Mr. Arman at Bordeaux, and that of the other two by Mr. Vorus at Nantes. [267] *On the 16th of July, 1863, another agreement was made in Bordeaux between Mr. Arman, and Mr. Bullock, "acting for the account of principals." Arman agreed to construct two screw steamships of wood and iron, with iron turrets, of 300 horse-power. Bullock was to supply the armament; the ships were to be finished in six months; one-fifth of the price was to be paid in advance.

Under these contracts Bullock is said to have paid Arman 5,280,000 francs.1 But one of the vessels ever went into the possession of the insurgents, and that by fraud. It may interest the Tribunal of Arbitration to learn, in a few words, the result of these contracts and the course pursued by the French Government.

The authorization which had been obtained for Mr. Arman and Mr. Vorus to arm the four vessels, under the contract of the 15th Conduct of the of April, and the doings of Mr. Arman under the contract of French Government. the 16th of July, were unknown to the minister of foreign affairs. When

they were brought to Mr. Drouyn de Lhuys' attention by the minis[268] ter of the United States at Paris, he took immediate steps to pre

*

vent a violation of the neutrality of France. He wrote to Mr. Dayton, (October 22, 1863,) "Que M. le ministre de la marine vient de notifier à M. Vorus lé retrait de l'autorisation qu'il avait obtenue pour l'armement de quatre navires en construction à Nantes et à Bordeaux. Il en a été donné également avis à M. Arman, dont l'attention a été en même temps apelée sur la responsabilité qu'il pourrait encourir par des actes en opposition avec la déclaration du 11 juin 1861."

Mr. Arman made many efforts to remove the injunctions of the Government, but without success. He was finally forced to sell to the Prussiau Government two of the clippers constructed at Bordeaux under the contract of April 15. Two other clippers, constructed at Nantes under that contract, were sold to the Peruvian Government. Of the two ironclads constructed under the contract of July 16, one was sold to Prussia for 2,075,000 francs. A contract was made for the sale of the other to Denmark, which was then at war, and it was sent, under the Danish name of Stoerkodder, to Copenhagen. It arrived there after the time agreed upon for the delivery and after the war was over, and the Danish Government refused to accept it. The person in charge of the vessel in

Copenhagen held at once the power of attorney of M. Arman and [269] of Mr. Bul*lock; and in one capacity he delivered the vessel to

himself in the other capacity, and took her to the Isle of Houat, off the French coast, where she was met by a steamer from England with an armament. Taking this on board, she crossed the Atlantic, stopping in Spain and Portugal on the way. In the port of Havana news was received of the suppression of the insurrection, and she was delivered to the authorities of the United States. The course Contrast between pursued by France toward these vessels is in striking con- the conduct of France trast with Great Britain's conduct in the cases of the Florida and the Alabama.

and of Great Britain.

Bullock's operations in this way called for a great deal of money. On the 22d of May, 1863, a "navy warrant on Messrs. Fraser, Trenholm & Co. for £300,000" was sent to him. On the 25th of June, 1863, “drafts for

2

Mr. Moreau, counsel for the United States, in a suit pending before the cour d'appel de Paris, growing out of these transactions, so states: "Il nous reste maintenant à indiquer à la cour ce que fit M. Arman, et des navires qu'il construisait et des capitaux qu'il avait reçus de M. Bullock, capitaux dont le montant, suivant le dire de M. Arman lui-même, ne s'élève pas à moins de 5,280,000 francs."

2 Bullock to Ellmore, July 3, 1833, Vol. VI, page 129.

Other

£26,000 and £38,962 13s. 4d., in favor of Commander James D. Bullock, on the C. S. Depositary in Liverpool, were forwarded to him."1 funds were sent that the United States are not able to trace. In September, 1863, his contracts had been so heavy that he was low in funds. Maffitt sent to him at Liverpool a number of "men, discharged from the Florida, with their accounts and discharges." He could *not pay them, and the men "began to get restive." Mallory [270] made an effort to send him further funds, and asked Memminger to instruct "the Depositary at Liverpool" to countersign certain cotton certificates "on the application of Commander Bullock." In this, or in some other way, the funds were replenished, and large sums were spent after that time.

While these extensive preparations for a fleet were going on in England and France, an event took place at the Cape of Good Hope which tested afresh the purpose of Her Majesty's Government to maintain British neutrality and enforce the Queen's Proclamation.

the Cape of Good

Hope.

On the 5th of August, 1863, the Alabama arrived in Table Bay and The Tuscaloosa at gave information that the Tuscaloosa, a prize that had been captured off Brazil, would soon arrive in the character of a tender. On the 8th that vessel arrived in Simon's Bay, having her original cargo of wool on board. She lay in port about a week, and while there "overtures were made by some parties in Cape Town to purchase the cargo of wool." The wool was disposed of to a Cape Town merchant, on condition that he should send it to Europe for sale, and two-thirds of the price should be paid into the insurgent treasury; and it was landed for that purpose by the Tuscaloosa, on a wild [171] spot, called Angra Pequena, outside of British jurisdiction.5 When the Tuscaloosa made her appearance at Cape Town, Rear-Admiral Sir Baldwin Walker wrote to the Governor, desiring to know "whether this vessel ought still to be looked upon in the light of a prize, she never having been condemned in a prize court." He was instructed to admit the vessel. The practical experience of the honest sailor rebelled at this decision, and he replied, "I apprehend that to bring a captured vessel under the denomination of a vessel of war, she must be fitted for warlike purposes, and not merely have a few men and a few small guns put on board her, (in fact nothing but a prize crew,) in order to disguise her real character as a prize. Now, this vessel has her original cargo of wool still on board, which cannot be required for warlike purposes, and her armament and number of her crew are quite insufficient for any services other than those of slight defense. Viewing all the circumstances of the case, they afford room for the supposition that the vessel is styled a tender, with the object of avoiding the prohibition against her entrance as a prize into our ports, where, if the captors wished, arrangements *could [272] be made for the disposal of her valuable cargo.” 17

She is released

The Governor replied that the Attorney General was of opinion that "if the vessel received the two guns from the Alabama or against the advice of other Confederate vessel of war, or if the person in command Sir Baldwin Walker. of her has a commission of war, * * * there will be a sufficient setting forth as a vessel of war to justify her being held to be

1 Mallory to Elmore, June 25, 1863, Vol. VI, page 126,

2 Maffitt to Bullock, September 3, 1863, Vol. II, page 639.

3 Mallory to Memminger, September 12, 1863, Vol. VI, page 132.

4 Walker to the Secretary of the Admiralty, Vol. IV, page 216; Vol. VI, page 456.

5 Mountague Bernard's Neutrality of Great Britain, &c., page 421, note 1.

6 Vol. IV, page 217; Vol. VI, page 458.

Walker to Wodehouse, Vol. IV, page 218; Vol. VI, page 459.

221

a ship of war. The Admiral replied, tersely, "As there are two guns on board, and an officer of the Alabama in charge of her, the vessel appears to come within the meaning of the cases cited in your communication."2 He did not seem to think it worth while to repeat his opinion as to the frivolous character of such evidence, since it had been disregarded by the civil authorities.

The facts were in due course reported by the Governor to The course of the the Home Government at London,3 and the Colonial Minis- Governor disapproved, ter wrote back that Her Majesty's Government were of opinion that the "Tuscaloosa" did not lose the character of a prize captured by the Alabama merely because she was at the time of her being brought within

British waters armed with two small rifle-guns, and manned [273] * with a crew of ten men from the Alabama, and used as a tender

to that vessel under the authority of Captain Semmes.1 He said that he "considered that the mode of proceeding in such circumstances most consistent with Her Majesty's dignity, and most proper for the vindication of her territorial rights, would have been to prohibit the exercise of any further control over the Tuscaloosa by the captors, and to retain that vessel under Her Majesty's control and jurisdiction until properly reclaimed by her original owners." These instructions were looked upon by the Governor as a censure;5 and the Tuscaloosa having in the mean time come again into port and placed herself within the jurisdiction, was seized, and the facts reported to waters of the colony. London. Her Majesty's Government disavowed this act, and instructed the Governor" to restore the Tuscaloosa to the lieutenant of The Governor rethe Confederate States who lately commanded her; or, if he seizes the vessel. should have left the Cape, then to retain her until she can be handed over to some person who may have authority from Captain Semmes, of

6

8

66

The Tuscaloosa comes again into the

verses his policy and

the Alabama, or from the Government of the Confederate States, [274] to receive her." The *Governor was also informed that the Home Government had not in any degree censured him for the course which he had pursued. The Duke of Newcastle placed his His course is again instructions to restore the vessel upon the peculiar cir- disapproved. cumstances of this case." But the Tribunal of Arbitration will observe that, inasmuch as, notwithstanding his first decision of the 4th of November above cited, he did, in his second instructions, fully approve of the course of the Governor in receiving the vessel originally as a manof-war, in violation of the Queen's Proclamation and of well-settled principles of International Law, and against the sensible and honest advice of Rear-Admiral Sir Baldwin Walker, he was in no position to shelter the British Government from responsibility for the hostile act of her officials, by pleading any special or peculiar circumstances.

It is necessary now to go back and bring up the history of army purchases and blockade-running. Walker and Porter were left established as agents at Bermuda, and Heyliger at Nassau.

Blockade-running.

On the 28th of March, 1863, Fraser, Trenholm & Co. were notified that the insurgent Secretary of the Treasury had "appointed Mr. Lewis

1 Wodehouse to Walker, Vol. IV, page 219; Vol. VI, page 459.

2 Walker to Wodehouse, Vol. IV, page 219; Vol. VI, page 460.

3 Wodehouse to Duke of Newcastle, Vol. VI, page 220; Vol. IV, page 460.

4 Bernard's Neutrality of Great Britain during the American Civil War, page 425. See also Vol. III, page 207, and Vol. VI, page 463.

5 Wodehouse to Newcastle, Vol. IV, page 229; Vol. VI, page 465.

6 Vol. IV, page 230.

7 Duke of Newcastle to Sir P. Woodhouse, Vol. IV, page 241; Vol. VI, page 468.

8 Same to same, March 10, Vol. IV, page 242; Vol. VI, page 469.

1

Heyliger a depositary of the treasury at Nassau, New Providence, and Colonel Norman S. Walker a de*positary at Bermuda ;" and [275] they were told that Messrs. Heyliger and Walker would forward shipments of cotton on account of the treasury, and would draw on them for funds to pay expenses of the vessels and to make purchases of return cargoes. They were also informed that shipments of cotton would be made by way of Nassau and Bermuda by the authorities at Richmond, and they were directed to pay the proceeds of such shipments to Mr. Huse. The cotton was sent forward as opportunity offered. Thus, for instance, in May, 1863, the navy transported to Nassau five hundred and seventy-five bales for the treasury.2 The shipments were, in fact, going whenever there was opportunity.

Mr. J. M. Seixas was also appointed agent of the insurgent War Department in the ports of Wilmington and Charleston, "to take charge of all that relates to the running of the steamers of the Department sailing from and arriving at those ports." 3

On the 18th of April, 1863, Walker forwarded to Fraser, Trenholm & Co. 800 bales of cotton, drew against it for £20,000 for his Cotton shipments. own disbursements for commissary stores, and notified Huse that the balance would go to his credit with Fraser, Trenholm* & Co. He also reported the arrival at Bermuda of "Confederate steam- [276] ers," blockade-runners, with cotton, and he called Huse's attention to "the importance of sending to this place (Bermuda) one or two cargoes of Duffryne coal for the Government steamers;" and adds: "You will readily see the injurious delay which may result from the want of a proper supply of coal." He also says: "From all that I can learn, any Confederate man-of-war which may come to this port will have no difficulty in coaling and procuring supplies."4

The blockade-runners of the Richmond authorities were by this time well known, and were making regular voyages. The Cornubia was running before January, 1863.5 The Giraffe and the Cornubia ran regularly to Bermuda and to Nassau, in February, 1863. One or two more were thought "highly desirable." In March there was enough to employ three steamers for some time to come," and Huse was authorized "to add to the fleet two more good swift steamers,"T "7, and was furnished with a credit of £200,000 on Fraser, Trenholm & Co.3 The insurgent government was all this while urg*ing its agents [277] to dispatch arms and munitions of war. In April, 1863, twenty thousand Enfield rifle bayonets were wanted as soon as possible. On the 6th of May "one hundred and fifty thousand bayonets" were wanted, "and lead and saltpeter in large quantities."10. On the 1st of June, Walker is ordered to send "paper for making catridges by the first boat ;" "if there is none on hand send to Major Huse to buy a large quantity." Two days later he was ordered to send "Colt's pistol-caps as soon as possible."12 They were wanted for Lee, who was preparing to move toward Gettysburgh.

Memminger to Fraser, Trenholm & Co., 28th March, 1863, Vol. VI, page 128.

2 Memminger to Mallory, 6th May, 1863, Vol. VI, page 119.

3 Seddon to Seixas, 7th April, 1863, Vol. VI, page 113.

4 Walker to Huse, 18th April, 1862, Vol. VI, page 115...

5 Gorgas to Huse, 1st January, 1863, Vol. VII, page 48.

6 Same to same, 26th February, 1863, Vol. VII, page 48.

7 Same to same, 8th March, Vol. VII, page 48.

8 Same to same, 9th March, Vol. VII, page 49.

9 Gorgas to Huse, Vol. VII, page 51.

o Same to same, 6th May, Vol. VII, page 51.

1 Gorgas to Walker, Vol. VII, page 54.

12 Same to same, Vol. VII, page 54..

Walker shows in all this emergency a fear of being crippled for want of coal. On the 21st of March he was arranging for a cargo in the port of Bermuda.1 On the 29th of March he writes that he has purchased that cargo, and wants more. On the 16th of May he urges Huse to send coal. "Every steamer takes from one hundred and sixty to one hundred and eighty tons." He has but six hundred tons left. On the

23d of May he again calls attention "most earnestly to the [278] *importance of keeping him supplied with good steam coal." He "hopes that some are already on the way." His "stock is almost exhausted."4 On the 30th of June he cries "send us coal, coal, coal! Each steamer takes one hundred and eighty tons, so that six hundred tons will be quickly consumed."5 Again on the 9th of July he writes "coal, coal, coal. Send me two thousand tons. The Lee, I fear, will be laid up for the want of it. You may calculate that each steamer will take one hundred and eighty tons." He wrote also to Fraser, Trenholm & Co., to the same effect, saying that there should be a reserve there of at least three or four thousand tons." Shipments were made, and the supplies reached him before there was any serious detention of the blockade-runners. He was enabled to fulfill all the orders given in Richmond a short time before the advance of Lee's army into Pennsylvania.

The insurgent Govblockade-running.

In spite of the countenance given by the authorities in Bermuda and Nassau, funds could not be forwarded fast enough to Major Huse to meet the great demands made upon him at this ernment interested in time. On the 23d of July, 1863, "on behalf of the Con[279] federate Government," he made an arrangement with *the Mercantile Trading Company for an advance of £150,000, to be extended to £300,000, for the purchase of goods for the insurgents, and their shipment by the company, "via Bermuda, Nassau, or Havana;" "the Confederate Government to have two-thirds cargo space in each vessel, the company one-third each way;" "the cotton received from the Confederate States to be consigned to the company's agency in Liverpool." Stringer, the managing director of the company, soon became doubtful of Huse's powers, and wrote Mr. Mason, saying that he had already advanced him £20,000 on saltpeter, and inquiring about the powers; to which Mason replied that he did not know about the extent of Huse's powers, but that he had no doubt that the saltpeter would be taken by the insurgents.1 10 Stringer's doubts were soon set at rest; for it would seem that about that time there must have been received in London an agreement without date, executed in Richmond by "J. Gorgas, Colonel, Chief of Ordnance," and "approved" by J. A. Seddon, Secretary of War," which probably replaced the temporary agreement of July 23. Five steamers were to be put on to run from

9

Bermuda or Nassau to Charleston or Wilmington, two-thirds to [280] be owned by the insur*gents, and one-third by the British contractors. The insurgents were to pay for their two-thirds in cotton, at Charleston, and were to be allowed commissions for their part of

1 Walker to Huse, 21 March, Vol. VII, page 50.

2 Same to same, Vol. VII, page 50.

3 Same to same, 16th May, 1863, Vol. VII, page 52.

4 Same to same, Vol. VII, page 53.

5 Same to same, Vol. VII, page 55.

6 Same to same, Vol. VII, page 56.

7 Walker to Huse, Vol. VII, page 57.

8 Memorandum made in London, 23d July, 1863, Vol. VI, page 136.

9 Stringer to Mason, 16th September, 1863, Vol. VI, page 134.

10 Mason to Stringer, 19th September, 1863, Vol. VI, page 138.

S. Ex. 31-8