that they had been or might be prosecuted in the United States under acts of confiscation and forfeiture, and that, therefore, they ought not to be compelled to make discovery in England, which might be used against them here. This question was argued in the case of the United States vs. McRae, before ViceChancellor Wood, who sustained the demurrer and dismissed the bill. But, on appeal, whilst the court of appeals concurred with the vice-chancellor in opinion as to the sufficiency of the demurrer, still it held that the United States were entitled to an account, and, therefore, reversed so much of the decree of the vice-chancellor as dismissed the bill. It was on account of this decision that the idea was conceived in Congress at this session of the enactment of a law touching discoveries in equity, which was passed some weeks since, and the enactment of which will serve greatly to facilitate the prosecution of these suits in England. The archives of the so-called confederate government, now in the possession of the United States, show that many millions were received and disbursed by McRae on confederate loans in Europe, and the object of the suit is to reach any balance which may have remained in his hands at the time of the extinction of the confederation. One suit only has been instituted in France, but that is of considerable importance. It is a suit against the wealthy shipbuilding firm of Arman Fils & Co., to recover a large sum of money placed in their hands to be employed in the construction of a ship or ships of war for the use of the confederate government. That cause has not yet come to issue. Inquiries continue to be made under the authority of the department in pursuit of all persons in England holding money or other property of the confederates; and wherever information. has been obtained sufficiently specific to justify the expense of suit, suit has been instituted; and in some instances such property has been obtained without suit, on the voluntary surrender of it by conscientious parties. But exaggeration has existed as to the amount of balances of money or other property now remaining in the hands of agents of the confederates abroad, other than those against whom suits have already been brought. Proffers of service, in this respect, are, from time to time, made, which always receive attention when the parties thus volunteering appear to possess any trustworthy knowledge or means of knowledge. In some cases, however, the proffers of such service are without avail, owing to the information offered being too indefinite or uncertain to afford any guidance to the efforts of the government. The only person employed by the government in Europe as its agent, in reference to any of these matters, has been Mr. H. B. Titus, of the State of New Hampshire. He had been previously employed as an agent of the department in the southern States, and was selected for the new service in the ordinary course of business and without special recommendation. No contract was made with him for a share of the property recovered. Mr. L. B. Brasher, of Tennessee, who had also been employed in the southern States, having by letter represented to the department that he possessed valuable information in this respect, was referred to the consul of the United States at London, to act under the direction of the latter, and with the understanding that in case of success he should receive a share of property recovered. This authority was given to Mr. Brasher, also, in the ordinary course of business and without special recommendations. He, however, did not go to Europe, although his brother, B. P. Brasher, went professedly in his stead, but without any authority from the government. The department is not informed that he has recovered any property, nor has he received any compensation. Copies of the correspondence on the subject are annexed, marked L. The compensation of Mr. Titus and that of the counsel for the government have been drawn from the direct proceeds of property collected in Europe. And the names of persons employed by government in this behalf, and the payments made to them, appear in the document hereto annexed, marked K. The heads of departments of the United States have at all times heretofore been deemed to possess authority to retain counsel or attorneys, when the public service requires it, in the prosecution of suits not within the official duty of the Attorney General or district attorneys of the United States, and the Treasury Department, in doing that here, has acted in accordance with the established practice of the government. With great respect, your obedient servant, Hon. SCHUYLER COLFAX, Speaker of the House of Representatives. H. MCCULLOCH, Secretary of the Treasury. H. This agreement made between the United States of America and the commercial firms of Fraser, Trenholm & Co., of Liverpool, England, and John Fraser & Co., of South Carolina, United States of America, by the duly authorized agents and attorneys of the respective parties, on the twenty-fifth day of September, in the year 1867, witnesseth: Whereas, on the twenty-first instant, counsel of the respective parties did provisionally agree to the following general propositions, namely: 1. All specific property which came into the hands of Fraser, Trenholm & Co. after the dissolution of the so-called confederate government is to be delivered over to the United States, or, if reduced into money by them, the value paid to the United States. If suits are pending for any such property, decree by stipulation is to be entered in favor of the United States with costs in such form as to secure the same to the United States. 2. Fraser, Trenholm & Co., in England, and John Fraser & Co., in the United States, are to render an account to the United States, as they would have been bound to render to the so-called confederate government, if called upon, of the state of their account of receipts and disbursements, including specific values of property and choses in action, as well as money, on the day of the dissolution of the so-called confederate government, to be done under appropriate decretal orders in chancery, and by the instrumentality of agreed masters or auditors. If it should satisfactorily appear on such accounting that the two houses had any balance of money or value on hand at that time, the same to be paid to the United States. If it shall satisfactorily appear that they had no balance, then the bills of discovery and account will be dismissed. 3. And in addition to this, the counsel of the United States will, on the fulfilment of the above conditions, advise the government to discharge the parties from all further claim in the premises. Now, therefore, in the intent and for the purpose of carrying into full effect the said general propositions, it is agreed as follows: 1. In the suit in the English chancery now pending before Vice-Chancellor Wood in behalf of the United States against Fraser, Trenholm & Co. for for recovery of a cargo of cotton by the ship Aline, it is agreed that decree and final judgment shall be rendered in favor of the plaintiffs against all the defendants for the recovery of the whole of the cotton sued for, excepting so much as the United States may have relinquished, and deducting only the ordinary commercial charges for freight,.storage and commissions on the same, in such form as to give the plaintiffs a personal debt against all the defendants, and also the same remedies against the receiver appointed by the court to take and hold the cotton or its avails, as if the cause had been decided in favor of the plaintiffs on full hearing. The United States shall be entitled to tax full costs in their suit, embracing all costs which have accrued on the cross-bill filed by Fraser, Trenholm & Co. 2. It is further agreed that all specific property of every kind, whether ships, gun machinery, or any other property whatever, and all moneys belonging to the so-called Confederate States on the ninth day of April, one thousand eight hundred and sixty-five, the assumed date of the effectual dissolution of the pretended confederate government, which at any time after that date came into the possession of Fraser, Trenholm & Co., or of any member of said firm, shall be delivered to the United States in the same condition it was at the time of the filing of the first bill of the United States, ordinary decay excepted, or if converted into money or otherwise so disposed of that it cannot be delivered in specie in the same condition it then was, the fair cash value of the same at that time shall be paid to the United States. 3. It is further agreed that in the suit in behalf of the United States pending in the same court above named against the members of the firm of Fraser, Trenholm & Co., for an account of the moneys or other property of the said Confederate States in the hands of said firm, a decree shall be entered in favor of the plaintiffs for an account to be rendered by the defendants, in conformity with the provisions of the bill before such master or commissioner as the parties shall agree, or, in default of such agreement, as the court shall appoint, which account shall embrace all moneys or other property of the said Confederate States coming to the use or control of the said firm or of any member thereof at any time before the ninth day of April, one thousand eight hundred and sixtyfive. And in taking said account the defendants are not to be allowed credit for any payments made by them after the time when the intelligence reached England of dissolution of the so-called confederate government, the purpose and object of the account being to show the precise state of the dealings between the defendants and the said Confederate States at that date. Whatever amount such accounting shall show to have been due from the defendants to the so-called Confederate States at that date shall be paid to the United States, or final judgment rendered in the cause for the amount, with taxable costs in the action in either event; and if it shall appear that nothing was then due from the defendants, or either of them, the suit shall be dismissed without costs to either party. This agreement is understood to embrace an accounting for or surrender of the following ships, which are claimed by the United States as property of the Confederate States, viz.: the Ruby, the Rosine, the Penguin, the Owl, the Lark, the Ariel, the Wasp, the Badger, and the Fox. And it is understood that if the balance of the accounts hould be found in favor of Fraser, Trenholm & Co., or of less amount against them than the value of specific property covered by the account, and it shall appear that any of these ships or any other specific property of the said Confederate States were in the actual or constructive possession of Fraser, Trenholm & Co. at the date fixed herein for the termination of the accounting, so as to be embraced within its range, such property shall be surrendered to the United States unless Fraser, Trenholm & Co. held some legal or equitable claims upon the same, either for advances made towards its construction or purchase, or in some other mode by way of special contract or understanding. 4. It is further agreed that if any portion of the judgments rendered in pursuance of the foregoing stipulations shall fail to be paid to the United States, the government will still retain its statutory lien for the payment of the same upon the property of the debtors within the limits of the United States, and may enforce the same against such property at any time. 5. It is further agreed that if any difference shall arise between the parties as to their respective claims in carrying into effect any of the stipulations of this agreement, except in regard to the accounting or other matters in court, it shall be immediately referred to the determination of arbitrators, one to be selected by each party, and in case of disagreement between them, an umpire to be selected by them, whose decision shall be final in the matter. 6. It is further agreed that the proceedings now pending in the circuit court of the United States for the district of South Carolina in behalf of the United States against the property of the firm of John Fraser & Co., and of the alleged individual members of the same, shall continue in statu quo, subject to such modifications as the parties may agree, until the stipulations of this agreement be carried into effect by the firms above named; and if that shall not be so done in a reasonable time, that is, as to the cotton by the Aline within six months hereafter, and as to the other stipulations within six months after ascertainment of balance of account, then in default in either particular, the United States may enter final judgment in their favor in the suit so pending in the circuit court aforesaid for the value of said cotton, and of all the specific property of the so-called Confederate States held by either of said firms at any time before that date, against Theodore D. Wagner, James T. Welsman, William S. Trenholm, defendants in the suits in England, and also against George A. Trenholm, when it shall be made to appear that he is liable therefor. 7. Upon compliance, on the part of the members of both firms above named, with all the stipulations of this agreement, the counsel of the United States will recommend the proper authorities of the government to give them full discharge and release from all claims in the premises. Approved: C. CUSHING, ISAAC F. REDFIELD, Counsel for the United States. Counsel for John Fraser & Co. (Of the firm of Fraser, Trenholm & Co.,) Counsel for T. D. Wagner. THEODORE D. WAGNER, For himself and John Fraser & Co. W. S. TRENHOLM, J. T. WELSMAN. I. Memorandum of agreement made this sixth day of November, one thousand eight hundred and sixty-six, between Montgomery Gibbs, esquire, agent in Europe for the Treasury Department of the United States of America, and Freeman Harlow Morse, esquire, consul at London for the said United States, of the one part, and Messieurs Fraser, Trenholm & Co. of Liverpool, merchants, of the other part. It is hereby mutually agreed, as follows: 1. The claim of Messieurs Fraser, Trenholm & Co. against certain property of the late Confederate States under their control is agreed at £150,000. 2. Messieurs Fraser, Trenholm & Co. are to declare what property they have under their control, and where it is, it being understood that among this property are the five following ships: the Ruby, the Rosine, the Penguin, the Owl, and the Lark. 3. This property to be sold at the best price obtainable by Messieurs Fraser, Trenholm & Co., and the net proceeds to be applied to the payment of the £150,000, and any surplus to be accounted for and paid over to the United States government. 4. The United States consul, Mr. Morse, and the United States government, to give every assistance in disposing of the property, and, if proper and expedient, to grant an American register to any or all of the said ships. 5. All suits now pending, either in Great Britain or in the United States, between Fraser, Trenholm & Co., or any of them, and the United States, to be abandoned, each party paying their own costs. 6. Messieurs Fraser, Trenholm & Co. to furnish Mr. Morse and Mr. Gibbs one account, showing how the indebtedness to them is made out, and to allow them an accountant acceptable to Messieurs Fraser, Trenholm & Co to inspect their books, it being understood that any information thus derived shall not be used against any one in any action or proceeding except for the recovery of property. MONTGOMERY GIBBS, Agent, &c. Witness to the signature of all parties: Attorney at Law, Liverpool. K. Receipts of F. E. Spinner, Treasurer United States, special agent, on account of confederate property recovered in Europe. 1866. October 15. Proceeds of steamer Shenandoah, £15,698 5s. 10d. $108, 632 18 December 22. Proceeds of steamers Sumter and Tallahassee, October 3. Recovered from R. P. Waller, confederate agent, £400 2,809 49 Total.... 144,157 15 Disbursements of F. E. Spinner, Treasurer United States, special agent, on account of confederate property in Europe. 1866. October 18. Hon. C. Cushing, special connsel... $5,000 00 December 27. G. H. Chandler, disbursing agent, for mission of Judge Redfield.. 1,000 00 1867. January 4. Hon. J. F. Redfield, special counsel..... 2,500 00 February 9. Western Union Telegraph Co.... February 25. H. B. Titus, special agent.. July 15. H. B. Titus, special agent.. August 5. Barings, for advances, £6,600, (including 150,000 francs deposited by United States as security for costs in suit against Arman, in France). 228 87 1, 000 00 920 00 45, 265 04 |