Another article of this report, relating to the Duke, was yet of more importance.  The greatest part of Her Majesty’s forces in Flanders were mercenary troops, hired from several princes of Europe.  It was found that the Queen’s general subtracted two and a half per cent, out of the pay of those troops, for his own use, which amounted to a great annual sum.  The Duke of Marlborough, in his letter already mentioned, endeavouring to extenuate the matter, told the commissioners, “That this deduction was a free gift from the foreign troops, which he had negotiated with them by the late King’s orders, and had obtained the Queen’s warrant for reserving and receiving it:  That it was intended for secret service, the ten thousand pounds a year given by Parliament not proving sufficient, and had all been laid out that way.”  The commissioners observed, in answer, “That the warrant was kept dormant for nine years, as indeed no entry of it appeared in the secretary of state’s books, and the deduction of it concealed all that time from the knowledge of Parliament:  That, if it had been a free gift from the foreign troops, it would not have been stipulated by agreement, as the Duke’s letter confessed, and as his warrant declared, which latter affirmed this stoppage to be intended for defraying extraordinary contingent expenses of the troops, and therefore should not have been applied to secret services.”  They submitted to the House, whether the warrant itself were legal, or duly countersigned.  The commissioners added, “That no receipt was ever given for this deducted money, nor was it mentioned in any receipts from the foreign troops, which were always taken in full.  And lastly, That the whole sum, on computation, amounted to near three hundred thousand pounds.”

The House, after a long debate, resolved, “That the taking several sums from the contractors for bread by the Duke of Marlborough, was unwarrantable and illegal; and that the two and a half per cent, deducted from the foreign troops, was public money, and ought to be accounted for:”  which resolutions were laid before the Queen by the whole House, and Her Majesty promised to do her part in redressing what was complained of.  The Duke and his friends had, about the beginning of the war, by their credit with the Queen, procured a warrant from Her Majesty for this perquisite of two and a half per cent.  The warrant was directed to the Duke of Marlborough, and countersigned by Sir Charles Hedges, then secretary of state; by virtue of which the paymaster-general of the army was to pay the said deducted money to the general, and take a receipt in full from the foreign troops.