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been informed, where a "Chain gang" has been organized is Salisbury in the Western District which is described in the "Report" as "a bright exception." There at the time of their visit General Steadman and Fullerton might have seen such a "gang" at work upon the streets. Col. Cilley assures me that he told Gen'l Steadman that he had such an organization, and that Gen'l Steadman expressed his entire approval.

In this connection I will quote a sentence from the conversations of the Commissioners with Freedmen at Wilmington phonographically reported by Mr. M.L Williston.

"Steadman." It has been named that some of the Bureau Officers have been interested in plantations and have compelled black men to labor for them. I have been told that if colored men would not work for them they forced them into Chain gangs and set them to work in the streets (Cries of "Not so" No, No, from all parts of the house)
Nixon. I never heard of one instance of the kind.
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EVILS OF THE SYSTEM.
Without attempting to discuss the propriety of officers of the Bureau in the military service of the United States, who are paid by the Government for the performance of their duties, engaging in private business, and employing freedmen for such purposes while controlling through their official positions that class of labor, we deem it our duty to state some of the effects produced, both upon the officers themselves and upon the planters with whom they come in competition, by such conduct. Major Wickersham in contracting to furnish forty laborers to work on a rice plantation, becomes at once interested against the laborers [[??]] he compels to labor, perhaps unjustly, when unfairly [[?]] with by the person working them on the plantation on their refusing to work, he inflicts upon them unlawful, and [[?]] breach of contract, unheard of punishments, putting [[?]] on chain gangs as if they were convicted criminals. Colonel Whittlesey, or any other officer of less [[?]] influence in the Bureau, who is engaged in working plantations rented for cash or on shares, becomes interested in securing a low rate of wages and in making the most stringent labor regulations, to the great detriment of the freedmen. They thereby give the sanction of the Government to the establishment of wages far below what the labor is really worth. Officers of the Quartermaster's and Commissary Departments who are thus engaged are subjected to the temptations of appropriating to their own use quartermaster's stores and rations to supply and pay their own laborers. Complaints have been made to me by the planters that these agents of the Bureau use the power of their positions to obtain and control the best labor in the State. There is no doubt that some of [[the?]] feeling manifested toward the Bureau on the part of the planters [[?]] to this fact

ARBITRARY POWER OF THE BUREAU.
The arbitrary power exercised by some of the officers and agents of the Bureau in making arrests, imposing fines, and in inflicting punishments, disregarding the local laws and especially [[?]] limitations, creates prejudice against the Government. If the officers were all honest and intelligent, with [[?]] limited legal information it might [[?]] to trust them with this extraordinary power but in any instances the [[?]] do not possess the slightest knowledge of law. At Goldsboro, the agent, Captain [[Glavis?]] and posed fine of $15 on one freedman for stabbing another so severely as to endanger his life, and when interrogated by us relative to this case, he stated that he did not know enough about law to distinguish a civil from a criminal case.
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THE RECOMMENDATION.
We are satisfied that the recommendation which we made in reference to the withdrawal of the officers of the Bureau in Virginia, and the transference to the officers commanding the troops of such duties as it may still be necessary to perform in connection with the freedmen, is equally applicable to North Carolina.
Very respectfully, your obedient servants,
JAS. B. STEEDMAN, Maj. Gen. Volunteers.
[[?]] Fullerton, Brig. Gen. Volunteers.