New Britain herald., 1915-01-22
ENGLAND REPLIES SHE
 WILL SEIZE DAC|A
If Former German Liner Proceeds to
 Sea with Cotton Cargo.

Washington, Jan. 22.-The British government announced last night through it's embassy here that If the former Hamburg -AmericaN liner Dacia proceeded to sea she would be captured and taken to a prize court. Her cargo of cotton will be bought by the British government, or for warded to Rotterdam without further expense to the shippers, according as the owners may prefer.
 The state department had cOm- municated this information informally to the owners of the Dacia, as result of a message from Ambassador Page, and was notified in reply that the vessel was loading at Galveston and would put to sea- notwithstanding the British governments position. It was said that the owners had resolved to test the issue in a prize court. In- cidentally, the war risk bureau of the American governm ent today issued policy insuring the cotton cargo at per cent. but declined to insure the vessel itself: ...,
 British Statement.
 The statement from the British en- bassy was as follows:-
 "In connection with the transfer of the Dacia from the German to the American flag, the British government while anxious to avoid causing loss to the shippers of the cargo, have found it impossible agree that the transfer in the circumstances in which it has been effected, is valid in accordance with the accepted princl- ples of international law. If, there fore, the Dacia should proceed to sea and should she be captured, the Brit ish government will find themselves obliged to bring the ship (apart from the cargo) before the prize court.
 Tt is stated that the cargo of the Dacia is to consist solely of cotton owned by American citizens If this is so, and if the vessel should be captured, the British government will guarantee either to purchase the car- go at the price which would have been realized by the shippers if the cargo had reached it's foreign destina- ton. or, if preferred, they will under take to forward the cotton to Rotter- dam without further expense to the shippers
 Concludes First Chapter.
 The above announcement concludes the first chapter in the negotiations
  dertook on behalf of the owners of the Dacia to secure her freedom from capture. Under the declaration of London a transfer of af1g must be proved to be of bonaf1de character and not made merely to escape the consequences of war. One of the al legged suspicious circumstances cited at first was that the Dacia planned to traverse her old route from the Unit ed States to Germany. This led to a proposal by the owners that the ship take her cargo to Rotterdam; Hol- land. The state department asked that in view of the change single voyage by the vessel be not inter- rupted.
 Soon after the war began, holding that all of the parties to the decla- ration of Lcndon were finding loop holes in the convention and demand ing it at their own pleasure, the state department announced that as far as the United States was concerned it would not be bound by those declara- lions. Consequently the American government is operating under the general principles of international law, which recognize bona fide trans fers of ownership of merchant vessels oc all belligerent powers even in time cf war.