E 506 .138 Copy 1 R E P R T- OF THE ALLOTMENT COMMISSIONER, ON TIIK rRANS^riSSIoN nV MONKY FOR SOlJ)IF.KS. REPORT OF THE ^.K^^^^^^-^' - ALLOTMENT COMMISSIONER, ON THE TRANSMISSION OF MONEY FOR SOLDIERS. TO THE GOVERNOR. I N D I A N A P L I S : W. R. HOLLO WAY, STATE PRINTER, 1865. T38 n nfftAffoc yhvJ/\iAAAJ ^yiCLuXV^ j \',^y'^^^ ^^. 1S13 REPORT. Office Indiana Allotment Commissioner, \ Indianapolis, Dec. 7th, 1863. j Hon. 0. P. Morton : — , I have the honor of submitting to you the following report of the doings of this office : Since the first of April, 1863, I have operated entirely through the system of rolls and checks heretofore explained to you, and I have the pleasure of informing you that wherever used, it has worked highly satisfactorily to all parties interested, except the sutlers, who complain that it leaves the soldiers with too little funds for a healthy financial operation in the field. Hundreds have sent funds home since this system was adopted, who never sent any before, and no loss has occurred, or can occur, as I hold myself responsible for a proper disposition of all the funds which pass through ray hands un- der the present system. Some delays are inevitable, and as hereto- fore sent by express, those who live remote from express ofiices have been subject to vexatious and expensive disappointments, which will not occur again, since, after testing both express companies and the Government system of checks on New York, and finding no delays or losses from the latter, I have adopted it again, as being safer, cheaper and more convenient. At present, every soldier transmits his money, of any amount, from his tent in the field to his family at home, for twenty-five cents, and runs no risk of loss by capture or robbery. I have the pleasure of assuring you that scores of letters have been received at this office from officers and soldiers, highly complimenting our system, and expressing great gratification at its working. No other State has anything like it. The Paymasters, who at first dreaded it, now use it cheerfully, and some have Tolunteered words of high commendation of it. Not the least commendable feature of it is its ubiquity. I fre- quently receive rolls and remittances from the army on the lower Mississippi at the same time that I receive them from the army of the Cumberland. During the payments made in July and August, I received and forwarded $324,446.30. Up to this date I have received $225,865.50 on the payments made during November, all of which will be prop- erly distributed within forty-eight hours after receiving New York checks sent by the Paymasters on the several chiefs of Department at Louisville and St. Louis. I may add that the St. Louis depart- ment has not as cordially co-operated with us as the Louisville de- partment, owing to a want of properly understanding our system. I shall visit St. Louis as soon as the Paymasters of that department return, and explain it to them in person. T. A. GOODWIN, All. Com. Indiana. *■ Office Indiana Allotment ComxMISsioner, "I Indianapolis, Dec. 8, 1863. j Governor Morton : . I do not wish to be mercenary, yet under a conviction that your decision yesterday to exclude Sundays from the bill which I presented, was without a full understanding of the facts in the case. I wish to say, respectfully, that I do not include them be- cause I render service in my office on that day, but because even when included, my monthly allowance is yet greatly less than the allowance of a Paymaster, whose labors and responsibilities are not equal to mine, though he is allowed, in addition, $870 per year for clerk hire. During the four months included in the bill alluded to, I have distributed successfully and satisfactorily more than a half mil- lion of dollars. No Paymaster has, in the same time, handled in de- tail, half that amount. I say successfully, though one package of $180 has not been heard from, which I expect to have to pay out of the compensation allowed me. How many more are to turn up, I cannot tell, yet I feel that such labors and such risks are not extrav- agantly compensated at the rate of $150 per mouth, exclusive of the few incidental expenses which appear in the bill. In addition to this, I paid for 19 days' service of a clerk, in August, besides the services of my daughter, 12 days, in sealing packages. These are not inclu- ded in the item of expenses, though they were as necessary as post- age or stationery. They more than offset the Sundays, if that were needed. I now have three persons helping me, at my own expense, because the families are impatient, and the funds cannot be distributed by one person in a satisfactory time. I may add, that though the Court, before whom I was sued by Capt. Parker, for money (^200) lost in June, 1862, decided that I am not responsible for such losses, yet I have proposed to pay him the amount lost, out of the first money that I get from the State. If my office were a mere sinecure, merely ornamental, and not use- ful, as well as laborious and responsible, I would scorn to hold it much more to ask compensation for services not rendered. If to dis- tribute more than a million of dollars, becoming responsible for its safety, is not worth to the State $1,825 a year, including clerk hire and all, I have over-estimated the value and responsibilities of such services. As soon as I can take time to get the vouchers for the items, I will return the bill with the number of days blank, that you may fill them at your pleasure, adding only, here, that I had hoped that the in- creasing labors and increasing usefulness of my office would have turned the scale in the other direction. Respectfully, T. A. GOODWIN, Allotment Commissioner Indiana. Office Indiana Allotment Commissioner, \ Indianapolis, January 15, 1864. J Governor Morton : Durino- the year in which I traveled to the army for money, I received and conveyed to this place, and here expressed, about $575,000. For many reasons it was deemed best to change the mode of doing business ; hence, last April, I prepared and sent out rolls to the several regiments on which allotments are made, and the amounts sent to me in checks on New York for the ao-o-regate of a company or regiment. It took several months to get the soldiers — and especially the Paymasters— to get the hang of the system. All regiments that I had visited the previous year readily adopted the allotment system. Some, who were strangers, were a little cautious. But as it imposed new duties on the Paymasters, some of them at first evaded it as far as possible, and some who wanted to use it, could not. Up to July 15th but about $70,000 had been thus transmitted. During the payments of July and August I received and forwarded $324,446.50. During the payments made in November and Decem- ber, 1863, I received $249,284.66, and remittances are yet coming. Some of them are from the army in Texas, some from Knoxville, some from Memphis, some from Yicksburg, but chiefly from the army of the Cumberland. At each payment more and more regiments- avail themselves of our system, but the reduced number of the m.en reduces the aggregate sent. This report is complete up to date, unless you want items. T. A; GOODWIN, Allotment Commissioner, Indiana. Office Indiana Allotment Commission Indianapolis, Janaury 26, 1863 5. f Governor Morton I am thankful to you for informing me that there was objections to- the late mode of distributing funds to soldiers' families, as it gives mo occasion to explain it ; and as others may wish to know more about it, I will reduce the facts to writing. From one quarter or another, some one has made objections to something at every stuge of my operations, for no system tliat I have been able to devise could meet every contingency without some fric- tion. I thought it impossible for more complaints to attach to any system than I received concerning the system of sending by express. Its cost was a matter of universal complaint. No package was sent north of the National road for less than 35 cents, and but few by the Adams for less, while the delays, and the long journeys necessary tO'" reach express points, were unmitigated evils, from which more than one-half of the recipients suffered. To remedy this I had resolved to return to the system at first adopted, and -which worked success- tully so far as the soldiers^ families were concerned, though it involved the bank in some loss. I mean that of sending checks on New York to points not on railroads. Before the late payments began to arrive,. I had accordingly arranged with one of our banks to take the checks a^ furnished me, and send their own to individuals, paying the postage and guaranteeing safety, at the rate of one-fourth of one per cent, on all amounts over one hundred dollars, and twentv-five cents on all amounts less than one hundred dollars. As this was cheaper than the express charges, I had determined to accept it for all remittances going off of railroad routes. The arrival of the first check to me revealed an unforseen difficul- ty. I could get a small one, (^1090), cashed at one-eighth of one per cent., but I was informed that all subsequent transactions would be at one-fourth discount. I called on Major McClure, to see if I could do better through him, but I could not. I went to the Louis- ville Depository, with checks on it,, but could get only New York checks instead. It would have taken $600 to have paid the discount on the amounts I have disbursed. I could not get that amount from any source known to me. To have deducted it, pro rata^ from each remittance, would have been impossible, besides being an additional cost to the express charges, already so great as to be a matter of universal complaint. The complaints would have been so great, and so just, as to virtually close our business. Learning that I could deposit the checks, which were sent to me, with the Treasury Department at New York, and check on it for each one, I resolved to do so ; and as this required a large amount of help, and implied risks and responsibilities not legitimate to the business of our office, and as it was in lieu of express charges, I deducted twenty- five cents from all remittances over ten dollars, except the remittances to Indianapolis, on which would be no expressage, and from which no deductions were made. I have been thus enabled to furnish each man his money, at his home, for twenty-five cents, whatever the amount ; and on ten dollars, and less, for nothing. The aggregate cost is not one-third the cost of expressing, and about one-half the cost had I resorted to any bank, instead of doing this additional work, chiefly by the aid of clerks, yet under my own eye. It may be said it was deducting from the soldier. So it was; but so much less than any other deduction by any other mode, that I have received twice as many letters of congratulation, as of complaint. I saved the State more than $600 discount expenses, and the soldiers not less than $2,000 express charges. Whether any profits will accrue to me from the transaction, depends upon the number of checks which may have to be paid*twice, at my expense. If any safer, cheaper, more expeditious and more popular mode can be devised, I will most cheerfully execute it. If the soldiers de- mand, as I know they do not, a return to the system of sending from this point by express, I will be glad to obey their commands. A combination of the two plans — the check and the express — would be the perfection of the system if there was money at command to pay the expense of converting New York checks into currency, for such as prefer the express agency. If the express companies had made the additional thousands, or if a bank had cleared twice as much as I may realize, no one would have objected. If no losses occur, I may realize some $500 profit. This is at present held as a fund to secure those who may in any way be the loser. Nearly that amount has been lost through the express companies, in such a way I fear as to prove a total loss to the sol- dier. They shall lose nothing by this operation. This explanation is for yourself individually, or for the public, as you prefer. There has been no transaction in this office which is not open to the public, and there has been nothing of which I have been prouder than putting into operation a system which enables the soldier to transmit his money from his tent to his family for twenty- five cents, free from all risks of capture and robberies. By it whole companies have sent their remittances for twenty-five cents. It would be preferable, if the money at your command would allow, that all these expenses be paid by the State. This I would greatly prefer, but I am informed that you have not the means. I doubt whether any expenditure would be as well made as to relieve the sol- dier from this small charge, and me from the appearance of specu- lating at his expense, while really saving him, in the aggregate, sev- eral thousand dollars. Respectfully, T. A. GOODWIN, Allot. Com. Ind. Office Indiana Allotment Commissioner, 1 Indianapolis, Feb. 25, 1864. j Governor 3Ior(on: I have tried in vain to see you of late, and it is no fault of yours or mine that I cannot. Other business crowds upon you. I have writ- ten you several statements in summary, of the business of this office, as I felt in duty bound to do, while you gave the office vitality by ap- propriations. But you have not had time to read them. I do not blame you. I am preparing a detailed statement of my transactions It will fill a twelve quire crown ledger, and will be out early next month, on the first or second day if possible. I received on the 16th instant, a "request" from you, through Col. Terrell, to suspend further action as Allotment Commissioner. Sup- posing this to be merely a notice that the pecuniary aid you had hith- erto afforded would cease with the report being made, and knowing that the business could not be wound up suddenly without sad incon- venience to our soldiers, I issued the enclosed "instructions" to the men who depend upon this agency to transmit their money to their families. Rolls were at that time in every department of the army, and no notice could reach the men of the discontinuance of the office. It did not occur to me that you wished to remove me from an office which I held at the hands of the President, nor to subject Indiana soldiers from the common fate of soldiers from other States, just as our system had reached a perfection which made it the pride of our men, and the praise of all who know it. Imagine my surprise a few days ago, on sending an order on the Paymaster at Louisville, to receive in answer an order to him from Washington, to turn over no more money to me. The date of this order being the same as your "request;" I suppose the two have some connection. Some of the parties to whom this money belongs have called on me for it, having been informed that it has been sent to me. Rolls are daily arriving from the army. When accompanied by a check on New York or the depository at Louisville, as most of them are, I have no difficulty in managing them, though I have done nothing with any since this rebuff from Washington. If you meant anything more than what I have supposed by your " request," and especially if there is the remotest suspicion or whis- per of fraud, or neglect of duty, or unfairness, will you do me the kindness to devote thirty minutes to an inspection of my books and papers? If you cannot do this, will you appoint a committee of in- telligent men to do it for you? My reputation is worth more to me than°gold, and I am sure that you are the last man to wantonly as- sail it, even by implication, as the peremptory order from Washing- ton is construed. I cannot, in good faith to the men who have imposed confidence in me and whose money I am daily receiving, abandon this business, I pro'pose to make it self-supporting if need be, at a cost which will be at least a saving of thirty-three per cent, to the soldiers, as compared with the expense of sending by express after the money reaches this place, to say nothing of the greater convenience which the proposed 10 system will be to the families of the soldiers. In a former commu- nication which you have not time to read, I suggested still a "better way," but this is the best I can propose, unaided. Respectfully, T. A. GOODWIN, AIL Com. Indiana.. Office Indiana Allotment Commissioner, ) Indianapolis, Feb. 24, 1864. / Col. T. P. Andrews, Paymaster General, Washington, D. C. Major Wm. Allen, of Louisville, Ky., informs me that you have ordered him to turn over no money to me for the present. Will you have the kindness to inform me why this order has been made ? Respectfully, {Signed,) T. A. GOODWIN, All. Com. Indiana. Endorsed : 1447. Respectfully referred to his Excellency, 0. P. Morton, Governor of Indiana, he having requested the issuing of such instruc- tions, under date of February G, 1864, by telegraph, who will please return this. We have not answered it. {Signed,) T. P. ANDREWS, Paymaster General U. S. A. V. M. G. 0., Feb. 26, 1864. Endorsed: Executive Department of Indiana,) Bureau of Finance, ' l Indianapolis, March 2, 1864. J Respectfully returned. The information sought by Commissioner Goodwin was given him in a communication from this Bureau on the 6th of February, 1804, as will be seen by a copy enclosed herewith. ^\ hile this Department has not undertaken to control the action of the Commissioner, and has not claimed power to do so, it was deemed advisable and proper to reciuest him to suspend operations, and to IT request you to withhold funds until a settlement could be had. The- State has paid the Commissioner for services and expenses in part,, and his further claims are pending for payment. The public look upon the office of Mr. Goodwin as being under the patronage of this Department, and in a great measure the Governor is held responsible for the conduct of the business. Numerous complaints have been made against the Commissioner on account of losses and delays, and especially for charging a per centage for receiving and-remitting fundsy at the same time drawing pay from the State. It was therefore con- sidered but a matter of justice to our troops, the public and this Department, that a complete blowing of the entire operations of the Commissioner should be made. The withholding of funds was thought to be both prudent and proper, under the circumstances. By order of Governor Morton. (Signed) W. H. H. TERRELL, Financial Secretary^ Pay Master General's Office,]' Washington, March 10, 18l)4. / T. A. Goodtvin, Mq,, AUotmmf Commissioner of Indiana, Indian- apolis : Sir: — Your letter of the 7th inst, with enclosures, is received^ and the enclosures returned herewith as requested. The order to- Major Allen, and other Paymasters, not to place any more funds in your hands, was issued at the request of His Excellency, the Gov- ernor of Indiana ; and this office does not feel authorized to revoke such order, except with Governor Morton's approval. It is understood that a per centage is charged the soldiers for taking charge of their allotments. This fact was never known before to this Department, and cannot, of course, be approved or recognized. The object of the allotment system is to get the soldiers' money home to their families without aiii/ expense to them. Very respectfully, your obedient servant, (Signed) * " T. P. ANDREWS, Paymaster General U. S. A. Official copy, for His Excellency Governor Morton. (Signed) T. P. ANDREWS, Paymaster General U. S. A. P. M. G. 0. March 10, 1864. 12 Indianapolis, March 16, 1864. Governor Morton: Have the kindness to speak to Mr. New and General Mansfield, or any other persons whom you may designate, to examine my books and business generally. Respectfully T. A. GOODWIN. Indianapolis, Ind. March 18, 1864. General : You have been appointed to examine the books and accounts of T. A Goodwin, Esq., Allotment Commissioner for Indiana, General Jno. C. New will assist you in the examination. It is desired that a thorough investigation be made, as well of the books and accounts as of the system and plan of doing business. As soon as your work is completed, you will make full report, with your suggestions, to this Department. By order of Governor Morton, Very respectfully, your obedient servant, W. H. H. TERRELL, Financial Secretary. Brig. General Jno. L. Mansfield. Office Indiana Allotment Commissioner, "1 Indianapolis, March 19, 1865. J Generals Mansfield and New: In answer to your question, what items of expenditure, &c., T had made, for which I consider myself entitled to the deduction of 25 cents on each of certain remittances made during the months of No- vember and December, and January last, I would respectfully state that regarding the transaction as being additional to, and not neces- sarily connected with the ordinary duties of my office, I kept no exact account of the items. In undertaking the extra labor, I pro- posed to save largely to the soldiers, and actually did do this, at the same time conveying their money to its destination more promptly, and more safely than ever before, or than it ever can be by express. 13 I deducted 25 cents on those only on which express charges would accrue ; and not on all of these, for on amounts of $10, and less, no deductions were made. Finding it necessary to resort to checks, in- stead of the express companies, I proposed to Fletcher & Sharpe to to take the checks on New York and furnish their bank checks, which they consented to do at 25 cents on each remittance of $100, and less, and one-fourth of one per cent, on larger amounts. Finding that I could do it as well as they, and deeming the profits of the transaction, if any should result, a legitimate perquisite of a labori- ous, thankless, and responsible office, and confining the deductions to 25 cents on all amounts, large and small, (except those smal- ler than $10,) I found myself enabled to save the soldiers a large amount, while wronging no one. I have not used the name or style of my office to speculate on the soldiers, but otherwise, to save them from exorbitant charges of expressage, and from the less exorbitant charcre of bankers. If, in the experiment, I shall have demonstrated thatrat a comparatively small expense, the State can, through this agency, send remittances free to every town in the State, I shall have conferred a double favor on the men who fight our battles. I have no objections to furnishing, as near as I can from memory, and an imperfect data, the total results of this transaction, as it may furnish data from which to determine whether the Governor may not assume the small additional cost, and relieve the soldiers from all expense, and me from the appearance of speculation. It would be be more agreeable to my feelings and views to have it thus. I have issued 4,027 checks. From 238 of these no deductions were made, leaving 3,789 on which the 25 cents charge was made, making $947.25. The expenses were about as follows : Posta