Mr. Smith to Mr. Seward.
Office of the District Attorney of the United States for the Southern District of New York,
Sir: Referring to your letter of the 2d instant, with regard to the prize steamer Granite City, covering a copy of a dispatch from Lord Lyons, I respectfully refer to my letter to you of the 22d ultimo. All the material proceedings in the case are detailed in that letter.
In response to the inquiries of Lord Lyons, I have to say, that the owners of the vessel were not notified of the application to the court for the order to transfer the vessel to the Navy Department, because no attorney had appeared in the suit on their behalf. I presume they did not know of the application until after the order was made. The libel was filed March 30, the warrant of attachment being returnable April 21. The order for the transfer was entered April 8. The practice in prize is the same as in admiralty cases. The marshal publishes in the newspapers notice of the filing of the libel and of the return day of the attachment. The attorney of the owners can at once give notice of retainer, and will then be entitled to be notified of all subsequent proceedings. Or, the owners may wait until the return day and then file their claim, which of course entitles them to notice of all motions in the case. In this instance, the owners neither served notice of retainer nor appeared on the return day to claim their property. A default was therefore taken on the 21st April, and the case was submitted to the court. No decision has yet been rendered, but, judging from the evidence, I have no doubt that vessel and cargo will be condemned.
On my application for the order of transfer, Mr. F. H. Upton appeared on behalf of the captors, and though not pretending that the value fixed by the Navy Department was too low, contended that the court ought to appoint appraisers, and then direct the transfer at the value fixed by such appraisers. The court granted the order without passing upon the point raised by Mr. [Page 602] Upton. Subsequently, on Mr. Upton’s motion, appraisers were appointed by the court to determine what sum the Navy Department should pay for the vessel. They have not yet reported. Had the owners of the Granite City considered the value fixed by the Navy Department unfair, they could of course have taken the same steps to have an appraisal by order of the court, that were actually pursued on behalf of the captors.
If my letter of the 22d ultimo, and the present one, fail to convey to the department sufficiently explicit information in reference to all the proceedings in this case, I shall, of course, be happy to furnish further information upon any point to which my attention may be directed.
I am, sir, with great respect, your obedient servant,
Hon. William H. Seward, Secretary of State.