erations of New York. The
necessary details to carry this agreement into effect were arranged
between General Hillhouse, for the United States, and W. A. Camp,
manager of the New York clearing house.

CHAPTER XXV.
INVESTIGATION OF THE NEW YORK CUSTOMHOUSE.
A General Examination of Several Ports Ordered--No Difficulty Except
at New York--First Report of the Commission--President Hayes'
Recommendations--Letter of Instructions to Collector C. A. Arthur
--Second Report of the Commission--Losses to the Government by
Reason of Inefficiency of Employees--Various Measures of Reform
Recommended--Four Other Reports Made--The President Decides on the
Removal of Arthur, Cornell and Sharpe--Two Letters to R. C. McCormick
on the Subject--Arthur et al. Refuse to Resign--The Senate Twice
Refuses to Confirm the Men Appointed by the President to Succeed
Them--Conkling's Contest Against Civil Service Reform--My Letter
to Senator Allison--Final Victory of the President.

At the beginning of the administration of President Hayes, and for
months previous, there had been complaints as to the conduct of
business in the principal customhouses of the United States. This
was especially called to my attention, and at my suggestion the
President directed an examination into the conduct of the customhouses
at New York, Philadelphia, New Orleans, San Francisco and perhaps
other ports. Examinations were made by intelligent business men
selected in the various ports, and full reports were made by them,
and printed as public documents. Many changes were made, and
reforms adopted, founded upon these reports, and there was no
difficulty except only at the port of New York, where more than
two-thirds of all the customs revenue was collected. Chester A.
Arthur was then collector of the port, A. B. Cornell was naval
officer, and George H. Sharpe was appraiser.

On the 23rd of April, 1877, I designated John Jay, Lawrence Turnure,
of New York, and J. H. Robinson, Assistant Solicitor of the Treasury,
as a commission on the New York customhouse. They were requested
to make a thorough examination into the conduct of business in that
customhouse. Full instructions were given and many specifications
were made in detail of all the points embraced in their examination.

On the 24th of May they made their first report, preferring to
treat the general subject-matter separately. This report related
chiefly to appointments upon political influence without