Diary of Gideon Welles

March 15, Tuesday. 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.

March 14, Monday. 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.

March 12, Saturday. Olcott has arrived and been most of the day with Fox, Grimes, and Odell (Moses F. Odell, Member of Congress from New York). 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.

March 11, Friday. 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 Bliss (George Bliss, Esq., was retained by Scofield, and Mr. Nathaniel Wilson was engaged by the Navy Department) 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.

March 10, Thursday. 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.

March 9, Wednesday. Went last evening to the Presidential reception. Quite a gathering; very many that are not usually seen at receptions were attracted thither, I presume, from the fact that General Grant was expected to be there. He came about half-past nine. I was near the centre of the reception room, when a stir and buzz attracted attention, and it was whispered that General Grant had arrived. The room was not full, the crowd having passed through to the East Room. I saw some men in uniform standing at the entrance, and one of them, a short, brown, dark-haired man, was talking with the President. There was hesitation, a degree of awkwardness in the General, and embarrassment in that part of the room, and a check or suspension of the moving column. Soon word was passed around for “Mr. Seward.” “General Grant is here,” and Seward, who was just behind me, hurried and took the General by the hand and led him to Mrs. Lincoln, near whom I was standing. The crowd gathered around the circle rapidly, and, it being intimated that it would be necessary the throng should pass on, Seward took the General’s arm and went with him to the East Room. There was clapping of hands in the next room as he passed through, and all in the East Room joined in it as he entered. A cheer or two followed. All of which seemed rowdy and unseemly. An hour later the General and Mr. Seward and Stanton returned. Seward beckoned me and introduced me and my two nieces.

To-day I received a note from the Secretary of State to be at the Executive Mansion quarter before 1 P.M. The Cabinet was all there, and General Grant and his staff with the Secretary of War and General Halleck entered. The President met him and presented to the General his commission (As Lieutenant-General of the United States Army) with remarks, to which the latter responded. Both read their remarks. General Grant was somewhat embarrassed.

A conversation of half an hour followed on various subjects, but chiefly the war and the operations of Sherman.

March 8, Tuesday. Received a telegram from Admiral Lee this P.M., confirming a rumor that was whispered yesterday of the death of young Dahlgren. He was surrounded, it seems, by superior forces near King and Queen Court-House, and fell attempting to cut his way through. Most of his command was captured. A few escaped and got on board of the gunboat which had been sent for their relief.

A more gallant and brave-hearted fellow was not to be found in the service. His death will be a terrible blow to his father, who doted upon him and not without reason. I apprehend this raid was not a wise and well-planned scheme. Tested by results, it was not. Whether the War Department advised it I do not know. I heard it spoken of indefinitely and vaguely, but with no certainty till the expedition had started.

Fox is full of zeal to get hold of the fraudulent contractors and all that belongs to them, and the whole subject is committed to him. I exceedingly dislike these irregular proceedings. There should be proper law officers to whom these matters should be committed, and not impose them upon the heads of Departments. I must try to have Congress take the matter in hand, and pass the necessary laws, or devise some proper action. I do not like matters as they now are.

March 7, Monday. Called yesterday to see Admiral Dahlgren. While there the President and Secretary of War came in with a telegram from General Butler, announcing that his son, Colonel Dahlgren, was alive and well with a force of about one hundred at King and Queen. Of course we were all gratified. The President was much affected.

To-day I have, or rather Fox, who has special charge of the matter, had, word from Olcott, the employé of the War Department, stating he had found evidence of enormous frauds by Scofield, Savage, and Raymond, and wanted the whole of them arrested, or he had them arrested. Wished a guard detailed to seize Savage’s store, etc. When Fox brought me the papers, I said to him that the whole subject had been committed to him, and I could not undertake, with my other duties, to enter upon the details of frauds by these contractors. Besides I doubted the rightfulness of seizing men and their papers and valuables on mere suspicion. Advised him to consult legal gentlemen at the War Department, Olcott being a detective assigned by the Secretary of War.

A long letter from Chase in relation to permits and trade regulations, explaining his position, and showing not only some sensitiveness but a little irritation. His letter is based on a reply to two communications made by me on the 18th ult. in regard to the Ann Hamilton and the Princeton. I think him wrong in his conclusions as regards these vessels, and also mistaken as to the course and position of others. In the matter of the embargo first, and subsequently in that of communication and traffic in the Rebel regions, he took ground with me, but failed me and slid in with the others when action became necessary. I disliked the scheme of trade regulations, but it was concluded to have them, on the permits of the Treasury, War, and Navy Departments. Soon he deputed the subject of clearances to others, and Stanton deputed authority to grant permits to his officers, and abuse and demoralization followed.

March 4, Friday. Seward sends me the copy of a communication which he proposes to send to Lord Lyons respecting the rights and duties of our naval officers, particularly those on blockade duty in the Gulf. It is a singularly weak and erring document. My first thought was to criticize and attempt to correct it, but this could not well be done without making a new paper of it and would appear badly. Talked over the subject with Fox and also with Watkins. Finally gave the latter my views, suggested the points, and directed him to prepare a letter based on these points.

A pleasant Cabinet-meeting. Chase and Blair both absent. Seward and Stanton had a corner chat and laugh about Chase, whose name occasionally escaped them, and whom they appeared to think in a dilemma, and they were evidently not unwilling we should know the subject of their conversation. I could not avoid hearing some of their remarks, though I changed my position to escape them.

A week or two since, Admiral Lee sent me certain papers in the case of the steamer Princeton, then at Norfolk, among them a permit from General Butler, authorizing the vessel to go on a trading voyage in the sounds and rivers of North Carolina, provided Admiral Lee would consent. The latter would not consent without orders from the Navy Department, and I approved his course in refusing. Now the Messrs. Oliver & Co. file a paper arguing their claims to proceed on the voyage under a permit of General Butler, dated last December, authorizing the Princeton to clear for Hampton Roads. This paper of Oliver & Co. is addressed to the Assistant Secretary and ingeniously designed to cover the transaction. Watkins and Fox were disposed to favor the latter application, but I told them it was not permissible, pointed out the discrepancies, told them the vessel had, as authorized, cleared for Hampton Roads, but she wanted to go further, which that permit did not warrant; and a further permit was secured.