This board was appointed by the Secretary of the Navy on the 25th day of May, 1865, and consisted of a commodore, a chief engineer, and a paymaster in the Navy. Its powers were broad and liberal, and comprehended an inquiry touching all things that made up "the cost to the contractors" of their work in excess of the contract price and allowances for extra work.
The board convened on the 6th day of June, 1865, and sat continuously until the 23d day of December following, and made numerous awards to contractors. The parties mentioned in the bill now under consideration were notified on the 9th and 15th days of June, 1865, to prepare and submit testimony to the board in support of their claims, and they repeatedly signified their intention to do so.
Donald McKay was the contractor for the construction of the monitor Nauset and the steamer Ashuelot. The proceedings of the board show that on the 11th day of August, 1865, he notified the board that the only claim he made for loss was on the hull, boiler, and machinery of the Ashuelot, which he would be prepared to present in about six weeks.
Neither of these parties presented any statement to the board, and no claim of theirs was passed upon.
On the 2d day of March, 1867, an act was passed directing the Secretary of the Navy to investigate the claims of all contractors for building vessels of war and steam machinery for the same under contracts made after May 1, 1861, and before January 1, 1864. He was by said act required "to ascertain the additional cost which was necessarily incurred by each contractor in the completion of his work by reason of any changes or alterations in the plans and specifications required and delays in the prosecution of the work occasioned by the Government which were not provided for in the original contract." It was further provided that there should be reported to Congress a tabular statement of each case, which should contain "the name of the contractor, a description of the work, the contract price, the whole increased cost of the work over the contract price, and the amount of such increased cost caused by the delay and action of the Government as aforesaid, and the amount already paid the contractor over and above the contract price."
Under this act Commodore J.A. Marchand, Chief Engineer J.W. King, and Paymaster Edward Foster, of the Navy, were designated by the Secretary of the Navy to make the investigation required. These officers on the 26th day of November, 1867, made a report of their proceedings, which was submitted to the Senate with a tabulated statement of all the claims examined by them and their findings thereon.
It appears by this report that the claims of the beneficiaries mentioned in the bill herewith returned were examined by the board, and that nothing was found due thereon under the terms of the law directing their examination.
These claims have frequently been before Congress since that time. They have been favorably reported and acted upon a number of times, and have also been more than once strongly condemned by committees to whom they were referred.
A resolution was passed in 1871 by the Congress referring these and other claims of a like character to the Court of Claims for adjudication, but it was vetoed by the President for reasons not necessarily affecting the merits of the claims.
The case of Chouteau vs. The United States, reported in Fifth Otto, page 61, which arose out of the contract to build a vessel called the Etlah, appears to present the same features that belong to the claims here considered. It is stated in the report of the House committee on this bill that "the Squando and Nauset were identical in the original plans and the changes and alterations thereon with the Etlah and Shiloh, built in St. Louis;" and yet the Supreme Court of the United States distinctly decided in the Etlah case that the only pretext for further compensation should be sought for in the contract, where the contractor had evidently been content to provide for all the remedy he desired.