Diary of Gideon Welles: Thursday, April 21, 1864

There was a pleasant party at our house last evening, with an attendance of about three hundred. All passed off pleasantly, and all who expressed themselves seemed much gratified, as we were. It is spoken of as one of the most agreeable parties of the season.

Olcott and Wilson were here on Tuesday. The former is very full of frauds in Boston and is rabid to be at the books of certain parties. The man has an insatiate appetite to get on the track of suspected parties.  He shows not only ken scent but much sagacity.

Mr. Wilson has his charges and specifications against the parties in New York prepared and in the hands of the copyists.

SOURCE: Gideon Welles, Diary of Gideon Welles, Secretary of the Navy Under Lincoln and Johnson, Vol. 2: April 1, 1864 — December 31, 1866, p. 15-6

Diary of Gideon Welles: Wednesday, April 13, 1864

Matters press on the Department. Have been very busy. Some talk with Rice about Annapolis and the Naval School, League Island and the navy yard. Suggested that New England must not monopolize and that we should avoid even the appearance of sectionalism.

Consulted Mr. Eames yesterday and again to-day in relation to the investigations into the frauds of naval contractors and others. Told him he must go to Boston to supervise Olcott, who is fierce in diving into matters and often, I apprehend, without judgment.

SOURCE: Gideon Welles, Diary of Gideon Welles, Secretary of the Navy Under Lincoln and Johnson, Vol. 2: April 1, 1864 — December 31, 1866, p. 11

Diary of Gideon Welles: Saturday, April 9, 1864

Senator Wilson to-day and Mr. Rice yesterday called in relation to the investigations which Olcott is prosecuting in Boston. They both were moved to call by Smith brothers, who are beginning to feel uneasy. Their attacks on others, if not their wrong acts, have provoked inquiries concerning themselves. I remarked to each of the gentlemen that the Smiths had nothing to apprehend if they had done no wrong.

Finished draft of letter in reply to three resolutions — one of the Senate and two of the House — inquiring concerning the ironclads, Du Pont's attack last April, etc. The documents to be sent are voluminous. Du Pont instigated the inquiry, and will be very likely to regret it, not having seen my report and accompanying papers. He evidently thought I would not publish the detailed reports, which he had secured and prepared for a purpose, but I had communicated them with my report. Spaulding, one of the Naval Committee, allowed himself to be used in the intrigue, and, to his discredit, called for the documents which I had sent in with report and which had been printed before his resolution was offered, though he avers I had not presented them. Few of the Members of Congress do their work thoroughly, or give matters examination, and hence, like Spaulding, are often victimized. But Du Pont and his friend Winter Davis, like all intriguers, overrode themselves in some of their movements. For two years Du Pont was the petted man of the Department. He has abilities and had courted and brought into his clique many of the best officers of the Navy. These always were lauding him. Those who were not of his circle were silent, and I had to form my opinions and conclusions from what I saw and heard. Fox was very devoted to him and could never do too much for him. To no man has he ever evinced more partiality. As a general thing, I have thought Fox, considering his associations and prejudices formed in the service, has been fair and just towards the officers, but DuPont asked for nothing that Fox was not willing and urgent to have me grant, yet eventually D. turned upon him.

SOURCE: Gideon Welles, Diary of Gideon Welles, Secretary of the Navy Under Lincoln and Johnson, Vol. 2: April 1, 1864 — December 31, 1866, p. 7-8

Diary of Gideon Welles: Saturday, April 2, 1864

John M. Forbes called. After talking on one or two subjects he spoke of the National Convention and his regret that the call was so early, and asked me as one of the committee to reconsider the subject. Told him I would hear and consider anything from him, but that my mind was deliberately made up, and I thought the sooner the nomination was made, the better united we should be. He went over the usual ground, — if the summer campaign was unfortunate, etc., etc., how could we change our candidates? I answered we did not intend to be unfortunate, but if we were, I could not see how any different candidate would help the Union cause. Reverses might strengthen the Copperheads.

He then talked of the President, — his want of energy, decision, promptness, in consequence of which the country suffered. It was evident from what I gathered that Mr. Forbes wanted another candidate than Abraham Lincoln, and hence he desired delay. Forbes means well. His heart is right. He is shrewd and sagacious, but men betray their feelings and partialities unavoidably. I have no doubt he desires to have Mr. Chase a candidate, though he speaks of only Ben Butler, whom he dislikes.

Cautioned Fox to beware of yielding to the suggestions and opinions of detective Olcott, unless fully satisfied by facts in his possession. Mr. Wilson, the counsel, must advise in these matters, and nothing be done in the way of seizure and arrest but by Mr. Wilson's direction.

SOURCE: Gideon Welles, Diary of Gideon Welles, Secretary of the Navy Under Lincoln and Johnson, Vol. 2: April 1, 1864 — December 31, 1866, p. 4-5

Diary of Gideon Welles: Saturday, March 26, 1864

I went early this A.M. to the President on the subject of procuring a transfer of seamen from the Army to the Navy. After reading the papers he said he would take the matter in hand, and before I left the room he rang for his man Edward and told him to go for the Secretary of War, but, stopping him before he got to the door, directed him to call the Secretary of State first. In this whole matter of procuring seamen for the Navy there has been a sorry display of the prejudices of some of the military authorities. Halleck appears to dislike the Navy more than he loves his country.

Olcott, the detective, is here. Has been called to W. by the War Department. He, like those of his employment, is full of mystery, discussed fraud, overwhelming villainy, etc.; but much of it is mere suspicion, or matter susceptible of explanation. Not but that there is great rascality, — sufficient without exaggerating or aggravating it. I did not care to see him and cautioned Fox not to let his judgment be biased by O. The whole of these harsh proceedings are repugnant to my feelings.

Had a conversation with Admiral Dahlgren concerning operations at Charleston, ironclads, army matters, etc. Gillmore has high qualities as an engineer, but very little as a general in command. Lacks administrative ability, powers of organization, and has not that talent which relies on itself and keeps its own counsel. From what D. says, I think Gillmore must have acquiesced at least in the newspaper assaults on D. and the Navy, which if so, is greatly to his discredit. Dahlgren would never have assented to or permitted such assaults on Gillmore.

SOURCE: Gideon Welles, Diary of Gideon Welles, Secretary of the Navy Under Lincoln and Johnson, Vol. 1: 1861 – March 30, 1864, p. 546-7

Diary of Gideon Welles: Tuesday, March 15, 1864

At the Cabinet the principal subject was the issue of a new proclamation, calling for a new draft of 200,000 men in consequence of the Navy draft and other demands. There are about 800,000 men in the field, among them some sailors drawn into the army by improper legislation, and the reckless, grasping policy of the army managers, who think less of the general welfare than of narrow and selfish professional display. It did not seem to me that the call was necessary or even expedient, but I perceived it had been determined upon by Halleck, Seward, and Stanton, and that the President had yielded his acquiescence, and opposition was useless. Blair said nothing. Usher gave a slow but affectedly earnest affirmative. Seward said the object was to compel certain Democratic localities to furnish their proportion, and it was desirable to take advantage of the current which was setting in strong for enlistment. The movement did not strike me favorably.

Henderson, the Navy Agent at New York, and Parke Godwin called this evening. He was disturbed by the Olcott investigations, wanted to consult and advise with me, hoped I would be frank. Thought himself injured by newspaper articles and by Olcott's proceeding. Wished to know what charges or specifications there were against him. I told him I was in no condition to impart information or give advice, or sufficiently informed as to what had taken place to make any statement, even if it was proper, to him; that, if he had done right or nothing wrong, he need be under no apprehension; that his name was much mixed up with certain corruptionists and contractors who were under arrest, and against whom appearances were very bad; that he, better than I, or any one, knew how much there was in all this and whether there was any cause for censure or complaint. He averred there was no cause of complaint against him, — that he was guilty of no wrong. Made inquiries about Olcott, and told of improper and insinuating interrogations put to witnesses, that were unjust to him (H.). I told him I knew nothing of those matters; that I had heard of a most impolitic and reprehensible conversation in the sleeping-car between Olcott and others with him, as to his business and as to persons implicated. Told him O. was an attaché of the War Department, loaned to us for the occasion.

It was my object to listen, and to communicate nothing of the very little I knew of the investigation, and I made them aware of this. I remember that many names were mentioned and some of them, without explanation, were in the shade, but that I was confident some who were thus implicated could explain the transactions satisfactorily.

SOURCE: Gideon Welles, Diary of Gideon Welles, Secretary of the Navy Under Lincoln and Johnson, Vol. 1: 1861 – March 30, 1864, p. 541-3

Diary of Gideon Welles: Monday, March 14, 1864

I spent yesterday with Fox, Faxon, Olcott, and a writer on the papers seized. They are bad enough, showing depravity and wickedness, but in many cases the names of persons are drawn in who are, I believe, guiltless of wrong.

I am not exactly satisfied with Olcott. Coming on in the cars with a criminal witness, he most indiscreetly talked in the sleeping-car of Henderson, Brown, Koons, and others, and their remarks reached the Navy Agent, who was also on board and called on me and stated the facts. Such a conversation in a public car was improper, and the person is not a proper one to have the liberty, character, and rights of others at his disposal. Fox, however, in his ardent nature, gives Olcott full credence and support, and is ready to follow his suggestions and suspicions to any extreme. I am reluctant to violate great fundamental principles of right. Fox says Senators Fessenden and Grimes beg that I will not hesitate.

I called on Judge Blair this morning and had half an hour's conversation. He advises me to press on; says that there is no doubt I am right, that all of these contractors are scoundrels; and thinks I have erred in not at once laying hold of the Navy Agents everywhere and taking possession of their papers. While I cannot think well of scarcely one of the Navy Agents, I am disinclined to the harsh and unnecessary exercise of power, especially as there is no explicit law or authority. Security to persons and papers has been a maxim in my political creed, and I cannot relieve my mind from it, even when compelled to take measures with bad men.

SOURCE: Gideon Welles, Diary of Gideon Welles, Secretary of the Navy Under Lincoln and Johnson, Vol. 1: 1861 – March 30, 1864, p. 540-1

Diary of Gideon Welles: Thursday, March 10, 1864

The developments of fraud and swindling by contractors, and I fear by Navy agents and probably other officials, are represented to be astounding. Olcott, the detective, is an employé of the War Department and has been detailed to us for duty. I know less of him than I wish, for one intrusted with so delicate and responsible a duty. Fox is so greedy to get hold of the fellows that I fear he does not sufficiently respect private rights. I therefore hope Olcott is discreet and truthful.

SOURCE: Gideon Welles, Diary of Gideon Welles, Secretary of the Navy Under Lincoln and Johnson, Vol. 1: 1861 – March 30, 1864, p. 539

Diary of Gideon Welles: Friday, March 11, 1864

A pleasant meeting of the Cabinet, and about the time we had concluded General Grant was announced. He had just returned from a visit to the Army of the Potomac, and appeared to better advantage than when I first saw him, but he is without presence. After a very brief interview, he remarked to the President that he should leave this P.M. for Nashville, to return in about two weeks, and should be glad to see the Secretary of War and General Halleck before he left. There was in his deportment little of the dignity and bearing of the soldier but more of an air of business than his first appearance indicated, but he showed latent power.

I called this evening on Governor Morgan to consult in regard to a suitable lawyer in New York to take charge of our proceedings with contractors and others. He recommends Bliss¹ as on the whole the best and most fitting person we could have. Says he is intimate with Olcott, and really his prompter. I am not satisfied with intrusting this matter entirely to Olcott, who is expected here tomorrow.

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¹ George Bliss, Esq., was retained by Schofield, and Mr. Nathaniel Wilson was engaged by the Navy Department. (See page 543.)

SOURCE: Gideon Welles, Diary of Gideon Welles, Secretary of the Navy Under Lincoln and Johnson, Vol. 1: 1861 – March 30, 1864, p. 539-40

Diary of Gideon Welles: Saturday, March 12, 1864

Olcott has arrived and been most of the day with Fox, Grimes, and Odell.¹ They all came to me about 2 P.M. and represent the papers in O.'s possession as disclosing a terrible state of things. Odell and Gooch told me on Thursday that they had examined the books and papers seized, and that they showed fraud and villainy such as had never been known, and urged the arrest of Keeler, Koons, and others. Brown, the Navy Agent here, and Henderson in New York, they say, are implicated.

To-day I am told the same thing by the others also. I remarked that the Navy Department had no solicitor or law officer whom I could consult, or with whom I could share responsibility. Grimes and the others enjoined upon me not to hesitate for a moment but to seize and lock up all who are implicated or suspected.

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1 Moses F. Odell, member of Congress from New York.

SOURCE: Gideon Welles, Diary of Gideon Welles, Secretary of the Navy Under Lincoln and Johnson, Vol. 1: 1861 – March 30, 1864, p. 540