'Resolved, That the Secretary of the Treasury is hereby directed to transmit to the Senate a copy of the report of James F. Meline and others, made to the treasury department during the recess of the Senate, and of any papers received by him based upon such report.'
"In reply thereto I have the honor to transmit herewith a copy of the report called for, with the accompanying statements of Mr. J. K. Upton and J. T. Power, who occupied the position of chief clerk and ex officio superintendent of the treasury building for the period covered by the report.
"Soon after assuming the duties of Secretary of the Treasury my attention was called to alleged abuses in the disbursement of the contingent fund of the department, which was under the immediate charge of a custodian, and the general supervision of the chief clerk of the department, and I appointed a committee to look into the matter, as has been the custom of the department in such cases. The law, somewhat conflicting in its terms in relation to the relative duties of these two officers, will be found fully set forth in the report. On considering this report I am convinced that certain irregularities and abuses existed in this branch of the service, and as I had some doubts as to the legality of the appointment of a custodian I abolished that office June 18, 1881, and by general order of July 1, 1881, reorganized the office.
"A copy of this order is herewith transmitted, from which it will appear that all the changes necessary to a complete and thorough correction of the irregularities and abuses referred to have been adopted.
"It was my intention, as my more pressing public duties would permit, to have pursued this general policy in other branches of the treasury, by the appointment of competent committees to collect the necessary data on which to base proper action to secure economy and promote the best interests of the public service, but the assassination of the President suspended further action in this direction.
"Very respectfully,
"William Windom, Secretary.
"Hon. David Davis, President of the Senate."
On the 26th I offered a resolution as follows:
"Resolved, That the committee on appropriations of the Senate be, and they are hereby, authorized and directed to investigate the accounts for the expenditure of the appropriations for contingent or other expenses of the several executive departments, including the methods of making such disbursements, the character and disposition of the purchases made, and the employment of labor paid from such appropriations, and to report on the subject at as early a day as practicable, and whether any further legislation is necessary to secure the proper disbursement of such appropriations; and that the committee have leave to send for persons and papers, and have leave to sit during the recess of the Senate."
This led to a thorough investigation into the disbursement of the contingent fund of the treasury department, the report of which, accompanied by the testimony, covering over 1,200 printed pages, was submitted to the Senate on the 15th of March, 1882. This examination was chiefly conducted by Francis M. Cockrell, of Missouri, a Senator distinguished for his fairness and thoroughness. The report was concurred in unanimously by the committee on appropriations. It showed that certain irregularities had entered into the management of the fund and that certain improper entries had been made in the account, but that only a trifling loss had resulted to the government therefrom.
I was before the committee and stated that I never had any knowledge of any wrongdoing in the matter until it had been brought out by the investigation. The report fairly and fully relieved me from the false accusations made against me. It said: "Touching the statements of Senator Sherman, that he had no knowledge of its irregularities, etc., established by the evidence, no witness states that Mr. Sherman knew that any funds of the treasury department were ever used for his individual benefit or otherwise misapplied."