No. 544.

Mr. Foster to Mr. Bayard .

[Extract.]
No. 333.]

Sir: I transmit herewith a copy and translation of a note from Baron Blanc, the minister plenipotentiary of Italy resident in Madrid, with which he incloses his decision as arbitrator in the case of the American bark Masonic, which was submitted to him by this legation and the minister of state of Spain, on behalf of the two Governments, to adjudge the amount to be paid by the Spanish Government to the owner of said vessel on account of its seizure and confiscation by the authorities of Manila.

I also inclose a copy and translation of the arbitral decision, from which it will appear that Baron Blanc has adjudged that the Spanish Government shall pay to the owner of the Masonic the sum of $51,674.07.

I also transmit a copy of my note to Baron Blanc, acknowledging the receipt of his decision, with an expression of my appreciation of the promptness and impartiality of his action, and reserving to transmit the more formal recognition of his services by my Government after you have been informed of the decision.

By the terms of the agreement of arbitration, the amount of the award, with interest at 6 per cent., is to be paid in Washington within six months from the date of the decision of award.

This equitable and satisfactory result confirms in the fullest manner the justice of the position assumed and maintained for the past six years by our Government that the original seizure of the Masonic was an outrage upon American commerce, and that the prolonged refusal of the Spanish Government to make a diplomatic settlement of the case was a continued wrong and injury to the claimant. I am happy also to note that it is a confirmation of the wisdom of the course pursued by me with the Spanish minister of state in November last in insisting that the claim must be paid by Spain without further delay, and that if a friendly agreement as to the amount due could not be reached, that that question should be submitted to arbitration.

I suppose the original decision of award should be deposited in the Department of State, but will await your instructions on this point.

* * * * * * *

Suggesting that a proper recognition of the services of Baron Blanc be made by our Government,

I am, &c.,

JOHN W. FOSTER.
[Page 725]
[Inclosure 1 in No. 333.—Translation.]

Baron Blanc to Mr. Foster .

Excellency: Referring to the notes addressed to me by your legation, dated February 28, March 3, April 20, May 30, and June 11 ultimo, in regard to the high commission which the Governments of the United States of America and Spain did me the honor to intrust tome, I fulfill the duty by sending to your excellency the arbitral decision rendered by me for the indemnity to be paid to the owner of the Masonic.

At the same time I address an identical communication to his excellency the minister of state of His Majesty the King of Spain.

Receive, &c.,

BLANC.
[Inclosure 2 in No. 333.—Translation.]

The undersigned, requested by a collective note of his excellency the minister of state of His Majesty the King of Spain and of the chargé d’affaires of the United States at Madrid, dated 28th February ultimo, in the name of the respective Governments, to decide in justice and equity, as arbiter, within a delay not exceeding six months, the amount of the pecuniary indemnity to be paid by the Spanish treasury to the owner of the North American vessel Masonic in virtue of the decreed sentence of the council of state of Spain of October 16, 1884, and in accordance with the damages and injuries duly proved by the claimant, has received from the high parties to form his decision the following documents:

From his excellency the minister of state of Spain the note of 30th May ultimo, containing appreciations in support of which are produced as proofs three documents, among which is an account of losses and damages claimed by the owner of the Masonic by way of compromise and without proofs, the 6th August, 1883, and amounting, including interest, calculated up to August 7, 1883, to $49,256.59; which claim his excellency the minister of state, in the same note of 30th May, taking as a basis the two other documents produced by him as proofs, that is to say, the expediente prepared in the ministry of state, and the sentence of the council of state of October 16, 1884, answers by an offer which he agrees to accept by way of equity, and notwithstanding the omission up to that time by the claimant of legal proofs with regard to the value and profits of the vessel, an offer amounting to $9,354.32, including interest calculated up to August 7, 1883.

From his excellency the minister of the United States the notes of April 20, May 30, and June 11, containing appreciations, in support of which are produced as proofs seventeen documents, the knowledge of which has been offered at the same time to the Spanish Government; documents recapitulated besides in a memorandum which concludes with an account of the losses and damages claimed in strict right as being proved to have been suffered by the owner of the Masonic through the seizure and embargo of his vessel, this latter account amounting in all, with interest calculated up to the 15th June instant, to $64,639.78.

From the conviction which the undersigned has acquired after a careful examination, the differences of appreciation, manifested in an equal spirit of equity and justice by the high parties as to the amount of indemnity to be granted, originate almost entirely from the fact that by reason either of the distance or of the different jurisdictions through which the procedures and negotiations have been followed, the documents produced as proofs were not in their totality in the possession of each one of the high parties when their respective appreciations were formed.

The undersigned, to discharge in its entire integrity the commission with which both Governments have honored him, had therefore to solve these differences of appreciation by basing his decision upon the documents produced by both parties as proofs.

The undersigned, having enlightened his conscience in the best possible way by the scrupulous verification of the proofs submitted in the arbitration, in virtue of the powers which have been conferred upon him by both Governments, declares in justice and equity that in conformity with the letter and spirit of the decreed sentence of the council of state of Spain of 16 October, 1884, according to his personal knowlege and estimation, the sum to be paid as an indemnity by the Spanish treasury to the owner of the Masonic, both as capital and interest up tb the date of the present decision, is $51,674.07.


BLANC.
[Page 726]
[Inclosure 3 in No. 333.]

Mr. Foster to Baron Blanc .

Excellency: I have the honor to acknowledge the receipt of your excellency’s note of the 27th instant, and of the arbitral decision of the same date accompanying said note, in which, in discharge of the commission which was intrusted to you by the Governments of the United States and of Spain, you decide that the sum to be paid as an indemnity by the Spanish Government to the owner of the American vessel Masonic as capital and interest up to the date of your excellency’s decision, is $51,674.07.

In acknowledging the receipt of these documents, I desire to express to your excellency my high appreciation of the promptness and impartiality with which you have discharged your trust, reserving a more formal recognition of the signal service, which your excellency has rendered the two Governments interested until the Secretary of State at Washington shall have official notice of your action.

I improve, &c.,

JOHN W. FOSTER.