Session of Tuesday morning, July 1, 1902.

The session opened at 10 o’clock.

The Arbitrator read the letter which he addressed yesterday evening to delegate of the United States with regard to the value of the James Hamilton Lewis and of the C. H. White.

Mr. Peirce wished to answer at once verbally, and if the delegate from Russia desired to answer, the defendant party may do so in the course of a month.

Mr. Komarow said that he would also reply verbally, and admits the verbal reply of the party claimant.

Mr. Peirce said that he would not produce documents, but only a book. He was satisfied to leave the valuation to the arbitrator. He stated that in the memorandum the estimate was not made on the basis of the commercial value of vessels, but that the place, the business, and the price of the cargo were taken into account. After the arbitration of 1893 the United States paid for several English vessels. He submitted that valuation to the arbitrator. (Fur Seal Arbitration, vol. 8, pp. 845–849.) This citation is made solely for the purpose of aiding the arbitrator to fix the amount. In Moore’s International Arbitrations History, Volume I, page 960, we find how much was paid.

He repeated that the valuation of the American Government is not based on the commercial value; the business in which these vessels were engaged was taken into account. The C. H. White was constructed in 1887. The date of the construction of the James Hamilton Lewis is not known.

Mr. Komarow would not enter into the examination of an English claim with regard to the seizure by Americans of Canadian vessels. He stated, moreover, that the settlement of those claims was the subject of a different sort of transactions between the American and British Governments. He is satisfied to cite for the White the price of the vessels which more nearly serve as precedents (C. H. White, price of the newly constructed vessels.) The price of the James Hamilton Lewis and of her equipment is stated as being $25,000. On page 228 of the Report, Volume III, are indicated the prices of the sealing vessels and their equipments, according to the depositions of the ship owners; from this data it appears that of vessels of 1 ton more tonnage than the James Hamilton Lewis—namely, Emma and Louise, of 84.70 tons, cost$3,000; Alton, of 84.39 tons, had cost $4,000. Among the vessels analogous as to tonnage, Theresa, of 70.76 tons, cost $3,500. The entire equipment of these schooners, counting the boats, arms, etc., cost in 1893, Emma and Louise, $3,460 and $1,500 for provisions for the whole season from February. Equipment, Alton, $3,000; Theresa $2,551, For the C. H. White they ask $35,000, $280, $160, $260, value of the vessel and her equipment, mackerel, and codfish. According to the statement showing the American vessels engaged in pelagic sealing, the capital invested and the record of their catch in 1895 (Report, Part III, p. 228), the maximum values of newly constructed vessels of greater tonnage than the C. H. White do not exceed $9,000.

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The schooners approaching more nearly in point of tonnage the C. H. White are the following:

Worth.
Allie J. Alger $3,000
Emma and Louise 3,000
Alton 3,000
Theresa 3,500

(See the annexes of the session of Monday morning.)

The value of the barrels of mackerel and codfish is doubled and tripled (the highest price for codfish is $4, 124 per ton, only for the best quality).

Mr. Peirce said that he did not know the schooners named, but that to the value of the vessel must be added the value of the equipment.

The Arbitrator asked Townsend if he can give any supplementary information on the value of vessels.

Mr. Townsend. Whaling and sealing had declined by 1895.

The Arbitrator. Yes, I understand so.

Mr. Peirce. Did value include equipment?

Mr. Townsend. I don’t remember.

The Arbitrator. How are the statistics obtained?

Mr. Townsend. Of the owners, and sometimes of the masters.

The Arbitrator. Is there always a fixed relation between tonnage and value?

Mr. Townsend. Contracts for building new vessels are made according to tonnage. The value of sealing vessels was set forth more fully in the Canadian reports. Canadians are more extensively engaged in pelagic sealing than anyone else.

The Arbitrator. What was the number of boats on the James Hamilton Lewis and the White?

Mr. Townsend. I do not know.

Mr. Peirce. But you know the number of hunters?

Mr. Townsend. Yes; vessels carrying white crews carry a certain number of sealing boats and a couple of dingeys, which are used in good weather.

The Arbitrator. You don’t know the age of the Lewis?

Mr. Townsend. No.

The Arbitrator asked the price of the barrels of mackerel and codfish.

Mr. Townsend produces a report wherein the prices are shown.

Mr. Peirce said that as there is no data for making the valuations he accepts for the mackerel and codfish the valuation of the defendant party.

The Arbitrator asked the delegates if they have anything more to say.

Mr. Peirce said that on Friday he will give information on one of the first questions of law asked by the arbitrator.

Mr. Komarow regretted that this information can not be given to-day.

Mr. Peirce said that it was impossible; he awaited an answer from his Government.

Mr. Roell moves to stop here.

The Arbitrator said that for the experts the affair can be considered [Page 440] as ended. For the question of law, it must be treated with somewhat wider latitude.

Mr. Komarow consented with the reservation, after it had been agreed, that if he wished to ask information from his Government, when Mr. Peirce has communicated the information received from his Government, a delay of twenty-four hours will be accorded.

The session is adjourned to Friday morning 10 o’clock.