Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1873-02-15
The AIabauma award.

The Alabama award.
At 2 O'Clock the bill for the distribution
of the Geneva award came up as specil Or
der. .s
Mr.. Butler, of Massachusetts, opened the
discussion. The first question to be de-
termined, be said, was the question as to
the ownership of the S15,500,000 which
the British Government had to agree to pay
as indemnity for the Alabama's depreda-
tions. So far as the Judiciary Committee
was concerned it had determined that the
money was the property of the United
States Government, free from all trusts,
claims or conditions. II this was the COR
rect determination, then there remained to
the Government to provide only for such an
equitable distribution of the money as
should seem to Congress to be according
to the principle of national equity and JUS
tice. This principle would dispose of a
great number of claims that come up on
the ground that the Government had this
money in trust. The Government could
not be made trustee against its will, and
it had stated expressly in its instruc-
uons to its agents at Geneva that
it should not be made a trustee
for any Of this money. Nobody claims
this trust, however, except the insurance
companies. These demanded that their
claims should be first paid, and being a
body of great wealth and power, they had
brought before the Judiciary Committee
two or more able and eloquent counsel who
made arguments and submitted briefs.
The same arguments had been submitted to
the Senate and that claim had been met by
two-thirds against, for the reason that the
insurance companies entered into the bust
ness ofinsuring as matter of profit. They
took No risk but upon the theory which, as
a rule, was the fact that the premiums
would equal the risk. They had received
in war premiums much more than they all
had paid out. all that they claimed to
have paid out was a little over $4,000,000,
and they bad received in war premiums
over S6,OOO,O 900, so that the insurance COM
panies had made q clear profit of 100000
out ofthe war risks depending on the Ala
bama's depredations. Therefore it did not
seem just that the insurance compa-
MES should be paid. They were the peo-
pie who went into the war as
business. 1t seems equitable, however, and
the bill provided that where the Insurance
Companies made an actual loss on the busi-
ness, they should be paid pro rata out of
whatever balance might be left after paying
the more meritorious claims, first, of the citi-
zens whose property had been destroyed by
the cruiser; second, of the officers and
crew who had lost their wages, ETC.; third,
of the owners, ETC., whose insurance was
less than their loss, etc. The Insurance
Companies dlimed that they were subro-
gated to the rights of The insured. That
was true as principal Of law, but such
was, that when anything was
saved out of the wreck the underwriters
after paying the insurance were entitled to
what was saved. The difficulty here was,
however, that there was nothing in
which the assured had any
right. No citizen of the United States had !
a right against the British Government for |
any of the acts done, and thus the insur- |
ance companies were subrogated to the |
rights of men who had no rights. The ship |
bad gone to the bottom and the only thing |
that remained above the ocean was the |
right Of the nation to claim that Great Bri- |
tain should make good its national obliga- |
tions or should answer for the consequen- |
ces. If the United States Government had |
gone to war with Great Britain instead of |
how many of the insurance companies, he |
asked, would claim to have been subroga- |
led to the rights of the Government. They |
would be in the condition of the Irishma n |
who found himself an informer-that the |
penalty was fifty lsshes and the informer |
was entitled to one half. he then proceed |
ed to answer the various technical and legal |
questions as to details of the measure. In |
reply to question By Mr.. Peters, he ex-
pressed belief that the amount 10 be paid |
under the bill wouldn't exceed $14 900, 900 |
in currency, principal and interest.
Mr.. Peters offered an amendment making
the interest payable, not from the Geneva
award as provided in the bill, but from the
date of the loss.
Mr.. Poland offered a substitute for the
whole bill.
Mr.. Potter said he first thought the insur-
ance companies were not entitled to receive
anything under the aw, I'd, but subsequent
reflection had brought b. m to the opposite
conclusion. He offered an amendment to
carry out bis view.
Mr.. Monroe offered an amendment ex-
tending the operation of the bill to the dam
ages done by the Shenandoah before her ar
rival at Melbourne.
MIR. Eames offered an amendment ex-
tending its operation to the damages done
by all cruisers or vessels bearing the Con- |
federate flag.
The previous question was then seconded,
'he vote on the bill to be taken tomorrow. |
House adjourned. |