I am doing research for project analyzing the impact of the invention of the telegraph on America. During my research, I came across this link which has manufacturing data from Massachusetts during the 1860 census. There is a listing for torpedoes with its aggregate value being over $4,000. My understanding was that tornadoes were invented along with the submarine. Yet the H.L Hunley had not even been built.
They had existed, but we would think of them more as mines. Robert Fulton had promoted his idea of a system involving casks filled with gunpowder, towed until they lodged against an enemy vessel, and detonated by a lanyard. There was a huge amount of interest in using them against the British navy in the War of 1812, but Fulton 's demonstrations were not nearly as impressive as his claims.
The idea was taken up again later, however, by none other than Samuel Colt, in the 1840's. Colt proposed them for harbor defense, and wanted to use electricity to detonate them. The need to have some sort of waterproof wiring to connect them to a battery led him to contact Samuel FB Morse who had done some experiments with wire insulation, and Colt thought telegraph apparatus could be employed in the system somehow, as well ( the two inventors then seem to have come up with a scheme to have a telegraph line laid from New York to Sandy Hook ) . Colt was able to get $17,000 from Congress for the invention, and was able to use it to blow up a few ships, sometimes from miles away; but the Navy simply didn't think much of his torpedoes ( or, perhaps doubted the reliability of the inventor, who'd fallen into financial difficulties and was no longer in charge of his company), so after 1844 nothing more was done.
So, the concept was known. But what was actually being made in MA, in 1860? Good question. The next important use of them was , as you note, after 1862 and the Civil War, when the Confederacy would try to employ various "infernal machines" as defense against Union ships.
Barnes, J. S. (1869). Submarine Warfare, Offensive and Defensive: Including a Discussion of the Offensive Torpedo System, Its Effects Upon Iron-Clad Ship Systems, and Influence Upon Future Naval Wars.Van Nostrand.
Perry, M. F. (1985). Infernal Machines: The Story of Confederate Submarine and Mine Warfare. Louisiana State Univ Pr.
Your confusion comes from the modern usage of the word torpedo. Prior to the development of the self propelled naval torpedo starting in the 1860s, torpedo was used for various explosive devices that are now called mines. The adjective used before "torpedo" described the type of usage, and this could include use on land. The shift to just mean naval torpedos occurred in the early 1900s.
The usage and crossover in meanings can be seen for example with the Bangalore torpedo. This was developed shortly before WW I and was used on land to clear mines and other obstacles. Another example would be the spar torpedo used by the Hunley, an explosive device on the end of a spar attached to the ship. Some means were provided to attach it to the ship and detach from the spar so the Hunley could back away from the explosion.
In the case of the document you came across further research would be needed to identify the companies making torpedos. Then some types could possibly be determined. The end products may have been intended to be used at sea or on land.