Well, leastways over one of its houses
From the Richmond Daily Dispatch July 7, 1862:
Seward Backed out again.
–In Fredericksburg the British flag was pulled down by Lincoln’s soldiers in front of the British Vice consul’s door. The Consul, Mr. Peter Goolrick, protested, but his property was seized. He demanded to be sent to Washington, where on making complaint the flag and his property were restored, and Seward wrote a letter of explanation and apology. The miscreants should have been required to restore the flag to its position and salute it.
Mysteries and Conundrums, a site devoted to Fredericksburg and Spotsylvania, has a great article that tells much more of the story, but here’s a quick summary. Irish-born Peter Goolrick was a British vice-consul with few apparent responsibilities. When Union troops arrived in the Fredericksburg area in April 1862 Goolrich put the Union Jack over his house in the hopes that it would give him some immunity from the booty-loving, Hessian-like Yankees. At first this seemed to work, so other citizens stored valuables like silver in Goolrich’s house. When the Union army heard that Goolrich was also storing 1,000 barrels of flour, soldiers under Abner Doubleday searched the house and took the British flag. Goolrich was arrested and detained for a while.
After investigation and negotiation, Goolrich got his flag back, but the British diplomat in Washington agreed to close the Fredericksburg consulate.