Newspaper of The Washington Standard, April 16, 1864, Page 1

Newspaper of The Washington Standard dated April 16, 1864 Page 1
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' It* if' jl VOL. IV. (The flfitnsliinnton Standard. IS ISHI'F.n EVERY SATfIIDAY MOUSINO JIT JOH\ nililJllt MURPHY, Editor and Proprietor. SubNcriptiMn Rules: Vr annul). •V) . " six mouths.... 2 <"> Single coj ies 2-jc 'ISVARIAPI Y /.V ADVAXCE. Advertising Kates: One square, one insertion.... $3 00 Haoh additional insertion 1 00 ilusiness cards, per quarter •> 00 (n* A liberal deduction will be made in favor of those who advertise four squares, or upwards, by the year. (j~j* I.egal notices will be charged the attorney or ffiuer, authorizing their insertion, or Advertisements sent froin a distance, and trnn cnt notices, must be accompanied by the cash. Notices of births, marriages and deaths inserted free of charge. rrAii communication-!, whether on business or for implication, must be addressed to the editor of the WASHINGTON STANKVUN. <XT Blank*, hill-heads cards, lulls of fare, posters, programmes, circulars, catalogues, pamphlets, etc., ex ecuted at reasonable rates. OFFICE —In llirnes's building, corner of Main and First streets,near the steamboat landing. The Charges Against Victor Smith, and the the Evidence upon which They were Based. We publish the evidence in full, with the exception af a few documents on file in Wash ington, of which copies were not mad". The statement of Dr. Henry, is likewise given, al though it was published in our columns a few weeks ngo, in order to show the relation be tween the charges preferred and the evidence upon which they were submitted : WASHINGTON, March loth, 18(71 I a«k the President to remove Victor Smith from the Otlice of Collector of Port Angeles, Washington Territory, for the rea sons following, based upon the proofs to which reference is herein made: 1st —That he (Victor Smith) procured the removal of the Custom House of the Paget Sound District, in defiance of the public in terests, and for the purpose of speculating off of the change of the Custom House to a new town site, of which he was the principal owner. As to the propriety of the removal, 1 refer to the petition of the l'uget Sound mill-owners and ship-owners, annexed, also the statement of Capt. Geo. Chase, (relative to the Secretary of the Treas ury."i with the endorsement of James Lamb and others. As to the design of Smith in malting the removal as a personal ami pecuniary specula tion, I refer to the evidence of his purchase of the Port Angeles town site, contained in the exculpatory report made by Mr. Brown, Special Agent of the Treasury Department. See also Report of thu V. S. District Attor ney for Washington Territory, on file in the office of the Treasury Department. See also exhibit " 11," being cipy of Smith's Custom Heue Hook, items of October 1 "»tli, 1801, Bet. id, 1801, Feb. 7th, IKO2, two items, all showing the payment of the sum of!fj!(i!)2- 47 for property in Cherbourg, alias Port Angeles. The statement of Lieut. White, coupled with the admissions of Brown and the entries 'referred to, show that long before the removal of the Custom House from Port Townsend, he had been engaged in purchasing the prop erty of the town site of Port Angeles, and that when he had secured this to himself, he immediately started to Washington City to procure the removal of the Custom-House, as aforesaid, which he accomplished in the month of June following. Special Agent Brown attempts to excul pate Smith from this attempt to speculate, by saying that while it is true that he had purchased 100 acres af land, it was done for the Government, for hospital purposes. But this is answered conclusively, when the dates show the purchases made, commenced in Dec, 1801, and ended in April with the pur chase from White, at least two or three months before the act passed removing the Custom-House, and the explanation is there tore clearly an after thought. That his object was speculation, is further proven by the fact, that—while the proof shows his interest beyond question—ho has all along strenuously denied that he had any interest, whatever, in Port Angeles. This denial was mado to the Representative elect from Oregon, Mcßridc, Mr. Harding, U. S. Senator, and Col. Wallace, Delegate from Washington Territory, since Mr. Smith's ar rival in Washington this winter. 2d—That he has acted corruptly in the .discharge of his official duties, in this: That he deposited the public money with one Hasting*, of Port Townsend, evidently to sccutc a promissroy note of Smith to Hast ings. (See Merryman's and Brown's reports.) That he also deposited money belonging to Government, with the Hudson Bay Compa ny, at Victoria, in British Columbia, to se cure li debt for the purchase of goods. (See Merryman's report.) The attempted explanation of this latter transaction on the ground of a mistake of the clerk in making the entry, as set forth in Mr. Brown's report, is too shallow to be worth a moment's notice, when the facts arc all un derstood. That Mr. Smith, in turning over the office and funds to Mcrryman, should have forifotten that it was hi* own deposit, instead of one for the Government; that the Company, when called upon by Mcrryman, in the presence of myself and the United States Consul, at Victoria, Allen Francis, should have also forgotten the fact, although the circumstances were such us to recall the truth to the mind of the Chief Factor; and that of the clerk, who was present, was equally oblivious, is wholly preposterous, and convincingly proves that in explaining a Custom House defalcation, a U. S. Collector may be able to find an apologizing friend in the head of a trading company, whose inter ests he might favor in his otlicial capacity, if he chose to propitiate it by way of return for kindness received. The statement of Merryman that Smith requested him not to disturb these deposits, is a most suspicious circumstance. Also, that ho made a contract for keeping the Marine Hospital of his district with Allyn, who testifies that, ih addition to the usual contract in writing, there was a verbal agreement between him and Smith that one hundred dollars per month of the /iroji/x were to be paid to A. J. Davis, (editor of the Ihrtthl of' P/ogrcss, a Spiritual paper, published in .New York city,) and the remain ing profits were to go to the war fund of the Government. The copy of his book already mentioned and marked " II," shows that S4OO of this fund was paid by Allyn ; and liieuf. White states that the receipt from Mavis for that amount came to the Custom House, and that lie saw it, together with the compliments and thanks of the editor for the donation. (See document marked " K."') For further proof of the baseness of this whole transaction, see Allyn's letter to Gov. Pickering, marked " I'," hereunto annexed. This letter also shows a base attempt to em ploy Allyn's aid to draw a draft on Govern ment funds, to obtain money for his own pri vate use, (See 2d and .'ld paragraphs of Allyn's letter.) No explanation of these transactions is attempted by Mr. Smith, in Drown's report. Mr. Windsor also states—see report of District Attorney —that he gave M'\ Smith a receipt for S2OO. only a part of which lie received. It also appears that Smith appoint ed Hugh A. Golds borough Inspector of Cus toms at Colville, a port near the I'.tth paral lel, in the interior some five hundred miles. That a quarter's salary was paid to said In spector on a certificate, a copy of which is an nexed, ntark'd " I),'' show ing that lie actu ally performed the duty of such Inspector, when neither Goldsborough nor Smith pre tend that the duty was performed, or that Goldsborough ever left the sea coast during that time—thus knowingly making himself a party to a wilful fraud upon the Treas ury, iu paying for services never performed. It may bo mentioned, in this connection, that this Goldsborough is the only Federal ofliccr in the Territory who defends Smith. There arc also other frauds, (sec Allyn's letter,)sworn to before the Grand Jury, (see office. (Sec statements of Hons, J. H. Mc- Bride and W. H. Wallace, in reference to removal, on file in the Treasury Department and not published with the evidence; also statements of Licuts. White and Sclden, of ficers of the llevenue service.) sth, and lastly—These facts being gener ally known, have resulted in producing in the minds of the leading citizens of Wash ington Territory, the firm belief that 31 r. Smith is au unfiithful au<l unworthy publi'c otlicer. This conviction has been deepened by the f ict that a grand jury of the country indicted him, although impanncled at such a distance from the scene of his local difficul ties, as to preclude the idea of being influ enced by malice growing out of the opposition to the removal of the Custom House; and that he has not been convicted simply because the President has ordered a suspension of tht) proceedings against him. Kven this last circumstance he has had the impudence to boast of nsan additional evidence of his pow er at Washington, and his ability to bid de fiance to the people among whom he has made himself, both by conduct and manner, so peculiarly odious. (See, for proof of this, the petition of the Federal officers of Wash ington Territory, and also the letters of J. It. Mcßridc, of Oregon, and W. 11. Wallace, of Washington Territory, marked " H," and " I." [XOTE.-XO copy was made of these doc uments when they were filed in the Treas ury Department. Their contents have been fully indicated in this statement.] Kven admitting that Mr. Smith was in nocent of the many grave and serious charges made against him, his retention in office in a community so fully impressed with his unworthiness, and who fool and resent it as an insult and nn outrage, would be neith er wise nor just. It could be no possible benefit to him to remain surrounded by those who daily charge him with every species of fraud, and result in bringing into, not only disrespect, but disgrace, the persons con nected with the National Administration, and the ruin of its cause in that Territory. Believing that the President will appreci ate the importance of the action solicited in the matter, and that a competent person can he found to take the place, in whom the Gov ernment and people have entire confidence, I District Attorney's report,) which cannot be mentioned in detail. Such as using the pro deeds of the sale of the Jeff. Davis, the Revenue Cutter, to buy lumber, using it for his own purposes. Mr. Brown attempts to explain this by saying it was used for build ing a Hospital at Port Angeles ; but this explanation comes too late, as the purchase was made, and the timber used by Smith, three month* before the law passed author izing the removal from Port Townsend. The bungling attempt of Smith, in the report of the Special Agent (Brown,) to account for charging the Government with Hospital rout, when it was kept in a Government building by the permission of the military authorities OLYMPIA, WASHINGTON TERRITORY, SATURDAY MORNING, APRIL 10, 1864. for the avowed purpose of saving the price of the rent, show that these frauds and at tempted peculations by Smith, formed a part of every transaction of an official chnractert 3d—Conducting his official business in vio lation of laws and usage. Keeping his ac counts with so little system as to make them appear more like the memoranda of a street trader than an important and responsible Government officer—he used the money de rived from Customs for his own private uses —made disbursements from it, when the same is strictly forbidden by law and the regula tions. (See copy of book aceoui?' marked " also the statement of liLs clerk, C'hal nv'rs.} ■lth—That his whole conduct as an officer, is that of a swaggering, conceited egotist, making himself ollcm.he find odious to all who come in contact with him. That lie fre quently and publicly boasts of his intimacy with Secretary Chase—that the latter irill xuxtnin him , \c. lie also, by buying a por tion of the Port Angeles town site, i* the name first of Mr. Chase andlsubsequently of Mr. Plants, the confidential clerk of (he Treasury Department, to whom and Smith the conveyance of said land now stands re corded, leads many persons to believe that the Honorable Secretary is interested in his pecuniary transactions ; thus scandalizing that high officer, and giving ground of con stant reproach to the Adininistratron. lie also claims that Mr. Chase is indebted to him in the sum of six thousand dollars, ami gives that as a reason for not fearing removal from ask the removal of the present incumbent, Victor Smith. Respectfully submitted, Hy your ob't serv't, A. (i. HENRY. SL*RRI.EML:NTAL STATEMENT. Mr. President: In my statement of reasons for asking the removal of Victor Smith, Collector of Cus toms, for Puget Sound District, which I sub mitted to Your Excellency last evening, 1 did not allude to the statement of Special Agent Hrown, that while the cost of the Hospital, under Smith's predecessor, was !?:> 1.00(1, Mr. Smith had conducted it for n corresponding period for less than SIO,OOO. 1 '.nd upon examination of the oflicial rec ords, that the expenses of the four last quarters of Mr. Smith's predecessor was 7,- 032 23, and that the expenses of the two first quarters under Collector Smith was 89,- 201 00. Now, assuming that the next two quarters cost the same, ( I could not gain ac cess to his account, in the Treasury Depart ment, for these two quarters,) tho total co-t of Hospital for one year of Sirith's adminis tration would be ; just six hundred thirty-six dollars and seventy-five'cents MOKE than that of his predecessor, instead of being 824,000 I.ESS, as stated by Mr, Hrown in his report to tho Treasury Department. It is, therefore, apparent that Smith has falsified the figures and imposed them upon Mr. Hrown. This fact ussumcs importance for the reason that great credit is claimed for .Mr. Smith on the ground of his Inrqe earing* to the Government. lam quite sure that i!' al lowed free access to the records of the Treas ury Department, so far as Ihev relate to the Puget Sound Custom House, I would show that Victor Smith has spent largely more money than his predecessor, for a correspond ing period. Respectfully submitted, Hy your ob't serv't, A. O. IIENUV. WASHINGTON, March 10th, 1803. DOCUMENTS. letter from (lor. I'irkcrinij to Dr. O'llricn. KXKCCTIVE OFFICII, Olynipia, W. T., Feb. 23d, 1803. P. M. O'Bltll'.N, Sir: 1 have been credibly informed that von are well ac quainted with the history of the tirst location of l,and Claims inside the harbor of False Dungenness; also with the original organization and continuous transac tion of the " Port Angeles Town Company," some times called the " Cherbourg Site Speculation. I shall feel obliged by your taking the trouble of for warding to me by mail, at your earliest convenience, all the information iu your power, respecting the said land claim locations. 'The information 1 need will be most ensily understood by me, from your answering the following questions: Ist—Who were the first settlers upon each separate land claim, along the whole length of the shore line, or sca-watcr front, inside the harbor of Cherbourg, or Port Angeles, in the Straits of Fuca, W. T ? 2c!—At what time were the aforesaid separate land claims first located ? 3d—Was all the length of said harbor taken up by the said claims being located adjoining each other? 4th—Were any of those said tir*t Icoated land claims ever sold by the said first claimants, and if so, at what time, for what price, and to whom ? sth—Who arc the present owners of each and all of the said separate land claims ? 6th—»Opposite to which part of said harbor front, and upon whose land claim or claims was the said Town Site of Cherbourg or Port Angeles located, and how much land was laid out, or agreed to be appropri ated and used for said Town Lots, or Town I'lot pur poses f 7th—At what time was the said Cherbourg Town Land Company first formed or organised, and wli > were the original partners or Town share proprietors? Bth—Have you ever been connected with said Cher bourg or Angeles Town Land Company, and if von were ever a partner or share-holder in said Town Lot Company, did you or any other partner or member ever sell any interest, share or shares in the said Town Lot Company, to Victor Smith, Collector of Customs for the l'uget Sound District; if so, at what time and what price ? 9th—Does Victor Smith still own any interest or share in the said Cherbourg Town Site Company ? 10th—Did Victor Smith ever propose to have an in terest or share in said Compauy, given or sold bv the Company, or by anv member thereof, to the Ilon.'S, I'. Chase, Secretary of the United States TreasurVi or to Mr. 11. ti. l'luut, a clerk in the United States Treasury Department, or to anv other office-holder or clerk iii the employment of tnc United States Government; and if any such sale or donation was made, for what reason, consideration, object, purpose, interest, or what advantage did Victor Smith expect to obtain or secure to said Company, bv having Mr. Chase, Mr. I'laut or any other office-holder as share-holders or partners in the said Town Lot or Land Speculating Company ? lltli—Did said Victor Smith, (as reported,) ever pur chase more interests or shares in said Cherbourg Town Land Company, than for hiiuself, or for any oth er person to hold interest, share or shares, for his use and benefit ? 1-th—("an you inform me what were the gross pro ceeds of expenses of the United States Murine' Hos pital (hiring your term of surgeon, Xc., and what was the expense to the t T . S. Government for the year pro ceeding vour removal ? I shall esteem as a favor your answers to the forego ing enquiries, as it is necessary I should obtniu correct information on these affairs. ' Your oli't Serv't, [Wyncrf,] WM.riCKP.UINO, Gov. of Washington Territory. f In reply to your first question, rtrWho were the ; first settlers upon each separate land claim, along the whole length of the shore line, or sea-water front, in side of the harlior of Cherbourg or l'ort Angelus, in the Mraits of Fuea, W. T. ?" Answer, The tirst settlers were Uuftis Holmes, W. W. Winsor and——Sampson. These men took up <>/K- <liini ; they all resided in tile same house, ami formed what was called the Winsor Co. They were principally engaged in fishing, and trading with the In dian- ; they hail a schooner and all the other applian ces for that purpose. Major Haller, of the 4th, U. S. Infantry, had an interest, by n mortgage, in the busi ness, I believe. Tli'" next settler was l'eter Kcillv; ho settled east of the Winsor Co. Uetweeti Itcillv's and the Winsor Co.'s claims, Kanakas took up a claim. Win. 11. Taylor took up a claim, improved it and built mi it, east of Itcillv's and adjoining it, but did not re side on it. K. W. I'crry took up a claim, cast of Tay lor's,he improved and resided on it. JohnW. White, Lieut, on the Itevenue Cutter. Jiff, /tot), built on and improved a claim, east of I'crry s. Those claims cov er the entire water front, from the head of the harbor, f.>r ah.iut 3A miles. This contains the reply to your third <|ticstion, riz : " Was ull the length of said har bor I ik> ii up by the said claims, being located adjoin ing each other In reply to question second, ri:: "At what time were tile aforesaid separate land claims first located." Answer. The Winsor Co., through ltufus Holmes, settled in '.ill. A man named Jorday staked oil' the claim, in ViH, held afterwards by the Kanakas. Jord iv did not improve the claim; he abandoned it, and the Kanakas took it up, in'■>!(. l'eter Kcillv settled in i improved, built and cleared some Id or f> acres of his j claim. Taylor took up a claim in ISiill, for the joint ' out fit of tli • " Town C 0.," to be afterwards n itiee d. On it, at the Co.'s expense, a house was built, and | clearances made. I'crry, about the same time, took up his claim ; so also, Lieut. White, both of whom ! built on and otherwise improved their claims. [Note — I should have mentioned that George House Jr., in 'til), also staked otr i claim on the Xorthcrn boundary of ! tli" harbor, known as the spit. He it was, who survcy -1 ed for the Town Co., the town site.] I (Question 'lth, t'/": "Were any of said tirst located ; land claims ever sold bv said first clirmants, and if so, | at what time, for what price, and to whom ?" Answer. 1 purchased out l'eter lleilly, for (#"00 ,) ! seven hundred dollars, in December, IH-W. Immedi ately on purchasing, 1 ascertained that M. 11. Frost, he then Collector, and W. 11. Taylor, bis deputy, were i about making the same purchase of Kcillv ; so Frost, ; Taylor and myself agreed that Taylor should take up i his claim, and, joined by I.ieut. White, we resolved to | establish a town on Kcilli's and Taylor's claims. At j the request of Major Haller, lth Infantry, I'. 8., we I were joined by the Winsor Co., who agreed to unite | their claim to ours, iu joint partnership. Major llal -1 ler, by this arrangement, came iu as a partner. Jo [ soph Fra/icr, who held forme my purchase, by residing j on it, was also admitted as a partner, on payment or, . 1 believe, one hundred and sixty dollars. " A. W. I Thomd> kc, who had an interest in the Port Ludlow i Saw Mills, for the same amount, was admitted as a ! partner, and these parties, to wit : P. M. O'Hrien, M. 11. Frost, Win. Taylor, I.ieut. White, Major Haller, Unfits Holmes, W. W. Winsor, —Sampson, A. W. Thorndyke, and Joe Fraxicr, cuiistituded the Cherbourg Town Co., vthich was formed in *<lo. Some few months after the Company was formed, Acting Captain (I.ieut.) Mason, of the JrJY. tiaria, became a member i f the Co., on payment of one hundred and sixty dol \ lars ; so also, Srlucius Oarficldc, was admitted as a partner, for his legal services. This answer also in- Milves iliatto qucstiou 7lh, viz: "At what time was ' sa.d Cherbourg I'own Land Co. first formed or orgauiz • cil, and uli i were the original partners or Town share i proprietors." It also contains reply to first part of question oth, viz: "Opposite to which part of the slid harbor front, ami upon whose laud claim, was i the said Town site of Cherbourg or Port Angeles lo j eated, and how much land was laid out or agreed to be appropriate! and used for said town lot or town plot nurnoses:" In reply t > the latter part: "how muih j lain! \e„" the answer is, Tavlor's, O Brien's, (Iteilly's,) ! one half n mileof front, each; the Kanakas', which we included in the survey because they had no legal claim i t i their possession, (which was somewhat loss than a h ill' mile,) ami the Winsor cluim, (a half mile ), all fronting oil the harbor, from west to east. The depth of the town plot was the lull depth of the respective claims, Question .sth, viz; " Who are the present owners of each and all of said separate land claims r" Answer. The Winsor Co. own their own claim ; Joe Fr.i/.icr, the Kanaka claim j (having purchased their in terest, for agricultural purposes) Edw'd J. Stanton, O'Brien's claim ; Stanton, understanding some two years ago, that the town site company's speculation was illegal, he determined oh keeping possession of it. He was sent by me on the claim', In 'til, to hold it, sub ject to my instructions, in place of Joe Frazicr, who held it similarly, before Stanton's advent; and as soon as I lost confidence iu the speculation, I advised Stan ton to keep it himself, as he alorte having cleared and ; cultivated so much of it'. aiM planted an orchard and fenced a large portion of it, (the claim) also, waa the ortlv homi ti'lc settler on the place. I gave him the I houses I hud built at my own expense, which cost me ' about S4OO. Stanton is my wife's brother. Taylor's I claim is occupied by Dr. Thomas—had teen previously occupied by Victor Smith. Taylor sold his claim at Victor Smith's request, to Or. Thortias for (#>soo) five hundred dollars, cash, and bond for #l,'loo or #2,000, pavable in two years, or out of the first proceeds of the town lot sale. 'I forget whether the bond wa» $1,400 or $2,0011. l)r. Thomas told me that he allowed Smith to use his name in the purchase of this claim, hut that the purchase was solely for Smith's use and benefit. Question tith, viz: " Have you ever been connected with said Cherbourg or Angeles Town Land Company, and if von were ever a partner or share-holler iu said Town Lot Company, did you or any other partner or member ever sell aiiv interest, share or shares in said Town Company, to Victor Smith, Collector of Customs for l'tigct Sound District; if so, at what time umt for what price f" Answer. Sclucius Oarficlde having in 1800 declared the Town Company's speculation (in a written opinion as counsel for the company) illegal, and the tenure of the land, held by the proprietors, as illegal also the Compauy abandoned their project, but still held on to the possession of the Taylor claim, and also kept pos session of O'llricn claim. The Winsor Co. drew out altogether from the Town Company. Major Haller left the town Company, having gone to Washington, 1). C. Mason, of the JofF. JMri'i, sold out a claim which he took up back of Taylor's, to Lieut. Seidell, of the Jtjy. Ituiit, who in turn, sold out to Victor Smith. Mason's interest in the Totni Site Company, was pur chased by O'llricu, Taylor, White and Victor Smith, a fourth to each. Tlie Town Site Company was thus reduced in num ber to O'llrien, Taylor, Frost, White, Thorndyke and Frazicr, when Victor Smith arrived here. This com pany sold to Victor Smith an equal interest with them selves, on the payment, by him, of one hundred and sixty dollars, and because he represented to them that bv his influence with Secretary (.'hasc, he could ltave the Cutter ordered down to Cheri)onrg( Port Angeles) as her cruising station ; and he thought, by his recom mendation, that he would succeed in haviug the Jrjf". /Inn* condemned and a steam Cutter to replace her ; that he could probably obtain an order from the light house department for a light at Port Angeles, and if a company of infantry coula bo spared, he may be able to influence the ordering of one down there. He also represented to us that he may probably be able to have legalized the private survey which he proposed should be made at the Company's expense, until the Land Offioc at Olvmpia hail funds for the pur|Ki*c of sur veying the townships froiu upper Dungcnneis to the Klwha river, and thus embrace the Cherbourg town site claims. Under these representations, Victor Smith drew up a plan of operations which is on tile and in my possession. Letter from Dr. O'Brien to Got. Pickering. I'OTTT TOWNRKNII, W. T., March —, ISG4. HON. WM. FICKKUINO, Sir The company bought in Thorndvke's intercut and a new computiy, at Smith's suggestion, wus organized KUIUR two months after Smith entered on his official duties. It was soon spoken of frcefy on the Sound thnt Smith was ler.diig himself, in his official position, to have the port of entry changed from PortT'ownsend to Port Angeles. He concluded atlft some del deration that his position as Collector might be endangered, nnd that it was safer for hiin to ha\c no interest in the X'ort Angeles Town Company. lie accordingly pre sented his interest to the company, for specific pur poses. He retained, with the consent of thecompany, a voice in the administration of, its nir»irs. it being un derstood, that at some future time, he could repur chase an interest in the company. In bis letter to the company, bearing date Oct. 10th, 1801, he says: I' The contribution and devotion of my interest in this company, is not made with any view of withdraw ing from actual participation in its affairs; on the con trary, myself aftd wife arc fully impressed with the im portance of the enterprise, and most pleased with the liberal basis of operations you have adopted. I shall acquire as much interest iii and near I'ort Angeles as my means will allow, and shall respond to any assess ment now or hereafter levied on the one-fifth interest hereinbefore contributed to your public fund, as above, in the same manner as though it were to inure direct ly to my sole and personal gain." In May, 't!2. I.ieut. White sold his interest to Victor Smith, for #joo dollars cash, and a bond for $1,500, payable in two vears, or on the sale of town lots by the company. This sale was made on the eve of his departure fiir Washington, whither he was going, he said, to secure the interest of M.Chase and others, for the removal of the port of entry to l'ort Augeles, Ac. On tlie same day that he bought White's interest, he proposed buying mine and Stanton's, which I, on my own part, refused. The offer to purchase Stanton's being made to me in Stanton's absence, I could give him no answer. Question 9th, " Does Victor Smith still own any in terest, share or sh ires in said Cherbourg, or Port An geles Town Site Co. Answer. I considered that the whole speculation of the company was a failure, long tiefore Smith's departure for Washington, iu May, 'O2 j and when Taylor and White sold out, that the company was dis solved, anil that my interest was a myth ; thet Smith, having secured every interest except mine and Frazier's, he had the entire control anil would exercise it if the company sought to interfere with the town site. 1 knew that Smith was determined on getting possession of the claims himself by ignoring Stanton's right, uud therefore advised Stanton not to act as a partner, but to keep possession of the claim 1 purchased, as he was the only legitimate settler there. At this stage of affairs the company stood thus ; Victor Smith, I'. M. O'llricn, Joe Frazicr, —— Thomas, H. G. Plants, through Smith, as his agent. I should have mentioned that, under power of attor ney, made to me by M. 11. Frost, I sold to H. O. Plants, the private secrcraVv of S. I'. Chase, Secretary of the Treasury, at Washington, Frost's interest in the town company. I gave the deed to Smith, for Plants iu his. Plants', name having received Smith s note, pay able in three months, for said deed. This was in March, '(l2. In Smith's written proposition, for the purchase of tliis interest, and bearing ilatc Feb. 23d, ISIJ2, which is in my possession, he says, " he promised 11. O. Plants to secure an interest for liiin in the town site specula tion at Cherbourg." 1 believe that this statement was untrue ; that he made use of Mr. Plants' name unwar rantably, in order to secure the interest for himself. You will therefore perceive that Smith became, by these purchases, the owner of the entire town plot, ( if it were legal), except my interest and Frazier's. In reply to question 10th, I would say that I am not certain whether Smith solicited an interest for Secretary Chase, ami therefore do not wish to give an answer. Smith did propose that Mr. Chceseman, of San Francisco, the assistant Treasurer, and Mr. Rankin, the Collector of San Francisco, should be admitted to shares in the company, assuring us that they were anx ious to have an interest in it. This was refused; and principally because Mr. Taylor and Mr. White had about this time, which was iu January, 1802, begun to suspect Smith's integrity. This also includes answer to question eleventh. Question 12th, vix: "Can you inform me what was the gross amount of the expenses of the United States Mamie Hospital during your term of Surgeon Ac., and what was the expense totheUnitcd StatcsGoveru ineut for the year proceeding your removal ?" Answer. I nave mislaid the balance sheet; as audit ed and signed by Victor Smith, which sets forth the entire account, and therefore I cannot give you the accurate total, because the account, as passed by him, and approved at Washington and ordered paid, differs iu some few dollars, less than mv account, us presented by me. The account is on file at the Custom House, at Port Angeles, a copy of which you can obtain from there. The expense for the year before my removal was tflS.Mil 20. The gross amount, according to my books, was, from Jltnc22d, 1 HoS, to Sept, lotli, 1801, fifty-three thousand, six hundred snd fifteen dollars and fifty cents,( «?o3,ttl<> .50), wjiich averages, per quarter, during liiy term of office, four thousand, one hundred and twenty-four dollars and twenty-seven cent;* (#!,• 121 27.) X remain, with much respect, your Excellency's ob't serv't, P. M. O'HUIEX, M. D. Letter of Capt. Flcmiiui to Cor. Pickering. OLYMTIA, W. T., Sept. 10, 18G2. His F.xeKi.i.r.xcv, W*. PICKFHINO, Gov. OF WASHINGTON TKKUITORV: Sir :—You havo nsked mo for my opinion as to the proper location of the Custom House of the District of Pugct Sound, and to state the length of time I have been en gaged in steam-navigation upon these waters. I have the honor to state in reply, that I first came to Pugct Sound and vicinity in April, 1858, since which time I have been connected with steamers upon these waters ; and since July, 1860, 1 havo been upon the mail steamer Eliza Anderspn, as Master, and part owner. For most of the time since July, 18U0, 1 have made weekly trips from Olympia , the head of the Sound, to Victoria, via the various ports on Pugct Sound, with all. of which I claim to be well acquainted. I am of the opinion that the change of location of the Custom-House from Port Townscnd to Port Angeles, is a great detri ment to the commercial interests of Pugct Sound. Port Angeles is a long way out of the track of vessels trading between the Sound Ports and Victoria. Port Townsend is located at the mouth of the Sound, and I consider it the proper place for the Custom- House of this District. Besides remoteness from the direct track to Vic!oria, there are other iusufrcrabic objections to the location at Port Angeles. The experience of four Winters in the trade justifies me in saying that, in tho Straits of Fuca, the wind always draws either up or down the Straits, that is to say, easterly or westerly. In heavy weath er thin necessarily occasions a trough of the sea, wiiich must be crossed or avoided, in go ing from Port Angeles to Victoria of from Victoria to Port Angeles, necessary to be dono with vessels bound to enter, and clear. Port Angeles being almost directly south of Victoria, to avoid crossing in tho trough of the sea, vcsssls must go greatly out of the way and materially lengthen the voyage. Much of the businoss of the steamers has been the transportation of cattle, making a deck load. The additional delay of making a lengthened trip ill transporting such cargo, materially adds to the expense and risk. •• l | Crossing directly in tlie trough of the would be exceedingly venturesome both to the vessel and the interest of the shipper. For several months of the year, this would be of constant occurrence. In pleasant weather there Would be a delay incjdqnt to the dis tance out of the way. It is mucbjiearer from Port Townsend to Victoria and ■ New West minister direct, than by \V«y of Port Angetos. The difference will be seen by an itanpectiop of the chart, and may be illustrated by the mathematical. proposition that the bjrpothfc nuse.o'f a right angled triangle Is snorter thfn the sum of the othsr \wo sides. I do not hesitate (a assert my conviction that nothing but private speculation could have prompted the removal .of the Custom- House from l'ort Townsend to Port Angeles, I have no interest in eiiher town, and am 6tlfy desirous of seeing justice done to the shipping interests of Pilfcet Sound. yoursy John R. Fleming. Petition vf Mill Otnicrt to Congrm. Tc the Honorable the Senate and Haute bf Reprcsentatirei of the "United State* in Cong rex* assembled. The Petition of the undersigned, owners of mills located upon the waters q£ Pufret Sdund, and the owners of shipping, trading within and belonging to the Collection .District of that nrime, respectfully represent": • the discovery of rich gold fields in Ilritish Columbia has attracted thither ft nu merous population, an effect of which has been to render Victoria, Vancouver's Island* a city df prominence, between which city and ports of Ilritish Columbia, and the milto and settlements of Puget Sound, a laige trad* lias sprung np, in lumber, flour, produce ana live stock, daily increasing in importance at an element of wealth to Washington Te'm tory. That vessels engaged in t|iis frade, in being compelled to KXTEU AXIJ CLEAB AT PORT AXGELES, arc subject to delay and in creased expense, in going considerably out at their way, and off their direct rourte. That in severe weather, during much oif the year, and especially in the winter such vessels would bo compelled to cross the Straits of Fuca in the trough of the sea, in making that part of their voyage between Port Angeles and Victoria, or New Westmin ster, thereby rendering said voyages more hazardous, increasing the liabilities of goods to damage by the seas, and especially en hancing the risks and expense of shipping cattle and stock, now so important an clemwt of trade. That no necessity demanded the passage of the Act of Congres removing the Port of Entry of said District from Port Townsend to Port Angeles. That no interest of commerce at present, justifies the location of, the Custom-House for said District at Port Angeles. That there are no building* at Port An.- eclcs adapted for a Custom-llouse, Marin? Hospital, Warehouses, &c., die., and th«» expenses of providing such necessary build ings, together >vith a Light House, Fog Belt tScc., on Ldiz Hook, at the entrance to Por| Angeles, is pot warranted by the Revenue business of. said District. i , That inconvenience, delay a'-' d increased result, to ourselves, from the removal of said CufloiA House fr° m Port Townsend", (the late .Port of Entry of said Distrist.) For which 1 reasons, we urgently but nott rfspcct fully petition your Honorable body io repeal said act. . ~ And your Pettioncrs will ever pray, dee. A. J. SIMMONS & Co., South Bay Millr. ,C. CUOSBY & Co., Turn water Mills, Thura ton Co. , , BARNES IIENXIS, Tumwater Hills, Thurston Co. . . , A. J. MH.T.KR, North Olympia Mill. RIXTON & HOWARD, Pier 5, Stewart street, San Francisco. . POPE & TAT. LOT, Pier 12, Stewart street, San Francisco. S. L. MASTIC & Co., Pier 10", Stewixt street San Francisco. . > , .•. ,• . 1 ADAMS BLINN & Co., Pier IF, Site wart street, Snn , . u ,., . AMOS I'IUNNEY, Pier 0, Stewart street, San Francisco. • i ~ S. B. SHEBWOOD, 101 Stewart street, Francisco. . • . . . GEO. M. JOSSELYN & Co., Market street WM. H. GAWLEY, Pier 1, Stewart atreei San Francisco. Letter from Lieut. White to Got. Pieterinf, OI.YMI'IA, w. T. ; . Angust 15th. 18<*. His EXCFT.I.KXCT, W*. FICKRHIMO, (i'lV. OF WAHHINOTOX Sir: — You say to mp, you have twa in formed tlint. itatemerits have been made, Victor Smith, Esq., Collector of Cuatoaaa of this District, has in covenatinn with aae, avowed that Hon. 8. P. Chnsc Secretary af the Treasury, was largely indebted to said Victor Smith. Such is the caw. Betweqi) the middlo of September and first of Dtcoa b»*r 1861,1 was in command, of, thqHevewaa Cutter Jeff. Davits during which time aaja Collector was frequently on lioaro awl in, nay company; ho made anch statements, many times. Our converaation arose as to —ih'ng certain improvements at Port Angeles, qr Cherbourg, in which we were both iatu ulstl I declined as it wnnltl involve me in if/bK He assured irie of hia means, and atatbd J/kii Gov. Chase had purchased bis private real, dence and at the time an instalment of 44,049 was due, but as the Gov's, salary was sot a& equate to meet his necessary rape noes at Washington, he had directed hia Ageipt not push the Governor. This is the purport of frequent conversations, arid t4mitU nil NO. 23,

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