alternative proposition in the Bank, in Philadelphia, and sent to the Patriotic Bank in bid, is ordered, and the original contract is merged and Washington city for collection. They were paid at matulost in the improvement. The compensation agreed to by rity by the proceeds of a draft drawn by James Reeside the legal contract is, in some instances, so insignificant, on o. B. Brown, for three thousad dollaas, at ninety that it is hsrdly worth adding as an item in the aggregate days. This draft was suffered to pass a day or two beyond allowance.

its maturity without payment; but on the 18th of July it But it has not been thought necessary, in all cases, to was paid out of the proceeds of a draft drawn by Samuel preserve even the cover of increased services, as an ex. R. Slaymaker on James Reeside, for two thousand dolcuse for these extra allowances. The 10,000 dollars lars, and one thousand dollars in cash paid by Slaymaker;

yearly allowed to Reeside and Slaymaker, on the roule and O. B. Brown, at the same time, drew on Reeside for : from Philadelphia to Pittsburg, is wholly without this two thousand dollars, which crafts were sent to the Bank

apology. The allowance was for hardships incurred in of Maryland for collection. It appears that neither Ree. the performance of a stipulated service, riot for any thing side nor Slaymaker made any charge, or kept any memo. done which their contract did not require of them. The randa of these transactions; that they have no note or acwhole hardship, too, as proved by the testimony of Ree- knowledgment of Brown, showing his liability to them, side, was this: The mail was so heavy for three of their unless it be the drafts which were taken up, which Slay. trips weekly, as to prevent their taking in a full load of maker says he thinks he preserved, but of which he does passengers on those trips; by which it would seem that not profess to be certain. He, nevertheless, denies abso. the Department, after paying for the transportation of the lutely that it was intended as a douceur or gratuity to mail, on this route, something more than 30,000 dollars, Brown. Reeside states that Brown paid him one thousand was also held bound to say the contractor extra for what- dollars in part of this loan. But this transaction is the ever expense and inconvenience the transportation of the more remarkable when taken in connexion with another, mail might occasion him. Or rather, to give the transac- testified to by Edwin Porter, which will be found in ano. iion its true character, this ten thousand dollars a year ther part of this report. In that case, Brown was, shortly was a gift, out of the funds of the Department, to these before and shortly after this transaction, the lender of contractors: and there are some further circumstances very large sums of money to Porter, on interest. attending it, which, on the most careful inquiry by your It also appears that, in the spring or summer of 1831, committee, are not satisfactorily explained.

Mr. Barry applied to Reeside, in Philadelphia, to assist The evidence shows that Reeside and Slaymaker repre-bim in negotiating an acceptance for 1,000 dollars, to raise sent two companies which share equally in the profit and some money for his (Mr. Barry's) individual use. Instead loss on this line. The money accruing for transportation of doing this, Reeside advanced him the 1,000 dollars; and is received by Reeside and Slaymaker, a moiety by each, he stated before the committee that Mr. Barry paid it by and distributed by them to their respective companies. his acceptance at a short date, which he (Reeside) negóThis extra allowance of ten thousand dollars was received tiated in the Schuylkill Bank. Oo inquiry of the cashier by them on the 5th of May, 1833, and no part of it has of the Schuylkill Bank, we were informed that no sich yet been paid over by either of them to their partners, or acceptance was negotiated there. Your committee, hayentered upon any account book of the companies. Ree. ing collated the evidence touching these transactions, side, on his examination, siated that they bad kept this leave them without comment. back to pay some old debts of the companies, which they In some of the contracts above examined, and many supposed had been provided for, but which were, unex. others that passed under the notice of your committee, pectedly, found to exceed the sum appropriated for their very large sums of money have been paid by the Departpayment. But being specially interrogated, he stated ment, for the establishment of a secund, and sumetimes a that this unexpected deficit did not exceed five thousand third, daily line on the same route. dollars in the whole, and that it was not discovered to When the contracts for a regular daily mail have been exist until about three months af er the first ten thousand advertised and let out pursuant to law, your committee dollars of this extra allowance was received by him and can look upon these expenditures in no other light than Slaymaker. The whole amount so received and so re- that of an enormous waste of the public funds. Take, tained by them on this account, appears to have been for example, the case of the contract from Philadel. sixteen-thousand six hundred and sixty.six dollars sixty- phia to Pittsburg, and from Pittsburg to Washington, six and 110-thirds cents. The allowance of this money brought up, as we have alrearly s'ıown, from 8,250 dol. and its application are alike remarkable.

lars to 40,150 dollars--while a single mail, each way There were also certain pecuniary transactions of a daily, on that line, is all the public service, or the busiprivate na!ure, between these con'ractors and some of ness of the country does require, or ever has required. The officers of the Depariment, which came under the Addisional lines of stages there are convenient only for notice of your com uitee, which, in their opinion, merit lihe transportation of paszergers, and, whenever the buconsideration.

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siness of the country requires them, they spring up of transportation of the mail is treated as a mere incidental themselves without the aid of Gaveroment. And those business, not worth serious notice in a contract about pas. opposition lines, which are got up by individual enter sengers and opposition lines. prise, serve the interest of the travelling public as well, R. C. Stockton and Wm. Neil contracted to carry the and perhaps better, than the additional daily lines of mail from Cumberland to Wheeling; from Washington, coaches, all subject to the control of the same individu- Pennsylvania, to Steubenville; from Baltimore to Cumals, whicb, under the name of additional mails, are sus berland; from Washington city to Frederick, and from tained by enormous bounties out of the public purse. Frederick to Wincbester, from the 1st day of January,

The monopoly set up by the establishment of these ad. 1832, for four years, (see report of April 18, 1832, Doc. ditional daily mails, and express mails, is of the most per- | 212, p. 12,) at the annual compensation of $7,000 nicious tendency. They enable the large mail contractors But the contract was in fact executed, giving them a to put down and ruin any man who shall attempt to com- yearly compensation for the same line, with some variapete with them in the transportation of passengers; and tions, at

$15,500 thus, for want of that wholesome competition which the And for increased expedition, and increased natural course of things would otherwise create, are trave number of trips, making two lines of stages ellers delivered over to the mail contractors and their daily-which additional lines were, as is servants, as a kind of property, to be dealt with, and dis believed, wholly unnecessary for the pubposed of, for the time being, according to their good lic service-they were allowed extra the pleasure.

yearly sum of

22,962 It is not the purpose of your committee, by these remarks, to arraign the conduce of any class of individuals. Thus, upon a contract for 7,000 dollars, made These men, like all others, pursue their own individual pursuant to law, the Department bas, by interest, and many of them labor assiduously for the com means of hypothetical bids and extra al. fort and accommodation of the public. It is our purpose lowances, transferred to the hands of these to mark the general tendency of things, and few travel. individuals the yearly sum of

$38,462 lers can have failed to observe that the comfort and convenience of the passenger in the mail stage is promoted R. C. Stockton and Wm. Neil were also contractors for by the existence of an efficient opposition on the same carrying the mail on seventeen mail routes, stated in the route.

report of April 18, 1832, (Doc. 212, p. 17,) at the annual But besides the general effect of these second and compensation of

$30,000 third daily mails to put down opposition lines, an agree. † The contracts, however, appear to have been so ment, of which that is one of the avowed objects, enter-modified and adjusted, after the acceptance of the bids, as ed into between two large companies of contractors, each to give them on ibe same routes the annual compensarunning those additional lines, and each in the receipt of tion of

$50,410 very large extra allowances, appears to have been made and they were allowed for extras, including wi:h the approbation of the Department, and filed among an allowance for tolls and ferriages, yearly 18,596 its archives to be safely kept and officially enforced. In one clause it binds the contracting parties, under a pen- Making an aggregate of

$69,006 alty, to transport no passengers for less than a stipulated price. It also binds them to use their efforts to put down Being and advance upon their regular legal ar opposition line which appears to be established on one contracts of

$39,506 of their routes, and not lo receive any passengers who shall The advance upon the other contracts above have been carried on any part of the route in an opposition referred to is

31,462 couch.

Your committee have caused a copy of this agreement Making the yearly advance allowed on the to be appended to this report, and they are of opinion two contracts of

$70,968 that, as an act countenanced, encouraged, or sanctioned by the Department, or any of its officers, it is, in the Which, during the four years of their continabove-mentioned particulars, an unjust invasion of private uance, amount in the aggregate to

$283,872 rights.

The express mails which have been above noticed by And this given without advertising and without compeyour committee, are, as far as they can ascertain, nothing tition. more nor less than another line of mail coaches, sent for # R. C. Slockton is contractor for carrying the mail on no special purpose, or on any special emergency; proba. routes Nos. 1,105, 1,111, 1,219, 1,371, 1,372, 1,387, bly applied for because it was found profitable to run a 1,391, 1,395, 1,396, 1,397, 1,398–24 miles daily, 61 miles third line of coaches for the transportation of passengers, thrice a week, 98 miles daily, 38 miles daily, 70 miles and granted because they were applied for. Your com daily, 54 twice, 58 miles daily, 24 miles once, 15 miles mittee look upon the expenditure of money to establish once, 30 miles once, at

$14,950 these second and third daily lives in no other light than This contract has no schedule attached to it, and on its that of a premium paid by the Department to one line of margin it has this memorandum: “ All the improvements passenger.coaches, tending to give it the ascendency over in this contract were ordered by the Postmaster General every other line. A striking case, in illustration of this from the beginning; he is therefore entitled to the stipuview, occurs in the agreement above referred to. Stock-lated sum of $20,150 per annum additional." ton and Neil are the contractors on the line from Wash. It is also noted on the contract, and stated in the report ington, Pennsylvania, lo Wheeling-Reeside and others of March 3, 1834, (document 138, page 251,) that the are contractors on the route from Philadelphia, by Pitts- express mail from Baltimore to Lancaster is discontinued, burg and Washington, to Wheeling; thus running two but no mention is made in that report or elsewhere, as mail lines from Washington to Wheeling upon the same your committee can discover, that such express mail was road. By tbe agreement referred to, leeside stipulated ever established. The improvements for which this enor. to run that route no oftener than each alternate day; in consideration of wliich, Stockton and Neil agree to carry * Dec. 138, p. 204. Reeside's mail on each of the other alternate days, without | Rep. of March 3, 1834, doc. 138, p, 210, 211. compensation, except at the option of Reeside. The # April 18, 1832, Doc. 212, p. 8.

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