In Washington he met with William Sprague, then governor of, and now a Senator from, the State of Rhode Island, and showing him said letter, solicited his aid. In respect to this, he (Hoyt) says, (Ex. Doc. aforesaid, part 3, page 6:) I was in Washington over a month, leaving there in October; came to Providence, Rhode Island. I had met Governor Sprague, of Rhode Island, in Washington, and in consequence of that meeting, and at his suggestion, went to Providence to get him interested in getting me a vessel, and carrying out my project, as I had to depend on parties here for the means. I told Governor Sprague in Washington what my project was. I applied to Governor Sprague for no other reason than that I knew him to be a man of means. Mr. Barrett, the head of the Pension Office, introduced me to Mr. Hay. the President's private secretary. I never saw the President. I don't recollect, but I think ex-Governor Bibb, of Ohio, introduced me to Governor Sprague. Mr. Bibb was in the Patent Office. I met Governor Sprague by appointment in Providence. He turned me over to other parties, viz: A. & A. Sprague, and Mr. W. H. Reynolds, and his (Governor Sprague's) cousin, who is now in company with W. H. Reynolds. The letters hereto annexed, and marked "C," "D,” and “ E,” were sent to me by Governor Sprague. I have never seen or conferred with Governor Sprague since. Again, page 12, he says: "I called on Governor Sprague, as I stated to you, in Washington. I have never spoken to him since the night I saw him at the hotel at Providence. I have never written a word to him or he to me.” The meeting above referred to took place at Providence early in October, 1862. Hoyt's plans were laid before certain highly respectable business houses and individuals of that city, to wit, William H. Reynolds, A. & W. Sprague, Byron Sprague, Oway, Taft & Co., and B. B. & R. Knight, and they agreed no go into the enterprise provided a proper permit could be obtained from our Government. The management of the enterprise was devolved upon Hoyt, Reynolds, and Charles L. Prescott. Reynolds states (Ex. Doc. aforesaid, part. 3, pages 30, 31) as follows: After full conversation with Hoyt and Prescott, our general arrangements for the enterprise were agreed upon, and Mr. Prescott prepared and gave to me the draught of an agreement to be executed by all the parties. It is in his handwriting, and is now in my possession. A true copy of it, and of every part of it, is hereto annexed, marked No. 1. It was never executed by the parties, but it shows the general plan of operatious fully. I refer to this particularly in order that the views of both Prescott and Hoyt at that time may be understood; and this draught agreement, so far as the nature of the proposed business was concerned, expressed the intentions of the parties fully, I then authorized Prescott and Hoyt to buy two small vessels and cargoes, suitable to the wants of the expedition, and gave instructions to my agent in New York, Mr. James A. Suydam, to pay for such goods and vessels as were bought, and draw on Reynolds & Co. for money as wanted, or we would remit as often as he should require funds. I also authorized Prescott to buy a steamer whenever he found one which he considered cheap and adapted to our wants. Two small vessels were purchased soon after the arrangement had been perfected between Hoyt, Prescott, and ourselves. The cargoes were also being bought by Hoyt and Prescott, and everything done to forward matters by my agent in New York, to whom, with Hoyt and Prescott, the whole business had been intrusted. While this business was progressing, Prescott bought the steamer Ella Warley, and commenced putting her in order for sea. All the purchases were made in New York without the direct intervention of any of the parties in interest except Prescott and Hoyt. At about this time Mr. Hoyt requested me to go to Washington with him to se about the permit authorizing Shipments to Texas. I went to Governor Sprague, who gave me letters to Secretary Welles, of the Navy Department, and also to the Secre tary of the Treasury, Mr. Chase, introducing myself and Mr. Hoyt, and stating substantially what he (Hoyt) wanted. I discovered before I reached Washington that Hoyt had depended on us entirely to get the permit, instead of having any facilities for procuring such a permit himself, as he had represented to us in his first interview, and which was what really induced us to embark in the adventure. I called first on Mr. Chase, and then on Secretary Welles, taking Hoyt with me, who told his story and re quested permission to go to some port in Texas with his vessels, to assist his friends ont of the country with such of their property as they might be able to save. As an equivalent for the privilege asked for, he proposed to go through the State of Texas and procure valuable information for the Government. I soon found that it was useless to attempt to secure such a permit as we wanted from our Government, and based upon which the whole business had been commenced. I came home and reported the result to my partners in the enterprise. The question now came up as to what was to be done with our vessels and cargoes. On consultation with Hoyt, it was decided to send them to Matamoras, sell the cargoes and vessels there, and have the proceeds remitted to us in cotton. The machinery which Hoyt had bought he said he would take on his own account and pay us for the same, including freight and expenses, on his return. The immediate cause for this offer on his part was an objection by me that it took up too much room in the vessel. The first vessel, schooner Snow Drift, was soon after cleared for Havana, and Hoyt went in her, taking with him official letters from Governor Sprague, then governor of Rhode Island, addressed to all naval and military commanders of our forces. He said he should sell some of the goods there, change the vessel to an English bottom, to avoid danger of capture by confederates, and go to Matamoras with her. There was no reason for this change of flag, to my knowledge, except that it was alleged by Hoyt that she would be less liable to capture by the rebels if under the English flag. The vessel laid in Havana a long time, and she was finally put under the English flag, and she sailed for Matamoras as the schooner Cora. In the mean time the other schooner purchased by us, the Citizen, had been loaded, and lay at the pier in New York several weeks. We did not send her off, for the reason hoped to obtain permission to send her to some port in Texas so soon as General Banks opened that country to our trade, which was then expected. that we During this interval the steamer Ella Warley had been repaired and got ready for sea. Not knowing what better to do with her, we put her up for freight and passengers for Havana. The letters of Governor Sprague to the Secretary of the Navy, General B. F. Butler, and the commander of the Gulf squadron, referred to by Reynolds, were as follows: STATE OF RHODE ISLAND, EXECUTIVE DEPARTMENT, SIR: Mr. Harris Hoyt, a Union man of Texas, has made a proposition to the Government, as I understand, to go to Texas for the purpose of bringing away a portion of his family, now there, relieving his Union friends, and at the same time getting important information for the benefit of our Government. He has letters from the President and others vouching for his good faith. He has proposed to some of our dealers, among whom is Colonel Reynolds, known to the Treasury Department, to put a few goods on board his vessel, which he will exchange with his Union friends for cotton. They desire to procure for Mr. Hoyt a document from the Secretary of the Navy which would enable him to pass our blockading squadron uninterrupted. It is, of course, important to the Government to get the information which Mr. Hoyt would be able to procure from them; and there can be no objection raised to relieving the Union men of Texas. The importance of getting out cotton when it can be done without giving aid and comfort to the enemy, you are well aware. Every bale we can procure helps to keep down the price of cotton and keeps bread in the mouths of our people-far more advantage to us than the equivalent given for it, and especially if it can be conferred to those who are sympathizers of the Government. I shall esteem any aid you can give Mr. Hoyt an advantage to our whole people, as it will also be to those directly interested. As matters now stand, the benefit of all these operations is confined almost exclusively to foreigners-those interested in arming and breaking up the country. Again hoping you will aid these parties in this matter, I am, very respectfully, your obedient servant, Hon. GIDEON WELLES, WM. SPRAGUE. Sesretary of the Navy, Washington, D. C. PROVIDENCE, October 30, 1862. MY DEAR GENERAL: Congratulating you again upon your service to the cause, I beg to introduce to you Mr. Hoyt, the bearer, who came to me with letters from the President, and was by me introduced to gentlemen here, who have fitted out a vessel to aid the loyal citizens of Texas and to get information for our authorities. I cannot doubt but you will render him and his co-laborers every assistance, and which may also be of advantage to you from the information you may obtain. I deem the object worthy, and bespeak for it your kind attentions. With high regard, I am, general, your obedient servant, Major General B. F. BUTLER, Commanding Department, New Orleans. WM. SPRAGUE. PROVIDENCE, October 30, 1862. MY DEAR COMMODORE: I desire to introduce to you Mr. Hoyt, who came to me with letters from the President, and was by me introduced to some of our prominent citizens, who have aided him in the matter as desired by him, viz: Aid to the loyal citizens of Texas, and information for our military and naval authorities. Considering the object one of great worth, and having urged some of our citizens to aid in the matter, I have to ask of you such attention as you can grant him in furtherance of his plans. Any aid iven him will be appreciated by me. I am, very respectfully, your obedient servant, OFFICER COMMANDING GULF SQUADRON, Gulf of Mexico, &c. WM. SPRAGUE. It would seem from the foregoing statement of Reynolds that the parties having failed to obtain a permit from our Government to trade to Texas, resolved to change their enterprise into a trade with Matamoras, a port of the republic of Mexico, which might lawfully take place; and that a lawful trade was intended by Governor Sprague and the other Providence parties would seem probable, since the enterprise was commended to General Butler and the commander of the Gulf squadron. It can hardly be supposed that the assistance of those officers was asked for an unlawful traffic. It is proper to remark here, that there is some uncertainty whether the letters to General Butler and the naval commander were written before or after the refusal of our Government to grant a permit. He In 1864 General John A. Dix, then in command of the Department of the East, headquarters New York City, received information that led him to believe that the parties to the adventure, or some of them, were, or had been, engaged in an unlawful traffic with the rebels in Texas. thereupon caused Hoyt, Reynolds, Prescott, and Byron Sprague to be arrested. All but Hoyt were discharged on their paroles. Hoyt, in January, 1865, was brought to trial before a military commission on a harge of "violation of the law of war," and was found not guilty. (See Ex. Doc. aforesaid, part 3, pages 49-52, inclusive.) General Dix thought proper to bring the subject to the attention of the Secretary of War, by whom it was referred to the Judge Advocate General, who, on June 15, 1865, made the following report: WAR DEPARTMENT, BUREAU OF MILITARY JUSTICE, June 15, 1-15. The following report is respectfully submitted respecting the case of illicit trade to Texas implicating Hoyt, Sprague, and others, brought to the notice of the Department by Major General Dix: The papers herewith, consisting of an abstract of statements of Byron Sprague and others, prepared by Major Bolles; letters of William Sprague to General Dix; papers found upon Hoyt, and the latter's confidential statement, (which, it is stated, is only to be used in case Hoyt is made a witness for the Government,) have all been examined, and show in substance that Hoyt, residing in Texas at the breaking out of the rebellion, made his way North, where, in the fall of 1862, he effected an engagement with William Sprague for undertaking an enterprise to get cotton out of Texas. Four firms took au interest in the venture, Sprague & Co., Reynolds & Co., Taft & Co., and Knight & Co.. all of Providence, Rhode Island, each furnishing $25,000. Vessels were purchased, loaded with cargoes of machinery, arms, &c., cleared for foreign ports, and run to Texas, sometimes under a changed flag; Hoyt proceeding thither upon one of them, carrying letters of introduction from Governor Sprague, commending him to General Butler and Admiral Farragut. The papers inclosed do not give an entirely clear account of subsequent operations, and some of the evidence taken does not seem to have been forwarded. It is unnecessary, however, in this report to go into all the details. It is sufficient to remark that the cargoes of goods were sold in Texas, and the proceeds invested in cotton, a part of which appears to have been gotten out, while some portions were seized by our blockading cruisers. William Sprague has written several letters to General Dix in regard to the case, in none of which does he adunit, and in one of which he denies a knowledge of Hoyt, and of the details of the operation, such as is indicated by letters from him found on Hoyt, who expressly declares William Sprague to have been cognizant of the progress of the business, and to have advised and aided it to the utmost of his power. It is stated by William Sprague that the object was to aid Union citizens in Texas, and obtain information for the Government; but no one else connected with the venture seems to have viewed it in that light; and Byron Sprague, his partner, who, as William Sprague avers, had special charge of the speculation, plainly describes it as undertaken to get out cotton. Major General Dix, in a letter to the Secretary of War, dated March 23, says: "The parties who furnished the capital, knowing how it was to be employed, were Messrs. William Sprague, United States Senator, Byron Sprague, his brother, and William H. Reynolds & Co. These gentlemen were all engaged in business in Providence, Rhode Island, where the enterprises were fitted out. Messrs. B. B. & R. Knight and Messrs. Oway, Taft & Co., of Providence, also furnished a part of the capital, but it is not clear that they were fully advised of the manner in which it was to be used. The high social standing of these gentlemen makes the case one of great delicacy, and I regard it also as a question of importance whether the proceedings against them should be by a military commission or in a civil court; whether the facts charged, if true, constitute a mere violation of the laws of war, or a higher crime under the Constitution of the United States. "There are at least two witnesses to the fact of illicit trade, and ample written proof. Harris Hoyt and Charles L. Prescott, who were parties in interest, are willing to testify to all the facts in the case, provided their doing so shall not insure their own conviction." It appears that among the articles purchased in New York to be taken to Texas were some arms and ammunition, and on the invoice of cargo with which Hoyt proceeded from Havana to Matamoras were thousands of cartridges and percussion caps. From an examination of all the parties, this Bureau is of the opinion that the parties who were engaged in this unlawful traffic may be brought to trial before a general court-martial, under the 56th Article of War, for relieving the enemy with money and ammunition, or by military commission for violating the laws of war in trading and holding intercourse with the enemy. It is for the Secretary of War to declare whether, in view of all the circumstances and of the present condition of affairs, their trial shall be ordered. The SECRETARY OF WAR. J. HOLT, Judge Advocate General J. HOLT, Judge Advocate General. It does not appear that the Secretary of War or the President thought the case required further action, as no further prosecutions were commenced. Reynolds, Byron Sprague, and Prescott were discharged from their paroles, and the investigation ended. At the request of your committee, General Dix furnished to it a copy of a letter addressed by him to Reynolds, February 2, 1866, which is as follows: UNION PACIFIC RAILROAD COMPANY, DEAR SIR: In reply to your inquiry, I desire to inform you that you were arrested upon evidence furnished by Government officials, which connected you with an illegal adventure in shipping goods to rebels, and which seemed to be prima facie established. Upon investigation it was not found that you were implicated as alleged, and those who furnished the evidence on which you were arrested having failed to substantiate any case against you, I had great pleasure in discharging you from your parole and restoring your books and papers. I much regret any inconvenience caused you by the arrest, which, under the circum stances, I felt bound to make; and it gives me great satisfaction to inform you that no just cause for your detention was found. I am, very respectfully, yours, Col. WILLIAM H. REYNOLDS. JOHN A. DIX. There has also been laid before your committee an original letter from General Dix to Albert S. Gallup, esq., dated November 2, 1870, of which the following is a copy: NEW YORK, November 2, 1870. DEAR SIR: I have just received your letter of yesterday with a copy of a speech by Hon. T. A. Jenckes, at Providence, on the 29th ultimo, making charges of disloyalty against Senator Sprague and other gentlemen of high standing, founded on a transaction which occurred during the war of the rebellion. As my name is connected with this transaction, and as it was through my agency that the attention of the Government was called to it, I deem it a simple act of justice to those gentlemen to say that, on a full investigation of the case, no ground was discovered for instituting proceedings against them before a civil or military court. On the contrary, in February, 1866, I addressed a letter to Colonel William H. Reynolds, one of the gentlemen referred to, who was arrested by my order, exonerating him from all censure, and expressing my regret at the inconvenience I had caused him in the performance of a duty, as I considered it. The case was one of those which sometimes occur in times of civil strife, and which leave only the regret on the part of the Government that it has acted on mistaken information, and that unjust suspicion has, for the moment, been cast on those whose high character and conspicuous patriotism are the sure guarantees of their integrity. I am, very truly yours, ALBERT S. GALLUP, Esq. JOHN A. DIX. The foregoing will give the Senate a general idea of the case, and a minute account of it is contained in the papers already referred to and printed by order of the Senate. Upon these papers your committee find no evidence of any complicity on the part of Senator Sprague in any unlawful transaction. That there was guilty traffic by Hoyt, and possibly some others of the managing agents, is quite probable; but there is nothing in the papers to implicate Senator Sprague in connection therewith. Here, perhaps, the duties of your committee should end. But they deem it proper to bring to the attention of the Senate the following facts. On January 26, 1871, the chairman of the committee received the following letter from Hon. Thomas A. Jenckes, a member of the House of Representatives from the State of Rhode Island: FORTY-FIRST CONGRESS UNITED STATES, HOUSE OF REPRESENTATIVES, Washington, D. C., January 26, 1871. DEAR SIR: I was surprised to observe the following paragraph in the Patriot of this morning: "It is understood that the special committee appointed to examine the allegations against Senator Sprague have pretty well determined from their investigation that be is in no way complicated, illegally or discreditably. Mr. Jenckes has failed thus far to make good any charge which embarrasses the Senator, or to substantiate with proof his confident declarations. Some of the parties who possessed the confidence of Presi dent Lincoln, and in that way were made known to Mr. Sprague, did probably exceed the limits of the law in their operations, but it would be hardly just to hold him responsible for their acts. This inquiry, however, is not yet completed, but will be closed in a few days." The writer necessarily implies that he was inspired by some member of the committee, and the reader would naturally infer that there had been meetings of the special committee of which you are chairman; that charges against Senator Sprague had been preferred by me, and that evidence had been offered which failed to sustain those charges. The article does injustice to the committee as well as to myself. I know nothing of the conduct of the committee; have not known the fact that it has had |