designated Green as a proper man to unite with them and take the other third; he, Pancoast, did not know Green but on Camp's recommendation agreed to take him in. They telegraphed for Green. After some days' delay Green came on. He says the delay arose from Camp taking the papers to New York where he remained four days. Finally Camp and Green got McClellan's indorsement; the three went to Baltimore. The article (Inclosure No. 13) was drawn and executed and the entire responsibility assumed by Camp and Green. He says Green is a Pennsylvanian who married a niece of Simon Cameron and removed to Baltimore, where he was doing business as a grain merchant. When asked what he told Colonels Monroe, McDonald and [General] Carson when the permits (Inclosures 7,8,9) were he said he told them all. When asked if he told them Camp was a partner he answered he was not then a partner. His attention was drawn to the fact that Green alone was named as a partner in the permits, when according to his statement, he first united with Camp and afterward Green was received at Camp's solicitation; he began then to modify his statement. He said that after getting General Scott's letter he went on to Frederick where he saw General Cooper. Cooper gave him a permit to take salt; Kenly took his permit from him. He returned to Frederick in search of Cooper. Cooper had gone to Baltimore; Panocast found him at the Eutaw House. He says the letter of General Cooper to General Scott (Inclosure No. 10) was written at the Eutaw House; he says this letter was handed to him by General Cooper to hand to General Scott but he did not deliver it because General Scott was then displayed; says after this letter was written he had a conversation with General Cooper of which he made a memorandum (Inclosure No. 11); was uncertain whether he went home from Baltimore and obtained the permits then or whether he firngton and obtained McClellan's indorsement of the contract. I gave him time to reflect and he wrote me the letter returned (Inclosure No. 2) dated January 14.

On this case I submit:

1. General Carson's statement. *

2. As the result of my examination I submit-

First. Soon after Pancoast was discharged from his first arrest he entered into communications with the enemy. These communications were not authorized by our officers and were never disclosed candidly to them. They were a breach of his parole.

Second. Pancoast did enter into unauthorized communications with Mr. Lincoln, General Scott and General Cooper to obtain a license from which he expected to make much money. To aid him in these negotiations he associated himself with Camp, one of the proprietors and editors of the New York Tribune, and with John A. Green, a nephew of S. Cameron, Secretary of War.

Third. I am satisfied he never did disclose to Colonels Monroe and McDonald and General Carson John A. Green's relations with Secretary Cameron, and I am also satisfied he studiously concealed from those officers Camp's connection with him and extent and character of his speculations.

3. I am satisfied in his examination he did not design to tell me the truth in relation to his transaction with Messrs. Linclon, Cameron, Scott, Cooper and McClellan, officers of the Government of the United States, but that he studiously concealed from me the means by which he procured the license to bring salt into Virginia.

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*Not found.

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