Diary of Gideon Welles: Wednesday, April 25, 1866

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

Diary of Gideon Welles: Tuesday, March 21, 1865

Called on the President this morning concerning the Smith case. Asked if the same course should be pursued with Ben as with Frank. He said yes if there was no more evidence. I asked what I was to do with the employees who had been in complicity with Smith and passed his articles. We then had a little conversation as regards the master machinist, Merriam, and one or two others. The President said if they had been remiss, Smith's pardon ought not to cover them.

I stated the case of Armbrister of Philadelphia, a young contractor who had been detected like Smith, and under the stern commands of his father-in-law had made a full confession, and the latter had made full restitution to the amount of more than $14,800. That the President said was a large amount, greatly exceeding Smith's. I told him Smith had not been taken in hand by his father-in-law, had made no confession, no restitution. Now the question was whether I should prosecute and have him fined and imprisoned after doing all in his power to make the government good, while Smith, an older and, I feared, a much greater offender, who made no confession, no restitution, went unpunished.

The President was annoyed. I told him there were a number of persons under bonds, who had confessed and made restitution of smaller amounts. Were their offenses to be overlooked or excused?

After some little talk, he wished me to get our solicitor to look into these cases, and call again. He has evidently acted without due consideration, on the suggestion and advice of Sumner, who is emotional, and under the pressure of Massachusetts politicians, who have been active to screen these parties regardless of their guilt.

When at the Cabinet to-day, the President and McCulloch wished to know if I would be willing to take Arnold of Chicago for Solicitor of the Navy, and release Chandler for a Treasury appointment. While I think Arnold a worthy and an estimable man, I told the President and Secretary of the Treasury I preferred that Chandler should go forward with his duties. McCulloch was a little pressing; the President, however, did not urge the matter

SOURCE: Gideon Welles, Diary of Gideon Welles, Secretary of the Navy Under Lincoln and Johnson, Vol. 2: April 1, 1864 — December 31, 1866, p. 261-2; William E. Gienapp & Erica L. Gienapp, Editors, The Civil War Diary of Gideon Welles, Lincolns Secretary of the Navy, p. 607-8

Diary of Gideon Welles: Wednesday, March 22, 1865

Mr. Eames brings me the opinion of the Court in the cotton case of prize — Alexander Red River cotton. I think Chief Justice Chase has got himself in a fix, and will have to back down. He must divest himself of personal aspiration and partisan feeling to be a successful judge. The Court will not be subservient to him if he commits such grave mistakes.

Olcott, the detective, or commissioner, writes Fox a strange letter about the conclusions in Smith's case. He has seen Sumner's argument, or a part of it, and is alarmed. Sumner says the Smiths should have some redress. Olcott intimates that if they propose to arrest him he will flee the country. The fellow has no moral courage. So long as the responsibility was with me, he was very courageous. He feared I would not fearlessly meet questions, was inclined to encourage me; but as soon as a cloud shadows his path — an ounce of responsibility comes upon him the valiant commissioner wilts and is abject. I had on Monday told Chandler that in my opinion these traits belonged to Olcott; that he was rash, reckless, and arbitrary in the exercise of power but would cringe himself. C. reminds me of this estimate.

SOURCE: Gideon Welles, Diary of Gideon Welles, Secretary of the Navy Under Lincoln and Johnson, Vol. 2: April 1, 1864 — December 31, 1866, p. 263