Mr. Hay to Mr. White.

No. 329.]

Sir: I inclose for your information copy of a letter from the Pennsylvania Milling and Export Company relative to the seizure of certain flour by a British steamship which was shipped on the Mashona, and stating that said company has sent invoices, power of attorney, and all information possible in the matter to Consul-General Stowe at Cape Town, so that he may dispose of the flour seized there.

You will observe that the company state that other parties are making claim to many of the consignments on the Mashona, among them being Russian subjects; that they do not know whether their buyers were Russian subjects or not, but that they have advised Consul-General Stowe in regard to the questions which may arise in the cases of both the Mashona and the Beatrice.

I am, etc.,

John Hay.
[Inclosure.]

Pennsylvania Milling and Export Company to Mr. Hay.

Sir: In compliance with your telegram of the 5th instant, we have sent invoices and power of attorney to Consul-General Stowe, of Cape Town, so that he may dispose of the flour seized there to the British Government.

I also note your wire of the 6th instant, stating that other parties are making claim to many of the consignments on the Mashona, among them being Russian subjects. We are sending all information possible in the matter to Consul-General Stowe. We do not know whether our buyers were Russian subjects or not, but we have written Consul-General Stowe that should the other parties laying claim to the flour turn out to be our buyers, as described in our letter of information to him on the subject, and should they produce proof of title to the property and be willing to accept it without further claim on us, that we would withdraw our claims against the British Government for any such parcels as presentation of the documents by these parties would indicate payment on their part of our drafts, and would also be evidence that they had considered that we had fulfilled our contract. We have instructed him, however, that in the case of the Beatrice there is one lot on which the drafts have not been paid and which drafts are now in process of being returned to this country. This lot, of course, we shall have to ask the British Government to settle for.

If, would simplify the matter greatly if the buyers would take delivery without furl her redress on us.

Yours, respectfully,

Pennsylvania Milling and Export Co.,
Per
A. J. Toomey, President.