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T was early in July, 1864, that I left Grant's headquarters at City Point for Washington, where I was to observe and report to the general-in-chief the progress of Early's raid on the Capital. After the rebel invaders had retired and quiet was restored, I went to Mr. Stanton for new orders. As there was no probability of an immediate change in the situation before Petersburg, the Secretary did not think it necessary for me to go back to Grant, but preferred that I remain in the Department, helping with the routine work.

Most of my time, at this period, was spent investigating charges against defaulting contractors and dishonest agents, and in ordering the arrest of persons who were suspected of disloyalty to the Government. I assisted, too, in supervising the spies who were going back and forth between the lines. Among these I remember a peddler—whose name I will call Morse—who traveled between Washington and Richmond. When he went down, it was in the character of a man who had entirely hoodwinked the Washington authorities, and who, in spite of them, or by some corruption or other, always brought with him into the Confederate lines something that the people wanted—dresses for the ladies, or some little luxury that they couldn't get otherwise. The things that he took with him were always supervised by our agents before he left Washington. When he came back, he brought us in exchange much valuable information. He was doubtless a spy for both sides; but, as we got a great deal of information, which could be had in no other way, about the strength of the Confederate armies and the preparations and the movements of the enemy, we allowed the thing to go on. The man really did good service for us that summer, and, as we were frequently able to verify, by other means, the important information he brought, we had a great deal of confidence in him.

Early in October, 1864, he came back from Richmond, and, as usual, went to Baltimore to get his outfit for the return trip. When he presented himself again in Washington, the chief detective of the War Department, Colonel Baker, examined his goods carefully; but this time he found that Morse had many things that we could not allow him to take. Among his stuff was military goods and uniforms, and this, of course, was altogether too contraband to be passed. So we confiscated the goods and put Morse in prison. We had all his bills, amounting to $25,000, or more, showing where he had bought these things in Baltimore, and Secretary Stanton declared that as the merchants in Baltimore were partners in his guilt he would arrest every one of them, and put them in prison until the matter could be straightened up. He turned the matter over to me then, as he was going to Fort Monroe for a few days; and I immediately sent Assistant Adjutant-General Lawrence to Baltimore with orders to see that all persons implicated were arrested. Lawrence telegraphed me, on October 16th, that the case would involve the arrest of two hundred citizens. I reported to the Secretary; but he was determined to go ahead, and the next morning, ninety-seven of the leading citizens of Baltimore were arrested,