The War of the Rebellion: A Compilation of the Official Records of the Union And Confederate Armies. Series 3, Volume 2. Page: 258
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CORRESPONDENCE, ETC.
1. There was no proof before me, by admission of the parties or
otherwise, that it was a part of the agreement under which their
cotton was shipped to Havana "that a given per cent. of the value"
" should be returned in arms and munitions of war for the use of the
rebels." On the contrary, the papers submitted to me contain facts
inconsistent with such an agreement. A letter from S. H. Kennedy,
one of the house, to Messrs. Farwell & Co., of Boston, creditors
of the firm for $8,681.85, dated New Orleans, May 17, 1862, advised
them that the city was " in the hands of the Federal Government,
and that the writer thought that it would not see, at least for
many years, any other flag of authority than the Stars and Stripes."
It also contained this paragraph: "Although my firm was called
upon to pay into the Confederate receiver's hands the amount due
to you and the others as alien enemies I steadily refused, and am
happy to say that I succeeded in putting some Confederate money
into cotton, with which the blockade was run, and it has no doubt
been sold in Havana, and so soon as I can obtain sales I will have
your account adjusted."
2. The cotton did reach Havana, was sold there by the consignee,
and the account sales, as does the third of exchange seized here by
you, show conclusively that the entire proceeds were invested in
sterling in London.
3. Another letter from the same to the same, dated June 10, 1862,
after you had exacted payment of the amount of the third of
exchange, advised the Boston house of the actual sale of the cotton
(250 bales) in Havana for, net, 1,780, and that it had been remitted
to London to be passed to the credit of the New Orleans house; that
you had compelled the house to pay the bill, estimating it at $5 to the
pound sterling, and that you had told them that you "did not confis-
cate the amount, but sequestered same subject to orders from your
Government," and they added, " we are thus deprived by this seques-
tration, and by the burning of other cotton of ours by the rebels, of
some $17,000 or $18,000, with which we had intended paying you and
others at the North debts due them; " and lastly-
4. In the only hearing of the case to which you invited me, after
having done me the honor to ask me to decide between you and the
claimants, and when, beside yourself and myself, one of the claimants,
S. H. Kennedy, and their counsel, Messrs. J. D. Rozier and William
H. Hunt, were also present, when you stated that the shipment was
made under the agreement you now repeat, as to a return of a per
centum in arms, &c., Mr. Kennedy positively denied that any such
existed in his case; and as yet I have seen no evidence of the fact
other than your verbal statement, which, however I should hold all-
sufficient in regard to a matter of which you had personal knowledge,
could not be received as evidence under any known rule of evidence
with which I am acquainted. Upon the whole, then, as far as the
particular fact is concerned that I have examined, I submit that a
more careful consideration of it will satisfy you that you are mistaken.
Second. That the third of exchange and account sales were for-
warded to the claimants "through an illicit mail on board the steamer
Fox, likewise engaged in carrying, unlawfully, merchandise between
Havana and the rebel States;" that the third of exchange and papers
were captured by the army of the United States on the 10th of May
on board the Fox, flagrante delicto, surrounded by rebel arms and
munitions concealed in a bayou leading out of Barataria Bay, attempt-
ing to land the contraband mails and scarcely less destructive arms258
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Errata sheets for the Records of the War of the Rebellion include additions and corrections to the text and the index for Series 3, Volume 2.
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United States. War Department. The War of the Rebellion: A Compilation of the Official Records of the Union And Confederate Armies. Series 3, Volume 2., book, 1899; Washington D.C.. (https://texashistory.unt.edu/ark:/67531/metapth139264/m1/267/: accessed July 16, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.