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The Salmon P. Chase Papers - Vol. 3

By: John Niven; James P. McClure et al. | Book details

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Page 318
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transmitted to Congress become a law, the successful perpetration of frauds by entries at our Custom Houses, in my judgment, would have been difficult if not impossible.4Another of the results of those conferences has been a thorough and persevering investigation into the suspected frauds at this Custom House, conducted with great zeal and success by Mr Dennison, the Naval Officer at this Port.5 This investigation has disclosed a system of frauds successfully practiced through many years, and involving officers within and persons without the Custom House. We have not as yet reached the full extent of these frauds, nor all the persons connected with them. It has been our desire to keep these disclosures from the public until we should ascertain all the facts and detect all the persons engaged in these fraudulent transactions. But it having become necessary to arrest some of these parties, we cannot hope to withhold these disclosures much longer from the newspapers.6The investigations have reached a point rendering it advisable that the immediate law officer of the Treasury, by his advice and counsel, should participate in them; and I therefore request that the Solicitor of the Treasury may be directed to come here for that purpose.I have the honor to be with great respect,Your most Obedient Servant HIRAM BARNEY Collector. S. P. Chase Secretary of the Treasury
George Harrington.
Hugh Maxwell was collector at the port of New York, 1849-53. DAB, 12:441.
Edward Jordan.
On March 3, 1863, Congress passed a bill "to prevent and punish Frauds upon the Revenue." Statutes at Large, 12:737-42.
George Denison (d. 1876), a native of Massachusetts and possibly Chase's cousin, headed the naval office within the New York Custom House. New York Times, Feb. 16, 1876; Register of Officers ( 1863), 81; George Denison to Chase, Nov. 21, 1843, Nov. 19, 1846, Aug. 22, 1861 ( Chase Papers, L.C.).
Reports of irregularities emerged as early as November 15, when the New York Times published notice of "gross dishonesties and frauds" in the custom house. In 1863, congressional investigations of the custom house implicated Henry B. Stanton, deputy collector, and Barney himself for selling special favors. William J. Hartman, "Politics and Patronage: The New York Custom House, 1852-1902" (Ph.D. diss., Columbia University, 1952), 100-102; New York Times, Nov. 15, 1862.

TO BENJAMIN F. BUTLER

Autograph letter. Benjamin F. Butler Papers, Library of Congress (micro 23:0829).

Unofficial

Washington Novr. 14 1862

My dear General,

I have been waiting, in order to reply satisfactorily to your letter stating fully your action in relation to trade with persons in rebel lines,1

with black soldiers and asked Chase to support his request for permission to raise more troops. Butler to Chase, Oct. 22, 1862 ( Chase Papers, L.C.). for

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