J. H. Merryman to George Wright, May 26, 1862

Brig. Gen. GEORGE WRIGHT, Commanding Department of the Pacific:

GENERAL: I have the honor to acknowledge the receipt of a communication from you, dated 14th instant, authorizing Victor Smith, collector of customs, now absent, to take charge of the post and public buildings at Fort Townsend to be used as a marine hospital. Being satisfied that you granted this authority under the impression that some benefit would accrue to the Government, deem it my duty to inform you how far the interests of the United States are subserved by the occupation of said buildings for the purpose designated in your letter. There are three classes of marine hospitals, viz: First, where a building is erected for the purpose and the officers and servants appointed, and the whole expenses defrayed by the Government, through its agent, the collector of customs. Second, when the United States erect a building and place the same in charge of the city authorities under a contract for the accommodation of sick and disabled seamen at a certain rate per week, per capita. The only hospital of this class was at Charleston, S. ©. Third, when contracts are made with medical or other incorporated bodies orindividuals for the relief of the sick and disabled seamen in hospitals under their charge at certain rates per day or per week. The marine hospital here is of the third class, and Dr. John Allyn has contracted with the United States in the manner and form prescribed by law, ‘to provide said seamen with good and suitable lodging, medicine, and medical attendance, at the rate of $1.50 per diem for each and every patient” The military barracks at Fort Townsend have thus been occupied by Allyn since last September, and he has paid Victor Smith $218 for the rent thereof, to April 1, which sum Smith has appropriated to his own use. I have reported Victor Smith to the Secretary of the Treasury for embezzlement of the sum of $4,354.98, and for official misconduct of the most disgraceful character. Much of it in connection with the marine hospital.

With great respect, your obedient servant,