Much of my time at this period was spent in investigating charges against defaulting contractors and dishonest agents, and in ordering arrests of persons suspected of disloyalty to the Government. I assisted, too, in supervising the spies who were going back and forth between the lines. Among these I remember one, a sort of peddler—whose name I will call Morse—who traveled between Washington and Richmond. When he went down it was in the character of a man who had entirely hoodwinked the Washington authorities, and who, in spite of them, or by some corruption or other, always brought with him into the Confederate lines something that the people wanted—dresses for the ladies or some little luxury that they couldn't get otherwise. The things that he took with him were always supervised by our agents before he went away. When he came back he brought us in exchange a lot of valuable information. He was doubtless a spy on both sides; but as we got a great deal of information, which could be had in no other way, about the strength of the Confederate armies, and the preparations and the movements of the enemy, we allowed the thing to go on. The man really did good service for us that summer, and, as we were frequently able to verify by other means the important information he brought, we had a great deal of confidence in him.
Early in October, 1864, he came back from Richmond, and, as usual, went to Baltimore to get his outfit for the return trip. When he presented himself again in Washington, the chief detective of the War Department, Colonel Baker, examined his goods carefully, but this time he found that Morse had many things that we could not allow him to take. Among his stuff were uniforms and other military goods, and all this, of course, was altogether too contraband to be passed. We had all his bills, telling where he had bought these things in Baltimore. They amounted to perhaps twenty-five thousand dollars, or more. So we confiscated the contraband goods, and put Morse in prison.
But the merchants in Baltimore were partners in his guilt, and Secretary Stanton declared he would arrest every one of them and put them in prison until the affair could be straightened up. He turned the matter over to me then, as he was going to Fort Monroe for a few days. I immediately sent Assistant-Adjutant-General Lawrence to Baltimore with orders to see that all persons implicated were arrested. Lawrence telegraphed me, on October 16th, that the case would involve the arrest of two hundred citizens. I reported to the Secretary, but he was determined to go ahead. The next morning ninety-seven of the leading citizens of Baltimore were arrested, brought to Washington, and confined in Old Capitol Prison, principally in solitary cells. There was great satisfaction among the Union people of the town, but great indignation among Southern sympathizers. Presently a deputation from Baltimore came over to see President Lincoln. It was an outrage, they said; the gentlemen arrested were most respectable merchants and faultless citizens, and they demanded that they all be set instantly at liberty and damages paid them. Mr. Lincoln sent the deputation over to the War Department, and Mr. Stanton, who had returned by this time, sent for me. "All Baltimore is coming here," he said. "Sit down and hear the discussion."
They came in, the bank presidents and boss merchants of Baltimore—there must have been at least fifty million dollars represented in the deputation—and sat down around the fire in the Secretary's office. Presently they began to make their speeches, detailing the circumstances and the wickedness of this outrage. There was no ground for it, they said, no justification. After half a dozen of them had spoken, Mr. Stanton asked one after another if he had anything more to say, and they all said no. Then Stanton began, and delivered one of the most eloquent speeches that I ever heard. He described the beginning of the war, for which, he said, there was no justification; being beaten in an election was no reason for destroying the Government. Then he went on to the fact that half a million of our young men had been laid in untimely graves by this conspiracy of the slave interest. He outlined the whole conspiracy in the most solemn and impressive terms, and then he depicted the offense that this man Morse, aided by these several merchants, had committed. "Gentlemen," he said, "if you would like to examine the bills of what he was taking to the enemy, here they are."
When Stanton had finished, these gentlemen, without answering a word, got up and one by one went away. That was the only speech I ever listened to that cleared out the entire audience.
Early in the winter of 1863-'64 a curious thing happened in the secret service of the War Department. Some time in the February or March before, a slender and prepossessing young fellow, between twenty-two and twenty-six apparently, had applied at the War Department for employment as a spy within the Confederate lines.
The main body of the Army of Northern Virginia was then lying at Gordonsville, and the headquarters of the Army of the Potomac were at Culpeper Courthouse. General Grant had not yet come from the West to take command of the momentous campaign which afterward opened with his movement into the Wilderness on the 5th of May.
The young man who sought this terrible service was well dressed and intelligent, and professed to be animated by motives purely patriotic. He was a clerk in one of the departments. All that he asked was that he should have a horse and an order which would carry him safely through the Federal lines, and, in return, he undertook to bring information from General Lee's army and from the Government of the Confederacy in Richmond. He understood perfectly the perilous nature of the enterprise he proposed.
Finding that the applicant bore a good character in the office where he was employed, it was determined to accept his proposal. He was furnished with a horse, an order that would pass him through the Union lines, and also, I believe, with a moderate sum of money, and then he departed. Two or three weeks later he reported at the War Department. He had been in Gordonsville and Richmond, had obtained the confidence of the Confederate authorities, and was the bearer of a letter from Mr. Jefferson Davis to Mr. Clement C. Clay, the agent of the Confederate Government in Canada, then known to be stationed at St. Catherine's, not far from Niagara Falls. Mr. Clay had as his official associate Jacob Thompson, of Mississippi, who had been Secretary of the Interior in the Cabinet of President Buchanan, and, like Mr. Clay, had been serving the Confederate Government ever since its organization.
The letter from Mr. Davis the young man exhibited, but only the outside of the envelope was examined. The address was in the handwriting of the Confederate chief, and the statement of our young adventurer that it was merely a letter of recommendation advising Messrs. Clay and Thompson that they might repose confidence in the bearer, since he was ardently devoted to the Confederate cause and anxious to serve the great purpose that it had in view, appeared entirely probable; so the young man was allowed to proceed to Niagara Falls and Canada. He made some general report upon the condition of the rebel army at Gordonsville, but it was of no particular value, except that in its more interesting features it agreed with our information from other sources.