Hall Carbine Affair
John Pierpont Morgan | |
|---|---|
| Known for | Financing the acquisition and resale of surplus rifles during the American Civil War; involvement in a wartime profiteering scandal |
During the American Civil War, John Pierpont Morgan played a key role in financing the acquisition of 5,000 surplus rifles at a cost of $3.50 each. These rifles were subsequently resold to the government at $22 apiece, an event that later gained notoriety as a scandal involving profiteering during wartime. The controversy was revisited in 1910 when Morgan faced indictment.
The Affair
In June 1861, arms dealer Arthur M. Eastman purchased the firearms known as "Hall's Carbines" through an agreement with Brigadier General James Wolfe Ripley, who headed the US Ordnance Bureau. Eastman committed to selling these rifles to Simon Stevens at $12.50 each, contingent upon Stevens providing $20,000 in financing to finalize the government transaction. Stevens then negotiated a resale to General John C. Frémont for $22 per rifle, with a promise to modify the rifles to fifty-eight caliber by boring them out. To fund this deal, Stevens obtained a $20,000 loan from Morgan. The rifles were delivered to Eastman in August 1861 and refurbished at approximately 75 cents each; by the end of that month, 2,500 units had been supplied to Fremont. Additionally, Stevens secured a $46,226 loan from banker Morris Ketchum, allocating $37,500 of it to repay Eastman. Morgan remained owed $20,000 and held 2,500 rifles as security. On September 14, 1861, the government paid for the initial shipment, prompting Morgan to release the remaining rifles to Fremont. A voucher for outstanding payments was forwarded from Morgan to Ketchum.
Reaction and evaluation
By September 1861, controversy arose when Ripley uncovered that Fremont had procured rifles without proper authorization and had been overcharged. Ripley raised his concerns with the Secretary of War, leading major newspapers to report on the issue on September 26. This prompted the swift establishment of a House investigative committee. In 1863, a Congressional Committee on Government Contracts condemned those involved in arms trading, stating: "Worse than traitors... are men who feast on the misfortunes of the nation while patriot blood is crimsoning the plains."
Interest in the matter was renewed in 1910 through Gustavus Myers' History of the Great American Fortunes, which included a detailed chapter on J.P. Morgan. The incident became a cause célèbre, attracting significant analysis and debate. Myers criticized the Hall’s Carbines as dangerously flawed weapons. Historian Gordon Wasson argued there was no proof that Morgan intentionally profited from wartime disorder. In contrast, Matthew Josephson asserted Morgan’s awareness of the scheme, referencing a pre-delivery invoice amounting to $58,175 submitted before releasing rifles held as collateral. Charles Morris considered it unlikely that Morgan was unaware of how lucrative this arrangement was. Jan Irvin observed that Wasson later served as Morgan’s vice president for public relations and played a role in shaping historical narratives that cleared Morgan of wrongdoing.