1^ H^o-nestv the Best y Yo\ \<^ ^ 7 K.^-l y a-rnre w WM;v ';^'.'■V^':''■ .-A" W' .m^ IbOO Book t^^ I 7*- Is Honesty the Best Policy! Pexaltv fou Discovering Fraud. — §102,000 Gai>jed by the Govekn- MFNT. — Secretary Fish Removes a Co>'sul for Declinixg to Allow Spanish Merchants to Defraud our Revenue. — Services in Peace and War Rewarded by Dismissal, — Which is Pest, Honesty or Dishonesty while in the Service of thb Govern:ment ? — An In- teresting Nar*rativi:. — Ol'k Matchless Civil Ser- vice. I 4 Hon. JOB E. STEVENSON, United States House of Representatioes^ Washington. Dear Sir : Referring to our conversation, at Washington, I beg to submit a statement of what transpired during my residence at Cadiz, Spain, as the Consul of the United States. On tlie 10th August, 1865, Mr. Seward appointed me Consul at Cadiz, Spain. At the time I was assistant-editor of the Cincinnati Cntholk Telegraph, a journal well known throughout Ohio. I took charge of tiie Cadiz Consulate Jan. 1, 1866, relieving a Cadiz ship-chandler and wine merchant, who had been appointed Vice-Consul, by the Department of State, after the dismissal of the Consul in April, 1865, for an alleged offence unparalleled in the history, I believe, of the consular service. The attention of the Departments of State and Treasury having been called, by the Collectors of Customs of our principal ports, in the year 1865, to the negli- gence and gross inattention of many of our consular officers in the matter of certifying invoice-, the Secretary of State, on the 20th April, 1866, issued Circular No. 59, which, after calling attention to the law of March 8, 1863, stated : " The powers conferred upon you (consular officers) for the purpose of securing truthful- ness and correctness in invoices are ample, and you [consular officers] shall be held responsible for any want of truth or correctness in any invoice certified by you" [consular officers]. Prior to the receipt of this circular, I noticed the low (invoice) price of the sherry sent to the United States. I made numerous enquiries about the matter. The wine merchant whom I found discharging the duties of Consul on my arrival was one of the principal shippers of this low-priced wine, and, strange as it may seem, when questioned, he gave me deceptive information on the subject. In June, 1866, :Mr. W. B. Farwell, U. S. Secret Revenue Agent, arrived at Cadiz. After an interchange of views on invoices, etc., he visited some of the ■wine-cellars incog. Suffice to say, he discovered sufficient to corroborate my doubts. On the 29th June, 1863, I addressed the following letter to the Department_;of State : No. 38.] "United States Consulate, Cadiz, ''June 29, 186G. " Sir : I have given notice to the owners and shippers of wine from this city and vicinity that they must comply with the orders of Circular No. 59, April 20, 1866. With few exceptions they are displeased, and have given me consider- able trouble. A chronic system has been in practice here which allowed every truthless shipper to put his wines at any price he pleased. Many of them have grown rich and proud at the expense of our revenue, and they deem it a hard- ship to appear before me and declare, swear, to their invoices. I have been in- formed that a petition is about to be forwarded to you on account of my ac- tion. . . . " I am here now six months, and have watched the actions of all shippers. After watching, enquiring, etc., I have arrived at the disagreeable conclusion that two- thirds of the wine exported from here to tlie United States has been forwarded under tli-eut those invoices would as soon s»vearto their tictitious value as dfciare to it. "I have examined each invoice of 1803 ; I have found that, without exaggera- tion, there was al)out three hundred thousand (300,000; dollars kept from our revenue by tliose invoices. " One of the secret agents of the Treasury Department was here a few weeks past. I communicated to' him my suspicions, sliowed him my book of invoices and the letters that the late vice consul wrote to one of the appraisers in Boston. He went to one of the largest shippers here to buy wine. The shipper, after some time, camlidly informt-d him that he cjuld not send wine to the United States unless under the protection of false invoices. He requested me to make no change, to allow this party to send his wines forward. I have done so up to the present, but now deem it necessary to have all the clauses of the aforesaid circu- lar complied with. He took with him all my invoices from January 1 to 14th of June. ' "There is a large quantity of wine from here on the way to the United States, invoiced at the very low figure. I do not believe any of them have the true value set forth, and I have informed the proper officers that I believe they are fraudulent. "I am, sir, your obedient servant, "R. F. FARRELL, " United iitates Consul. " Hon. \V. 11. Sew.\kd, ^^ Secretary of State. Witshintjton.'" Henceforth, busing my action on the aforesaid Circular No. 59, my knowledge of the wine trade after a residence of six numths, and the information of the afore-* said Revenue Agent. I declined to sign any invoices that represented sherry wine at forty cents per g:\llon in Cadiz Bay. In the meantime, I informed the Depart- ments of State and Treasury and the Collectors of Customs at 2sew York and Boston of my action. The Cadiz shippers were indignant, and wrote to ^ladrid ; the Treasury Department seized the wines at New York and Boston, and entered a suit against them in the United Stutes Court. In the interval, the Cadiz shippers presented an exposition to the Spanish Secretary of State at Madrid, who in turn wrote to the Spanish Minister at Wash- ington to ))resent the facts to our Department of State. Soon as they came l)efore Mr. Seward, he referred them to the Treasury Department, and so informed the Spanish .Minister. {Vide Executive Document No. 133, 3'Jth Congress, 2d Session.) The shippers continued to importune me to sign their invoices, representing sherry at forty irntx per (jdUon, but I courteously and firmly declined assuring them, at the same time, tliat, if either the Departments of State or Treasury of the United States orderepens, we have a little confiict of our own here in Cadiz. What is known in the United States as "the sherry war' still ch subjects to assist them to escaf e from a scene of so much bloodshed and danger. Suffice to say, I promised to assist tlu-m, and fulfilled it, as the fol- lowing correspondence shows : t( ' B. S. S., Lt).\i)ON, Bay of Cadiz, December 8, 1SG8. "To R. F. F.\RUKi.L, Esq., Consul of the United States of America, Cadiz : "DkauSii!; We, the undersigned, arc safe on board the ship above-named, experiencing tiie kind lios|)itality of Captain Hall. That we got out of the walls of Cadiz, and all here, we feel to be entirely due to the courage and firmness with which you maintained your right to pass us through the gates in spite of the resolute and fieree n-sistanceof tiie revolutionists. Every one of usiiave expressed regret that in the luirry of our departure we missed you at the gate, and were unahh; to oiler yon by word of mouth tlie thanks which we certainly owe you. Failing our ability to do this, we have thought it best to testify, as we beg to da 9 by means of this joint letter, our sense of your great kindness and of our own gratitude. We are, dear sir, vour obedient and faitliful servants, Philip KrKGS- FORD, M.A., and Clerk in Holy Orders of the Church of England ; Mauy Cres- WELL, ROSARIO GOHDON, JOSEPn GoilDON, C. J. CuESWELL, PlIILIP NOHMAN, Ejiilius a. De Cosson." " U. S. Consulate, Cadiz, December 14, 18G8. *' Philip Kinosford, Escj., M.A. : "Dear Sir: I seize the first available moment to acknowledge the receipt of your kind and complimentary letter of the 8th inst. I beg you to assure your friends that in aiding them to pass out of Cadiz I only did my duty as an Ameri- can, as a public otiicer and gentleman, and am ready at all times to do the same. " I am, dear sir, with much respect, your obedient servant, " R. F. Fakkell, U. S. Consul." The following extract from the report of Capt. H. C. Blake, U.S.N., is sub- mitted : U. S. S. SwATARA (3d Rate), Cadiz, Spain, Dec. 13, 1868. Sir : . . . I deemed the presence of this vessel no longer necessary at Gibraltar, and immediately left for this place, where I arrived on the morning of the 12th inst. I found this city in a state of siege — the streets barricaded: non-combatants, who were able, leaving the city; and the Governor, and the forces under his command, contined in the Custom-house, over which a white flag was flying. The Spanish vessels of war were anchored in a line, ready to fire upon the city. All the American travellers had left the place. Those with American protection- were placed on board the vessels in the bay. The American Consul declined leaving his Consulate until the fleet should open upon the city. I immediately communicated with him, offering the use of boats to bring oft' himself and Ameri- can citizens. The Consul visited the ship, and reported the substance of the above information in relation to the aft'airs here. As far as I am able to learn, it appears that the collision between the citizens and troops was brought by an order given by the Governor for the former to sur- render their arms in thre^ hours. Some trouble in relatitm to this order having taken place at the port of St. Mary, a detachment of troops was marched to the mole to embark for that place, when they were fired upon by the people. The fighting then became general throughout the city, and continued for some two or three days, tlie populace succeeding in driving the troops to the Custom-house. At this point Mr. Farrell succeeded in bringing about an armistice between the parties. The loss of life on both sides was considerable. Very respectfully your obedient servant, (Signed) HOMER C. BLAKE, Commander Commanding. Commodore A. M. Pennock, Commanding European Squadron. From several parts of Spain I received letters thanking me for my conduct and efibrts in favor of peace during the struggle and after it. Here is one of the most important : DireccioB general de las Sociedades Obreras de Barcelona, Al sefior consul de los Estados Uuidos, Cadiz. El Congreso obrero compuesto de las Sociedades trabajadoras de Catalofia, reunido el dia 13 de los corrientes en esta ciudad, despues de haber declarado liberrima y unanimemente que la forma de gobierno que convieue mas en Espafia 10 «s la rcpublica democratica federal, lia resuelto enviarle un voto de gracias por 8US bueno:; oficios en favor de la p;iz en los aconteciinientos que ban tenido lugar en esa beroica ciudad de Cadiz. Acuerdo que tiene la satisfaccion de remitirle la Direccion central de las So- ciedados obreras de Barcelona. Salud y fraternidad. Barcelona 10 de dicienibre de 1868.— El ciudadano presidente interino, Juan Forgas. — El ciudadano secretario interino, Antonio Calouie. Consulado de los Estados Unidos. CiUliz. diciembre 23, 1868. A la Direccion central de obreros de Barcelona. Muy seftorcs mios : Tengo el lionor de acusarle el recibo de su conumicacion de 16 del corriente, ddndome un voto de gracias en nombre del Congreso de obre- ros de esa ciudad de Barcelona, por mis oticios en favor de la paz durante los des- graciados sucesos ocurridos I'lltiinamcnte en esta ciudad. Tengo el honor de inforinarle que todos y cada uno de los miembros del Cuerpo consular en esta ciudad fueron tan celosos en sus oticios en favor de la restauracion de la paz como el firniante y son igualniente acreedores a la felicita- cion de ese Congreso. Doy gracias I'l los trabajadores de Barcelona por sus cumplimientos, e inmedia- tamente remitire copia de su comunicacion al honorable secretario de Estado de los Estados Unidos. Soy de ustedes con mucho respeto S. S. Q. B. S. M.— R. F. Farrell, consul de los Estados Unidos. [Translation.] "Cextr.vl Directory of the Mechanics akd Workingmek's Congress OF Catalonia, Barcelona, December 16, 1868. *' To R. F. Farrell, U. S. Consul at Cadiz. "Sir : The Workingmen's Congress, composed of the societies of mechanics and laboring men of the Province of Catalonia, assembled on the 1:5th day of De- cember in this city, after having freely and unanimously declared that the form ot government most suitaljle to Spain is the Democratic Federal Republic, un- animously resolved that the best tlianks of the said Congress were due and are herebv tendered to you for your noble efforts in favor of peace during the late events in the heroic city of Cadiz. The Central Directory of the aforesaid Con- gress, have great pleasure and satisfaction in remitting the same to you. " Ilealtli and fraternity, Juan Faugas, President pro tern. " Antonio Calome, Secretary." [Translation.] "U. S. Consulate, Cadiz, December 23, 1868. "To Messrs. John Fargas, President pro tern, and Antonio Calome, Secretary pro tern., of the "Workingmen's Congress at Barcehma : "Gentle.men: I have the honor to acknowledge the receipt of your com- munication of the 16th inst., conveying to me a vote of thanks in the name of the WorkiuLrinen's Congress assembled at Barcelona, for my efforts in favor of peace during the unliappy days which lately visited this city. I beg to inform you that each and every member of the Consular body in this city was as zealous in his efforts to restore jieace as the undersigned, and arc ctjually entitled to your acknowledgments. I thank tiie meclianies and workingmen of Catalonia and Barcelona for their comiiliment. and sliall immediately transmit a copy of the same to the Honorable Secretary of State of tlie United States. "I am, "entlemcn, with great respect, vour obedient servant, " R. F. Farrell, U. S. Consul." 11 Copies of all the letters received, and an account of what took place in and around Cadiz from December 5, 1868, when hostilities commenced, to the 15th of December, 18G8, were sent to the Department of State. The venerable head of that department sent me, in reply, the following letter : No. 85.] Department op State, Washington, Jan. 12, 1869. R. F. Farkeix, Esq., U.S. Consul, Cadiz : Sir : Your despatch of the 15th December, No. 110, has been received. It con- tains a very full and interesting account of the recent insurrectionary proceedings at Cadiz. You will accept my tliauks for tlie manifest attention and care with which that narration lias been made. It gives me much satisfaction, moreover, to approve and commend the judicious, dignified, and efficient manner in which you exe- cuted in that transaction the important part which so unexpectedly devolved upon you as the Consul of a friendly nation. I am, sir your obedient servant, William II. Sew^\rd. Minister Hale wrote a very liattering letter to me. Here is an extract : " I was highly gratified to learn the useful and active part which you took, etc. The inhabitants of Cadiz, I learn from various sources, highly appreciate your con- duct. The latter, I suppose, look upon you in a somewhat diftereut light from what they did some time since, when your fidelity to your Government and your duty made you so obnoxious to those who were oiTended by your honest and fearless discharge of your duty in respect to their fraudulent attempts by which the Treasury of the United States would have been defrauded." The London Dd'dy News, December 12, 1868, stated : " The peaceful termination of the insurrection at Cadiz is entirely attributable to the good offices of Mr. R. F. Farreli, the American Consul in that city." Every daily journal in the United States on the morning of December 13, 1868, copied the above, and many referred to it in a complimentary manner. The New York HernU, December 18, 1868, says (editorially) : " The part which was played in Cadiz during the recent struggle in that city by Captain Farreli, our Consul there, redounds to his honor and the honor of the United States." The ]\Iadrid correspondent of the Journal de Geneve (December 24, 1 868), said : L'acharnenient entre la troupe et les citoyens, dds le debut de la lutte, a etc tel que la plupart des maisons ont et«3 depouillees de leurs meubles et de Icurs mar- chandises, qui ont servi dans les rues a clever des barricades. C'est ainsi qu'un honorable commergant suisse. M. B , du canton de Vaud, s'est vn enlever tout ce qu'il posst'dait, sans(ju"il lui fut laisse un lit ou une chaise; des balles de papier qu'il avait en magasin fun-nt egalement jetces sur la voie publique, et empilees comme moyen de defense. Malgre ces exces, aucun vol n*a ete commis, et chacun, aprds la reddition de la place, a pu reprendre les effets qui lui man- quaient : mais je vous laisse a penser dans quel etat ils se trouvaient. Ce qu'il y a eu d'etrange dans ce coml)at de maison ii niaison, c'cst qu'au milieu des de- charges de rartillerie, les cloches des eglises sounaient a toute volee, et ce tapage, joint aux cris des combattants et aux plaintes des blesses, devait produire un eifet lugubre qui restera longtemps grave dans le souvenir de ceux i[ui ont assiste ;\ ces terribles scenes. Pendant la treve qui fut accordee a la demande des consuls etrangers, et plus particuliercment du consul des Etats-Unis, lequel s'est admi- rablement conduit dans cette penible circonstance (cette treve, vous le savez, avait, pour but de permettre la sepulture des morts (pii, depuis quarante-huit heures gisaient sur les places et dans les rues), on voyait des milliers de personnes, surtout les femmes et les enfants, courir eperdues dans la direction du port iiour y cher- 12 cher (ks einburcations qui pussent les transporter sur quelqucs points habites de la cote voisine. On I'vakK- a oo.OOO les personnes qui ont abandonne la ville ; les pertes sent (•nonues. et Cadix pent etre cousiderce comme ruinee pour longtemps. It is unnecessary for me to translate the foregoinfj. I present it to show you how strangers viewed ray conduct when I did i/nj duti/, and as corroborative of my a-sertion referring to the press of Switzerland. Mr. Oscar G. Sawyer, the correspondent of tlie Xew Yori^ Herald at Cadiz, during and after the insurrection, wrote to that journal under date of December 14, 1868 [vide New York Ilernld, January 15, 1869] : '•The Qwnho&t Smitara, Commander Blake, arrived from Gibraltar on Saturday to attend to American interests. Fortunately all had gone well, th tnks to the intluenec and energy of Mr. Farrell, our Consul, who is really the person entitled to the honor of settling the trouble and savin