You will bring this to the notice of Earl Russell as a measure which, if
carried into effect, seems to us to be a violation of the spirit, at
least, of the Queen’s proclamation, and as requiring such instructions
to the authorities in Bermuda as would prevent those islands being made
a place of deposit for the purpose referred to.
Charles Francis Adams, Esq., &c., &c, &c.
Mr. Welles to Mr. Seward.
Navy Department,
Washington,
October 13, 1863.
Sir: I have the honor to enclose herewith a
copy of an original contract in the possession of this department,
entered into on the 28th of August, 1863, at Richmond, Va., between
George R. Ghiseling, of Kentucky, and John H. Maddox, of Louisiana,
under the name and style of George R. Ghiseling & Co., of the
first part, and John de Bree, paymaster of the so-called confederate
navy, for and in behalf of the navy department of the so-called
Confederate States, of the second part, having for its object the
procuring from abroad, for the use of the insurgent government,
certain naval forces, and looking to the establishment of a depot
for such stores at the port of St. Georges, Bermuda.
The schedule referred to in the contract, and forming a part of it,
did not come into the possession of this department.
My object in furnishing you with this extraordinary paper is for the
purpose of suggesting that the attention of Lord Lyons be called to
the proposed violation of the neutrality of Great Britain by making
use of one of her Majesty’s ports as a depot of naval stores
intended for the insurgent government, which has been recognized by
Great Britain as a belligerent, and under a contract made under the
authority of said government.
In connexion with this contract, it may not be amiss to state that
one of the parties to it, Joseph H. Maddox, was early in the
rebellion confined at Fort Lafayette upon a charge of illicit
traffic and violence of the blockade, and was released on entering
into an engagement, under oath, that he would not enter any of the
States in insurrection against the authority of the government of
the United States, nor hold any correspondence or other
communication with persons residing therein, during the present
hostilities, without permission, nor do any act hostile or injurious
to the government of the United States.
Very respectfully, &c,
GIDEON WELLES, Secretary of the
Navy.
Hon. William H. Seward,
Secretary of State.
Copy of contract.
This contract, made and entered into this 28th day of September, A.
D. 1863, “between George R. Ghiseling, of Kentucky, and Joseph H.
Maddox, of Louisiana, under the name and style of George R.
Ghiseling & Co., of the first part, and John de Bree, paymaster
confederate navy, for and in behalf of the navy department of the
Confederate States, witnesseth: That the said party of the first
part undertakes and agrees to deliver to the designated agent of the
Confederate States navy department, at a port of the Confederate
States, east of the mouth of the Mississippi river, in the
possession and control of the Confederate States government, within
six (6) months from the first (1st) day of October, 1862, all in
good merchantable order, the naval stores as set forth in the
schedules hereto annexed, marked A, B, C, D, and E, respectively,
which schedules are hereby declared to belong to and become part of
this contract.
And said party of the first part further stipulates and agrees to
purchase or otherwise procure one or more fast and light-draught
steamers, and to freight and despatch the same from some foreign
port with all the haste possible; said steamers to remain under the
exclusive control of said party of the first part during the
continuance of this contract, and to be used only in its
execution.
And it is understood and agreed that if at any time the said party of
the second part shall so direct any part or the whole of deliveries
under said schedules A, B, C, D, and E, or under any other hereafter
sent, shall be made at the port of St. Georges, Bermuda, excepting
such portions thereof as shall already have been actually shipped
before the receipt of such order by the party of the first part.
And in consideration of the stipulations by the party of the first
part, as hereinbefore set forth, the party of the second part
covenants and agrees to pay to the party of the first part, his
attorney or assigns, upon certified bills or invoices approved by
the agent of the Confederate States at the port whence shipped, the
full amount of each and every delivery, with the addition of
twenty-five (25) per cent, thereon if delivered in a port of the
Confederate States, and with an addition of ten (10) per cent.
thereon if delivered at the port of St. Georges, Bermuda, and with
the addition, in either case, of the actual cost of transportation,
to include the outlay for coal, hire and subsistence of the crew and
officers, wharfage, lightage, and labor of loading only: Provided, That, in the case of deliveries at
a port of the Confederate States, such charges for transportation
shall not exceed and may be covered by the payments to the party of
the first part of twenty-five (£25) pounds sterling for each and
every ton so delivered.
And the party of the second part further covenants and agrees to pay
the party of the first part an additional premium of ten (10) per
cent, upon all bills or invoices, certified to as above, if
delivered at a port of the Confederate States within forty (40) days
from the tenth (10) day of October, 1863, there being no premium to
be paid upon any charges for freight or transportation.
And the party of the first part agrees and stipulates to receive for
all payments to be made to him, at the option of the Confederate
States navy department, either sterling bills of exchange, or cotton
at sixpence (6d.) sterling per pound,
delivered at a port of the Confederate States in the possession and
control of the Confederate States government: Provided, That said party of the first part may be allowed
to convert such bills of exchange into cotton, and to ship all
cotton in either way obtained by them without any impressment of or
interference with the same during its transportation to or detention
at such port; and that it is distinctly understood and agreed that
no part of said cotton shall be used for any other purpose than to
purchase naval stores under this contract, until all the provisions
of the same shall have been carried out and executed; and that no
part of said cotton shall at any time be shipped to or sold in any
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port belonging to or
in possession of the United States of America, under the penalty of
forfeiture of all dues and payments to the said party of the first
part by the Confederate States navy department.
And, finally, it is understood and agreed that all schedules that may
be sent by the party of the second part after the signing of this
contract shall become part of it, and be in full force for all the
provisions of the same, from the date of their receipt by the party
of the first part, and that this contract may be extended beyond the
time hereinbefore set forth, both parties thereto concurring: Provided, also. That if, by the act of God or
of the public enemy, there shall be any unavoidable delay or
detention in the deliveries under this contract, the time
hereinbefore stated shall be extended, so as to allow the party of
the first part the time necessary to carry out the stipulations of
the same.
In testimony whereof, we have
hereunto set our hands this twenty-eighth day of September, A. D.
1863, at the navy department of the Confederate
States of America.
GEORGE R. GHISELING.
J. H. MADDOX.
JOHN De BREE, Paymaster, in charge.
Signed, sealed, and delivered in presence of—
J. P. McCorkle.
Charles J. Ost.
Approved.
S. R. MALLORY, Secretary of the
Navy.
