The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1886-04-24
ALABAMA CLAIMS.
Senator Hoar's Minority Report on
the Proper Distribution of
the Fund.


WASHINGTON, April 22.-The following is SEN
ator Hoar's minority report from the Senate judi
ciary committee, submitted to-day, upon the
proper distribution and valuation of the Alabama
claims fund. 1t proposes to give to the claimants
their just dues, instead of, as the majority pro-
pose, depriving them of part of it by the jugger
les of bookkeeping. 1t will be read with interest
by the large number of people interested In these
judgments, a majority of whom are living in New
England:
The undersigned cannot agree to the report of
the committee. Ii any person be dissatisfied with
the conclusion adopted by Congress- by large
majorties, after fun debate extending through
many sessions, as TO the proper disposition of the
fund received from Great Britain, Under the Gen
eva award and wish to reopen the question, there
is manly and direct way to proceed. The exist
ing laws can be repealed. But to attempt to divert
alarge portion OF this fund from its destination by
cheap and transparent juggle of bookkeeping
is course which the Senate does not seem likely
to sanction, if it understand it.
Great Britain paid to the United States 81 ,0O0-
900 in gold awarded by the tribunal at Geneva as
damages sustained by the United States from the
omission of an International duty. In exacting
this restoration the United States carefully dis
claimed any obligation OF agency or trust for any
individual whatever, and reserved the ultimate
disposition of the money to be determined as Con-
gresS should deem just and equitable. Congress
decided that no part of this money should be
treated as public property but that it should be
distributed among those persons who were the
most direct actual losers BY the fault of Great
Britain. 1t proceeded to impress upon it the char
acter of a separate fund, and to declare trust
There was little difference of opinion in regard to
the class of losers whose vessels cargo had been
ish ports would have been prevented but for the
negligence of Great Britain. There was greater
diversity of view as to the justice of other claims
upon whom the loss had fallen of keeping the
American flag at sea. when the government was
unable fully to discharge its own duty of protect
ing If. should receive the fTnd in fhe following
order:
First, those who had sustained direct loss from
the cruisers above named;
Second those who sustained direct loss from
other Confederate cruisers;
Third, those who paid premiums OF insurance
for war risks after the sailing of any Confederate
cruiser
Interest for limited time is allowed the losers
upon their claims. But that is immaterial except
for the purpose of division among themselves, as
the fund will in no event be sufficient. after salts
flying the. first and second classes, to pay more
than about 90 per cent of the third Congress has,
from the beginning, treated the Geneva award as
a separate fund.- which, with its increment, was
be awarded Stat 1878, chap. 261, required the
money to be invested in 5 per cent registered
ponds Stat aSa4 chap 4a9 established ed court
| claimants of the first class above named, who
were to be paid in full, provided that if the sum
of all the judgments rendered by said court shall
exceed the amount received into the Treasury of
| the United States as proceeds of the sum to be
paid by Great Britain,h then there shall be pro-
814, section 10 required sale of bonds enough to
pay the first class of Judgment and ''if
shall remain any part Of the said money, the same
| ehall be and remain fund from which Congress
may ma hereafter authorize the payment Of other
| 1876. which provided for the two remaining
classes of payments. Section Z provides "The
| judgments rendered by said court shall be paid
| States, pursuant to article z of the treaty of
washington and accruing therefrom." Section
hall nfr nprf
| OF said money, it shall be and remain fund"
| Section provides: 1.-THE whole amount paid out
shall not exceed the amount remaining of the
| Geneva award and interest as it was then COW
cred into the Treasury" This took place in 1877
by virtue OF the statute of 1874. Is is not abso-
lutely clear from these statutes that the words,
| ssthe Geneva award and interest,"" here used
means not merely what is left of the gold re-
eeiyed n from Great Britain and interest. but that
fund with what has accrued therefrom," the
award as it then was with the result of its invest
ment
The conclusion seems irresistible that it was the
intent OF Congress to create fund to be ma naged
| by the nation as trust funds are managed When
Congress created court and invited the claim
ants TO establish their demands it meant to prom
lie and did promise that this fund with its accre
tions and accumulations should after paying all
expenses, be distributed as far as it would 60, in
satisfaction of their claims, until they were fully
| satisfied The fund has always been preserved
and managed on this theory by every Secretary of
| the treasury since 1t was received This man.
| agement has been reported to Congress year by
year. Every treasury report has SO stated the ac-
COullt. Although luc WllUlt Lu6 AldBd-
ma claims and the award at Geneva has been one
| OF great interest, frequently discussed by the
ablest men in both houses, there has been no sug-
money in gold September s. 1873 This money
was invested in gold bearing bonds of the United
States bearing per cent interest. Such bonds of
the United States were not at that time above par
in gold, the premium at which they were quoted
being the differences then existing between gold
and currency.
The judgments of the first class were paid in
currency, as per treasury statements OF June 80,
753.19 The money for their payment was raised
by selling gold bonds to the amount of SO, 100000.
This left an unexpended balance of $20,7 of the
amount received for this gold.
The effect of the amendment proposed by the
majority OF the committee will be to state the
been paid in gold. Their claims were all esti-
mated on currency basis, and would have been
considerably less If estimated on a gold basis.
cases cited in Judge Shellabarger's letter. The
claimants of the first and second class get full
compensation. But the United States is asked, in
distributing to the claimants of the third class the
fund which is awarded them, to pretend that it
has already paid S115 wherever it paid 500, and
put the difference into its own Treasury.
Ii any trustee, any guardian, any executor,
should attempt to sell quantity of gold belong
ing to the estate, pay the debts in currency, credit
difference he would not only be removed from
office, but would be driven from the society
%en H honest Se opted the the s5ps that smeS tSe
sum. paid out is, the sum received with
its increment ought wholly to be aban-
doned. The author of the amendment strikes
out of the text of the bill the words Judgments
rendered by the said court against the Geneva
award fund" But he still admits that there is a
fund to which, by the legislation now in force,
these citizens are entitled He allows interest
from the time the money was received from Eng
land until, under the statute of 1874 the money
was paid into the treasury. This confession in
principle covers the whole question in dispute.
Ii the statement of the amount shall be made
by act OF Congress, as proposed by the House BILL
these reasons seem clearly sufficient for rejecting
the committees amendment, as in violation of the
previous decision OF Congress, and f1agranty in
equitable and oppressive.
But if there be fair difference of opinion in
the Senate as to the true intent and meaning of
the existing law, the fair way is to provide for a
judicial determination of the question. An amend
ment is therefore submitted which provides for
winding up the court, for the immediate. distribu
tion Of what is admitted on all hands to belong to
the fund, and for prompt judicial decision by the
Supreme Court of the United States of the ques-
tion Of the proper statement of the amount if any
thing further be claimed