File No. 341.115G 79/1
The Consul General at London (Skinner) to the Secretary of State
London, October 7, 1914, 12 noon.
[Received 11:15 a.m.]
[Telegram]
Referring to seizure of 1,000 barrels wood alcohol owned by Grey and Company, of which Admiralty sold one lot at forced sale, prior to filing of claim, and procurator’s offer to release goods on payment of any freight which may be due, I stated September 29 that [Page 320] this mode of settlement would be unsatisfactory to American Government, adding that any loss resulting from forced sale constituted a reasonable claim and that no charges for freight and like expenses could be recognized as due. Procurator general was also supplied with text of Department’s views October 6. Procurator states my reference to views of Department will be regarded; merely as views put forward on behalf of individual American firms. While unable to make any general statement, he will take into consideration any representations respecting freight and charges in particular cases. The Bonar Law committee “if hampered by what appear unreasonable contentions might be reluctantly compelled to adopt stricter attitude.” The procurator and committee state that in the majority of cases property has clearly or probably passed to enemy consignees and would have been condemned either to confiscation or detention., They claim to have acted on principle of doing what is equitable, independently of strictly legal considerations, “and payment of freight and charges is as a rule a condition which the committee and procurator consider to be fair and reasonable.”
If American shippers are compelled to pay these charges as condition precedent to release of goods, their losses will be heavily increased for benefit of British prize fund. Department, should restate its position as authoritative position of American Government.