The daily gazette., 1880-04-19
From the N. Y. Herald. e-.,., t
hi Surplus Of the Geneva Award.

/ detPt0o VI tUo 0ouetd AWARD.
The Senate has been debating fol
many days bill for disposing Of Tie
large balance of the Geneva award
which has not been paid out to claim
ants. This question is thought by
many to touch the national honor,
some going so far as to maintain that
If we have received for damages a
larger sum than is required for salts
flying the just demands of private
claimants we are bound in equity and
honor TO refund the residue to Great
Britain This quixotic notion can cas-
lily be exploded. 1t implies total alb
sence Of exact knowledge of the facts OF
the case aud The history ofthe treaty. 1t
need not de- ain us in the present stage
Of the question. ,..'1
The Geneva Commis sion, acting un-
der the treaty of 1871, awarded the Uni
ted States q sum en- bloc as compensa-
ZION for the damages inflicted by three
rebel cruisers built and fitted out in
British ports, conceding to the Ameri-
can government full discretion as to the
distribution of the award. Secretary
Fish took special precautions against, any
committal by the agents and counsel of
the United States as TO the disposition
of the sum which might be recovered.
Our government did not appear at Gen.
eva as the agent or trustee of private
claimants for damages. 1t demanded
redress for the destruction of American
property, reserving to itself full liberty
to act on ITS own sense of justice in dis
posing Of whatever sum it might recov-
er. t-f tH f'Yn Ai
The Geneva tribunal awarded us a
| gross sum of fifteen million five hundred
Thousand dollars In full acquittance of
all claims which had heen presented or
might thereafter, arise for depredatiOns
on our commerce by rebel cruises fitted
out In British ports. The award of a
gross SUM to be distributed at the dis
cretion. OF our government released us
from any responsibility 10 the British
government as to what we might do with
the money. -l-4g .-lt Y4tt
In 1874 Congress passed an act regu-
lating the distribution of the award.
In pursuance of that act tribunal
created under its provisions passed up
on 2, ,O6S claims and awarded judgments
amounting to S3,316, 1870, leaving a
balance which amounts at present,
with accrued interest, to about $10,-
O00, 900. .l..n.,'l.IT - .1T,', -
Ten millions lying in the Treasury
awaiting claimants is a tempting sum.
"Where the carcass is there will the
eagles be gathered together" Who
ever can make out any claim, or any
plausible pretext of claim, to so large
an amount of money can be relied on
to take part in the scramble for its ap-
preparation. The insurance companies
which took war risks are foremost In
this scramble, first because they have
a colorado claim, and next because
they are wealthy, can easily act in con-
cert, and can afford to pay enormous
counsel fees and other Congressional
Expenses in aid of legislation for cap
turing SO great prize. The insur-
ance companies could afford to pay
four of the ten millions in fees and dis
bursements If they conld thereby gain
the other six millions. Whatever,
ability, legal acumen and influence in
high quarters can do for them is GER
tain to be done, since they will reward
their agents with large private for
tunes in the event of success. On the
other hand, there is no prospect of
| heavy tees and emoluments for those
who advocate strict and simple justice
in the disposal of this enormous sum
of ten millions. .H ...I, ..- ....I
The case of the insurance companies
rests upon technical rule of law. 1t is
| well established principle of maritime
insurance that when underwriters Lave
made compensation for losses they are
entitled to the recovered relics of the
property. II, for example, ship strikes
upon rock and sinks and the under
writer's pay the insurance the ship and
cargo belong to them when raised TO the
surface by buoys. This right of what is
called "subrOgation" is the basis OF the
claim made by the insurance companies
for the large residue of the Geneva
award. They maintain that the recovery
| of the value of the ship by the govern
ment is the same in law as the recovery
of the ships from the depths of the sea,
and that their rights of subrogation hold
equally in either case. If the question
were to be decided on its technical prin-
ciples of insurance law it would hardly
admit of discussion, ana the right of the
companies would be clear.
But the question should be decided on
broad principles of substantial equity,
not by narrow technical rules. The gov
ernment intended to release itsself from
such applications of law as might be
inconsistent with equity when it insisted
ON an award en- bloc, with entire freedom
to distribute it in its discretion. 1t wisely
reserved the liberty TO do justice. In
stead of action as the agent of body of
individual caiments It presented its de-
mand at Geneva as the demand of the
United States; 1t recovered the award as
an award to the United States; 1t reserv-
ed to the governmet of the United States
complete liberty ia pispose of the nancy
in accordance with its own sense of JUS
tice. 1t took particular care to emanci-
pate itselfin advance from any obligation
TO follow the technical principles Of the
law of insurance. 1t is bound to do what
is just; it is not bound to strain and per-
vert justice in obedience to the notions
of mere lawyers.
What, then, does justice r, quire F? Ger
tainly not that compensation be made for
losses that were never suffered. The act of
1874 was strictly Just. 1t provided that
every shipowner andcargo owner and that
every insurance company should be made
whole. If ship and cargo were destroyed
by rebel cruiser the act provided for
full compensation if there was no insur-
ance. II the vessel or cargo, either or