It thus appears that the time allowed for the completion of these vessels was with the assent of the contractors made exceedingly short; that notwithstanding this fact they consented to permit such alterations of plans as must almost necessarily prolong the time, fixing no limit to such extension, and that in the same breath they fix their measure of compensation for such alterations and an extended time consequent thereon at “a fair and reasonable rate” for the extra expense caused thereby.

Almost immediately upon the beginning of their work alterations and changes were made in the original plans for these vessels, and they were repeated and continued to such a degree that the completion of the vessels was delayed many months.

In the latter part of the year 1864 and early in the year 1865 payments in excess of the contract price were made by the Navy Department to the contractors under the provisions of the contract above recited.  The contract price for the Squando was $395,000.  The contractors claimed extra compensation amounting to $337,329.46, and there was allowed $194,525.70.  The contract price of the Nauset was $386,000, the extra compensation claimed was $314,768.93, and the amount allowed $192,110.98.  The contract price of the side-wheel steamer Ashuelot was $275,000, the extra compensation claimed was $81,447.50, and the amount allowed was $22,415.92.  The different sums as thus adjusted were received by the contractors in settlement of their claims for extra expense, and receipts in full were given by them to the Government.

A number of other contractors had done like work for the Government and claimed to have demands growing out of the same for extra compensation.

Evidently with the view of investigating and settling these claims, on the 9th day of March, 1865, the Senate passed the following resolution: 

Resolved, That the Secretary of the Navy be requested to organize a board of not less than three persons, whose duty it shall be to inquire into and determine how much the vessels of war and steam machinery contracted for by the Department in the years 1862 and 1863 cost the contractors over and above the contract price and allowance for extra work, and report the same to the Senate at its next session; none but those that have given satisfaction to the Department to be considered.

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.