Mr. Hay to Mr.
Choate.
Department of State,
Washington, May 24,
1900.
No. 378.]
Sir: Your No. 301 of the 14th ultimo, inclosing
copies of correspondence with the foreign office with reference to Mr.
R. W. Geldart’s
[Page 613]
shipments on
board the Beatrice, Mashona, and Maria, was duly received.
I inclose herewith, for your information, two letters addressed to me by
Mr. Geldart on the 1st and 7th instant, respectively.
According to the judgment of the British prize court at Cape Town, a
printed copy1 of which I
also inclose, there was probable cause for the seizure and detention of
the Mashona as for trading with the enemy; but
the court released the vessel on the ground that she had not in fact
traded with the enemy nor intended to do so except with the express or
implied permission of the British authorities. In view of the grounds
put forward for the seizure of the ship, and of the grounds stated by
the court for releasing the ship, the cargo, except so far as
contraband, would have the same status as though it had been found
aboard a British vessel trading solely between neutral ports. But the
court states that there is no question of contraband in the case. The
seizure not having been made or justified on account of contraband
goods, the effect of the decision must be, therefore, either that the
British Government has the right to seize neutral and noncontraband
goods aboard British vesssels lawfully trading between neutral ports, or
else the American owners of such goods would be entitled to full
compensation for their damages; and in effecting a settlement by sale of
the goods to the British Government, they should not be expected to make
sale of the goods on such terms as would involve loss of them by reason
of the wrongful action of the British authorities.
You may take such action in the premises as in your judgment will enable
Mr. Geldart or other American owners of goods to effect sales on
reasonable terms.
I am, etc.,
[Inclosure 1.]
Mr. Geldart to
Mr. Hay.
Sir: Referring to your correspondence dated
December 21, January 25 and 26, February 5, 10, 13, and 26, and
March 9, also telegrams of December 18, January 29, March 5 and 6,
respectively, I have the honor of calling the Department’s attention
to the fact that though some of the goods ex steamship Mashona were released outright (to which
category mine belonged) and allowed to proceed, they have again been
stopped at Port Elizabeth and ordered placed in the Queen’s
warehouse at the expense of consignees, and, continues my Cape Town
agent, “there being no possibility of the goods ever getting to
Delagoa Bay until after the war, and as by that time the expense of
storing the cargo will have been very considerable, we await your
instructions, etc.”
As the judgment of the prize court declared that it had no
jurisdiction over my shipment and ordered them released to proceed
on the vessel that, brought them originally to the Cape, it is
manifestly unfair that so many obstacles should be thrown in the way
of their reaching Lourence Marques.
My shipment to Delagoa Bay ex steamship Beatrice landed at East London by order of the local
authorities was recently allowed to proceed, and has again been
detained at Durban, and from last accounts was to remain there
indefinitely.
The bank holding the documents—drafts against which have been refused
acceptance by drawees until arrival of the merchandise covered by
same—are clamoring for reimbursement of their advances, and I am
somewhat in a quandary as to the advisability of having the goods
realized upon at their present places of detention, reserving my
rights for indemnity for a later date, as the cargo must have
deteriorated
[Page 614]
considerably,
seeing the time elapsed since the goods left this port, or wait
until you take action on the matter through diplomatic channels.
All shipments from this country for Delagoa Bay now proceed via
Hamburg or Bordeaux, and are landed at their destination without any
remonstrance from the British authorities.
Your prompt and kind attention will oblige,
Respectfully,
[Inclosure 2.]
Mr. Geldart to
Mr. Hay.
Sir: I addressed you the 1st instant and am
now in possession of another communication from my agents at Cape
Town concerning the above seizure.
The English director of supplies, in accordance with an agreement
entered into with Consul-General Stowe, consents to purchase the
seized goods at a 10 per cent profit above invoice cost, after
deduction of buying commission carried on face of said invoice.
This would not pay even draft charges, interest, and protest
expenses, without figuring on my agents’ commission, and it seems
very unfair that I should be the actual loser by this operation.
I should be pleased to hear from your excellency.
Respectfully,
