Mr. MAYNARD. I call for the reading of the report. The report was read. It states that on the 3d of February, 1864, Captain James A. Ekin, chief quartermaster of the Cavalry Bureau and asst quartermaster of the U.S. Army, on behalf of the U.S., contracted in writing with petitioner for the deliv ery at Fort Des Moines, Iowa, to the U.S. Government, of 500 head of cavalry horses, at an average price of $126 70 per head. Said horses were “to be sound in all particulars; not less than 5 nor more than 9 years of age; from 15 to 16 hands high; bridle wise, and of size suf. ficient for cavalry purposes; compactly built; in good flesh, and free from all defects.”. It was further agreed that said horses, upon delivery at the Government stables in Des Moines, should “be examined and inspected without unnecessary delay by a person or persons appointed by the U.S.;. such inspector shall have certified that they are in all respects as contracted for, and fully equal to the specifications aforesaid, they shall be received and become the property of the U.S.; and all such horses as may be condemned and rejected by said inspector shall be removed from the Government stables within one day after the contractor had been notified of the rejection.”. It was further agreed that petitioner should be paid by the U.S. at the office of the quartermaster of the U.S. Army, at Washington city, DistCol, as follows: $124 for each and every horse of the 1st 200 delivered; $128 dollars for each and every horse of the 2nd 200 delivered, and $129 50 for each and every horse of the last 100 so delivered, making an average as above stated. This contract was executed in Washington, DistCol, about 1500 miles from the place where it was to be ful. filled. The petitioner proceeded at once to Iowa, where he associated with himself J. P. Johnson and Robert Carter, of Henry county, Iowa, for the purchase and delivery of said horses, and for the more speedy and certain fulfillment of said contract. On the 17th of February following they had over 250 head of the specified quality of horses at Fort Des Moines, Iowa, ready for delivery and inspection, but the Government had neither stables nor other means of receiving and disposing of said horses as specified in said contract, and the petitioner was compelled to keep them at an expense of 50 cents per head per day for 40 days, or until the 28th of March following, when, for the 1st time the Government was prepared to receive and inspect them in pursuance of said contract. On the 5th of February, 1864, but 2 days following the execution of said contract, the Cavalry Bureau, by order of the SecyWar, issued a circular of “instructions for inspect ors of cavalry horses, ” prescribing rules and requirements for inspectors entirely different from and more stringent than those which prevailed at the time of the execution of said contract, many of which were in absolute conflict with its express terms. By these new instructions the senior inspector was required “to cause the horses furnished under each contract to be placed in the inspection yard at least 24 hours before inspecting them. Horses that are rejected for being under age, in poor condition, or temporarily injured by transportation or otherwise, shall be lightl branded on the front part of the fore hoof, near the coronet, with the letter ‘R.' When horses are doubtful before branding they may be kept 3 or 4 days under guard, at the expense of the contractor, be again originally examined, and then finally disposed of in accordance with the foregoing rules. Horses will be fed at the expense of contractors till they have been branded and accepted.” The report further states that the committee find that the petitioner had no knowledge of these new instructions until they had presented the said 250 head of horses for inspection on the 17th day of February, 1864. That so soon as he became aware of their nature and extent, and of the new terms thereby imposed upon his contract, he imme diately proceeded to Washington and made application to the War Dept, through Captain Ekin aforesaid, that said contract be annulled, and that he be released from the delivery of said horses; but Captain Ekin, on the part of the Government, utterly refused, reminding him that the SecyWar had issued an order for the arrest and imprisonment of contractors refusing to comply with contracts, and at the same time assuring him that the rules would be changed, and that the Government would idemnify him for all losses sustained by a compliance with the contract. Hon. James Harlan, then U.S. senator for the State of Iowa, was consulted with the officers of the Government on this occasion, and as the friend of the contractor, advised him to deliver the horses, as the Government was in much need of them, relying upon congress for idemnity for his necessary and reason able losses. This advice was likewise given by the Governor and adjutant general of the State of Iowa. Under these circumstances the petitioner and his said associates proceeded with the purchase and delivery of said horses and the fulfillment of said contract; but soon there after, and before the Fo of the remaining 250 head, the Government, by its agents, entered directly into the open market for the purchase of horses, establishing depots for that purpose throughout the Northwest; raising the price paid for horses at these depots from $140 to $150 for cavalry horses, and as high as $160 for artillery horses. This change of price, on the part of the government, prior to the time of the purchase and delivery of the horses under petitioner's contract, while it would seem to be a motive for annulling the contract, or for modifying or releasing the petitioner from the strict terms and provisions of the contract, raised the price of horses to the maximum throughout the northwestern country, and particularly the State of Iowa, compelling the petitioner to iur.chase the remaining 2fift at those figures. For these untowar events no blame can attach to the petitioner. He complied with his contract, though at a considerable loss, resulting, it would appear, from the immediate action of the Government, which no protest could avert, and no fore, thought could provide against. The Govern;ment has paid him the contract price only of $126 70 per head, while the others it paid from $140 to $150 for the same quality of horses. The petitioner claims a loss of $17,000 under the contract, and there is reason to believe that it approximates to that amount; yet it appears that many of the items of this loss might be excluded in a judicial adjudication of the claim. The committee, in arriving at what to them appears an equitable allowance of the claim, are of opinion that, from the date of the “circular of instructions” to cavalry in spectors, the 5th of February, 1864, the said contract should be regarded as void, and that the petitioner should be released from its provisions; that the petitioner should be paid for the horses delivered on said contract an aver age price per head of that paid at the same time and in the vicinage by the Government to others for the like quality of horses. The committee find this average price to be $145 per head, and the amount that petitioner is justly entitled to should be the difference betweenthe amount already paid him on the contract and the amount of 500 head of horses at $145 per head, which is. S72, 500 Deduct 500 head at $126.70. 63, 350 Amount due petitioner…. $9, 150 For which amount the committee report the accompanying bill and recommend its passage.