Franklin W. Smith and the U. S. Navy

[David Lockmiller]

This is a copy and paste project from Wikipedia on Google search of “Franklin W. Smith” and an addendum from “The Works of Charles Sumner, Volume 9.”

Smith Brothers did considerable trade with the military. Whenever Franklin observed dishonesty, he felt compelled to report it to authorities. He wrote an account of each offense, had it printed, and distributed the pamphlets throughout the city. He wrote to the chairman of the House Naval Affairs Committee in 1863 and testified before a Senate committee, resulting in the passage of a law simplifying honest bidding and making manipulation difficult. Smith identified the names of clerks who accepted bribes and created an Analysis of Certain Contracts for the United States Secretary of the Navy. The report showed how specific contractors were able to consistently bid low.

The naval bureau chiefs were angered that a civilian contractor questioned their integrity and embarrassed them by appearing before Congress and documenting the charges. Instead of eliminating the dishonesty in their subordinates, they targeted the Smith Brothers. Every transaction with the company was examined, and justification was demanded for every error or imperfect item supplied by the company. Despite the scrutiny, Smith was always able to provide a convincing explanation.

In January 1864, a Senate committee chaired by John Parker Hale formed to investigate naval contract fraud. The Navy brass despised Hale since he helped convince Congress to ban flogging in 1850 and grog rations in 1862. Hearings lasted almost four months, with the Smith brothers providing key testimony. The committee’s report was not released until June 29, but it was obvious from testimony that it would confirm Smith's accusations and dismiss the Navy's allegations against the Smith brothers.

On June 17, 1864, two weeks after the conclusion of the Hale hearings and two weeks before the report was to be made public, both the Smith brothers were arrested. The timing was not an accident; having the principal witnesses in jail would tend to discredit the Senate report when it was released. Early in the morning, a detail of marines grabbed Franklin and dragged him to a waiting boat, where he was transported across the harbor to Georges Island and Fort Warren. They had no warrant, only a telegraphed order from Gideon Welles, Secretary of the Navy. The marines broke down the door of Smith Brothers & Company, seizing records and correspondence, then did the same at his residence. Company clerks were arrested when they arrived for work the next morning; they were questioned and released.The business was forced to close because the company's books and papers had been taken.

When family members went to post bail, they were told that bail had not been set. Next, no one claimed authority to accept bail for a military charge. When bail was finally set, it was an unbelievable half a million dollars. However, Smith was so highly regarded by his fellow businessmen that nearly $1 million was pledged in less than two days. Even then, Smith was denied counsel and visitors.

The Massachusetts Congressional delegation, including Charles Sumner, Henry Wilson, Henry L. Dawes, George S. Boutwell, William B. Washburn, Thomas D. Eliot, John Denison Baldwin and John B. Alley went to the office of Navy Secretary Welles and offered to guarantee Smith’s court appearance personally, but to no avail. Smith was finally released on July 1, two weeks after his arrest and two days after the Hale report was submitted to Congress. At the time, he still had not been charged with a specific crime, just "fraud upon the United States" and "wilful neglect of duty as a contractor" with the Navy. However, his bond was lowered to $20,000.

Smith expected to be tried in United States federal courts. Instead, he was ordered to report to a military general court-martial in Philadelphia, 266 miles (428 km) distant.

During the Civil War, such a surprising number of dishonest contractors had taken advantage of the Army and Navy's need for war material that a legal provision was enacted by Congress on July 17, 1862 which stated that any civilian who supplied material under contract to the military became a member of the military and was subject to court-martial.

Once again, the Massachusetts Congressional delegation talked to Welles, but got nowhere. They appealed to President Abraham Lincoln, who read a tribute to Smith's reputation that Senator Sumner had written and the other congressmen had endorsed, and then scanned the testimonial to Smith’s business integrity, signed by ninety prominent Boston merchants. Lincoln offered to have the case dismissed.

Senator Sumner replied,
"Mr. President, we trust you will do nothing of the sort. To do that would leave a stigma on a good man’s name. Smith Brothers want it never to be said that this charge was fixed up through influence. They challenge the fight but want protection against a conspiracy and a court chosen by their enemies. We only come to ask you that when the court convicts, as it is evident it means to do, you will personally review the case."

Lincoln agreed and pledged, "If I find that men have been pursuing the Smiths, I will lay my long hand upon them, no matter who they are." He then ordered that the court-martial be conducted in Boston and asked Navy Secretary Welles to send him the trial record at the conclusion for his review. Welles was told to delay execution of the sentence until the president gave his approval.

The trial began September 15, 1864 and lasted four months, with the Navy questioning fewer than a dozen transactions among 12,554 items totaling $1.2 million in government purchases from the Smith Brothers. Only one article — a delivery of Revely Tin metal was supplied instead of the Banca variety — shorted the Navy, by $100–200. Predictably, the trial ended in judgment against the defendants, who were sentenced to two years in prison and fined $25,000. The judgment and sentence were approved by the Secretary of the Navy; all that remained was a presidential sanction.

Charles Sumner again met with President Lincoln on the Smiths' behalf. The president asked Sumner to review the lengthy report from the Navy Secretary which identified the key elements in the court-martial, then render an opinion. Senator Sumner studied the document overnight and wrote an opinion which summarized the treatment of Franklin Smith.

After reflection [see footnote addendum below on Lincoln’s immediate interaction with Sumner on the issue], the president wrote his decision to Welles, the court-martial board and the Navy: [This decision is the posting made by Roger yesterday and it follows.]

"I am unwilling for the sentence to stand and be executed, to any extent, in this case. In the absence of a more adequate motive than the evidence discloses, I am wholly unable to believe in the existence of criminal or fraudulent intent on the part of one of such well-established good character as is the accused. If the evidence went as far toward establishing a guilty profit of one or two hundred thousand dollars, as it does of one or two hundred dollars, the case would, on the question of guilt, bear a far different aspect. That on this contract, involving from one million to twelve hundred thousand dollars, the contractors should attempt a fraud which at the most could profit them only one or two hundred, or even one thousand dollars, is to my mind beyond the power of rational belief. That they did not, in such a case, strike for greater gains proves that they did not, with guilty or fraudulent intent, strike at all. The judgment and sentence are disapproved and declared null, and the accused ordered to be discharged."

Lincoln never got the opportunity to "lay my long hand upon them" who pursued the Smiths. A few short weeks after the president vacated the sentence, he was killed.

[Footnote Addendum]

As soon as Mr. Sumner had prepared his Opinion, he hurried to the President. It was late in the afternoon, and the latter was about entering his carriage for a drive, when Mr. Sumner arrived with the papers in his hand. He at once mentioned the result he had reached, and added that it was a case for instant action. The President proposed that he should return the next day, when he would consider it with him. Mr. Sumner rejoined, that, in his opinion, the President ought not to sleep on the case, — that he should interfere promptly for the relief of innocent fellow-citizens, — and urged, that, if Abraham Lincoln had suffered unjust imprisonment as a criminal, with degradation before his neighbors, an immense bill of expense, a trial by court-martial, and an unjust condemnation, he would cry out against any postponement of justice for a single day. The President, apparently impressed by Mr. Sumner's earnestness and his personal appeal, appointed eleven o'clock that evening, when he would go over the case, and hear Mr. Sumner's Opinion. Accordingly, at eleven o'clock that evening, in the midst of a thunder-storm, filling the streets with water, and threatening chimneys, Mr. Sumner made his way to the Presidential mansion. At the very hour named he was received, and at the request of the President proceeded to read his Opinion. The latter listened attentively, with occasional comments, and at the close showed his sympathy with the respondents. It was now twenty minutes after midnight, when the President said that he would write his conclusion at once, and that Mr. Sumner must come and hear it the next morning, — "when I open shop," said he. "And when do you open shop?" Mr. Sumner inquired. "At nine o'clock," was the reply. At that hour Mr. Sumner was in the office he had left after midnight, when the President came running in, and read at once the indorsement in his own handwriting. (The Works of Charles Sumner, Volume 9, by Charles Sumner, pages 358-59.)



It would have been quite interesting and informative to read the entry in Secretary Welles diary if President Lincoln had the opportunity to "lay my long hand upon them" who pursued the Smiths. But the ending of the Civil War took precedence upon President Lincoln’s remaining time.

I do not believe that the “Franklin W. Smith” episode was a mere aberration in the otherwise good character of Secretary Welles. In my extensive research on the hoax perpetrated upon the New York Times in publishing Professor Mindich’s Op-Ed “Lincoln’s Surveillance State,” I came across another episode demonstrating this same character flaw within Secretary Welles personality reflecting his fundamental attitude of “might makes right” Chain-of-Command dominance and superiority, in all circumstances. Another posting is forthcoming.

What to do when one comes into unavoidable conflict with such a personality or personalities:

To be, or not to be, that is the question:
Whether 'tis Nobler in the mind to suffer
The Slings and Arrows of outrageous Fortune,
Or to take Arms against a Sea of troubles,
And by opposing end them?

Hamlet -- Act 3 scene 1

In such circumstances, it is beneficial to have allies in support and President Abraham Lincoln as the final arbiter of justice. Otherwise, you will have to suffer the slings and arrows of outrageoous fortune as best you can.