Respectfully, WALTER B. STEVENS, Secretary.

Mr. LAURENCE H. GRAHAME, Secretary National Commission, Washington, D.C.

As a result of the inquiry instituted by the Commission into the disposal of the salvage, statements supported by affidavits were received and the same are appended to this report and marked "Appendix No. 2."

Under the act of Congress the Commission had no power to undertake a more thorough investigation of the charges and allegations made in respect to the manner in which the salvage of the exposition had been disposed of.

Without authority to send for persons and papers, to administer oaths, or to compel witnesses to testify, any further attempt upon the part of the Commission to inquire into the salvage matter would have been futile and ineffective. If any further action is to be taken to ascertain whether or not the financial interest of the United States has been sacrificed by the manner in which the salvage was disposed of, the inquiry must be conducted by some committee or official having these powers, which the Commission did not possess.

A careful perusal of the law under which the Commission was appointed will show the narrow limits of its legal authority, and the records disclose the policy of the Exposition Company not only to confine the Commission strictly within the narrowest limits of the law, but also to question and resist the exercise of its authority in many instances where the law seemed to place such authority beyond question.

From the very beginning the Commission sought to establish harmonious relations with the company, and at all times refrained from contention with its officials as to all matters not vitally affecting the interest of the Government, and endeavored in every possible way to cooperate with the company in promoting the exposition and insuring its success.

It is pleasant to turn from disagreements to achievements. From the scientific, the artistic, and the industrial points of view the exposition was a pronounced success. The munificent and unfailing support given the enterprise by the Government of the United States guaranteed that it would be a great exposition.

Considering the primary appropriation of $5,000,000, the loan of $4,600,000, and the contributions by the direct appropriations and by indirect means through the assignment of officers paid from other appropriations, together with the exhibits from Districts, Territories, and dependencies of the United States, and for the Government exhibit, the aggregate contributions, direct and indirect, to the success of the fair approximated substantially $15,000,000 on the day the gates were opened to the public.

In addition to this proclamations were twice issued by the President inviting foreign nations to participate in the exposition; the consular and diplomatic representatives of the Government were inspired to aid the exposition to the extent of their ability, within the limits of official propriety; the army transports and the vessels of the Navy were generously employed in furtherance of the project, where such employment was found consistent with duty. Never in history has any Government done so much in aid of any like enterprise. With such support from the Government failure was impossible under any rational management.