January 27, Wednesday. The proposed race is likely to fall through. I do not regret this, and since it has this termination I do not regret that the test was proffered. The grumblers and defamers have their mouths closed for a time on that topic.
Stover, the contractor, came to-day to the Department in the full belief he had been acquitted by the court martial. I sent for the provost marshal to arrest him, and while the papers were being made out he came into my room. He denounced Missroon, Jacobs, and others as swindlers and corrupt. Said M. had cleared fifty thousand dollars, was building a magnificent house and dealing in stocks. I told him M. had not that reputation, but that my impressions of him were favorable. He said he had made money out of the government, but not through the Navy Department, that he, S., had lost more than forty thousand dollars by the Navy Department. When he left my room Provost Marshal Baker arrested him in the hall. He was excessively alarmed, I am told, and declined to ride with the provost marshal until told he must do so.
The Eutaw made a trip down the river that was satisfactory in its results, showing good speed. Another trip is to be made on Saturday, for the naval committees.