Major-General
Benjamin F. Butler is exercising a great and dangerous influence at the
Treasury Department. He has been employed in some cases and is using his
opportunities to press others where he is employed as counsel. As he has
talents but no principles, is avaricious and unscrupulous, I have given our
friends McCulloch and Chandler at the Treasury an occasional admonition
concerning him.
In 1863 the Grey
Jacket, a steamer laden with cotton, was captured by the Kennebec on the way
from Mobile to Cuba. The cargo and vessel were valued at about half a million
of dollars, and were condemned on the showing of the captain and owners. An
appeal was taken, but the case was so flagrant that there was no avoiding
condemnation. The owners had employed various counsel, — first Nott and others
of New Orleans, then Seward and Blatchford of New York, but all have on hearing
the facts abandoned the case. About the first of last December it was put in
the hands of General Butler, who commenced a series of intrigues and
manoeuvres, and from his persistency and unscrupulousness had evidently a large
contingent fee. I have heard it stated at $125,000. But he found no favor at
the Navy Department. His last appeal with me was a half-threat to go to
Congress and make an appeal to their sympathies for a man who had lost his all
by this capture and condemnation. I replied that my appeal for sympathy in
behalf of the sailors who had nobly done their duty in sunshine and storm, in
winter and summer, day and night, would probably be as effective as his. He
then changed, proposed that the captors should take one half and the claimant
the other, surrendering by this arrangement the moiety which should go to the
naval pension fund. I told him that was impossible; the Secretary of the Navy
should make no such arrangement; moreover he was the trustee of that fund and
held it sacred.
One other futile
attempt was made in company with the Attorney-General, whom he persuaded to
come with him, but after a brief talk Speed appeared to think he had been
imposed upon and abandoned the case.
Failing at these
points, Butler commenced intriguing at the Treasury, where he was listened to
by Chandler, and finally Caleb Cushing was employed at Chandler's suggestion to
give a written opinion, General Butler being the prompter. Cushing was timid,
hesitated to present his opinion unsustained, and General Butler drew up a
preamble and resolution which he procured Thad Stevens to present and procured
to be passed under the previous question, without debate, to the effect that
cases of this description should be suspended until the judgment of the Supreme
Court should be obtained next winter. There are one or two clauses in certain
acts which Chase procured to be inserted when he was striving to absorb the
whole government in the Treasury Department, having the Presidency in view.
These clauses Butler and Cushing made the foundation of their proceeding.
Stevens's resolution was passed on the 9th, and Cushing's opinion is dated on
the 11th. The whole thing is disgraceful even to a lobby agent and
discreditable to the Treasury Department, which has, so far as the Secretary is
concerned, unwittingly lent itself to Butler. How far the Assistant Secretary is
involved is uncertain. . . . Great derangement in order to get a great fee has
been effected.
SOURCE: Gideon
Welles, Diary of Gideon Welles, Secretary of the Navy Under Lincoln and
Johnson, Vol. 2: April 1, 1864 — December 31, 1866, p. 492-3
