Chargé Eddy to the Secretary of State.

No. 279.]

Sir: * * * Relative to the claim of the Portland and Asiatic Steamship Company for losses occasioned by the seizure, in July, 1904, of the steamer Arabia, I have the honor to transmit to you herewith a translation of a note from the Russian ministry for foreign affairs, dated October 29 (November 11), in reply to mine of October 14/27 on this subject. It is my intention to consult Mr. Berline, the embassy’s legal adviser, as to what might be done in this case as soon as he returns from Odessa, where he is detained on account of the railway strike.

I further transmit to you, for your information, a copy of articles 30 and 87 of the Russian naval prize regulations,b of which mention is made in Count Lamsdorff’s note.

I have, etc.,

Spencer Eddy.
[Page 753]
[Inclosure.—Translation.]

The Minister for Foreign Affairs to Chargé Eddy.

No. 10481.]

Mr. Chargé d’affaires: In reply to your note of the 14/27th, relative to the claim of: the Portland and Asiatic Steamship Company for losses sustained by that company through the seizure, in July, 1904, and the detention by the Russian naval forces of the steamer Arabia, I have the honor to inform you that the reimbursement of losses caused by the detention of vessels is foreseen in article 87 of the naval prize regulations. As to the right to a compensation for these losses article 30 of the same regulations only recognizes it when it is established that the detention of the vessel in question was effected without plausible reason or contrary to the provisions of law.

With regard to the legal right of the detention of the steamer Arabia this question has already been examined by the supreme court which resolved in a positive sense by sentence rendered on November 30, 1904.

For the above-named reasons the claim of the Portland company for the losses sustained by it through the detention of the steamer Arabia can not have a favorable result, as the detention has been considered legal.

Nevertheless, should the said company desire to bring a claim for damages, it is not deprived of the right to lodge a claim to that effect before the competent prize court.

Returning to you herewith the documents you inclosed with your note above mentioned,

I avail, etc.,

Lamsdorff.