Messrs. Arkell & Douglas to Mr. Hay.

Dear Sir: Your telegram reading as per copy inclosed received, and we should have replied by wire, but really hardly saw how we could do so intelligently, and so we write you instead.

We are pleased to know that the British authorities may be disposed to pay full value of goods the same as if delivered, but your wire is indefinite as to whether this means cost price and freight or the selling price at port of delivery if they had been landed according to bill of lading.

We should explain to you that we have not heard from the parties to whom we shipped these goods, and therefore we have no way of knowing their views or the position, and so we must hesitate to act definitely until we are acquainted with the same.

We naturally are the owners of these goods, unless some of the parties have paid their drafts and obtained, in some way, possession; and in that case, we presume, they might claim ownership, and the position is embarrassing. We, of course, are endeavoring to advise with these people and our own house at Port Elizabeth.

Some of the goods may be stored and the parties who expected the delivery may not be aware of the position of the cargo, or they might take over the shipment.

We must ask you to see that we are protected to the fullest extent which lies in your power, based on this explanation of the position; and if you can kindly give us somewhat more definite advices regarding the matter, so that we may know exactly the situation, if there are details beyond those mentioned in your telegram, we shall feel obliged.

We remain, etc.,

Arkell & Douglas.