Messrs. Arkell & Douglas to Mr. Hay.

Dear Sir: We would acknowledge your further telegram asking if we would wish you to attempt settlement of claim by securing the value of provisions and other goods at port of destination at the time they would have arrived if the voyage had not been interrupted, and [Page 559] that you suggest that if title to goods is doubtful both ourselves and the consignee should unite in the sale. You also suggest that if we should conclude to offer to sell it might cause delay, and perhaps throw the question into a prize court. We observe that if you can make a general proposition on this basis you would endeavor to work out the details and secure a just payment, taking into consideration the elements of value at port of destination.

We are obliged to you for this telegram, and we should certainly personally be very pleased to at once agree to your idea, but unfortunately, as we have already pointed out, having drawn drafts with the uncertainty as to whether same have not been paid and delivery taken of the goods, even at ports where the cargo has been landed, we are hardly in shape to handle this matter on the basis you propose. We are satisfied that a number of the drafts will not be paid and that the goods are consequently ours, but to divide the issue and definitely know what has been and what has not been settled would be at present moment practically impossible for us. We are using the cable and also advising with our own house at Port Elizabeth in relation to these matters, and will communicate with you as soon as we have cable advices, if they are such as will warrant our knowing our position, and meanwhile we must ask you to kindly simply do what you can for us in a proper way by having our original protest on file and called to the attention of the British Government. We sent you B/L’s showing proof of shipment. As matters proceed, if you make any special headway in acting for us or others, we should, of course, be glad to be advised.

Thanking you for your attention to our interests, we are,

Very respectfully, yours,

Arkell & Douglas.