United States House Select Committee on Government Contracts

In the spring of 1861, soon after the beginning of the U.S. Civil War, there were numerous reports in the public press of frauds in the making of contracts for supplies of all kinds for the Army. On July 8, 1861, the House of Representatives appointed a committee to summon witnesses and take testimony, on the matter. During its operation, the committee met throughout different parts of the United States and interviewed many witnesses.^[2]

The select committee was established at the request of Representative Charles Van Wyck of New York. The resolution creating the committee was as follows:

Resolved, That a committee of five members be appointed by the Speaker to ascertain and report what contracts have been made by any of the departments for provisions, supplies, and transportation; for materials, and services, or for any articles furnished for the use of government without advertising for proposals, as required by the statute of 1861; the parties to whom given; the compensation and terms thereof, and the reasons therefor. Also, where proposals were received, if contracts were awarded to the lowest bidder; if not, the reason therefor. Also, whether the contracts, as let, are in accordance with the specifications inviting proposals; and if any alterations, the reasons for the same. Also, whether any person or persons have any interest in the contracts thus made and awarded, or obtained the same, or profits therefrom, except the contractors. That said committee shall have power to send for persons and papers to administer oaths and examine witnesses, and report at any time.^[3]

The committees jurisdiction was expanded on July 17, when committee member offered several resolutions.^[4] Key among these was a resolution was to extend the authority of the select committee "to embrace an inquiry into all the facts and circumstances of all the contracts and agreements already made, and all such contracts and agreements hereafter to be made prior to the final report of the committee, by or with any department of the government, in any-wise connected with or growing out of the operations of the government in suppressing the rebellion against its constituted authority." The committee also requested authority to meet during the congressional recess and to meet outside the city of Washington as the need arose. These resolutions led to significant debate among the Representatives. Many representatives questioned the need for this expanded authority, since committees already existed to examine the expenditures in the various executive departments. After a failed attempt by Rep. William Kellogg to have the resolutions tabled, they were approved by the full House.^[4][5]

Rep. Van Wyck described the goals of the committee in a speech before the House that:

the mania for stealing seems to have run through all the relations of the government — almost from the general to the drummer-boy; from those nearest the throne of power to the nearest tide-waiter. Nearly every man who deals with the government seems to feel or desire that it would not long survive, and each had a common right to plunder while it lived. Colonels, intrusted with the power of raising regiments, colluding with contractors, bartering away and dividing contracts for horses and other supplies to enrich personal favorites, purchasing articles and compelling false invoices to be given. While it is no justification, the example has been set in the very departments of the government. As a general thing, none but favorites gain access there, and no others can obtain contracts which bear enormous profits. They violate the plain provisions of the law requiring bids and proposals on the false and shallow pretext that the public exigency requires it.^[1]

The committee consisted of seven members, and the Speaker of the House appointed the members on July 12, 1861.^[6] Originally chaired by Charles Van Wyck of New York, he was later replaced by Elihu B. Washburne of Illinois, due to absences from the committee and other activities. Van Wyck continued to serve on the committee.^[7]

Members	Party	State
Charles Van Wyck	Republican	New York
Elihu B. Washburne, Chairman	Republican	Illinois
William S. Holman	Democratic	Indiana
Reuben Fenton	Republican	New York
Henry L. Dawes	Republican	Massachusetts
William G. Steele	Democratic	New Jersey
James S. Jackson*	Union Democratic	Kentucky

*Rep. Jackson served on the committee until his death on October 8, 1862, at the Battle of Perryville.^[7]

The committee submitted its first report to the House on December 17.^[8][9] The report covered nearly 1,100 pages and stated the committee had found "many frauds had been exposed, the government relieved from many unconscionable contracts, and millions of dollars saved to the treasury."^[1] To that end, the committee proposed a resolution that:

[T]he practice of employing irresponsible parties, having no official connection with the government, in the performance of public duties, which may be properly performed by regular officers of the government, and of purchasing by private contract supplies for the different departments, where open and fair competition might be properly invited by reasonable advertisements for proposals, is injurious to the public service, and meets the unqualified disapprobation of this House.^[1]

This resolution was never passed, the House refusing to hold a yea or nay vote on it.^[1]

The committee performed made two other reports, on July 17, 1862, and a final report on March 3, 1863, the last day of the 37th Congress. Through its investigations, the committee identified as one example of fraud violations by the executive departments of laws requiring them to advertise contracts for proposals, and award those contracts to the lowest bidder. However, according to the committee, the department secretaries made contracts with their friends for the furnishing of supplies, on the grounds that such procurements were urgent and in the public interest. The committee did offer an amendment condemning this practice, which was passed unanimously. The resolution was especially aimed at the Navy Department, which the most peculiar contracts appeared. Other suspect contracts were found in the War Department, under the administration of President Lincoln's first War Secretary, Simon Cameron.^[1]

All told, the committee's three reports covered more than 3,000 pages and identified innumerable frauds in the purchase of supplies for the Army, including arms, food, clothing, shoes, horses, and equipments, and even in the charter of Government transports. The report also showed an utter lack of moral or legal responsibility, on the part of a number of the contracting officers, and a readiness on the part of the contractors to take advantage of this circumstance.^[2]