"Butler was counsel for Farragut, started the a case in 1867, reporting a bill as a member of the House giving Farragut's fleet the right to enter the courts for prize money, carefully excluding Porter's fleet from all participation, and as carefully providing that the award should be paid out of the Treasury." The issue was over 32 vessels captured, five vessels in the course of construction, and 16,000 bushels of coal at New Orleans; for a total claim of $966,120. Butler had the case removed from review, either of the Supreme Court of the district or of the United States, and left both courts powerless in its final stage. This was done by inducing counsel for the United States, R.M. Crone, to agree to a stipulation submitting the case to arbitration, making the decision of the arbitrators final as to both the law and the facts, and this decision should be entered as the decree of the court.
Arbitrators were
Henry W. Paine of Boston
Thomas J. Durant of Washington
Gustavus V. Fox (who commanded Fort Sumter's relief effort)
The Government argued that no prize was legally due, since the capture of New Orleans was the joint action of the Army and the Navy, and the Supreme Court had decided that where such joint action existed claims for prizes in behalf of the Navy were not valid (everyone knew the Army had co-operated with the Navy in almost all land operations, including New Orleans). The arbitrators agreed with Butler and Farragut that the Navy acted alone. Also the Government argued that no property captured upon any inland waters of the United States shall be regarded as maritime prizes [Act of July 1864]. The arbitrators again agreed that all the property were lawful prizes of war. In order to pay the maximum amount of bounty money it was necesary to show that the force on the enemy's ships exceeded the force on the Union fleet. The arbitrators counted only the officers and men in that part of the Union fleet which passed the forts, and agreeing to consider the land forces of the enemy in the forts which were engaged by the Army and surrendered to it, with the 110 guns of their armament as constructively a part of the naval force of the enemy, plus the chain and all other obstacles, the arbitrators found "that in the engagement that resulted in the capture of the above named ships, vessels, and property the entire force of the enemy was superior to the force of the United States ships and vessels aforesaid engaged."
The arbitrators awarded the claim.
Which included after investigation...
Vessels captured afterward by the Army in various bayous, and some that were never at New Orleans until after the capture, and two for which prizes had previoulsy been awarded and paid by the Treasury. Nine steamers claimed were returned to their owners by Farragut or Butler; Two were turned over back to the owners by the courts; Twelve ships had already been paid for by the United States, payments made to the owners for services and values; with six ships that the United States did not recognize the rights of the owners. Private property, situated at New Orleans at the date of capture, should be exempt from bounties and or prizes.
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David Upton