[CHAPTER II]
AT THE FRONT WITH GRANT'S ARMY.
War speculation in cotton—In business partnership with Roscoe Conkling—Appointed special commissioner to Grant's army—The story of a cipher code—From Memphis to Milliken's Bend—The various plans for taking Vicksburg—At Grant's headquarters—The beginning of trouble with McClernand.
As Mr. Stanton had no immediate need of my services, I returned in August to New York, where I was occupied with various private affairs until the middle of November, when I received a telegram from Assistant-Secretary-of-War P. H. Watson, asking me to go immediately to Washington to enter upon another investigation. I went, and was received by Mr. Stanton, who offered me the place of Assistant Secretary of War. I said I would accept.
"All right," said he; "consider it settled."
As I went out from the War Department into the street I met Major Charles G. Halpine—"Miles O'Reilly"—of the Sixty-ninth New York Infantry. I had known Halpine well as a newspaper man in New York, and I told him of my appointment as Mr. Stanton's assistant. He immediately repeated what I had told him to some newspaper people. It was reported in the New York papers the next morning. The Secretary was greatly offended and withdrew the appointment. When I told Halpine I had, of course, no idea he was going to repeat it; besides, I did not think there was any harm in telling.
Immediately after this episode I formed a partnership with Roscoe Conkling and George W. Chadwick to buy cotton. The outcry which the manufacturers had raised over the inability to get cotton for their industries had induced the Government to permit trading through the lines of the army, and the business looked profitable. Conkling and I each put ten thousand dollars into the firm, and Chadwick gave his services, which, as he was an expert in cotton, was considered equal to our capital. To facilitate our operations, I went to Washington to ask Mr. Stanton for letters of recommendation to the generals on and near the Mississippi, where we proposed to begin our purchases. Mr. Stanton and I had several conversations about the advisability of allowing such traffic, but he did not hesitate about giving me the letters I asked. There were several of them: one to General Hurlbut, then at Memphis; another to General Grant, who had begun his movement against Vicksburg; and another to General Curtis, who commanded in Arkansas. The general purport of them was: "Mr. Dana is my friend; you can rely upon what he says, and if you can be kind to him in any way you will oblige me."
It was in January, 1863, that Chadwick and I went to Memphis, where we stayed at the Gayoso House, at that time the swell hotel of the town and the headquarters of several officers.
It was not long after I began to study the trade in cotton before I saw it was a bad business and ought to be stopped. I at once wrote Mr. Stanton the following letter, which embodied my observations and gave my opinion as to what should be done:
Memphis, January 21, 1863.