Mr. Choate to Mr. Hay.

No. 246.]

Sir: I have the honor to report that on the 4th instant I received your instruction No. 286 of January 26 and its inclosures, the bills of lading and invoices of the Pennsylvania Milling Company’s shipments by the Mashona, Maria, and Beatrice, with the affidavits and letter of Mr. Toomey, president of that company.

I have not yet delivered these documents, deeming it prudent to await the answer to my offer of sale to Her Majesty’s Government of this very flour. I assume that the new statement of the price which would be satisfactory to the company stated in this letter, viz, invoice value, with damages, etc., intends the same as was stated in your cable of January 7, viz, market value at the port of destination at the date when it would have arrived there in due course of voyage if the same had been uninterrupted, and so I have not changed the form of my offer.

In view, however, of the long delay which has already occurred in the case of the cargoes landed by all three vessels—the Beatrice, the Maria, and the Mashona—and of vague hints dropped by Lord Salisbury that the owners of cargo might have claim against the two British vessels, I have addressed him a note, dated yesterday (copy annexed), which I hope will meet your approval.

I have, etc.,

Joseph H. Choate.
[Inclosure.]

Mr. Choate to Lord Salisbury.

My Lord: I have the honor to acknowledge the receipt of your lordship’s note of the 2d instant, giving me such information as you had received up to that date in regard to the cargo of the Beatrice.

Your lordship’s note confirmed the information which I had for the first time received in our interview of January 31, that as British vessels can not under the municipal law of Great Britain carry merchandise destined for the enemy’s territory, “when the Beatrice came within British jurisdiction she was required to land all such merchandise, and this part of her cargo was therefore put ashore (at East London) with such other portions of the cargo as had to be removed in order to reach it; and that so far as is known in your department none but British lines of steamers run from the ports of Cape Colony to Delagoa Bay, which accounts for the flour mentioned by me in my note of the 29th being still at East London.”

Your lordship has no doubt that the flour and any other merchandise not contraband of war from the Beatrice would be handed over to any person who showed that he was entitled to receive it, just as in the case of the Maria and the Mashona you had already declared that on proving property the owners might take the cargo at the place where it was landed, Durban and Cape Town, respectively.

Tbe obligation of restitution of these cargoes to their owners being conceded, the permission extended to the owners to come and take them at ports short of the port of destination can not be considered as a discharge of that obligation, as delivery at the port of destination is, in a commercial sense, the act which gives them the value intended, and you would not claim that you require the owners to go elsewhere for them; and as to all such goods as your note of the 2d relates to, which can not be carried on in British vessels because of your municipal law, or in other vessels, because there are no other to take them, they are as inaccessible to their owners for all the purposes of their commercial adventure as if they had been landed on a rock in mid ocean.

[Page 586]

The discharge from the vessel and landing short of the port of destination, and failure to restore and deliver at that port, constitute wrongful acts as against all owners of innocent cargo; and you do not claim that any but British subjects can be guilty of any violation of your municipal act against trading with the enemy. It is now two months or more since the Beatrice’s cargo was thus landed at East London, and some of it, at any rate, put out of the reach of its owners, even if they were ready to accept your invitation to go there and take it; and in the climate of South Africa all perishable articles, such as flour and other food stuffs, must be subject to deterioration as well as to the other damages in the loss of the expected price at the port of destination, etc.

The American owners of cargo on these three vessels so treated will claim—and my Government concurs in the justice of their claim—that Her Majesty’s Government will be bound to indemnify them for and make good to them all damages and loss sustained by them by such treatment, including damages from the climatic influences which affect all food stuffs, and from the failure to receive their cargo at the port of destination at the due date. They fear that in many instances the damage may subsequently involve the entire value of the goods.

Can not something be done, therefore, to minimize these damages? If, by reason of your municipal law, no owner of a British vessel can carry innocent goods to the port of destination, and there are not other vessels to carry them, can not your Government itself take up a vessel and so discharge its obligation to restore and deliver at the port of destination, or suspend, in these particular instances, Her Majesty’s proclamation, so as to permit this to be done by private owners?

The Pennsylvania Milling Company has invoices of flour on all three vessels, no part of which, so far as I can learn, has reached its port of destination. In pursuance of your Lordship’s suggestion, that Her Majesty’s Government might be disposed to purchase the flour, I made, by my note of the 13th ultimo, a direct offer of sale, but no reply as yet has been received. While we are waiting the flour may perish from decay. Can not something be done to expedite this particular case, or must these innocent shippers and owners be left to a protracted prosecutiou of claims for damages, instead of having their property promptly restored to them, as was their right?

I have, etc.,

Joseph H. Choate.