Papers Relating to the Foreign Relations of the United States, With the Annual Message of the President Transmitted to Congress December 3, 1900

Mr. Hay to Mr. Choate.

Department of State,
Washington, January 26, 1900.

No. 286.]

Sir: I transmit herewith copy of a letter from Mr. Andrew J. Toomey, president of the Pennsylvania Milling and Export Company, in regard to the company’s flour seized by the British naval authorities.

I also inclose two copies of each of the invoices and bills of lading¹ referred to in Mr. Toomey’s letter, one set of which is for your own use and the other for the use of the British Government, if in the exercise of your discretion you choose to make use of it.

This Government approves Mr. Toomey’s views and suggestions as being just and reasonable and as offering a sensible and simple solution of the questions as regards the Pennsylvania Milling Company.

I am, etc.,

John Hay.

[Inclosure.]

Pennsylvania Milling and Export Company to Mr. Hay.

New York, January 23, 1900.

Dear Sir: I now beg to hand you herewith, as per your request of the 16th instant, triplicate copies of invoices and bills of lading¹ of goods our company shipped, on different steamers, which have recently been seized or detained by the British naval authorities. I also attach to the different shipments an affidavit in duplicate covering each case. I hope I have made the position of our company sufficiently clear in this matter.

During my absence amongst our mills in Pennsylvania your telegram of the 18th instant was received, for which I thank you.

I would respectfully call your attention to the fact that the British Government, after having seized the flour we shipped to our buyers, which was destined for Delagoa Bay and prevented from arriving there in time to meet a good market at that point, especially when it was not sold for any purposes hostile to the British Government, they should not be allowed to consider themselves relieved from any responsibility for indemnity to ourselves for any direct loss we may have to assume or any indirect loss we may have to compensate our buyers for on account of this diversion and detention, by a simple release of the flour to qualified owners, because said owners could not possibly take delivery of the flour owing to the obstacles of war at the point where it now lays; and furthermore, even if they could do so, they would naturally have suffered great loss by conditions of the market and by any deterioration that may have accrued to the flour through climatic deterioration. I would therefore again respectfully suggest to you that the most equitable way of settling this matter would be to have the British Government take the flour which is now in their custody and keep it at the invoice price, and pay proceeds of said invoices to whoever may prove claim for its value, and a reasonable compensation for loss of market and other losses that may accrue to American interests.

As one of the board of managers of the New York Produce Exchange I brought this matter before the chairman of our arbitration committee as a question of equity, and he was of the impression that such a settlement of the matter would not be more than equitable. I am quite willing to leave the matter, as far as the interests of our company are concerned, on a commercial basis, to be adjusted in an equitable way by our arbitration committee, which holds power from the State of New York to adjust the commercial matters presented to them for jurisdiction, provided such action would not in any way embarrass the diplomatic negotiations which you have in hand.

If any of my proposed suggestions be in any way inconsistent with what is proper, I would respectfully beg to withdraw same.

Respectfully, yours,

Andrew J. Toomey.

[Subinclosure 1.]

United States of America,
State of New York, City and County of New York, ss:

Andrew J. Toomey, being duly sworn, deposes and says that the triplicate copies hereto attached of invoices and bills of lading¹ of flour shipped on the Dutch steamer Maria from New York to Delagoa Bay are in all respects true copies of the original documents covering said shipments. Further, that the marks “O. &Co.” on the 2,000 bags of flour branded “Speria” were put on to indicate the consignees, Old-fields & Co., the purchasers of the flour, who bought the flour on a basis of cost, insurance, and freight Delagoa Bay, which is indicated on invoice by the letters c. i. f. Further, that the marks on the 1,512 bags flour branded “Goldfields” were put on to Indicate the consignees, Treisman & Shapiro, the purchasers of the flour, who bought the same on a basis of cost, insurance, and freight Delagoa Bay, which is indicated on the invoice by the letters c. i. f. The brands of the above flours are only indicated on the invoices, not being required on the bills of lading.

The deponent further states, in explanation of the fact that the invoices are made out in the name of Fowler Brothers, Limited, that said Fowler Brothers, Limited, are the financial agents of the Pennsylvania Milling and Export Company, and that their profits in the sale of flour made by the Pennsylvania Milling and Export Company consist solely of a commission for financing the sales made by the Pennsylvania Milling and Export Company, and that Fowler Brothers, Limited, hold recourse against the Pennsylvania Milling and Export Company in case of drafts being unpaid or redress demanded by the purchasers of the flour in Africa for any cause; and, further, that the only parties interested in the shipments described, except the buyers already mentioned, are the deponent, the Pennsylvania Milling and Export Company, and Anderson Fowler, managing director of Fowler Brothers, Limited, and further states that said Anderson Fowler is a citizen of the United States of America. The deponent further states that the buyers mentioned, viz, Oldfields & Co. and Treisman & Shapiro, are legitimate flour merchants in Johannesburg and were not contractors to the Transvaal Government at time the purchases were made.

The deponent further states that the documents showing title to the above-mentioned lots of flour were attached to the drafts drawn in payment of same; that the deponent is unaware whether such drafts have been paid or not. The deponent further states that even if the flour in question, which, it is alleged, is now in custom-house in Durban, should be released, the owners would be unable to take delivery of it without very great expense, as they had provided for its delivery at Delagoa Bay instead of Durban, and, further, from the deponent’s personal knowledge of climatic influences at Durban, and also from his practical knowledge of flour, he believes that the said flour would probably have suffered from natural deterioration before delivery could be made.

A. J. Toomey.

Subscribed and sworn to before me this 23d day of January, 1900.

[seal.]

L. B. Howe, (117)
Notary Public, New York City and County.

[Subinclosure 2.]

United States of America,
State of New York, City and County of New York, ss:

Andrew J. Toomey, being duly sworn, deposes and says that the triplicate copies hereto attached of invoices and bills of lading¹ of flour shipped on the British steamer Mashona from New York to Delagoa Bay are in all respects true copies of the original documents covering said shipments. Further, that the marks on the 3,254 bags flour branded “Johannesburg” were put on to indicate the consignees, Broudie & Marks, the purchasers of the flour, who bought the flour on a basis of cost, insurance, and freight Delagoa Bay, which is indicated on invoice by letters c. i. f. The brand of the above flour is only indicated on invoice, not being required on bills of lading.

The deponent further states, in explanation of the fact that the invoices are made out in the name of Fowler Brothers, Limited, that said Fowler Brothers, Limited, are the financial agents of the Pennsylvania Milling and Export Company, and that their profits in the sale of flour made by the Pennsylvania Milling and Export Company consist solely of a commission for financing the sales made by the Pennsylvania Milling and Export Company, and that Fowler Brothers, Limited, hold recourse against the Pennsylvania Milling and Export Company in case of drafts being unpaid or redress demanded by the purchasers of the flour in Africa for any cause; and, further, that the only parties interested in the shipments described, except the buyers already mentioned, are the deponent, the Pennsylvania Milling and Export Company, and Anderson Fowler, managing director of Fowler Brothers, Limited, and further states that said Anderson Fowler is a citizen of the United States of America. The deponent further states that the buyers mentioned, viz, Broudie & Marks, are legitimate flour merchants in Johannesburg and were not contractors to the Transvaal Government at time the purchases were made.

The deponent further states that the documents showing title to the above-mentioned lot of flour were attached to the drafts drawn in payment of same; that the deponent is unaware whether such drafts have been paid or not. The deponent further states that even if the flour in question, which, it is alleged, is now in custom-house in Cape Town, should be released, the owners would be unable to take delivery of it without very great expense, as they had provided for its delivery at Delagoa Bay, instead of Cape Town; and, further, from the deponent’s personal knowledge of climatic influences at Cape Town, and also from his practical knowledge of flour, he believes that the said flour would probably have suffered natural deterioration before delivery could be made.

A. J. Toomey.

Subscribed and sworn to before me this 23d day of January, 1900.

[seal.]

L. B. Howe,
Notary Public 117, New York City and County

.

[Subinclosure 3.]

United States of America,
State of New York, City and County of New York, ss:

Andrew J. Toomey, being duly sworn, deposes and says that the triplicate copies hereto attached of invoices and bills of lading¹ of flour shipped on the British steamer Beatrice from New York to Delagoa Bay, are in all respects true copies of the original documents covering said shipments. Further, that the marks on the 1,340 bags flour, branded “Goldfields,” were put on to indicate the consignees, Treisman & Shapiro, the purchasers of the flour, who bought the flour on a basis of cost, insurance, and freight Delagoa Bay, which is indicated on the invoice by the letters c. i. f.; further, that the marks on the 4,349 bags, branded “Johannesburg,” were put M on to indicate the consignees, Broudie & Marks, the purchasers of the flour, who bought the same on a basis of cost, insurance, and freight Delagoa Bay, which is indicated on the invoice by the letters c. i. f. The brands of the above flours are only indicated on the invoices, not being required on the bills of lading.

The deponent further states in explanation of the fact that the invoices are made out in the name of Fowler Brothers, Limited, that said Fowler Brothers, Limited, are the financial agents of the Pennsylvania Milling and Export Company, and that their profits in the sale of flour made by the Pennsylvania Milling and Export Company consist solely of a commission for financing the sales made by the Pennsylvania Milling and Export Company, and that Fowler Brothers, Limited, hold recourse against the Pennsylvania Milling and Export Company in case of drafts being unpaid or redress demanded by the purchasers of the flour in Africa for any cause; and, further, that the only parties interested in the shipments described, except the buyers already mentioned, are the deponent, the Pennsylvania Milling and Export Company, and Anderson Fowler, managing director of Fowler Brothers, Limited, and further states that said Anderson Fowler is a citizen of the United States of America. The deponent further states that the buyers mentioned, viz: Treisman & Shapiro and Broudie & Marks are legitimate flour merchants in Johannesburg and were not contractors to the Transvaal Government at time the purchases were made.

The deponent further states that the documents showing title to the above mentioned lots of flour were attached to the drafts drawn in payment of same, that the deponent is unaware whether such drafts have been paid or not. The deponent further states that even if the flour in question, which, it is alleged, is now in custom-house in East London, should be released the owners would be unable to take delivery of it without very great expense, as they had provided for its delivery at Delagoa Bay instead of East London; and further, from the deponent’s personal knowledge of climatic influences at East London, and also from his practical knowledge of flour, he believes that the said flour would probably have suffered from natural deterioration before delivery could be made.

A. J. Toomey.

Subscribed and sworn to before me this 23d day of January, 1900.

[seal.]

L. B. Howe,
Notary Public 117, New York City and County

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