New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1874-10-25
Cotton In War Times.

Mr.. Jefferson Clark, attorney for G, L. &
!. nouns. steamboatmeA trading largely
for many years on Red river. in Louisiana
and Texas, has filed in the United States
against Otis n. Cutler, claiming 49, 600
damages. This amount represents the
principal and interest Of money exacted by
the defendant from the plaintiffs in June.
1865, the former then acting as special
agent Of the Treasury Department in New
Orleans, and charged by the then Secretary
of the Treasury. the Hon. Hugh McCulloch,
with the business Of regulating trade in
cotton with the sections OF southwestern
country described in the language OF the
laws as insurrectionary. Under the legis-
lation OF Congress peculiar to that time,
the PRESIDENT and Secretary Of the
treasury were authorized to make excep-
tiOns at their discretion to the general in
hibltion upon trade with persons residing
beyond the lines Of federal army occupa-
ton. Special permits and authority were
gwen to many persons TO trade in cotton,
there being great pressure from variety
OF sources to get that commodity into the
great markets Of the world, because j.
commanded almost fabulous prices, mid
ding cotton selling in New Orleans at one
time in the fall OF 1864 as high az 81 o. q
pound. These special permits and the re-
quests accompanying them, directed to the
officers Of the army and navy, that SO far as
consistent with military movements assist
ance should be rendered to the holders in
their efforts to use them, were fruitful
source of corruption and trouble in the
army, and resulted in multifOrm litigation.
Mr.. Cutler, the de tendant in this suit, was
an active and very successful operator in
special permits, and he conceived the notion
Of monOpolizing the business at New Or
leans. He induced the Treasury Depart
En- ic,u lott Wv
cotton shipped to that port beyond the lines
Of the United States army Of occupation to
be shipped to him as cOnsignee in the first
instance, and empowering him to cell tho
same at his discretion, and to deliver to the
claimants seventy-f per cent of the net
proceeds. or to allow the claimants to take
their property upon payment to him OF
twenty-five per cent OF it's current marke:
value. The cotton factors, who were OF
dinarily the ultimate cOnsignees of all ship
ments from the country, as u rule elected
to take the cotton and pay the twenty tive
per cent tax and charges, rather than to
have an account sales presented to them,
in which Mr.. Cutters cotton press and pick
cry bills were likely to cut big figure, en-
larging the twenty-five per cent until is
took IN more than half Of che market
value Of the cotton. Mr.. Cutler Cd
gagged plenty OF warehouses and cotton
presses, did for q few months 3 ire
mendous business, and retired with for
tune. If tho suit commenced against him
results in the legal determination that the
treasury orders upon which he founded his
demands for twenty-five per cent Of all the
cotton received at New Orleans during his
time were not grounded upon proper con-
struction Of the law, or were too freely con-
strued by him, his suddenly accumulated
fortune may melt away before he knows it.
At all events, the suit instituted by tho
Messrs. Kouns, who have means and grit
enough 70 push it to the last extremity, will
give him some trouble to defend. United
States District Attorney Bliss and General
B. +. Butler are reported TO be retained Tor
the defense, and the casa, which is regarded
"a. test. involves &lO,OO0,O0O at least.
Nine tenths Of the moneys paid Mr.. Cutler
were paid under formal protest by the
ultimate consignees. and If the Nessrs.
kouns sustain their protest. all persons
similarly situated will be enabled 70 call
upon him and the government fov .es:i:uo
tiop.-New York Sua.