[516] Grant's Commission created rules for competitive exams, the end of mandatory political assessments, classifying positions into grades, and appointees were chosen from the top three performing federal applicants.[517] The rules took effect on January 1, 1872, but Department heads, and others were exempted.[518][bd][be] Grant, more than any previous president, elevated the federal civil service, but his critics refused to acknowledge this.[518]
In November 1871, Grant's appointed New York Collector, and Conkling ally, Thomas Murphy, resigned. Grant replaced Murphy with another Conkling ally, Chester A. Arthur, who implemented Boutwell's reforms.[521] A Senate committee investigated the New York Customs House from January 3, 1872, to June 4, 1872. Previous Grant appointed collectors Murphy and Moses H. Grinnell charged lucrative fees for warehouse space, without the legal requirement of listing the goods.[522] This led to Grant firing warehouse owner George K. Leet, for pocketing the exorbitant freight fees and splitting the profits.[523][bf]  Boutwell's reforms included stricter record-keeping and that goods be stored on company docks.[522] Grant ordered prosecutions in New York by Attorney General George H. Williams and Secretary of Treasury Boutwell of persons accepting and paying for bribes.