TRADING WITH THE ENEMY.
Almost contemporaneously with the
German-English controversy with reference to the restrictions
which might legitimately be put upon German mail steamers
Great Britain and the United States became involved
in a lengthy correspondence.
Various articles of the general nature
of foodstuffs were seized upon ships plying between
New York and Delagoa Bay. It developed later that
the seizures were justified by England not upon the
ground of the guilt of carrying contraband per
se, but because an English municipal regulation
was alleged to have been violated by English subjects
in that they had traded with the enemy. But the
fact was incontrovertible that the port of destination
as well as that of departure was neutral. The
burden of proof under the circumstances rested upon
the captor to show that goods innocent in themselves
were really intended for the enemy. Consequently
the line of justification which was set up involved
not merely an extension of the doctrine of continuous
voyages, but an application of this much mooted theory
that would show an ultimate intention to trade with
the enemy.
The offense of trading with the enemy
is not a new one in international law. In 1799
Sir William Scott, afterwards Lord Stowell, sitting
upon the case of the Hoop, which is perhaps
the leading case upon the subject, declared that all
trading with the enemy by the subjects of one State
without the permission of the sovereign is interdicted
in time of war. It was pointed out that, according
to the law of Holland, of France, of Spain and as
a matter of fact of all the States of Europe, “when
one state is at war with another, all the subjects
of the one are considered to be at war with all the
subjects of the other and all intercourse and trade
with the enemy is forbidden.” This principle
has been accepted in the United States as one of the
conditions of warfare. Wheaton declares:
“One of the immediate consequences of the commencement
of hostilities is the interdiction of all commercial
intercourse between the subjects of the States at
war without the license of their respective Governments."
In England a declaration of war is
equal to an Act of Parliament prohibiting all intercourse
with the enemy except by the license of the Crown.
The penalty of such illegal intercourse is the confiscation
of the cargo and of the ship engaged in such trade.
The instructions are emphatic upon the point:
“The commander should detain any British vessel
which he may meet with trading with the enemy unless,
either: (1) He is satisfied that the master was
pursuing such trade in ignorance that war had broken
out, or, (2) The vessel is pursuing such trade under
a license from the British Government."
When a vessel is bound for a belligerent
port it appears that the burden of proof is thrown
upon the ship’s captain to show that goods so
shipped are not intended for the enemy. In the
case of the Jonge Piéter (1801) goods purchased
in England were shipped for an enemy port but were
seized by a British cruiser under the right of a belligerent.
It was attempted to be set up that the goods belonged
to citizens of the United States, but in the absence
of documentary proof condemnation was decreed on the
ground of hostile ownership.
The decisions in these cases as well
as the general opinion of the past had shown what
the British view was, namely, that all trading with
the enemy is absolutely forbidden to British subjects
upon the outbreak of war. But in the controversy
between the English Government and that of the United
States with reference to foodstuffs bound for Delagoa
Bay on board English ships the argument set up by
the British authorities was not generally considered
well founded, since little more than suspicion was
produced as evidence to show that any of the ships
really intended to trade with the enemy. There
was no dissent from the established rule that trading
with the enemy on the part of the subjects of the
belligerent States is prohibited. But those nations
whose citizens or subjects suffered loss by the enforcement
of the English law were not satisfied that the English
ordinance had been violated either in deed or by intent.
Soon after war had begun it was known
that the English authorities would scrutinize closely
any transactions of British ships, or of ships leased
by English firms, which had dealings in a commercial
way with the warring Republics. On November 24
the Official Imperial Gazette of Berlin had published
the following note: “According to official
information British subjects are forbidden by English
law to have any trade or intercourse with the South
African Republic and the Orange Free State, or with
the subjects of these two states, within their territories,
during the continuance of the present state of war."
Because of this prohibition, it was pointed out, all
goods sent by English ships and intended for the South
African Republic or the Orange Free State and ships
of war, even in cases where the goods were not contraband
of war, might be legally detained by the British authorities.
Attention was called to the fact that this measure
might also be applied to goods destined for ports
in the neighborhood of the seat of war and not belonging
to Great Britain. German commercial circles were
warned that they should consider whether under the
circumstances it was not to their interest to avoid
using British ships for transporting goods to South
Africa during the war.
Notwithstanding this announcement,
toward the close of December the British Foreign Office
stated that information had reached the Secretary
of State for Foreign Affairs which showed that it was
not generally known that trading with the enemy was
unlawful. The English view of the restrictions
upon British subjects was thus pointed out: “British
subjects may not in any way aid, abet, or assist the
South African Republic or the Orange Free State in
the prosecution of hostilities, nor carry on any trade
with, nor supply any goods, wares or merchandise to
either of those Republics or to any person resident
therein, nor supply any goods, wares, or merchandise
to any person for transmission to either Republic,
or to any person resident there, nor carry any goods
or wares destined for either of the Republics or for
any person resident therein." It was further declared
that these restrictions applied to all foreigners
while they were on British territory, and that all
persons, whether British subjects or foreigners, who
might commit any of the prohibited acts would be liable
to such penalty as the law provided.
These municipal restrictions obviously
made illegal on the part of English subjects and of
strangers temporarily resident upon British soil all
commercial acts, from one country to the other, all
buying and selling of merchandise, contracts for transportation,
as well as all operations of exchange, or the carrying
out of any contract which would be to the advantage
of the enemy. A time-honored English maxim declares:
“Est prohibitum habere commercium cum inimicis."
When Great Britain attempted to enforce
these recognized prohibitions against trading with
the enemy it was found difficult to show that the
suspected ships had in reality had dealings with the
public enemy or with its agents. The ships were
not bound for a hostile port nor for a blockaded one,
but for a neutral harbor which was not even contiguous
to either the Transvaal or Orange Free State.
Other Governments, although ready to admit that it
was competent for England to forbid her own subjects
to trade with the enemy, were not willing to allow
their respective subjects to suffer the loss of goods
which had been shipped in good faith. The character
of the goods apparently excluded the idea of contraband
of war, and the ships themselves, since they were bound
from neutral ports to a neutral port, appeared to be
acting in good faith.
THE SEIZURES. MARIA, MASHONA, BEATRICE, AND SABINE.
THE MARIA. As early as
September 6, 1899, the Maria, a Dutch ship,
had touched at Cape Town on her way to Delagoa Bay
with a cargo consisting largely of flour, canned meats
and oats shipped from New York. She was allowed
to proceed after a short detention by the British
authorities although goods in her cargo were plainly
marked for the Transvaal. It was realized under
the circumstances that there was no ground for the
detention of ship or cargo, and in view of the fact
that no war was in progress at the time, the detention
of the vessel even for a short period would appear
to have been unjustifiable. The Maria
called at Port Elizabeth, whence she cleared for Delagoa
Bay. On October 29 she put in for coal at Durban,
three hundred miles from Lorenzo Marques, and was
boarded by the commander of the English ship Tartar.
The Maria’s captain was willing to be
visited and searched without protest. According
to the official report, “no guard was placed
on her,” and “the agents were willing
to land all the contraband." The commander of the
Tartar informed them that if this were submitted
to the vessel need no longer be detained. When
the Maria had been brought in and no contraband
was discovered by the search, the agents of the ship
protested against the landing of that portion of the
cargo consisting of flour and other goods which they
considered innocent, but spoke of the vessel, it was
alleged, as belonging to a British company called
the “American-African Line.” The commander
of the English cruiser pointed out to them that British
subjects could not under the Governor’s proclamation
trade with the enemy, and mentioned the warning in
a local customs notice as the penalty for “vessels
which carried contraband of war or goods of whatever
nature the real destination of which was the enemy
or their agents in neutral ports."
The Maria’s cargo included
a consignment of lubricating oil as well as a miscellaneous
consignment of light hardware. Part of the cargo
was seized and part merely “detained.”
The consignment to the Netherlands South African Railway,
a thousand cases of lubricating oil, eighty-four cases
of picks, twenty cases of handles, was seized as enemy’s
property, since there was sufficient evidence, it
was thought, to show that these goods belonged to
the railway company, the consignees, and not to the
New York shippers, the consignors. This opinion
was held on the ground that the Netherlands South
African Railway was owned by the South African Republic.
All of the Delagoa Bay cargo including
the flour and other foodstuffs was landed and the
Maria put to sea. But on November 3 the
authorities at Durban were instructed by the British
Foreign Office that foodstuffs were not to be treated
as contraband, and the captain of the British cruiser
Philomel warned the customs that the flour should
no longer be detained. It was released and measures
were at once taken for reshipping it on the British
steamer Matabele, when it seems for the first
time to have occurred to the customs authorities that
the flour might thus find its way to Pretoria by means
of an English ship. According to the official
report: “It was then provisionally detained
again. But on it being found that the flour was
bona fide a part of the Maria’s
cargo the agents and all parties concerned were told
that no further restrictions would be placed on the
shipment, but it was at the same time pointed out
that the flour was going direct to the enemy.
The Governor’s proclamation against trading
with the enemy was then studied in connection with
the above-mentioned permission, with the result that
agents, shippers, and shipowners all refused to ship
or carry the flour and nobody would have anything
to do with it,” although no objection was made
by the naval authorities to the cargo being forwarded
to its destination.
For the detention of the Maria
her owners, upon the protest of the Netherlands Government,
were awarded L126 sterling as indemnity. The
consignment of flour “detained” at Durban
was purchased by the English Government at the price
it would have brought at Delagoa Bay on November 2,
the day on which it would presumably have reached there
had no interruption occurred.
It was pointed out in the report upon
the case that the Maria was undoubtedly a Dutch
ship and that her agents had introduced an element
of confusion in the dealings with her by speaking of
her as belonging to a British company. It was
therefore admitted that possibly some of the goods
were removed on the erroneous supposition that she
was a British ship and could not lawfully carry them.
Had she been a Dutch ship leased by a British firm
her liability would appear to have been as great as
if she had been a vessel owned by British subjects.
Had she belonged to a British company she would have
been a British ship, and it would have been unlawful
for her to carry for the enemy.
THE MASHONA. On December
5, 1899, the Mashona, clearing from New York
for Delagoa Bay, was seized by the British cruiser
Partridge near Port Elizabeth, seven hundred
and fifty miles from Lorenzo Marques, and taken into
Table Bay, but later to Cape Town as prize on the charge
of trading with the enemy. Consul-General Stowe
reported the capture, and informed the Department
at Washington that the Mashona carried five
thousand tons of general cargo, including seventeen
thousand bags of flour for the Transvaal by way of
Delagoa Bay. Foreseeing the probability that the
Mashona would be brought into Cape Town as prize,
Mr. Stowe inquired: “Is foodstuff such
as flour, contraband? Being a British ship has
the British Government a right to seize?"
Counsel for the original American
shippers upon the Mashona stated that the cargo
was of the character of general merchandise and was
destined “for neutral citizens domiciled in neutral
territory.” It was pointed out in the prayer
of the owners of this portion of the cargo that while
the British Government might be justified in seizing
her own vessels, it appeared that the British naval
authorities were illegally jeopardizing the property
of American citizens in that the vessel seized was
“under contract to deliver to the persons named
in the invoices the merchandise therein specified,
none of which is contraband of war."
One portion of another shipment was
on account of a Delagoa Bay firm, the other on account
of a London one. With reference to the goods
consigned to the latter firm the American shippers
were unable to say what their ultimate destination
might be, but in regard to the shipment to Delagoa
Bay they were positive that the consignees were a firm
doing a large local business in Lorenzo Marques.
To the best of their knowledge it was a German firm
whose members were not citizens either of the Transvaal
or of the Orange Free State. They showed that
the goods were sold on four months’ time dating
from November 3, and consequently that their loss
would fall upon the original shippers, who were citizens
of the United States. The fact was pointed out
that additional merchandise amounting to five thousand
dollars had been purchased for the Delagoa Bay firm,
with a view to immediate shipment, but would have
to be held up and probably lost because of a situation
which amounted to a blockade declared by Great Britain
over a neutral port, an act which in the end would
compel all firms in Lorenzo Marques to cease buying
American goods.
It was alleged by the captors that
the ship’s papers were not in proper form, and
that besides the flour and other foodstuffs she carried
a consignment of lubricating oil for the Netherlands
South African Railway. This consignment was held
to be enemy’s property since it was considered
that the railway belonged to the Transvaal, the specific
charge against the ship being that of trading with
the enemy. The fact that a consignment of flour
was billed to a Lorenzo Marques firm but labelled
“Z.A.R.” created a conclusive presumption,
it was thought, that the flour was intended for the
Transvaal, although its owners claimed that the consignment
was not destined for the belligerent Republic but
for local consumption at Lorenzo Marques.
Both the cargo consigned to the Transvaal
and the vessel herself were claimed as lawful prize.
The cargo, it was contended, was unprotected since
it was enemy’s property, and the vessel, by trading
with the enemy, had violated a regulation which rendered
it confiscable. Against this it was urged that
the consignees were hostile only by reason of domicile,
and that neither the owners of the ship nor the captain
had any intention to trade with the enemy. So
far as intention was concerned, it was shown that
the captain had intended to pass a bond at Algoa Bay,
one of the ports of call, undertaking not to deliver
the goods at Delagoa Bay without the permission of
the proper authorities. The three judges of the
Supreme Court of Cape Colony sitting as a prize court
came to different conclusions. The Chief Justice
held that the cargo should be condemned but not the
ship. One opinion was that neither ship nor cargo
should be condemned; the third that both ship and cargo
should be condemned. There were thus two justices
to one for condemning the cargo and two to one against
the condemnation of the ship. The cargo was consequently
condemned and the ship released.
Different views were also held by
the judges with reference to the condemnation of the
goods aboard the Mashona. The Chief Justice
held that the intention of the captain to alter the
destination of the goods was sufficiently established
to prevent their condemnation. The other justices
dissented on this point. They held that the goods
should be regarded in prize law as the property of
residents of the Transvaal, and that such ownership
did not seem possible of denial. In their opinion
there was sufficient reason for condemning the goods
since they were enemy’s property captured on
the high sea in a non-neutral ship.
This view obviously implied that an
enemy character was impressed upon persons resident
in the Transvaal not by nationality but merely by
domicile. England’s proclamation had in
fact forbidden trade with the enemy or with those
resident upon enemy territory. In other words,
those residing in hostile territory were regarded
as enemies when there was a question of trading with
the enemy. The same principle was applied when
there was a question of property in goods which were
on their way to the enemy’s territory, a view
which would seem reasonable since even the de facto
Government of a hostile region could possess itself
of goods which had been allowed to enter its territory.
With regard to the question of condemning
the ship the Chief Justice held that there was not
sufficient evidence to warrant confiscation. He
cited the case of the Hook, which was condemned
in 1801, but held that the case of the Mashona
was not on all fours with the conditions of that decision.
He took the view that the case of the Mashona
was more nearly analogous to the cases of the Minna
and the Mercurius, and consequently declared
for the restoration of the ship.
One justice concurred on the main
point at issue, namely, that there appeared to be
“sufficient proof in the present case of an honest
intention to pass a bond at Algoa Bay not to take the
goods to Delagoa Bay except with the permission of
the proper authorities.... The presumption of
an intention of trading with the enemy, arising from
the fact that the ship was carrying enemy’s
goods consigned to Delagoa Bay and destined for the
enemy’s country, is entirely rebutted by the
conduct of all the parties interested in the ship.
The claim for the restitution of the ship must consequently
be allowed."
One justice dissented from this opinion
and argued that “as soon as war broke out, it
became the duty of the master to decline to convey
any goods which, from the papers in his possession,
appeared to be the property of enemy consignees.”
It was contended by this justice that “his contract
of affreightment could not be fulfilled” in any
event, and he should have been aware of this fact.
Further, it was urged that there was not convincing
evidence to “establish that there was no intention
on the part of the master of the ship to trade with
the enemy, except with the permission of the proper
authorities. In the circumstances, such a defense
must be established by very clear proof; ... although
there is no reason whatever to impute any disloyal
intention, or mala fides, ... the proof of
non-liability on this ground has not been made out.”
On the contrary, it was insisted, in this dissent
from the leading opinion, “there seems to be
an absence of proof that it was not the intention ...
to deliver these goods to the consignees unless prevented
from doing so by some competent authority; and this
cannot be regarded as equivalent to proof that [the
master] intended to apply for and obtain a license
before engaging in intercourse which, in the absence
of the license, was of an unlawful character.
From the moment this ship left New York harbour ...
she was liable stricto jure ... to seizure
and condemnation; as she was still without a license
when seized, stricto jure the liability remains."
The fate, however, of the ship itself
was of interest to third parties only in so far as
its disposition involved the rights of neutrals whose
goods were on board. Great Britain’s action
in seizing her own ships, or ships chartered by her
own subjects, had the effect of placing a virtual
blockade upon a neutral port, for few but English ships
carried for the Transvaal or Orange Free State, a
fact which bore with especial hardship upon American
shippers. The “detention” of all Delagoa
Bay cargoes in British bottoms, provided a few articles
were found consigned to the Transvaal, was a practice
which was indignantly protested against by all neutral
shippers upon English vessels. The injustice which
this practice worked was forcefully brought home to
the United States by an apparent disregard of the
property rights of innocent neutrals in the seizure
of two other ships at about the same time as that
of the Mashona.
THE BEATRICE. This ship,
also clearing from New York, was reported in December,
1899, to have been compelled by the English naval authorities
to discharge all of her Delagoa Bay cargo into lighters
at East London, some six hundred miles distant from
Lorenzo Marques. It was pointed out by the New
York shippers in their protest addressed to Secretary
Hay at Washington that, according to the terms of
the American and African bill of lading, the steamship
line was thus relieved of any further responsibility,
since the goods were at the risk and expense of the
consignees after leaving the ship’s side.
The shipments had been made, many
of them on regular monthly orders, to Portuguese and
other firms in Lorenzo Marques. The policy of
insurance did not cover war risks, and the company
holding the insurance declared that it was not responsible
for any accident which might occur while the merchandise
was lying in lighters or hulks at a port of discharge
which had been forced upon the ship by the English
authorities. That portion of the cargo of the
Beatrice which was shipped from New York consisted
of large consignments of flour, canned goods, and other
foodstuffs, but included also a consignment of lubricating
oil as well as a miscellaneous assortment of light
hardware, but none of the articles shipped were of
a contraband character in the usual meaning of that
term. Part of the flour was branded Goldfields
and part was labelled Johannesburg, although the whole
consignment was marked Delagoa Bay. The American
shippers averred that although they regularly sold
flour to merchants engaged in trade in various parts
of South Africa they “had never sold flour with
direct or ulterior destination to the South African
Republic, by re-sale or otherwise.” They
made affidavit that all of their sales had been made
for the ordinary uses of life, and that “since
the war had broken out they had made no sales of flour
to merchants or others in the South African Republic."
The reason assigned in the official
report of the English authorities for their action
in regard to the Beatrice was that she “contained
large quantities of goods, principally flour, destined
for the South African Republic, which the customs
authorities at East London required should be landed
at that port.” Since the cargo was stowed
in such a manner as to make it impossible to land
goods destined for the Republic without also discharging
goods intended for Portuguese East Africa, it was
alleged that the master and agents of the ship preferred
to land the whole of the cargo at East London, where
it was stowed by the customs. But it was admitted
that the removal of large quantities of the goods so
landed had been permitted from time to time “for
the purposes of local and bona fide Portuguese
consumption.” The consignment to the Netherlands
South African Railway was held to be enemy’s
property since it was considered that the railway
was owned by the Republic. The specific reason
assigned for the arrest of the steamer was “that
the Beatrice being a British ship, was by carrying
goods destined for the enemy’s territory, illegally
engaged in trade with the enemy in contravention of
Her Majesty’s proclamation of December 27, 1899."
The vessel sailed for Calcutta in ballast on December
11, 1900.
THE SABINE. On February
22 the last of the ships clearing from New York for
South African ports was reported to have been seized
at Port Elizabeth, seven hundred and fifty miles from
Lorenzo Marques. The Sabine was also a
British ship with Mossel Bay, Algoa Bay, and Durban
among her ports of call, and carried shipments aggregating
thirty to forty thousand dollars in value made by
New York merchants to these ports, all of which are
in British territory. But in addition to the
allegation which had been brought against the Maria,
Mashona, and Beatrice, of trading with
the enemy, it was suspected that the Sabine
was carrying actual contraband of war. The latter
suspicion, however, was not pressed, although the
authorities who stopped and examined the ship upon
the specific charge of violating a municipal law asserted
that the Sabine’s “papers were not
in proper form and that goods were found on board
which, though shipped to ports this side were marked
to persons residing in Boer territory.”
The case was viewed by the English Government “as
a very suspicious one under municipal law, but, as
the evidence was not very complete, they gave the vessel
the benefit of the doubt." After a short detention
both ship and cargo were released.
The news of the reported seizures
aroused considerable popular feeling in the United
States. In the Senate a resolution was introduced
which, as finally amended, read: “Whereas
it is alleged that property of citizens of the United
States not contraband of war has been lately seized
by the military authorities of Great Britain in and
near Delagoa Bay, South Africa, without good reason
for the same, and contrary to the accepted principles
of international law; and, Whereas it is alleged that
property of citizens of the United States is now unjustly
detained by the military authorities of Great Britain,
in disregard of the rights of the owners of the same;
therefore, Resolved by the Senate of the United States,
That the President is hereby requested to send to the
Senate, if not, in his opinion incompatible with the
public interests, all information in possession of
the State Department relating to the said alleged
seizure and detention, and also to inform the Senate
what steps have been taken in requesting the restoration
of property taken and detained as aforesaid."
The final clause of the resolution
as at first introduced was stricken out after a discussion
as to whether the Secretary of State should be “directed”
or the President be “requested”
to furnish the desired information. It was realized
that the language of the expunged clause, “and
whether or not the Department has informed the proper
British authorities that, if said detention is persisted
in, such act will be considered as without warrant
and offensive to the Government and people of the
United States,” was neither diplomatic in its
tone nor warranted by the circumstances. Amicable
negotiations were still in progress, and those negotiations
were concerned with a discussion of the very question
which would thus have been decided in the affirmative
by the Senate, namely, that the seizures had been
contrary to the principles of international law.
Consequently the resolution only declared that it was
“alleged” that Great Britain had departed
from the strict principles of international law, and
it was not intimated that her persistence in such
acts would probably require a resort to more forcible
measures than mere protest on the part of the United
States.
A motion had been made that the resolution
be referred to the Committee on Foreign Relations,
where it was hoped by certain members of the Senate
that it would die a natural death, an end which would
have been deserved under the circumstances, since
the event to which the resolution referred was then
in the course of diplomatic consideration and nothing
had indicated that the State Department would not be
able to secure protection for the interests of all
citizens of the United States as neutrals during a
recognized belligerent contest. An unsettled
question of international law was at issue between
Great Britain and the United States, and was being
dealt with as fast as official information reached
the British Foreign Office from the scene of the occurrences
which were alleged to have been in contravention of
established principles. Flour or any other foodstuff
might or might not be contraband of war according
to the particular circumstances of the case.
As a general rule products like flour shipped from
a neutral State are not contraband, but it is always
a question of fact whether the immediate destination
of such flour is for hostile purposes, namely, the
sustenance of a belligerent army. If flour or
foodstuffs generally were so destined they became
contraband of war for the particular case.
Not less than twenty thousand barrels
of flour had been shipped by citizens of the United
States upon the three steamers, Maria, Mashona,
and Beatrice, and the proposer of the resolution
insisted that the Senate was entitled to know in what
manner the rights of the United States were being
asserted in view of the obvious hardship which bona
fide neutral shippers had thus suffered. He
urged that the seizure of property of citizens of
the United States by one of the belligerents was “a
thing which profoundly affects the American people;
it affects every corn grower, every wheat farmer, the
owner of the cattle upon a thousand hills, the mill
man, the middleman, everybody who is interested in
producing and exporting the products of the farm and
the field is interested in this question and is entitled
to know what has been done in this case."
It is to be hoped that the Senator’s
constituents read this speech in the next morning’s
papers, for otherwise it must go down in history as
a burst of eloquence wasted upon unhearing ears.
Had he been able to pass his resolution so worded
as to “direct” the Secretary of
State to throw open the entire files of the Department’s
foreign correspondence for the Senate’s inspection,
instead of merely “requesting” the
President to furnish such information as the Senate
desired “if not, in his opinion, incompatible
with the public interest,” the result would
have been practically the same. In either event
the President would have controlled the situation,
since he can not be compelled to furnish information
to the Senate when he considers it incompatible with
the public interest to do so. The only power
possible to be exercised by the Senate over the Executive
in such a case is that of impeachment. And should
impeachment be possible or advisable the process could
be carried through as well with the words, “if
not, in his opinion, incompatible with the public
interest,” out of a resolution as with
those words in such a formal request of the
Senate.
As a rule it is unwise for the Senate
to interfere while negotiations are pending between
the Executive Department and foreign Governments over
any question which is at issue. Should a resolution
“requesting” information upon any
subject be deemed necessary, it should obviously be
addressed to the President and, merely for the sake
of courtesy, with the usual caveat. It
should not be “directed” to the Secretary
of State, for that official stands in a different
relation to the legislative department from that of
the secretaries of any of the other departments.
The Secretary of State is not required by law to report
to Congress as are all the other Cabinet officers.
He has been exempted from that requirement for the
reason that his duties are mainly diplomatic.
Negotiations carried on with foreign Governments upon
matters of a delicate character might involve serious
embarrassments if during their pendency the successive
steps were reported to Congress. The power of
the President in consultation with the Secretary of
State to deal with foreign Governments at least up
to the last moment and final consent of the Senate
has made it possible for the United States to preserve
a fairly uniform foreign policy. For despite
the repeated changes of administration and of domestic
policies the general foreign policy has been closely
modeled upon the expedient course of absolute neutrality
laid down by Washington. Were it a practical
requirement of the Constitution that all foreign correspondence
upon any important question should be at once laid
before the Senate, it is reasonable to suppose that
few treaties or important conventions would finally
be ratified. In a question of international law
such as that under discussion between the Governments
of Great Britain and the United States, it would have
been extremely unwise during the negotiations for
the Senate to interfere in any way with the regular
course of diplomatic intercourse between the two Governments.
In the end the Hale Resolution was
agreed to, but nothing came of it, for the State Department
found the English Government not unwilling to make
an equitable settlement for the losses which citizens
of the United States had incurred as a result of the
seizures of British ships carrying American goods
from New York to Delagoa Bay.
THE LEGALITY OF THE SEIZURES.
While the fruitless discussion had
been in progress in the Senate Secretary Hay had been
dealing with the question in such a manner as to safeguard
all American interests, but at the same time with a
full consideration of the necessity for protesting
against any undue extension of belligerent rights.
Immediately following the seizure of the British ships
clearing from New York with American goods on board
he had requested a prompt explanation. In his
instructions to Ambassador Choate he said: “You
will bring the matter to the attention of the British
Government and inquire as to the circumstances and
legality of the seizures." And later, Mr. Choate
was further instructed to ascertain “the grounds
in law and fact” upon which the interference
with apparently innocent commerce between neutral
ports was made, and to demand “prompt restitution
of the goods to the American owners if the vessels
were seized on account of a violation of the laws of
Great Britain, as for trading with the enemy; but
if the seizure was on account of the flour ... the
United States Government can not recognize its validity
under any belligerent right of capture of provisions
and other goods shipped by American citizens to a neutral
port." Mr. Hay pointed out the fact that the American
shippers had produced evidence intended to show that
the goods were not contraband in character, and should
this prove to be true prompt action was to be requested
on the part of Great Britain in order to minimize as
far as possible the damage to neutral goods.
The position taken by the English
Government was indicated on January 10 in a note handed
to Mr. Choate: “Our view is that foodstuffs
with a hostile destination can be considered contraband
of war only if they are supplies for the enemy’s
forces. It is not sufficient that they are capable
of being so used. It must be shown that this was
in fact their destination at the time of their seizure."
Lord Salisbury verbally added that the British Government
did not claim that any of the American goods were
actual contraband, but that the ships had been seized
on a charge of trading with the enemy, and it was
intimated also that “an ultimate destination
to the citizens of the Transvaal, even of goods consigned
to British ports on the way thither, might, if the
transportation were viewed as one continuous voyage,
be held to constitute in a British vessel such a trading
with the enemy as to bring the vessel within the provisions
of the municipal law." He asserted that the offense
was cognizable by a prize court alone, but admitted
that “if the owners of the cargoes, being neutrals,
claim that they are innocent, the cargoes should not
be condemned with the ship but should be delivered
over to them." He suggested that the ordinary course
would be that the owners should claim the cargoes in
the prize court, where the cases would be considered
and properly dealt with on their merits. The owners
would be requested, he said, to prove that they were
the bona fide owners by submitting bills of
lading and invoices to the court. It was intimated
that the American flour which had been removed from
the ships was not detained in any way but was perfectly
open to the owners to make whatever arrangements they
pleased for its immediate removal. If they considered
themselves aggrieved by the action of the English
authorities in causing the flour to be landed it was
of course open to them to take such proceedings against
the persons concerned as they were advised might be
appropriate under the circumstances.
Mr. Choate at once retorted that in
such a case the United States would very probably
send the bill to the British Government. The fact
was pointed out that the operation of the English
law did not lessen the obligation incumbent upon Great
Britain to restore the goods to their bona fide
neutral owners or to the neutral consignees. Although
the permission had been given to the owners to come
and take their goods at the ports of detention, short
of the original port of destination, this permission
could not be considered as discharging the obligation
to restore the goods. The representative of the
United States insisted that nothing short of delivery
at their port of consignment would fulfill the English
obligation in a commercial sense such as to give the
goods the value intended. It was clearly shown
that under the application of the English municipal
law the goods in question became as inaccessible to
their owners for all the purposes of their commercial
adventure “as if they had been landed on a rock
in mid-ocean." In his criticism of the English
position, Mr. Choate said: “The discharge
from the vessel and landing short of the port of destination
and failure to deliver at that port, constitute wrongful
acts as against all owners of innocent cargoes."
And he pointed out the inconsistency of the position
since it was not claimed that any but British subjects
could be guilty of any violation of the English prohibition
against trading with the enemy. He was accordingly
instructed to insist that the obligation rested upon
the British Government to indemnify the neutral owners
and make good to them all damages and loss sustained
by the treatment to which they had been subjected.
The United States was ready to admit
that there might have been cause for the seizure and
detention for the purpose of examination before a
prize court upon the suspicion of trading with the
enemy. But the decision of the judges seemed
to indicate that such a suspicion was not founded
upon facts which could be produced before the courts.
The vessels were released upon the ground that they
had not in fact traded with the enemy nor intended
to do so except with the express or implied permission
of the British Government. In view of the causes
put forward for the seizures and of the reasons stated
by the authorities for the subsequent release of the
ships it would seem that the cargoes, “except
in so far as contraband might have been involved would
have the same status as though found aboard British
ships trading between neutral ports where there was
no question of a belligerent in the neighborhood of
the port of detention." The prize court did
decide that there was no question of contraband involved,
and the American representative pointed out the fact
that the seizures not having been made or justified
on account of contraband goods, the only effect of
the British decision would seem to be either that
Great Britain possessed the right to seize neutral
and non-contraband goods aboard British vessels trading
between neutral ports, or else the American owners
of such cargoes would be entitled to full compensation
for their damages.
Lord Salisbury in his reply attempted
to correct what he considered the misapprehension
which underlay the statement of alternatives, namely,
that neutral and non-contraband goods were not free
in British bottoms between neutral ports, or else
full compensation must be made to the owners for their
seizure. It was asserted that the British Government
had neither exercised nor claimed any such right as
that which was indicated, nor had they seized
neutral and non-contraband goods. He declared
that the goods were not seized. Their passage
to Lorenzo Marques was merely interrupted, and by
this interruption they were detained only to the extent
that their being on board the ship which had been
arrested made their detention unavoidable. It
was further alleged that had the prize court held
that the arrest of the ships was not justified they
would “presumably have awarded damages
against the captors of the ships and the damages would
presumably have been so calculated as to enable
the ship to meet the claims of merchants arising out
of the unjustified interruption of the voyage."
The fact was alleged that the court had not so held
and that it appeared that the ships should, therefore,
bear the consequences of the arrest and meet the merchants’
claims. By the law of the flag under which the
ships sailed they could not carry goods destined for
the enemy. If they shipped such goods they should
bear the consequences. Among those consequences
was the delaying of the goods until such time as they
could be placed on a ship that could legally carry
them on to their original port of destination.
The result of such a decision is apparent.
The American goods, in the words of Mr. Hay, were
“as inaccessible to their owners as if they had
been landed on a rock in mid-ocean,” since no
steamers not belonging to British lines plied between
the ports of Cape Colony and Delagoa Bay. But
there seemed little chance of securing a revision of
Great Britain’s decision, which was based upon
the principle that she might deal with English subjects
and with English ships in accordance with the law of
the flag under which those ships sailed. Mr. Hay,
therefore, only endeavored to secure every possible
guarantee for American interests involved, but incidentally
emphasized the view that, although England might use
her own as she saw fit she must show just ground for
all injuries suffered by innocent American shippers.
Instructions were sent to Mr. Hollis, the United States
consul at Lorenzo Marques, that he should investigate
the seizures and make every effort to protect the
property of American citizens, and later he was urged
to ascertain the facts concerning the detention of
American flour on board the ships arrested by Great
Britain.
It soon developed that freight had
been prepaid and that the drafts drawn against the
various shipments from New York would be protested
for non-payment by the parties on whom they had been
drawn at Delagoa Bay. Consequently the title to
the property in such cases was vested in the American
shippers, and they urged their Government to see that
their interests were protected against what they considered
an undue extension of belligerent rights against ordinary
neutral trade from one neutral port to another.
Mr. Hay pointed out the obvious injustice of the goods
being in the prize courts with the vessel, even granting
that the ship as a common carrier of international
commerce had violated the law of its flag, on the
remote possibility of having carried for the enemy.
He insisted that, although the shippers might be required
to furnish invoices and bills of lading, they should
not be sent to the prize court for their property.
Lord Salisbury, however, contended that the prize
court had complete control of the situation, and that
any neutral shippers who were innocent could secure
the release of their goods only by applying to the
court with the proper evidence of ownership.
The injustice of the vigorous enforcement of this rule
of prize law was obvious, and the demand was made
that the goods should be released by order of the
proper British law officer and not be left to the
mercy of the prize court. It was urged that since
the ships had been seized because of a violation of
the municipal law of Great Britain, for trading with
the enemy, and since the seizure and detention of
the flour and other goods was only incidental to the
seizure of the ships, the flour, to which no such
offense could be imputed, could not under the circumstances
be admitted to be subject to capture because not contraband
of war. Upon these grounds prompt restitution
to the American owners was demanded.
The view of the Department was that
nothing seemed to justify the seizure of the American
goods, for to all intents and purposes they were seized
although it was considered by Great Britain that they
had merely been detained as an incident of
the seizure of the ships on which they were carried.
Since the flour was sold delivered at Delagoa Bay
it was therefore the property of the United States
shippers until the obligation of delivery was fulfilled
irrespective of the drafts made against it on Delagoa
Bay. Upon the return of these drafts unpaid the
flour was left in a critical position even if released.
It was clearly shown that the flour
had been sold in the regular course of business as
for a number of years past, shipments being made of
so many bags each month to their regular users who
anticipated their ordinary requirements. The
consignees, it was urged by the American shippers,
were reputable merchants in Delagoa Bay, and the consignments
were not of an unusual character but were a part of
the ordinary commerce with the East coast. It
was admitted that certain of the consignments had
been to residents of Johannesburg, but it was at the
same time asserted that the consignees were legitimate
flour merchants who were not contractors for the Transvaal
Government at the time the purchases were made.
The Pennsylvania Milling and Export
Company suggested that possibly their shipments had
been confused with those of an English firm, Collier
and Sons, of Bristol. It was alleged to be a notorious
fact that this firm had made large shipments of flour
to the Transvaal Government; that Arthur May and Company
were the agents of the firm in the Republic, and that
the Bristol firm had shipped on the same steamers on
which American goods were carried. A.J.
Toomey, President of the Pennsylvania firm, in alleging
these facts pointed out that he mentioned only what
was well known in shipping circles and did so merely
to establish the fact that there had been no wrong
intent with reference to his shipments. He urged
that the question of the justice of indemnification
should be settled, leaving the respective rights of
consignors or consignees to the proceeds to be settled
afterward.
Mr. Choate, in carrying out instructions
received from Washington, insisted that where the
ship was seized and taken into port on the charge
of trading with the enemy, and where the flour was
not held as contraband, and was not claimed to be
contraband, and under the circumstances could not
be involved in the specific charge against the ship,
it was manifestly a great hardship for the owners of
the flour to be compelled to go into the prize court
at a port short of the original destination even for
the purpose of proving their ownership, which he insisted
would involve costs and damages for the detention and
possible deterioration in value. It was intimated
that aside from the pecuniary features of the situation
it was of primary importance to insist upon the principles
involved, with a view to preventing an extension of
belligerent rights to the detriment of all neutral
commerce in time of war. Emphasis was therefore
placed upon the point that evidence must be shown
that the goods were really for the supply of the enemy’s
forces and that this was in fact their destination
at the time of their seizure. The fact was pointed
out that otherwise the action of the British authorities
seemed to imply the right to exercise an embargo on
the sale and delivery of non-contraband goods in the
ordinary course of trade with the people of the Republics.
It was intimated that this was inconsistent with the
view of contraband expressed by the English Government,
and wholly inadmissible from the point of view of the
United States.
The argument was presented that the
British Government had seized flour shipped to buyers
at Delagoa Bay and had prevented it from reaching that
point in time to meet a good market. Consequently,
in view of the fact that it was not sold for any purposes
hostile to Great Britain, it was urged that the latter
should not be allowed to consider herself relieved
of any responsibility for indemnity or direct loss
assumed by the shippers, or for any indirect loss
for which the shippers might have to compensate the
buyers on account of the diversion and detention.
It was the opinion of the United States that the mere
release of the flour to qualified owners did not meet
the obligation in the case because the owners could
not possibly take the delivery of the flour owing to
the obstacles of war at the points where the goods
lay. Even if they could do so they would naturally
suffer considerable loss by the condition of the market
and by any diminution in value that might have occurred
to the flour through climatic deterioration.
The American State Department, therefore,
suggested as the only equitable plan apparent under
the circumstances that Great Britain buy the flour
and other innocent goods at their invoice price and
pay over the proceeds of the purchases to those persons
who could prove a just claim for its value. An
additional sum was also asked as “reasonable
compensation” for loss of market and other losses
that might have been suffered by American interests.
In other words, the English Government should use
the flour, pay the costs and indemnify the owners
reasonably, since the latter were entirely innocent
and had depended upon the usual rights and immunities
of neutral shippers in time of war. The fact
was pointed out that the situation was causing an uncertainty
and hesitancy in business circles which was detrimental
to all American interests. Although a number
of the consignments were being delivered at Delagoa
Bay, presumably by English ships, it was alleged that
the seizures and the unforeseen attitude of Great
Britain had compelled all later shipments to go by
way of Hamburg or Bordeaux when seeking the ports
of South Africa in the way of ordinary neutral commerce
in order to avoid using British bottoms as a means
of transportation. Many of the drafts had been
returned unpaid and others were expected in due course,
and whether paid or not they would finally have to
be lifted by the shippers from the United States,
since they were the final recourse. All delay
tended to reduce the value of the goods, which were
perishable, on account of the climate and because of
Cape Colony duties and loss of market.
The offer was made by several of the
American shippers to sell to Great Britain for the
value of the goods at the port of original destination
at the time they would have arrived there had the voyage
not been interrupted. And the American representative
urged that it would be advisable for all American
shippers who were interested to agree to sell upon
the same terms with a view to securing an arrangement
which would include all neutral American property.
He suggested that where the title to property was
doubtful both shipper and buyer might unite in the
sale, since this course was preferable to incurring
questions as between consignors and consignees in
the prize courts.
The English Government had naturally
been unwilling to buy at current prices for the reason
that prices were doubled at Delagoa Bay after the
seizures, but it was considered that the price there
on the day of the seizures was not unreasonable.
Great Britain was willing to buy, but emphasized the
point that the alleged owners must prove their title
to ownership beyond a doubt as an essential condition
of the arrangement, since the Government could not
incur the risk of paying one man only to have another
appear later and prove that he was the real owner.
Fears were expressed that the question of ownership
would cause trouble, although the regular shipping
documents by which the goods had gotten into the ships,
it was thought, should be sufficient proof provided
the joint consent of consignors and consignees could
be secured.
The English view had been that the
whole cargo was included in the libel for trading
with the enemy declared against the ship, but the plea
of the American owners was heard, that the rules of
prize procedure should not be so rigorously enforced
in the present instances, since such an interpretation
would have led to obvious injustice by requiring innocent
American owners to appear before the court to prove
the title to their property. Such a requirement,
it was realized, would have led to difficulties of
an almost unsurmountable character under the circumstances.
Claimants would have had to submit evidence showing
a bona fide American citizenship and an actual
title to the ownership of the goods at the time they
were seized. Within the rules of prize jurisdiction
the consignee on whose account and at whose expense
the goods were shipped is considered the owner of
such goods during the voyage. And as a corollary
the further rule is suggested that the right to claim
damages caused for an illegal seizure would be in the
owner. In the prize court the delay caused by
all such questions as between consignor and consignee
would have been almost endless.
The question might naturally have
arisen whether there could be any basis for a claim
for indirect loss sustained by an American shipper
growing out of the sale on credit to citizens of the
Transvaal. It might be a question, too, whether
the consignor might, notwithstanding the seizures,
be able to recover at law the full contract price of
the goods shipped prepaid to the consignee, and if
so, whether the seizure could be considered legally
as a wrong against the American consignor. And
even granting that the latter were unable to recover
at law from the consignee, the question would still
remain whether under all the circumstances such inability
on the part of the American consignor could be legally
imputable to the act of the British Government in making
the seizure. The question might also have arisen
where an agent had bought for the Transvaal Government
on credit, so that the title passed when the goods
went on board and the goods were discovered to have
been contraband, whether an American shipper might
not appear to have been privy to the real character
of the purchases. In such a case the United States
Government could hardly have championed the cause of
a party who had shipped contraband. A prize court
is filled with pitfalls of the kind, but the diplomacy
of Secretary Hay, backed by the prestige of the United
States and a reciprocal feeling of friendship between
the two nations, was able to avoid all such questions
by inducing Great Britain to agree upon a settlement
without compelling the claimants to go into the prize
court. Although it was pretty well ascertained
that no actual contraband in the usual sense of the
term had been carried from America by the ships which
were seized, difficult questions were thus avoided
as between liens and general ownerships which might
have arisen had American shippers been compelled to
go into court.
It is not a universal rule where the
shipper has not been paid for his goods that the property
is still in him, so as to constitute him the owner
in a prize court, or for the purposes of sale.
By the terms of sale and shipment he may not have
retained a lien on the goods. But in any case
as a rule the title of the absolute owner prevails
in a prize court over the interests of a lien holder,
whatever the equities between consignor and consignee
may be. Consequently the policy adopted by Secretary
Hay in demanding that Great Britain should settle with
all American shippers on an equitable basis without
forcing them to take their chances in a prize court
was the wisest course that could have been pursued.
In the final arrangement Great Britain
admitted that the American goods had not been liable
to seizure except as a result of the libel attaching
to the ships. But any claims for damages due to
the owners of the cargoes on account of the failure
of the vessels to deliver at the port mentioned in
the freight contract, it was asserted, should be made
against those who entered into or became responsible
for the execution of the contract for the delivery
which they failed to perform, and the assumption that
such damages could be sustained at law would depend
on the terms of the contract of carriage. The
English Government, however, did not admit that it
was in any way liable for damages to the owners of
the flour and other goods, since their detention was
due entirely to the circumstance that the ships were
not able to complete their voyages, and the fact that
they could not complete their voyages was due to the
circumstance that such voyages were illegal by the
law of the flag under which they were sailing.
Although the financial settlement
which Great Britain was willing to make was accepted
by the United States, this acceptance did not imply
an acquiescence in the view expressed by the English
Government with reference to the conditions under
which flour and other foodstuffs might become contraband
of war, nor in the doctrine of continuous voyages as
applied by Great Britain to trading with the enemy.
It was preferred at Washington to follow the usual
rule and avoid passing upon hypothetical cases until
occasion had called them into actual existence.
The problem which had been before the Department of
State was, not to force Great Britain to declare herself
finally upon broad questions of international law,
nor to express the final attitude of the United States
upon questions which were not immediately at issue,
but to meet the demands of American shippers and secure
their immediate interests by some equitable agreement
with Great Britain. The arrangement agreed upon,
therefore, met only the necessity of the case immediately
in view. The United States Consul-General at
Cape Town was to arrange with Sir Alfred Milner, the
British High Commissioner in South Africa, for the
release or purchase by the British Government of any
goods owned by citizens of the United States, which,
if purchased, were to be paid for at the price they
would have brought at the port of destination at the
time they would have arrived there had the voyage
not been interrupted.
Against certain articles, especially
the oil consigned to the Netherlands South African
Railway, an allegation of enemy’s property was
justly made and the oil confiscated.
In the end most of the American claims
were withdrawn or paid in full. In the former
event the American owners threw the burden of proof
of ownership upon the consignees, who were instructed
to present their claims through their respective governments.
But it should be noted that in acceding to the American
demands by purchasing the goods, the British Government
emphasized the fact that the act was purely ex gratia
on the part of England. The British representative
clearly stated that the goods had been legally detained
and that it was open for the owners to come and take
them upon proof of ownership before the prize court.
It was pointed out that the fact that none but British
ships ran between Cape Colony and Delagoa Bay, although
an unfortunate circumstance, was one which could hardly
be held to be a fault of the English Government.
The enforcement of the English law was the right of
Great Britain no matter upon whom the inconvenience
might happen to fall. Lord Salisbury said:
“It must be distinctly understood that these
payments are made purely ex gratia and having
regard to the special circumstances of this particular
case. No liability is admitted by Her Majesty’s
Government either to purchase the goods or to compensate
... for the losses or for the expenses ... incurred."
The view held by the English statesman was that Great
Britain’s concession in these cases should not
serve as a precedent in the future.
The attitude which Great Britain had
assumed with reference to the different seizures was
generally considered a menace to neutral commercial
interests should the British position be accepted as
a precedent for similar cases that might occur.
The danger of such a precedent had been realized by
Secretary Hay and throughout the negotiations he had
dwelt upon the fact that while the protection of American
interests was the end immediately sought, the principles
which underlay the disposition of the particular cases
were of the greater importance.
Lord Roseberry, too, called attention
to the danger of the precedent should England determine
to treat foodstuffs in general as contraband of war.
It was pointed out, however, that in the seizures of
foodstuffs near Delagoa Bay the question of contraband
did not necessarily arise, since all trade with the
enemy, even in articles the most innocent, was forbidden
under heavy penalty. The seizure of certain classes
of foodstuffs as of a contraband character did not
of necessity involve the principle of treating all
foodstuffs as contraband of war. The English
view was that it had long been recognized that a belligerent
might discriminate between foodstuffs obviously intended
for the commissariat of an army in the field and foodstuffs
which might be properly imported for the use of the
non-combatant population.
The consensus of opinion, however,
seems to be that while there may be reasonable ground
for including tinned or canned meats and the like in
the former category, flour naturally belongs to the
latter class, and it has been pointed out that neither
the British Government nor any other has the power
of treating what it pleases as contraband without
reference to the prize court, with which alone the
decision rests. The prize courts of all countries
have held at different times that foodstuffs under
certain circumstances are contraband, as, for instance,
where they are intended for the supply of a belligerent
garrison as well as in less obvious cases, but any
decision which considered foodstuffs generally as
contraband would be disquieting to all neutral interests.
One writer has asserted that such
an innovation would not be alarming to Great Britain
as long as she remained predominant at sea, since the
more effectual her sea power were declared to be in
preventing sustenance from going over sea to her enemy
the better it would be for English predominance.
It is believed by this writer that during the existence
of this supremacy at sea she would be able to protect
the passage of general foodstuffs from foreign countries
to her own ports. He concludes, however:
“Of course if we lose our predominance at sea
it is another matter. But then, e finita
la Musica."
The acceptance of the principle that
foodstuffs are contraband of war, it need hardly be
said, is not even a remote probability except under
very exceptional circumstances where they are for the
immediate supply of the enemy’s army or navy,
and in most cases of this kind they can usually be
confiscated as enemy’s property without a direct
implication of a distinctly contraband character.
In other words, the use for which they are intended
may give reasonable ground for the conclusive presumption
that they are for the enemy’s immediate supply,
whether the title to property in them vests in the
enemy or in some other agency, and the last question
is always to be decided by the prize court of the
particular country which has made the seizure.
The decision should be based upon a careful examination
of the evidence which is submitted to the court, and
not presumed from the fact that the political power
has exercised the belligerent right of visit, search
and detention. The final decision of confiscation
rests with the prize court.
By way of recapitulation it may be
pointed out that the goods seized or detained by the
English authorities in South African waters were shipped
by American merchants and manufacturers, many of them
on regular monthly orders to alleged reputable merchants
in Lorenzo Marques, Delagoa Bay, in Portuguese territory.
Certain consignments were intended for alleged reputable
firms in Johannesburg, South African Republic.
The articles composing the cargoes of the ships were
of the general character of foodstuffs, chiefly flour,
canned meats, and other food materials. Lumber,
hardware and various miscellaneous articles generally
considered innocent in character were also included.
There was a consignment of lubricating oil to the
Netherlands South African Railway, the latter company
held to be the property of the Transvaal Government,
and a like consignment to the Lorenzo Marques Railway,
a Portuguese concern. At first the seizures which
occurred at points between Cape Colony and Delagoa
Bay were supposed to have been made on account of contraband.
Later Great Britain declared that the ships had been
seized because of the violation of a municipal ordinance
forbidding British subjects to trade with the enemy.
The Mashona, Beatrice and Sabine were
British ships sailing under the English flag.
The Maria was a Dutch vessel sailing under
the flag of Holland, but was supposed by the English
authorities to have been under charter to an English
firm. In the latter case the ship would have
been liable to the English law, but for the mistake
the owners of the ship as well as the owners of the
cargo were indemnified by the English Government.
The seizure of the cargoes of the British ships was
declared to have been merely an unavoidable incident
of the seizure of the alleged guilty ships. Compensation
was made to American shippers by the purchase of the
goods. The consignment of oil to the Netherlands
South African Railway was confiscated as enemy’s
property.
The views of Great Britain and the
United States were divergent with reference to the
principle of treating foodstuffs as contraband.
Rather as an obiter dictum the former declared:
“Foodstuffs with a hostile destination can be
considered contraband of war only if they are supplies
for the enemy’s forces. It is not sufficient
that they are capable of being so used; it must be
shown that this was in fact their destination at the
time of the seizure."
The United States declared that the
validity of the right to seize goods on the ground
of contraband could not be recognized “under
any belligerent right of capture of provisions and
other goods shipped by American citizens in the ordinary
course of trade to a neutral port."
England declared: “Her
Majesty’s Government have not admitted liability
in respect of any claims for loss or damage sustained
... in consequence of the delay in the delivery of
the ... goods. But they have offered to purchase
the flour on board by United States citizens.
Claims for redress for the non-delivery of the cargo
appear to be a matter for settlement between such
claimants and the ship which undertook to deliver.
British subjects who owned goods on board, having
no right to trade with the enemy, are not in the same
position as foreign owners. The latter are not
guilty of any offense in trading with the enemy from
a neutral country unless the goods are contraband and
are found on board a British ship in British territorial
waters or on the high seas, and are destined for
the enemy’s countries."
With reference to trading with the
enemy Great Britain attempted to extend the accepted
doctrine of continuous voyages. She expressed
herself as follows: “An ultimate destination
to citizens of the Transvaal even of goods consigned
to British ports on the way thither, might, if viewed
as one “continuous voyage” be held to constitute
in a British vessel such a “trading with the
enemy” as to bring the vessel within the provisions
of the municipal law."
The United States held that “the
destination of the vessel being only such [British]
ports ... the port authorities may presumably, and
are assumed to be bound to, prevent transshipment
through British territory of contraband destined for
the Boers."
No contraband was shown, and the attempt
which Great Britain made to extend the ruling of the
Supreme Court of the United States in 1863 so as to
apply to trading with the enemy cannot be considered
to have been successful. The questions of international
law involved in the seizures of flour and foodstuffs
generally were not answered by the final arrangement
between the Governments concerned. In his Message
to Congress in 1900 President McKinley deplored the
fact that while the war had introduced important questions
the result had not been a “broad settlement
of the question of a neutral’s right to send
goods not contraband per se to a neutral port
adjacent to a belligerent area.”
Two things, however, were apparently
admitted: (1) that a belligerent may declare
flour contraband pro hac vice; (2) that a belligerent
may detain neutral goods and divert them from their
destination on a reasonable suspicion that they are
intended for the enemy, subject to a claim for compensation
including damage by detention.