E 509 .K45 REPORT Copy 1 STATE AGENT FOR KENTUCKY AT WASHINGTON, MADE TO THE GOVERNOR, JANUARY 1, 1808. FEAKKFOET, KT.: PRINTED AT THE KENTUCKY YEOMAN OFFICE. JOHN H, HARNEY, PUBLIC PRINTER. 1868. \ / V REPORT STATE AGENT FOR KENTUCKY AT WASHINGTON, MADE TO THE GOVERNOR, JANUARY 1, 18G8. FRANKFORT, K Y . : PiilNTED AT THE KKN'TUCivY VKOMVX OFFICE. JOHN H. HARNEY, PUBLIC PRINTER. 18G8. GOVERNOR'S LETTER. Executive Office, ) January 10, 1868.} Gentlemen of the House of Representatives : I herewith transmit the Eeport of Col. C. D. Pennebaker, the Agent of Kentucky at Washington, charged with the duty of liquidating the claim of the Commonwealth against the United States for moneys advanced and otiher expenditures incurred during the war. This Report presents an interesting detail of the operations of the Agonv.y during tlic past year. It exhibits the amount at this tinio due by the Federal Government to the State of Kentucky, and is accompanied by suggestions of the Agent, which I earnestly commend to your considera- tion. The law establishing and continuing the Agency will expire by limita- tion on the 27th February, 18G8. I recommend an enactment continuing this Agency until the large claim shown b}^ this Report to be due the State of Kentucky by the United States is adjusted and paid. J. W. STEVENSON. REPORT OF KENTUCKY STATE AGENT. Office Kentucky State Agency, I Washington, D. C, January 1, 1868. ) To His Excellency J. W. Stevenson, Governor of Kentucky : Governor: I have the honor to submit the following report of the business of this office for the year ending December 31, 1867. I shall confine myself to the business transacted within the year, except on that portion appertaining to the " War Claim," with reference to which I submit three tabular statements; the first showing the amount of each installment, the amount paid, the amount withdrawn, and the amount suspended and disallowed, and the amount now due upon each installment. Q'he second shows the aggregate amount due the State, as represented by all of the installments on file, the amount paid, when, and to whom paid. The third shows only the amount collected and canceled within the year ending of this date. Under the head of War Claim this subject is explained in detail, with such suggestions and recommendations as I have thought would be of interest to you, and of advantage to the State in the collection of this debt. The subject of pensions, bounties, &c., to soldiers and their heirs, will be found fully treated of under this head; as also the subject of claims before the Quarter-Master and Commissary Department, under appro- priate heads. During the year there have been received and registered in this office, claims from No. 6,581 to No. 9,057, inclusive, making, for the year just closed, 2,476 claims. The number of claims received during the first half of the past year was largely in excess of that for any previous year ; but the receipts fell oif to a considerable extent during the latter part of the year, still making the number of claims received greater than that of any former year. The number of letters of inquiry received with reference to claims filed through this office, as also for those filed by claim agents, has increased to a very great extent; to dispose of which, in a proper and satisfactory manner, requires the constant services of the Agent, or one of the clerks in his office. I cannot give the exact number of letters received during the year, but can safely set the number at 15,000. The letters written by this office during the year may be stated as fol- lows: January 1, 1867, Letter-book No. 18, to January 1, 1868, Letter-book b REPORT OF STATE AGENT. No. 25. These books will average 900 pages each, making a total of pages of 5,400. On very many pages there are two or three letters and indorse- • ments, so that the number of letters issued from this office can safely be Stated at 9,847, of whicli number copies are retained. Thirtj'-fbur circular letters have been issued b}' this office, covering as many, if not more, than that number of subjects. At least 5,000 per annum are mailed to claimants in lieu of manuscript letters, and of which no trace appears upon the letter-books of this office. This increases the number of letters sent during the past year to 14,847. A very large number of letters of inquiry has been investigated and answered, of which no copies were retained. During the year 12,323 names have been entered upon the indexes of this office. PENSIONS AND BOUNTIES. Very large numbers of these claims have been received, recorded, and filed before the proper Departments for adjudication, during the past year — quite as many as have been received during any of the previous years since this office has been in operation. In fact, the acts of July 28th, 1866, providing for the paj^ment of one hundred dollars additional bounty to three-years soldiers and their heirs, and June 6th and July 25th, 1866, granting increase of pensions, have greatly increased the num- ber of tliis class of claims. Of the numerous and various classes of pension claims filed within the last year, a very considerable proportion has been settled, and certificates issued, although much delay has been experienced in their settlement, from the fact, as a general thing, that claimants throughout the country employed local agents, or attorneys, to prepare and forward their claims, directing me to correspond with said agents or attorneys with reference to their claims, which I have done until otherwise directed by claimants; and, in many cases, when the claims were forwarded to me, they had to bo returned for correction, or for preparation on the pre- scribed form; and after they were filed and passed through a preliminary examination in the Pension Office, it was found that additional evidence was required, in almost every case, to complete the claim; and when the local agent or attorney was called upon to furnish the evidence required, it was found, in many instances, that he had removed, without notifying this office, and much delay was caused in finding the wliereabouts of the claimant, in order that he or she might be addressed directly. Even where said agents or attorneys could be reached by mail, and were noti- fied of what was required to complete the claim, or claims, which they had forwarded, they, in many instances, did not furnish the evidence called for for months, and in some cases neglected it entirely. Tiiis, when discovered, was remedied as soon as possible by seeking out the post office address of the claimants, and addressing them direct. BEPORT OF STATE AGENT. 7 Of the very large number of bounty claims which have been received and filed, more than two thirds of them are for the additional bounty under act July 28, 1866, and but a small per centage of those of discharged soldiers, which have been filed before tlio Paymaster General for settle- ment, have been paid, although many of them have been on file for twelve months, and some longer. The delay in the adjustment of these claims is caused (as alleged by the Pay Department) by the Paymasters not being able to got the soldiers' military history from the muster and pay- rolls on file in the office of the Second Auditor of the Treusiirj^ upon which payment of these claims is based. This delay has caused a great deal of uneasiness and impatience among claimants; and this office is in daily receipt of large numbers of letters of inquiry from them, which occupies the time of one clerk, almost entirely, to look up the claims and answer these letters, and especially those claimants whose chtims were not filed through this office — who, when writing about their claims, give but ver3^ meagre information, and, in many cases, none at all, except that their claim was placed in the hands of some claim agent for prosecution. These cases always involve one or more trips to the departments to obtain the information desired by claimant. Officers' Accounts. Up to this date, 480 of these accounts have been received and regis- tered ; and of this number, 280 have been finally settled by procuring certificates of non-indebtedness from the Quartermaster's, Commissary, and Ordnance Departments, and from the Second and Third Auditors of the Treasury, and collecting their final pay due them on muster out of service, leaving 200 still unsettled. Of the number now on hand, many are in proccL-;-* of settlement, while, in some instances, the officers seem to be willing (so far as anj'^ action upon their part is concerned) to leave their accounts unsettled, or allow them to go by default, as they have neglected to comply with the requirements of the departments and instructions from this office, after being repeatedly advised of what was required to complete and insure a final settlement. .This branch of business required a great deal of time and labor, more in proportion to the number of claims than any other, from the fact that, in the beginning of the late war, and for one and two j'cars afterwards, many officers neglected to render returns of property, for which they were accountable to the Departments according to regulations, or were not aware of the fact that it was obligatory upon them to do so; hence, when the}' were discharged from service, application was made for the final pay due them on muster-out, and they were required to account ibr the proj)- erty for which they had omitted to render any returns; and this could only be done" in a very imperfect manner, and in many cases they were unable to render any at all. Here, then, followed a voluminous corres- pondence — the preparing of affidavits, and the collection of the proper 8 REPORT OF STATE AGENT. proof to satisfy the accounting officers of the Treasury of the proper dis- position made of the propertj' for which they were accountable, and for which they had failed to render any returns. It would be proper to add, that much of this trouble was also caused by the unavoidable loss of books and papers by capture and other casual- ties of war. Captain B. F. Pumphrey, who has been chief clerk in this office since October, 1864, has had special charge of this branch of the business for the last year, and has transacted it with great energy. The carelessness which characterizes the preparation of such claims, as well as the ad- ditional evidence in support of them, has always been, and continues to be, a source of great embarrassment. It is useless to insist upon favorable action by the departments until the record is made to conform to the law and regulations. For failure in this respect this office h not accountable. ADJUTANT GENERAL'S EEPOET OP KENTUCKY. I have received eighty-eight (88) copies of the Adjutant General's lie- port of Kentucky for the heads of Departments and Bureaus of the Gen- eral Government. Nearly all of these books have been distributed where it was thought the information contained would be of the greatest value to the State, and to those persons who hold claims against the United States. The work has been of great value to citizens and claimants, and to the State in the settlement of the War Claim. To show how the Keport has been received, and the value placed upon it as a book of reference, I sub- rait four letters which I have received from heads of Bureaus in acknowl- edgement of it, marked F, G, H, and I. r. Department of the Interior, Pension Office, ) Washington, D. C, January 4th, 1868. ) Sir: I have the honor to acknowledge the receipt of ten copies of the Eeport of the Adjutant General of the State of Kentucky. Without epeaking disparagingly of other similar works, I regard tliis as the most complete and satisfactory one that we have yet received. It traces the career of every officer and enlisted man who entered the military service Gf the United States from the State of Kentucky during the late war, and will afford us valuable aid in adjudicating claims based upon the service of Kentucky soldiers. Be pleased to accept my thanks for your agency in furnishing us with this admirable report. I have the honor to be, very respectfully, Your obedient servant, (Signed) JOS. H. BAEEETT, Commissioner. Col. Chas. D. Pennebaker, Military Agent for the Utate of Kentucky, Washington^ D. G. REPORT OP STATE AGENT. : G. United States Patent Office, ") Washington, D. C, Dec. 2Sth, 1867. j Col. C. D. Pennebaker, Military State Agent for Kentucky, Washing- ton, D. C: Colonel : I have to thank you for a copy of the Jlcport of the Adjutant General of Kentucky in two hirge well-bound volumes. Allow me to suggest that it would be well that a copy of this Peport should be presented to every Department and Bureau of the General Gov- ernment, to remain as an enduring monument of the valor and patriotism of the loj'al people of that groat State. 1 am satisfied that it is not sufficiently understood here how great were the sacrifices, devotion to the Union, and energy of that portion of our people during the late rebellion. Moreover, the report has been and will be of great value to the State in the settlement of her accounts against the United States for advances of money made in arming and equipping Kentucky troops for the Federal army. Having been in tlie service as a volunteer from the State, I have ex- amined the Report with a good deal of interest, and have found it com- paratively free from error, and well arranged and printed. As a citizen of the State, I am proud of this report. Very respecfully, (Signed) A. M. STOUT, Chief Clerk. H. Second Auditor's Office, Treasury Department, ") Winder's Building, December 2-lith, 1867. J Dear Sir: I have the honor to acknowledge the receipt of eight (8) sets (vols. 1 and 2) of the "Eeport of the Adjutant General of the State of Kentucky," from 1861 to 1866, inclusive, for which please accept my thanks. • I find it very valuable in tracing the military history of Kentucky vol- unteers, as it materially facilitates the work of the office in the settlement of the accounts of the officers and soldiers in their claims against the United States Government. Very respectfully, (Signed) E. B. FEENCH, Auditor. Col. C. D. Pennebaker, Kentucky State Agent, Washington, D. C. I. Treasury Department, 1 Third Auditor's Office, December 26th, 1867. j Colonel : I have the honor to acknowledge the receipt, by your courtesy, of eleven (11) copies of the "Eeport, in two volumes, of the Adjutant Gen- eral of the State of Kentucky, for the years 1861 to 1866, inclusive." In 10 REPORT OF STATE AGENT. acknowledpjing the receipt of these valuable State docum(>tits, and thank- ing you for supplj'ing the office so liberally, permit me to add, tliat the frequent refereaco to them, in the examination of accounts, shows that the ■work has been gotten up with great care and accuracy; reflecting as much credit on the State officers who compiled them, as tiiej' afford us facility and satisfactory' evidence in adjusting settlements. I am, very respectfully, Your obedient servant, (Signed) JOHN WILSON. Av^ilfor. Col. C. D. Penxebaker, Kentuckxj State, Agait, Viashnujion, 1). <'. QUAETEE-MASTEK AND COMMISSAEY CLAIMS, To a large number, running Irom one to fifteen thousand dollars in amount, have been filed in the departments lor collection. The accounts amount in the aggregate to a very large sum, upon which a very small per centum has been paid. A majority of these claims were prepared in strict accordance with the act of Congress of Julj' 4, 1S64, but few of which were supported either b}' vouchers or receipts. Those tiiat were not, although supported by the evidence of citizens of known respectability and worth, and whose evi- dence, in any court of law, would be taken without hesitntion, have been rejected, witli the remark "that the evidence was not sufficient to satisfy the Quarter-Master General or Commissar}' General (bt'ioro whomsoever the claim ma}' have been) that the property charged for was taken for, was used by, and became the property of, the United States;" and this, too, wlien the claim was prepared according to, and in every respect com- plied with, the act of July 4, 1864. Vouchers, certified by the proper officers, viz: brigade, post, or regi- mental quarter-niasters, and approved by either a major general, brigadier general, or colonel, are returned without approval, indorsed as follows: "Property' not accounted for by the certifying officer." Since January 1, 18G7, the War J^epartment, not satisfied witli rejecting claims under act of July 4, 18G4, substantiated by evidence and voucher as above stated to be certified and approved, has retained and refused to return to the owners thereof tlnMr certificates and other evidences of in- debtedness against the Government. When all objections in the way of the validity of a claim are success- fully ansAvered by the claimant, tiien the Department raises the question of loyalty, which is referred to the Agent of the Preedmen's Bureau for the district in which the claimant resides. That movement on the part of the Government is, in most cases, fital to the claimant, and this office is notified that the Department "has official information that the claimant was disloyal to the United Stales Government durir\g the rebellion. Claim is therefore rejected." In order to obviate this last difficulty, I have, in every case where it REPORT OF STATE AGENT. 11 conld be obtained, filed tlio certificate of two United States officials, either civil or njilitarj-, certiljing in the most positive languar!;e that the claim- ant was. to their knowledge, strictly loj-al during the rebellion ; yet it fails to have any effect when, in tact, it is the evidence of two United States oflScials for, to one against, the claimants loyalty, and brings from the Department the following; "The additional evidence filed by you is not Bafiicient to warrant a re-examination of the case. Ail papers in relation to rejecti.i jiaims are retained." In quite a number of cases where the last quoted notice has been received by this office, further action has been had, whiuh has resulted in ehowing, to the entire satisfaction of the G-overnment, that the agents of the Fies'd men's Bureau, in their haste to make themselves popular with the chiefs of Bureaus, have reported as disloyal their fellow-citizens, and, in some instances, their neighbors — men who have served their State and countr}' for not less than three years in the Union arm}-, enibracing sol- diers of all grades, from the surgeon of a regiment to a private. The Department pei-sistently refuses to inform a claimant who the per- son is that reports him as being disloyal, thereby, in a great measure, cutting off the only source a claimant has to controvert the report made against him, by showing that the accuser is in error, and wherein he does err. This system, so long prevalent with the Gi-eneral Government, and which is so rejuignant to our ideas of republican institutions, has been a Bource of infinite annoyance, as well as of untold losses, to citizens of the State. A short time since I, through accident, became aware who reported as disloyal a claimant who, during the war, or for three years, ranked as a Major in one of Kentucky's best and favorite (if a favorite she had) regiments; and meeting him in this city, asked him why he had done so? The only apology he made to me in person for this act of great injustice and humiliation inflicted upon a brave and gallant officer was, that " he did not know him." For six years previous to his entering the army the Major represented the district adjoining the one in which the (now) Agent of the Freedmen's Bureau resided, in the Senate of Ken- tucky. Still the Agent did not know him. The facts in this case were by me laid before the Quarter-Master Gen- eral on the 24th of December last, and, as yet, I am not informed by him as to what action, if an}-, he will take in the case. Truly, the people of Kentucky have no reason to compliment the Quarter-Master's Bureau for its selection of agents to report upon their loyalty. I have entered into this subject to this extent merely to vindicate myself, and to show to the citizens of Kentucky, who have placed their claims against the United States in my hands for collection, where the delay is, and the troubles and difficulties that are thrown in my way by the departments and their agents, when seeking to obtain payment of 12 REPORT OP STATE AGENT. claims based upon law. equity, and justice, and prepared in strict com- pliance with acts of Congress. In conclusion, I would state that all claims which I have filed, where the loyalty of the claimant has been proven in strict conformity with circular letter A, issued by this oflSce, will eventually be paid. THE WAE CLAIM OP EENTUCKT. Under this head I propose to show the present condition of the "War Claim,"' or the claim of the State of Kentucky against the General Gov- ernment, for advances made for arming, equipping, &c., troops for the United States service, and what has been done towards the collection thereof. The first installment of this claim amounted in the aggregate to $753,752 47, upon which there has been paid §752,716 59, leaving the sum suspended and disallowed, $1,035 88. This installment may be regarded as closed. The final difference sheets explaining suspensions and disallowances are now in the office of the Quartormaeter General of the State. $52,743 58 was retained on this installment for sales of Government property made by the Quarter-jMaster General of Kentucky, and reported. Second installment, amounting in the aggregate to $34,457, was com- posed entirely of money expended by the State for paying and subsisting Home Guards or irregular troops employed by order of Generals Ander- son, Nelson, and Thomas, in the winter of 1861 and '62, for the purpose of guarding the Kentucky Central .Railroad, Lebanon Branch Kailroad, and the Locks and Dams on Green Eiver — all of which was suspended because the troops so emploj'ed had not been mustered into the United States service. After much time had been expended, I finally obtained an order from the Secretary of War, accepting the services of the men thus employed, which resulted in procuring an allowance on this installment of $31,860 55, and $4,740 90 on the first installment. There remains suspended and disallowed on this installment $2,596 45, the greater portion of which is made up of overpayments and errors in calculations and extensions. The final difference sheets rendered by the Treasury Department are now in the office of the Quartermaster General of the State. Third installment amounts to $340,478 63, upon which $325,564 01 has been allowed, leaving $14,914 62 suspended and disallowed. Of this aum, a large portion is susceptible of explanation, and will be paid. Many of the explanations furnished for the re-examination of this installment were regarded by the accounting officer as insufficient, but were either satisfactorily amended by this office, or the Quarter-Master REPORT OF STATE AGENT. 13 General of the State notified of all deficiencies, day by day, as tlio settle- ments progressed. The diflfereiice sheets are on file in the Quarter-Master General's office. Fourth installment amounts to $671,257 05, upon which has been paid $554,886 89, leaving suspended and disallowed ^116,374 16. The paj'-rolls showing the amount of monej' paid — one month's pay in advance — to encourage enlistments b}' the State, make up the largest por- tion of this itistallment. Upon the first examination of the payrolls by the accounting officer of the Treasury, there was suspended the sum of $75,161 61. The suspensions on this branch of this installment are of two classes, viz : First. The amount of $13, paid in advance to each soldier whose name appears on the State muster-in roll, but not on the original United Slates muster-in roll. The sum suspended on this account will amount to §46,022 77. These sums were suspended because the men who received the money had not been mustered into the United States service; but, upon a close examina- tion of the act of Congress of Jul}' 27, 1861, and the rules of the Treasury Department made to carry the same into eflFect, it was discovered that the State should be reimbursed as well for expenses on account of men who were actually emploj'ed in, "as those who were mustered into the United States service." (See rule 11, on paper A, made part hereof.) Upon the alternate proposition contained in that rule, I submitted to the War De- partment the letter filed herewith, marked B, togetlier with the depositions of a large number of the most prominent officers of Kentucky regiments, in support of the views contained in my letter. The question has not, as yet, been fully determined, but I am led to the belief, by the kindness and courtesy of those who have the matter in charge, that all is progressing satisfactorily, and that the question will be finally determined in favor of the State. I deem it unimportant to submit the correspondence on this subject, except the letter before referred to, although the publication of it might be creditable to the enei-gy and perseverance of this office. After the question with reference to tho enlisted men shall have been determined b}^ the War Department, 1 'nave to present another of no less importance, which results from the fact that, in paying the officers their first month's pay in advance, they were paid, by disbursing officers of the State, full commutation for servants, amounting to S24 50 for each officer who was entitled to one servant, and $49 for field officers who were each entitled to two servants. 1 am well satisfied that this question can be successfully presented. Thei-e is involved in it $29,083 84. The volume of the differences on this installment, involving the vouch- ers which iiave been explained, has been examined by the Third Auditor of the Treasury, resulting in a further allowance of $34,3-11 78. leaving amount suspended on vouchers (excepting pay-rolls) $6,866 77; leaving 14 REPORT OF STATE AGENT. aggrerrate susipGnsions on this instaliraent (inclu.ling p;i3'rolIs) the sum of $82,028 38. or this sum, S75.1G1 Gl is involved in the pa_y-roils. Filtli instMllment. $304,638 46, upon wiiich thero has been paid $203,- 158 48, leaving suspended and disallowed the sum of $l!)l,479 98. Diifer- ence sheets are now in the hands of the Quarter-Master General of the State. Sixth installment amounts to $319,788 90, upon which there has been paid the sum of $235,334 40, leaving amount suspenJ.ed and disallowed on this installment §84,404 50. Seventh installment, ^47. All of which is suspended. Eighth installment, $193,697 71, upon which there lias been paid $2,472 06, leaving suspended $191,225 15. Ninth installment amounts to $132,451 01, upon which there has been paid $422 89, leaving amount suspended $132,028 12. Teiiili iiisiiiil.nent, $582,692 43. AU oi winch stands au.-^pended. At tins ]ioint it is proper that I should state, that, in my last annual report, 1 submitted a letter from the Third Auditor of the Treasury, "ni:;i-lrtion of the " War Claim " which is not provided lor by the act ot July 27th, 18G1. 16 REPORT OF STATE AGENT. It would have been impossible for me to accompliBh this work without his assistance. Your Excellency is aware that this office expires by limitation on the 27th day of February, 18G8. As to whether it should be continued, ia view of facts submitted, is for j'ou to determine, and to make such recom- mendations on the subject as you may deem proper. The State of Kentucky has presented the lar^^est claim of any of the States for money expended for arming, equipping, clothing, subsisting, and transporting troops to be turned over to the United States service. The reason for this is the fact that the State subsisted, clothed, and sup- plied her troop? for several months between the time of their organization and muster into the United States service. A larger proportion has been paid to Kentucky than to any other State upon actual settlement made by the accounting officers of the Treasury. Other States have received larger sums of money by advancement, for which they stand charged upon the books of the Treasury. AN ACT to indemnify tlie States for expenses incurred by them in defense of the United States. Bo it enacted by the Senate and House of Representatives of the United Stai.:s of America in Congress assembled, That the Secretary of the Treas- ury i;e, and he is hereby, directed, out of an}' money in the Treasury not otherwise aj)propriated, to pay to the Governor of any State, or to his duly authorized agents, the costs, charges, and expenses properl}'' incurred by such State for enrolling, subsisting, clothing, supplying, arming, ecjuip- ping, ])aying, and transporting its ti-oops employed in aiding to suppress the present insurrection against the United States, to be settled u])ou proper vouchers, to be filed and jjassed upon by the proper accounting officers of the Treasury. Approved July 27, 1861. RULES for the preparation and settlement at the Treasury Department, under acts of Con- gress approved July 17, 1861, and July 27, 1861, of claims for reimbursement of expenses properly incurred by the States, respectively, on account of their troops employed in aid- ing to suppress the present insurrection against the United States. I. Accounts, with vouchers for all expenditures made, must be presented to the Secretary of the 'J'reasury, by whom the}' Avill be referred to the proper accounting officers for investigiition and settlement. II. It is only fur expenditures on account of troops, officers, or men that have been or m:>y be mustered and received into, or actually empkn-ed in, the service of the United States, that reimbursements will be made. Or- ganiz;itions raised, or attempted to be raised, but not mustered and received into, nor actually emploj^ed in, the service, will not be recognized. Nor REPORT OP STATE AGENT. 17 will any reimbursement be made by the United States of expenses in- curred in organizing, equipping, and maintaining troops for State pur- poses, or home guard, whether called out by State or other local authority, unless such troops wore called out and such expenditures incurred at the request or under the authority of the President or the Secretary of War. III. Personal expenses of commissioned oflacers in recruiting their companies prior to their being mustered into service, will not be allowed; but commissioned oflScers may be allowed the same rates for subsistence and quarters (board and lodging) as privates, from the date of enrollment Until mustered into service. The necessary and actual traveling expenses of recognized military agents of the State, when accompanied by bills of particulars and receipts for payments, will be refunded. IV. Bills of particulars, with dates and rate of charge, and the receipt of the party to whom payment was made, must, in all cases, be furnished. It is not sufficient to show that a gross amount was expended; still less that sums were turned over to individuals to expend, without evidence showing that they were expended by them, and how they were expended. In short, original vouchers for expenditures of every description must be fur- nished. The expenditures should be classified, and separate abstracts, with the vouchers presented for pay, subsistence, clothing, transportation, arms and equipments, and other expenses; and they should also desig- nate, as far as practicable, the particular regiment or corps on account of which the expenditure was incurred. Claims for pay of troops must be accompanied with complete pay-rolls for each corps, properly certified and receipted, the same as are required in the regular service. V. Where subsistence in kind could not be furnished, and expenses were incurred for "board," or "board and lodging," the rates will depend on the section of country where furnished, and the price paid for complete rations at the nearest recruiting station or military post; and in no case will a higher rate be allowed than the amount actually paid. The bills must specify the regiment or company to which the troops so subsisted or quartered belonged, and that rations could not be procured. Bills for lodging will be restricted to cases where there were no tents, and quarterii could not be otherwise obtained. Purchases of subsistence in bulk will be paid for at not exceeding the current prices at the place of purchase, provided that the quantities are in proper proportions, or reasonably so, to the number of men, according to the rates of allowance in the Subsist- ence Department. The articles of subsistence must be such only as are recognized in the regular service, or, if other articles are substituted, the cost of the whole must not exceed the regular supplies. Bills for spirit- uous liquors, treating, expenses of holding elections for officers, will not be recognized or paid. VI. Transportation and quarters for troops at reasonable rates will be paid for. Transportation is restricted to the usual routes and modes of 2 18 REPORT OF STATE AGENT. conveyance, and excessive quantities will not be recognized. Charges for transportation by railroad or other public conveyance must be accompanied by bills of lading in cases of property or supplies; and for troops, the number of men, with the regiment or corps, must be distinctly set forth : and where the same has been done in pursuance of a contract, the contract must accompany the vouchers. The same provisions apply to transporta- tion by vessel. Yll. Claims growing out of impressment of property or services, and for damages done to individuals or their property, are not authorized to be paid. Provision for such claims must be made by special act of Con- gress, when not already provided for by general laws. VIII. Bounties or donations to men or their families, to induce men to volunteer, will not be recognized. Such bounties as may be authorized by law will be paid by the United States directly to the men authorized to receive them. Voluntary contributions, either by States or local corpora- tions, or by individuals, in aid of families of volunteers, &c., constitute no charge against the United States, and will not be refunded. IX. Each State must present its full and final accounts for reimburse- ment, under the acts providing therefor, up to the date of the passage of Baid acts. The proper authorities of the State should certify, over their official seals, that the respective amounts claimed to be refunded have been actually paid by said State, and tliat no part thereof has been paid by any disbursing officer of the United States. Approved : S. P. CHASE, Secretary of the Treasury. B. — [copy] Office Kentucky State Agency, ) Washington, D. C, Nov. 20, 1867. J Gen. U. S. Grant, Secretary of War, ad interim, Washington, B. C: Sir : I have the honor to again call your attention to a subject presented in a letter from the Third Auditor of the Treasury, of date August 2d, 1867, having reference to reimbursing the State of Kentucky lor sums advanced to men enlisted for the United States service, and who died or were disabled in the line of duty before they were mustered, or actually received into the United States service, and to your indorsement thereon, in which you ask that, for illustration, some of the names of those who were disabled in line of duty, whose names are born on the muster-rolls of State, be forwarded, &c. I do not propose in this communication to give you the names of the recruits who died, or were discharged before muster into the United States service, but will refer you to the final Eeport of the Adjutant General of Kentucky for a complete list of them. The date of death, or discharge of REPORT OF STATE AGENT. 19 recruits will appear on tho report referred to, anterior to the date of muster into United States service of the organization to which the recruit belonged. That all the recruits enlisted in Kentucky for the United States service were actually employed in tho service of the United States, under compe- tent authoritj', from the date of enlistment, there can be no doubt, in view of the proof herewith presented. I am therefore led to the conclusion, that the affidavits presented with tlu's, demonstrate the idea presented in your indorsement on the Auditor's letter more conclusively than any number of individual examples could possibly do; for if the recruits were all — those of every organization — actually employed in the United States service from the date of enlistment, the Ciovernment should, after having accepted and profited by the services rendered by them, be responsible for the month's pay advanced, as well to the recruits as to those actually mustered and technically received into the service of the United States. More particularly should this rule be adopted, when it is remembered that the greater number of the Kentucky troops, enlisted in 1861-2, were not accepted into the United States service for several months after organi- zation and acceptance by the State authorities, and corresponding service under the orders issued from what was deemed and obeyed as proper authority. It was not the fault of the State that the organizations were not mas- tered into the United States service as soon as completed, and it was certainly not the fault of the recruit. It is, therefore, not only just that the State should be reimbursed for money advanced in good faith by the State, for thpi benefit of, and at the request of the authorities of the Uni- ted Staiyi-', but it is eminently just to the memory of all those who died or were discliarged before muster into United States service, that their services and j):itriotic intentions should be recognii:ed by tho proper De- pui'Un:'.-)'^ '^•~ i".ii (Tovernment, by having tlieir names properly- recorded. The Stale of Kentucky, in 1861, had no camps or rendezvous, with United States Mustering Officer, to accept companies and regiments as soon as organized; but their camps were established at points most eligi- ble for the defense of the border, and men were placed on duty as soon as they arrived at camp, to execute orders of officers placed in command by the War Department. Of this no one complained at the time, but all recognized the necessity, and cheerfully performed the duties assigned them, whether it was guarding depots of public property, making recon- noissances to ascertain the position, force, and intentions of the enemy, or engaged in active campaigns — all alike were cheerfully executed by the recruits enlisted for United States service in Kentucky in 1861. In view of these facts, all of which are abundantly established by the papers here- with submitted, it is not alone in the interest of the State that I make this appeal, but greatly to vindicate the memory and service of patriotic 20 REPORT OF STATE AGENT. citizens who responded to the call of the Government and lost their lives, or destroyed their health in the service before it was possible for the Gov- ernment to technically accept them. I therefore, on behalf of the State of Kentucky, request an order from your Department, accepting the services of the recruits in question, so that the State may be reimbursed for the 813 advanced to each one to promote the interest of the Govern- ment and to facilitate enlistments. I herewith submit the following papers to show actual employment, tinder competent authority, between the date of enlistment and muster-in, and acceptance by the United States: 1. Letter of Third Auditor, addressed to the Adjutant General of the Army, dated August 2d, 1867, and indorsement thereon, dated August 9th, 1867. 2. Letter from this office, addressed to Hon. J. M. Brodhead, dated Oc- tober 11th, 1867. 3. Keply of Second Comptroller October 11th, 1867. 4. Affidavit of Brigadier General W. T. Ward, United States Vol- tinteers. 5. Affidavit of ex-Governor Thos. E. Bramlette. 6. Affidavits of Generals D. W. Lindsey and Geo. W. Monroe, late of 22d Kentucky Volunteers. 7. Affidavit of Brevet Brigadier General A. M. Stout, late Colonel 17th Kentucky Volunteers. 8. Statement of J. Smith Hurt, late Colonel 24th Kentucky Volunteers. 9. Affidavit of Lieut. Colonel John H. Ward, late of 27th Kentucky Volunteers. 10. Affidavit of B. F. Pumphrey, late Captain Company I, 27th Ken- tucky Volunteers. 11. Affidavit of John A. Joyce, late Adjutant 24th Kentuckj' Volunteers. Very respectfully, your obedient servant, (Signed) C. D. PENNEBAKEK, Agent State of Kentucky. REPORT OF STATE AGENT. 21 00 tS I V fi n 1 1 co" 1 1 «» 1 j Cfl crt o o" to in co" d p M a < oomc^oooooioc^wo mtO-«1'OCTJ-*l->OOOlM.^ «(j>r--t-0'^e* oo" (M ^^i i-Hf—OOO OICOOOC- a d 'a 1 o 1 o 1 c o 1 O 1 O 1 - 1 to 1 -f 1^ 1 1 1 o o o o o to & o a s o a 1 1 0>iOr-(0>000 lOOJ i«o ir5oooo-t-M i-* t-OOiOOO'-m ITt"'^ l-H^ e_ lO 4» a 3 O a "d a 'So 'C o $753,752 47 34,457 00 340,478 63 671,257 05 304,638 46 319,788 90 47 00 193,697 71 132,451 01 682,692 43 226,842 96 to CO o o to in CO i2 a a 3 a rH M C ) '<4l to CO t- BO C l> o .-< 22 REPOET OF STATE AGENT. 2q < "§ < o P a ft o o o o fOe>OincX;-*QOC <» e-i 1 1 1 1 1 1 1 1 XTJ 1 ■*^ 1 . 1 1 1 1 1 1 1 1 .a OJ 1 , i Olllllll_fl t'-llllllll'Ou.l a> 1 XI 1 "iiiiliiSa-ui *^a>j_ 1 rt ' '-' M 1 x> •a ts 13 o ky St; State State State State State stalhr install in 3d 3tillm ce, am 2r not V 1 J 1 t3 ' ^ o o o O ° 3 a a a e a 3 oj C3 cj 03 0ScieSejcic3coM(U>^Q cS 03 t-^ t», t^ t>» >,^ M Da m pa CQMPaCQMCQfQMWPa oa <4-. . Oi C<» -if en 1 r- .-0 -< i- t~ e^ o> t-i •* 1 e^ o CO (M 00 o S :?;p in o w ±- 1 IQ CO CO t- *- *" c in efl es 00 00 ■* O 05 ■>!> t- O e3 CO CD >o CO ■* CO '-0 in CO ^ • i-i O 00 o CO Jt- »n 00 c^ ■* c« O u !z; "* 0> CO •* 1— M CO ■* ^ 1 1 1 00 1 1 1 1 1 O CO 1 1 ^00 1 1 1 to CO -^ i o 1 1 CO r-l „ - • "* • oJ C^ 00 lO f^ --+ ■j> ^ _ CC CO w rrT^ cj w CO ,^ 00 05 ro 3 3 _ _. r, .O o - (..K- s- >.'"' ebr ebr pri Line ugi cto * 3 3 * .* ►-, l-s s fiH fe <) I-, <) o d ■M CO CO • « CO (3 o o 3 »-• ■-1 o s o o CO CO < CO in CO ro I, O t> ' S a> ~> O 2 " ^--o •- S S tc 2 TS l- g CS t- 3H * 2 o 02 C5 O! TJ . c M :: .t: t3 amou y the ccoun lie Th f the J2 =s^ o 3 H 6 pi ■^ to a »^ o-ps* *-;- or. >, -3^ ce-:* C-— ~ « a n °cs5 o § -t4 o C3 S New the uor ? ci'/; c ? il t^ - . -' o 3 ^^l'-" O" o .3 H3-55 H 5 * o ctS 17.HBS 5 Cm c"oS^S3 °(»W5* d-£-s -a £ > 3 'i ■Cry;. ^ S » .'H cd3^- 3 . ft-S^-S^c. On 5 3 SSf ^-•5'?&5 3^ ?3|sgsS g i: "f r k rtT3 7.- =5» CH -J3 O REPORT OP STATE AGENT. CQ V f 531 "t^ S5 O I— I Eh < l-l Pi < o 'r. ^ o-s c .a o '^ 01 01 t^.>~ lO o ■^ oo in in O) o> r-» ^ •^ ■ s s e^ C 00 00 00 in 1 1 1 1—1 C^ I CD I b^ .^ ■* > (a X! u Tt (rt 5 4= •T3 CD M 3 00 2 ■" t. _ oj ** r* s ^ o a> a; V ^ r/5 uT "S oo Q, °- a ■•J a> o o cu " oM ■5 o ■s a o X3 o t- Tl S 00 n r— t -a^ ^««. Ol V u " t2 S3 H 24 REPORT OF STATE AGENT. INTEEEST. It is a well-known fact, that for the purpose of defraying the cost, charges, and expenses properly incurred for enrolling, subsisting, clothing, supplying, arming, equipping, paying, and transporting her troops, the State was obliged to borrow large sums of money, upon which interest was paid. The State could not have accomplished that which was ex- pected of her, and that which she was directed to do by the authorities of the United States, without resorting to loans for the purpose of raising the means to do it. The United States at that time, to-wit: in 1861 and '62, was wholly unable to provide the requisite funds to put an army in the field, in such vast numbers as was called for by the Chief Executive of the United States — hence, the State of Kentucky, to comply with the requisi- tion made upon her, advanced both men and money. Upon that portion which she was compelled to borrow at interest, the United States is as much bound to reimburse the interest as the principal. That legal interest paid, or that which has accrued upon a debt due, becomes a part and parcel of the principal debt, is an established fact, founded upon statutes, as well as judicial precedents. I have notified the Treasury Department of the United States that the State of Kentucky would set up a claim for, and demand of the Govern- ment, reimbursement for all the interest paid on money borrowed and used for war purposes during the late civil war. I have also requested the Quarter-Master General of the State to pre- pare the account showing the amount of interest paid by the State, with such suggestions as to the proper proof of the account as I thought neces- sary to establish the same. The account has not been received at this oflfice. I will now proceed to note the authorities upon which this claim is based, in acts of Congress, opinions of the Attorney General, and the accounting officers of the Treasury. I will first cite you to the Second Comptroller of the Treasury, as he is the first revisory officer. In a volume published in 1865, entitled "A Digest of the Decisions in the Office of the Second Comptroller of the Treasury," on page 25, section 166, on the paying of interest to States, he says: * * * « But, in cases where the claimant has been compelled to pay interest for the benefit of the Government, it then becomes a part of the principal of the claim, and, as such, is allowable. Such is the case of a State which has been obliged to raise money upon interest for the suppression of hostilities against which the United States should protect her. In such cases, the amount of interest actually and necessarily paid will be allowed, without refer- ence to the rate of it." REPORT OF STATE AGENT. This decision was made b}'' the Second Comptroller of the Treasury, under date of November 1st, 1851, upon a statement and papers transmitted to that office fi'om the Third Auditor of the Treasury, relative to the claim of the State of Florida for reimbursements of the principal and interest of money borrowed by that State to protect itself against- the Seminole Indians. (See act Feb. 27, 1851, Statutes at Large, vol. 9, page 573.) The Second Comptroller, in s'upport of the above decision, says : " The I>rinciples applicable to this case are very distinctly stated in the opinion of Attorney General Wirt {see Opinio7is of Attorney General, page 342), in a similar claim by the State of Virginia." The Attorney General remarks: "The principle is this: The United States are bound by the relation which subsists between the General and State Governments to provide tiie means of carrj'ing on war, and, as a part of the business of war, to provide for the expenses of the several States. Where the United States fail to make such provision, and the States have to defend themselves by means of their own resources, the expenditure thus incurred forms a debt against the United States which they are bound to reimburse! If the expenditures made for such purpose are supplied^ from the Treasury of the State, the United States reimburses the principal without the interest; but, if being itself unable, from the condition of its own finances, to meet the emergency, such State has been obliged to borrow money for the purpose, and thus to incur a debt upon which she herself has been obliged to pay interest, such debt is essentially a debt due by the United States ; and both the principal and interest are to be paid by the United States; so that whenever a State has been obliged to pay interest, by reason of her taking the place of the United States, in time of war, such interest forms a just claim against the United States." Attorney General Berrien, recognizing the same principle (Opinion Attorney General, p. 794), says: "The ordinary cases of claims against the Government, which, how- ever undoubted, are not payable until demanded, and then without inter- est, unless the claimant shall have paid interest, in which case, indeed, interest becomes strictly a portion of the principal of his claim; and this is the rule that has always been adopted by Congress." The act of Congress of February 27th, 1851, vol. 9, ^jagre 573, United States Statutes at Large), upon which the foregoing decisions of Second Comptroller were based, and precedents referred to in support thereof, viz : "For reimbursing the State of Florida under such rules and regulations as have heretofore governed the adjustment of similar claims of the sev- eral States on the United States for money advanced and paid, and for expenses incurred, and obligations contracted by said State, for subsist- 3 26 REPORT OF STATE AGENT. ence, supplies, and services of local troops called into service during tbe year eighteen hundred and forty-nine, by and under authorities of said State, seventy-five thousand dollars." The act of Congress just referred to, not only in the most complete and authoritative Inanner confirms all the past acts of the Government in the paj'^ment of interest, but it is mandatory in the most general aensn to reimburse vStates for interest paid under all similar circumstances. A State, under the Federal Constitution, has no right to levy war or make peace; it is therefore not chargeable with any portion of the legiti§ mate expenses of a war when levied and proclaimed by the Government of the United States, except such pro rata share as may be levied and assessed upon the property and business of its citizens to pay the debt incurred by the United States resulting from war. If, then, a State, from motives of patriotism or necessities resulting in the defense of its own border, shall take the place of the Government of the United States in obedience to the orders, or the request thereof, and furnish large bodies of troops, and pay large sums of money which the United States, under its organic law, was alone bound to pay for main- tenance of war, the State should be reimbui'sed in full, principal and interest. A State, under all such circumstances, brings itself within the act of Congress of February 27th, 1851, and the distinguished precedents refer- red to in the decision of the Second Comptroller in the case of the State of Florida. The act of Congress is sufficiently comprehensive and general in its provisions to authorize affirmative action by the accounting officei's of the Treasury under all similar circumstances. No unprejudiced mind can take hold of the subject and say that Ken- tucky, in the advances made by her in money and iiroperty during the late civil war, was not situated precisely as Florida was, when she was compelled to raise money to defend herself against the incursion and depredations of the Seminoles. There is therefore no apology for assuming that the act in the case of Florida was special, otherwise than that the word Florida was used in the act. I would also call attention to the following acts of Congress in support of the claim of the State of Kentucky for interest. (See vol. 4, United States Statutes at Large, act March M, 1^25.) This act directs the Secretary of the Treasury to liquidate and settle the claim of the State of Virginia against the United States, for interest upon loans or moneys borrowed, and actually expended by her for the use and benefit of the United States during the late war with Great Britain. {See vol. 9, United States Statutes REPORT OP STATE AGENT. Zl at Large, page 236.) Act June 2, 1848, eection 3, provides that it shall be lawful to pay interest, at the rate of six per cent, per annum, on all sums advanced by States, corporations, or individuals, in all cases where the State, corporation, or in