Lord Lyons to Mr. Seward.
In the note respecting the case of the Labuan, which you did me the honor to address to me on the 9th of April last, [38th Congress, 1st session, House Ex. Doc., No. 1, page 557,] you stated that you were authorized by the President to inform me that the district attorney would be immediately instructed to give notice to the claimants or their counsel, as he might be able, of an early day when he would move the court to proceed to consider and determine what damages and what costs should be awarded to the claimants of the ship Labuan and her cargo for her unlawful seizure, and to place before the court, on that occasion, all the proofs which had been furnished to the government of the United States by the government of her Majesty.
You added that, in pursuance of such notice, the district attorney would be instructed to prosecute the question of costs and damages to a decision whether the claimants appeared or not, and you went on to say that when that decision should be obtained the effect of it would be immediately communicated to me; that if it should be satisfactory, Congress would be requested to make an appropriation for the payment of the sums awarded; and that if it should be unsatisfactory, you would then receive with entire pleasure any objections that might be made by or on behalf of the claimants. Finally, you informed me that if you should not be able to adjust the amount satisfactorily to both governments, without a reference to impartial mercantile persons, you should then be prepared to consider, with the most entire respect, the expendiency of such a reference, with directions that the referees should report so seasonably as to admit an application to Congress at the next session for its authority to pay the damages and costs which should thus finally be ascertained.
More than eight months have elapsed since your note was written, and the session of Congress to which you referred has already begun, but no progress appears to have been made towards fixing the amount of the costs and damages due to the claimants in the case of the Labuan. I am informed by the agents of the claimants that no notice has up to this time been given to them by the district attorney of a day on which he will move the court to consider and determine the question; but it is not my purpose on the present occasion to comment on the delay which has thus taken place in giving effect to the assurances conveyed by your note. I will simply refer you to the note expressing the sentiments of her Majesty’s government respecting that delay which I had the honor to address to you on the 21st of last month. It is indeed now represented to me by the claimants that a recent judicial decision puts an end to all hope of adjusting their claims by the reference to the prize court which you contemplated. They state that on an appeal to the United States circuit court in [Page 407] the, case of the Empress, Mr. Justice Nelson pronounced on the 21st of last month a decision which precluded the prize court from adjudicating questions of costs and damages.
I do not, of course, pretend to give an opinion of my own on the question of law; but I deem it to be my duty to ask your immediate attention to it, and a-the same time most earnestly to beg you to take at once such measures respectt ing the case of the Labuan as will redeem the promise made in your note, and insure your being in a situation to make in good time during the present session an application to Congress for the appropriation required to satisfy the just demands of the claimants.
I have the honor to be, with the highest consideration, sir, your most obedient, humble servant,
Hon. William H. Seward, &c., &c., &c.