March 28, Monday. Saw Mr. Wilson yesterday relative to the arrests of, and proceedings against, fraudulent contractors. Told him he must take charge of the matter, be mild towards the prisoners, let them be as little interrupted in their business as possible. He appears sensible, discreet, and judicious, and I hope will manage nicely and well. I dislike the whole affair and think great responsibility is improperly on me.
The President sent for Fox and myself on Saturday evening. Fox, who had been deputed to negotiate matters with Halleck relative to transfers, was disgusted and a little overreached and had also written as well as myself to the President. The latter desired to see us both Saturday P.M. and requested an order might be prepared which we took to him this A.M. It was less mandatory than I wished, but I know his reluctance to come in conflict with the Secretary of War, — certainly not in a harsh manner. The order was mild and his own, and for the Secretary of War to issue to carry it into effect. He wished me to write an order for the Secretary of War. I could see the President wished to have before him the practical working. Gave him an order forthwith.
Captain Rolando came to-day, pursuant to orders, relative to his intercepted letter to Fox and the capture of the William Peel. Thinks the letter interpolated. I am fearful Seward will, in this case, yield too much to Lord Lyons.
