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from Great Britain to the United States; and it taints all the subsequent conduct of Great Britain toward the United States during the struggle.

On the 31st day of the same month, instructions issued from the Foreign Office, prescribing the amount of hospitalities to be extended to the belligerents.

Instructions as to

These instructions have already been referred to. They provided that: 1. No ship of war or privateer of either belligerent was to hospitalities to the be permitted to enter any port, roadstead, or water in the belligerents. Baliamas except by special leave of the Lieutenant Governor, or in case of stress of weather; and in case such permission should be given, the vessel was nevertheless to be required to go to sea as soon as possible, and with no supplies except such as might be necessary for immediate use. 2. No ship of war or privateer of either belligerent was to be permitted to use British ports or waters as a station or place of resort for any warlike purpose, or for the purpose of obtaining any facilities of warlike equipment. 3. Such ships or privateers entering British waters were to be required to depart within twenty-four hours after entrance, except in case of stress of weather, or re- [234] quiring provisions or things for the crew or repairs; in which cases they were to go to sea as soon as possible after the expiration of the twenty-four hours, taking only the supplies necessary for immediate use; they were not to remain in port more than twenty-four hours after the completion of necessary repairs. 4. Supplies to such ships or privateers were to be limited to what might be necessary for the subsistence of the crew, and to enough coal to take the vessel to the nearest port of its own country or to some nearer destination; and a vessel that had been supplied with coal in British waters could not be again supplied with it within British jurisdiction, until after the expiration of three months from the date of the last supply taken from a British port.1

threats.

Almost simultaneously with the announcement by Earl Russell of an Lord Palmerston's imaginary condition of affairs at Nassau, Lord Palmerston stated to Mr. Adams that "it would not do for the United States ships of war to harass British commerce on the high seas, under pretense of preventing the Confederates from receiving things that are contraband of war." Thus, Great Britain, in the month of January, 1862, through Earl Russell and Lord Palmerston, and the in structions to the Admiralty ex*cluding United States vessels of [235] war from the port of Nassau, except by permission of the Gover nor, virtually said to the United States: "You complain that the insurgents make illegal use of Nassau, to your injury, in violation of the Queen's Proclamation, and of our duties as a neutral. We deny the fact; at the same time we exclude your vessels from that port, the place where you can best establish the truth of your allegations, and we warn you not to attempt to prove them by examining too closely, on the high seas, the vessels which sail under the British flag."

Having now shown how the operations of the insurgents began at Nassau, and how they were facilitated by the co-operation and complicity of the local authorities, it will not be necessary to trespass on the patience of the Tribunal of Arbitration by a similarly minute examination of the doings at that port for the rest of the year 1862. Other vessels, freighted with contraband of war, followed the Gladiator. The Economist and the Southwick came closely upon her track, and Heyliger was 2 Earl Russell to Lord Lyons, Vol. II, page 591.

1 Vol. IV, page 175.

directed to do with their cargoes as he had done with the Gladiator's.1 Huse was also instructed to continue his purchases, and to send to the

West India Islands, where the steamers could break bulk.2 Huse [236] called the attention of his principals to the efficiency of the

blockade; said that the vessels which brought the cargoes across the Atlantic could not enter the blockaded ports; urged them to continue the system of transshipment; and complained of the activity of the United States officials. It was considered important to have a naval officer in charge of the transshipments, and Maffitt was detailed for the purpose. He arrived there on or about the 21st of May, and reported that he had assumed command of the Manassas, [Florida;] which had arrived there from Liverpool on the 28th day of April; said that his "ambition was great;" and promised to give "annoyance to the enemy."5 In May the supply of coal for the insurgent vessels fell short, and Heyliger went to Bermuda to buy some. The steps taken about this time for the detention of the Florida will be alluded to later.

at Nassau for British

The cargoes of contraband of war that were thus transshipped were entered on the manifests as for St. John's, New Brunswick. Contraband of war It could not but have been well known at the custom-house fraudulently cleared that this was a fraud; yet the customs authorities winked ports. at the fraud, and gave the vessels clearances as British vessels sailing for British ports.

[237] *Heyliger continued to report the transshipment and forwarding of these arms and military supplies. He noticed the arrival and departure of the "Kate," and other vessels, on account of the insurgent authorities, and ou the 26th of July, 1862, he reported that the "Steamer Scotia, a private venture," was about to leave with a large supply of rifles, powder, and other ammunition. He did not report any other "private venture," so far as known to the United States.

Resume

for the

The operations of Huse during this year, and his shipments through Heyliger, are detailed as follows in a letter to Colonel Gorgas, insurgent Chief of Ordnance, to the insurgent Secre- year 1862. tary of War, dated December 3, 1862.9 "The purchase of ordnance and ordnance stores in foreign markets on Government account are made by Major Caleb Huse, C. S. Artillery, who resides in London, and whose address is No. 38 Clarendon Road, Notting Hill, London, West. Major Huse was detailed for this duty in April, 1861. * * * He has purchased arms to the amount of 157,000, stands ?] and large quantities of gunpowder, some artillery, infantry equipments, harness, swords, per

cussion caps, saltpeter, lead, &c. In addition to ordnance stores, [238] using a rare forecast, he has purchased and *shipped large supplies of clothing, blankets, cloth, and shoes for the quartermaster's department, without specific orders to do so. * To pay for these purchases, funds have been from time to time sent to him by the Treasury Department, on requisition from the War Department, amounting in the aggregate to $3,095,139 18. These have been wholly inadequate to his wants, and have fallen far short of our requisitions. He was consequently in debt at latest advices to the

Benjamin to Heyliger, 22d March, 1862, Vol. VI, page 71.
Benjamin to Huse, 10th March, 1862, Vol. VI, page 68.
Huse to Gorgas, 15th March, 1862, Vol. VI, page 69.

4 Randolph to Heyliger, 11th April, 1862, Vol. VI, page 72.
5 Maffitt to Randolph, 21st May, 1862, Vol. VI, page 3.
Heyliger to Randolph, 28th June, 1862, Vol. VI, page 87.

Hawley to Seward, 27th June, 1863, Vol. VI, page 127.

Heyliger to Randolph, Vol. VI, page 92. 9Gorgas to Seddon, Vol. VI, page 104.

S. Ex. 31-7

amount of £444,850, a sum equivalent, when the value of exchange is considered, to $5,925,402 of our currency. * # An agent, Mr. Norman S. Walker, was lately dispatched with $2,000,000 in bonds of the Confederate States. The instructions to Mr. Walker direct him to return to Bermuda, after the disposition of the bonds in England, and after conference with Major Huse. He is to remain there as a resident disbursing agent, and is, in conjunction with Mr. S. G. Porter, charged with the transfers of the cargo of the Harriet Pinkney,' now there, and other ships hereafter to arrive, to the ports of the Confederate States. * * A large part of the cargoes have been landed at Nassau, and thence transmitted to the ports of the Confederate States in fast steamers. Their destination has lately been changed to Bermuda, where sev eral most valuable cargoes are now awaiting transportation. It appears to me to be the appropriate duty of the Navy Depart- [239] ment to assist in the running in of these cargoes; but if the burden of it is to be borne entirely by the War Department, it is highly important that light-draught steamers should be purchased, and used solely for the transportation of cargoes from Bermuda."

*

Bermuda.

This change to Bermuda had been recommended by Huse in the preBase changed to vious August. The reason given was that "the port of Nassau had become dangerous;" and he had appointed as agent there" Mr. S. G. Porter, a gentleman highly recommended by Commander J. D. Bullock." Gorgas inquired of the insurgent Secretary of War whether Huse's appointment of Porter should be approved, and the reply is to be found in the above extract. Walker went there before January 1, 1863,3 and on the 9th day of February, 1863, it was reported that Bermuda was a good depot for the purpose, and that the insurgent authorities "had then three steamers running there."

Having thus shown that the branch of the insurgent War Department established in Great Britain had, during the years 1861 and 1862, purchased arms, ammunition, and supplies to the amount of about nine millions of dollars, and that the branch of their Treasury [240] established at Liverpool had during the same time paid ou account of these purchases over three millions of dollars, and that vessels either belonging to or chartered by the insurgent authorities were occupied as transports, (in violation of the Foreign Enlistment Act of 1819,) in carrying this large quantity of war material from British ports to the insurgents, and in bringing back cotton, the property of the insurgent authorities, to be used in making payments therefor, it is now necessary to see what the branch of their Navy Department, under the direction of Bullock, was engaged in during the same period.

The United States are not able to trace these transactions with the minuteness with which they have been able to narrate the doings of Huse and Heyliger. The correspondence of those who assumed to direct the naval affairs of the insurgents has not come into the possession of the United States, as did the confidential correspondence of other agents heretofore cited. Bullock's operations, however, were on so large a scale that it will not be difficult to follow him. In doing this the United States will confine themselves to general statements, reserv. ing the particulars for the remarks that will be made upon the career of each cruiser.

Huse to Gorgas, 4th August, 1862, Vol. VI, page 93.
Gorgas to Randolph, 1st November, 1862, Vol. VI, page 103.

3 Gorgas to Huse, 1st January, 1863, Vol. VI, page 107.

4 Gorgas to Huse, 9th February, 1863, Vol. VI, page 111.

Bullock, as has been said, established himself in Liverpool in • [241] the summer of 1861. The United States Consul re- What was done at

ports him on the 20th of September as "residing in Liverpoolly Bullock. private lodgings in Liverpool," and as being "chiefly in communication with Fraser, Trenholm & Co., whose office he visits daily." Prioleau, one of the firm of Fraser, Trenholm & Co., says that he occupied for a year after his arrival a room in their office.1

It is probable that as early as October, 1861, he had made the contracts for the two gun-boats which were afterward known as the Florida and the Alabama. The drawings of the Alabama were signed by the Lairds, who built her, on the 9th of October, 1861. The United States have no means for determining the date when the contract was made with Fawcett, Preston & Co., for the Florida. Their Consul at Liverpool has stated that on his arrival at the con: ulate in November, 1861, his attention was called by the acting consul to this vessel, then called the Oreto, and to the Alabama. It is clear, therefore, that the work was advanced at that time.2. Prioleau also testifies that he introduced Bullock to Fawcett, Preston & Co., for the purpose of making the contract for the Florida.3

By the 4th of February, 1862, the Florida was so nearly completed that the Consul at Liverpool wrote, "She is now tak

[242] ing in her coal, and appearances indicate that she

The Florida.

will leave here the latter part of the week without her armament." Her gun-carriages were soon taken on board, in pieces, some in a rough state, and were put in the hcld, and a day or two later she received her provisions, and the crew was shipped. The steamer Bahama preceded her by a few days with her armament, but reached Nassau after her. When the Florida sailed she took a crew of fifty-two men and some guns, and was in every respect a man-of-war except that her armament as not in place. It was conclusively shown at Nassau that she might have been fitted for battle in twenty-four hours after leaving the dock in the Mersey.

The vessel in that condition was consigned by Bullock to Heyliger." The connection of Bullock with the vessel from the beginning is estab lished by this act, as well as by the evidence of Prioleau. The connection of Fraser, Trenholm & Co. is shown by the admission of Prioleau, and by the fact that a member of that firm accompanied her on her trial trip and on her departure."

Mr. Adams called the attention of Earl Russell to the charac[243] ter and destination of this vessel on the 29th of February, and again on the 25th of March, 1861. Her Majesty's Government had ample time to ascertain her character and to detain her. They did go through the form of an examination which, seen in the light of subsequent events, reads like a farce."

The work on the Alabama progressed more slowly than that on the Florida, possibly because it was a larger vessel. She was

launched on the 15th of May, and made her trial trip on the

The Alabama

12th of June.10 "The money for her was advanced by Fraser, Trenholm

1 Vol. VI, page 183.

Dudley to Edwards, Vol. III, page 17.

3 Dudley to Seward, Vol. VI, page 186.

4 Dudley to Seward, Vol. II, page 593.

5 Report of Board of Customs, Vol. II, page 605.

6 Captain Hickley's affidavit, Vol. VI, page 263.

"Heyliger to Randolph, 2d May, 1862, Vol. VI, page 76.
Dudley to Edwards, Vol. III, page 17.

9 Vol. II, pages 595 and 604.

10 Dudley to Seward, Vol. III, page 1.

& Co." Captain Bullock was "all the time in communication with Fawcett, Preston & Co., who fitted out the Oreto, and with the Lairds, who were fitting out this vessel," and went "almost daily on board the gun-boat, and seemed to be recognized as in authority." It was even said in Liverpool that he was to command her. Mr. Adams, on the 23d of June, invited Earl Russell's attention to this vessel, and an examination was ordered. The examiners reported to the Lords Commissioners of Her Majesty's Treasury that it was "most apparent that she is intended for a ship of war," and that "the description of her in the communication of the United States Consul is *most cor- [244] rect, with the exception that her engines are not constructed on the oscillatory principle."3

The evidence of the criminal character of the vessel became so overwhelming that Her Majesty's Government was at length induced to give an order for her detention. Before the order reached Liverpool she had escaped. She ran down to Moelfra Bay, on the coast of the Isle of Anglesey, and there took on board twenty or thirty men from the tug Hercules, with the knowledge of the British officials at Liverpool. She then sailed to the Azores, where she was met by the Agrippina from London and the Bahama from Liverpool. These vessels brought her officers, her armaments, and her coal. The transshipments were made, and then the British ensign was hauled down, and the insurgent flag hoisted.

It is not deemed necessary to examine further, in this connection, the evidence showing the palpable character of this vessel, especially as Lord Russell, in the course of the discussion which ensued, admitted that "it is undoubtedly true that the Alabama was partly fitted out in a British port." That evidence will be discussed more at length in its appropriate place. For the present, the United States only aim to satisfy the Tribunal that, flagrant *as was the violation of neu- [245] trality in the case of the Alabama, it was but a part of the great scheme which was set on foot when Huse, Bullock, and Fraser, Trenholm & Co., combined together in Liverpool.

The Sumter at Gibralter.

The operations of Captain Bullock were manifest about this time in quite another quarter of the globe. The insurgent steamer Sumter put into Gibraltar in January, 1862, out of coal, and not being able immediately to obtain any was obliged to remain there until United States men-of-war arrived in those waters. Deeming it impossible to escape she was then offered for sale, and when the sellers came to make title, the officer in charge produced "a power of attor ney from a certain Bullock, who styles himself senior naval officer in Europe." Great Britain, in spite of the protests of the United States officials, permitted a sale to take place, and it is not improbable that, if the sale was bona fide, the money went to the insurgent agents to swell the fund for the payment of the Alabama and the Florida, then in the Mersey.

The Florida at Nassua.

funds.

When the Florida reached Nassau, it was again found necessary to depend upon the Liverpool combination for

The insurgent Secretary of the Navy making *application to [246]

1 Dudley to Edwards, Vol. III, page 18.

2 Dudley to Adams, Vol. III, page 6.

3 Report of Board of Customs, Vol. III, page 7.

4 Earl Russell to Mr. Adams, 29th September, 1864, Vol. III, page 299.

Sprague to Adams, 9th December, 1862, Vol. II, page 507.

Sprague to Freeling, Vol. II, page 511.

7 Sprague to Adams, Vol. II, page 515.

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