Between the Lines: Secret Service Stories Told Fifty Years After

by Henry Bascom Smith

The following from the Richmond "Whig" explains better, perhaps, than I can, just what Martin and the case meant, from the Confederate viewpoint:

(From the Richmond "Whig")

The Tobacco Transaction—A Prominent New York House Concerned.

"We have obtained the main facts of the great tobacco speculation, in reference to which there were so many rumors last week. It appears that an agent of a New York mercantile house, whose name it is deemed inexpedient to publish at this time, proposed to certain parties in this city to contract with them for the delivery of a specific quantity of manufactured tobacco at Fredericksburg, he undertaking for his principals to remove the tobacco from that point, with the implied consent of the United States authorities, provided the Confederate authorities would indicate their consent, in writing, to the proposed transaction. The tobacco was to be paid for on its delivery at Fredericksburg. The New York house was vouched for by an influential member of Congress, who had intimate business relations with the concern.

One of the Confederate bureaus became identified with the scheme, by reason of the representations which had been made to its officers, and by the prospect of advantageous results from the fulfillment of the proposed agreement by the parties on the other side.

The contract was accordingly entered into, "sealed, signed and delivered," with a satisfactory endorsement from the predecessor of the present Secretary of War, who was no doubt induced to believe that it was "all right." Nothing was said in the contract about bacon. The quid pro quo was money.

In execution of the contract on this side, about four thousand boxes of fine to extra manufactured tobacco were purchased here, at rates ranging from four dollars to seven dollars per pound, Confederate currency. Of this amount one thousand two hundred and seventy-three boxes, weighing one hundred and thirty-two thousand five hundred and seventy-eight pounds, and valued at seven hundred thousand dollars, were forwarded to Fredericksburg in charge of Dr. Rose, who was induced by assurances from Richmond, which he could not discredit, to act as consignee and custodian of the tobacco until delivered according to agreement. He was not in any sense, as we understand, a party to the contract. What became of the tobacco is known to our readers. Dr. Rose was carried off by the Yankees for engaging in contraband traffic.

The name of General Singleton has been connected with this transaction. We state on the authority of an officer of the bureau referred to that he has no lot nor part in it, directly or indirectly. The loss of the tobacco will fall upon the contractors here unless the New York parties to the contract will fulfill their obligations by indemnifying the bureau with which they contracted."

After action by Congress, President Lincoln endeavored to extend some relief to persons within the Confederacy who were Unionists at heart; they were to be encouraged by allowing them to work their products up to and through the lines. What was intended as a great beneficent proposition was seized upon by the Confederate government to help itself financially.

The following order will explain the experiences with cotton on the Mississippi river. I presume these orders drove Martin to turn his attention to tobacco in the east: