Mr. KELLEY. I now ask to have the senate report on this subject read. The report was read, as follows: “The papers in this caseshows that on the 22dday of Mo, 1863, Paul S. Forbes entered into contract with the Navy Dept to build, a sloop of war, steam screw and to deliver her to fully completedwithin the Government a period of 9 months from the date of contract, which vesselhe also guarantied should have a capacity of speedequal to 15 knots an hour. The contract price for the vessel was the sum of $600,000. “It appears that instead of the vesselbeing deliv ered to the Government in 9 monthsfrom the date of contract she is not yet completely finished. And it further appears that the vessel fails also in the requisite of speed, and is not capable of making the 15 knots an hour required by the terms of the contract. “The Navy Dept admits, and your committee fully believe, that Mr. Forbes was actuated by patriotic motives in entering into this contract. He is a merchant and ship owner, and has had a large number of steamers built for the merchant marine, and with marked success. At a time when the exigencies of the country demanded a large increase of the Navy, and when every effort in was an effort for the public good, Mr.thFaotrbdeirse, cftuiollyn believing that he would thereby do the country a service, came forward with his proposition to build the aforesaid vessel. He did not expect to make an money thereby, but he believed that he could, with his experience and energy, furnish the Navy with a superior vessel in a country brief period, and thus assist, the oSecretary the conflict with her foes. The of the Navy, in a communication to the committee upon this subject, says upon this point: ‘That Mr. Forbes did not engage in mercenary this work from or pecuniary motives, I have always believed.” He persuaded himsel or was persuadedby others, that he could in a brie time build a vessel possessing superior qualities to an“yYowuhrich the Navy Dept could build.” committee are informed, and believe, that the vessel in question has cost Mr. Forbes some 300,000 dollars above the contract price, or some 900,000 dollars in all. They are also informed that, with the exception of gine, the en the vessel is well built, and that she is fully worth to the Government, notwithstanding the deficiencies of her engines, the amount of the contract rice. Your committee, therefore, in view of this act, and in consideration of the patriotic motives which prompted Mr. Forbes to tract, enter into the conand also in consideration of the fact that the Government is enabled to profit, by the knowledge and experience derived from such experiments, feel warranted in recommending, as they do, that Mr. Forbes bereleasedfrom his contract for the construction and furnishing of the steamscrew sloop of war Idaho, and that the N ".Dept be authorized to purchase, the vessel, when completed, at a exceeding cost not the contract price. Or if, in the judgment of the SecyNavy, the interests of the Government may be the better subserved; he is powered en to transfer to said Paul S. Forbes the said vesselwhen the said Forbes shall give good and sufficient guarantee that he will refund toernment, the govwithin 6 months from the date of transfer, said all moneys advanced by the Government to him on his contract for the building and furnishing of portthe said vessel. Your committee, therefore, rethe accompanying JtResolution.