Mr. Whitney’s terse observations embodied the whole logic of the penalty and premium system, and his argument was so conclusive that no further discussion seemed to be desired. The system remained in effect nearly ten years, and was applied to every vessel built for the new navy up to and including the “Iowa” and “Brooklyn.” Every ship built by Mr. Cramp earned a premium for excess of either indicated horse-power or speed. None of his ships exhibited deficiency. The list is rather interesting, because it exhibits more graphically than any other method could do the actual extent to which the contract requirement was exceeded in each case. “Yorktown” (horse-power) $39,825.00 “Baltimore” (horse-power) 106,441.00 “Newark” (horse-power) 36,857.00 “Philadelphia” (speed) 100,000.00 “New York” (speed) 200,000.00 “Columbia” (speed) 300,000.00 “Minneapolis” (speed) 414,600.00 “Indiana” (speed) 50,000.00 “Massachusetts” (speed) 100,000.00 “Iowa” (speed) 217,420.00 “Brooklyn” (speed) 350,000.00 ––––––––––– $1,915,143.00 When the administration of Mr. Whitney ended in March, 1889, he left over to his successor the most important work in the way of new departure yet attempted. Of his successor, General B. F. Tracy, of New York, Mr. Cramp, speaking of the man and the task before him, says: “Secretary Tracy entered the Navy Department under very favorable auspices. He was himself free from entanglements, political or personal. His previous public life, aside from service as a colonel and brigadier-general in the Civil War, had been confined to legal and judicial positions, his highest post having been that of Justice of the New York Court of Appeals, the Court of last resort. To the affairs of the Navy Department in general he applied the judicial habits formed on the Bench. In technical matters, he enjoyed at the outset of his administration the continuing services of Commodore—now become Rear-Admiral—Walker, whose term extended till December, 1889; and who, by the way, had the honor, after eight years of service as Chief of Bureau, to command the first American squadron of modern war-ships known to history as ‘the White Squadron.’