File No. 300.115/477
The Consul General at London ( Skinner ) to the Secretary of State
London , undated .
[Received September 25, 1914, 8:20 p.m.]
[Telegram]
When proof of ownership of neutral goods in captured ships is reasonably proved, procurator general orders release. When legal ownership is in doubt, cases are referred to Bonar Law’s committee which releases goods ex gratia. In many instances American claimants have accepted release paying freight without protest. To my representation that British Government is not entitled to collect freight on cargo on diverted, detained, or seized vessels sailing before war, procurator general states unprepared to offer any final judgment but is inclined to release on payment freight under protest, determining question of principle later, and if deciding in our favor, all freight already paid to be reimbursed. In respect of British ships diverted to British ports: when court releases such goods, the shipowner’s lien for freight at once attaches and procurator general does not interfere in these cases. Unless Department can propose remedy, shippers must pay freight and heavy storage or be deprived of goods. Procurator maintains that in many cases, both as to cargo of captured and diverted ships, commercial position of goods when released, is as satisfactory or better than if port of destination had been reached and that in equity freight should be paid. I have insisted neutral shippers were under no obligation to consider whether British market was better or worse than intended German market; that goods were landed here involuntarily; that contracts were broken; incidental costs piled up; and that release free of freight and charges was insufficient compensation for such [Page 315] losses which should be computed and paid as incident of war. In some cases British Government have sold American cargo without awaiting proofs and expect claimant to accept proceeds of sale less freight. I have claimed that owners were entitled to proceeds such sales plus difference between such proceeds and prices they expected to receive. Respecting diverted cargo, under American bills lading transporting vessels would seem to be responsible for proper delivery at destination and can be relieved of liability when losses arise from perils [of] sea, acts [of] God, or public enemies but not from action of home Government as in present cases. If Department approves these views and will instruct, I can appear before Bonar Law’s committee and attempt to settle expeditiously these questions which involve large amounts.