I can't say how valid it is. If it's true, the arguments seem pretty slippery.
Finding a jury in Virginia wouldn't have been impossible, but as a unanimous verdict was required, you could never be sure there wouldn't be one joker in the deck.
I'm dubious of Chase using the particular argument cited in the article, but who knows. The part of the article I quoted above dovetails with what we do know, which is that Chase warned the Johnson administration in June, 1865: "If you bring these (Confederate) leaders to trial it will condemn the North, for by the Constitution secession is not rebellion. Lincoln wanted Davis to escape and he was right. His capture was a mistake. His trial will be a greater one." (Foote, The Civil War, Vol. 3, p.762)