Morse to T. H. Dudley, November 13, 1866

Mr. Morse to Mr. Dudley.

My. Dear Sir: Owing to your absence on the continent, which deprived me of the advantage of a personal interview with you, I hasten to inform you of an important step taken by Mr. Gibbs and myself to bring nearer to a close our exertions for the recovery of such rebel property as was left in Europe at the close of the rebellion. One week ago last Saturday I received a message through Henry Lafone from Mr. Prioleau, requesting me to meet him and see if we could not agree upon some mode of settlement by which justice would be done to both him and the United States. Holding the power both from the State and Treasury Departments to “compromise and settle” just such cases, I did not feel at liberty to repel the advance made by Mr. Prioleau, nor did I desire to take the responsibility entirely upon myself. I therefore invited Mr. Gibbs to accompany me, thinking when we reached Liverpool to confer with you and have the aid of your counsel before meeting them. But your absence deprived us of this. On meeting them we requested that the whole negotiations and settlement might be transferred to you, and much preferred it on account of your knowledge of their connection with the confederate transactions, but this they declined positively, either directly or indirectly. We, under such a state of facts, felt compelled to go on with the settlements, knowing full well that their aversion to you was owing to your zeal and energy in protecting as far as possible the interests of the government After a long conference of six hours on the first day of our meeting, we agreed on an outline of a settlement, which was in substance that they are to give us a sworn statement of all rebel property held or contracted by them, which is to include five steamers, cotton, material of war, &c, &c, give us free access to their books, vouchers, and anything they have to aid us in reaching property held by them and others, and we are to allow them a portion under three-fifths of the just and legal liens they have on the property, and withdraw all suits against them in the courte of this country, and they to withdraw their suit for the recovery of the Wren in the courts of the United States, which vessel they say they prove was taken into Key West by mutineers, after the surrender of General Kirby Smith. We already have the evidence of the benefit of a settlement with so important a house over other persons in a like condition, but of less importance. By this arrangement we reach far better results than can possibly be reached by long, expensive, irritating and doubtful lawsuits in the courts of this country, where all the leanings are against us. Mr. Gibbs has not only consented but earnestly advised to every step which has been taken in the case. He carefully examined my authority and instructions, and said my power to act was full and complete; that it was my duty to make the settlement, and I could not escape censure if I did not. Trusting that you will agree with us in the belief that some of our duties will be lighter hereafter in consequence of this arrangement, and that you will cordially co-operate with us in removing any remaining barrier to its completion,

I remain, very truly, yours,