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as tending to show that the government of Naples was bound to make indemnity.

Conclusion of a Convention.

After sending this note Mr. Nelson had numerous conferences with the Prince of Cassaro, but failing to reach any satisfactory conclusion, he at length demanded an explicit declaration whether the government would or would not grant the desired redress. Further conferences followed the demand, and various sums were offered by the Neapolitan government as an indemnity. On the 1st of October Mr. Nelson, deeming the sums that were offered insufficient, demanded his passports. They were sent to him on the following day, with a note stating that the Neapolitan government did not consider the negotiations at an end, and that a diplomatic agent would immediately be sent to the United States. On October 14, however, the matter was settled by Mr. Nelson himself, who on that day signed with the Prince of Cassaro a convention which was thought to be adequate for the satisfaction of all just and well-founded claims.

By this convention the King of the Two Sicilies Terms of Settlement. agreed to pay to the United States 2,115,000 Neapolitan ducats. Of this sum 7,679 ducats were set apart to reimburse the Government of the United States for expenses incurred in bringing home American seamen belonging to vessels that were confiscated at Naples in 1810. The rest of the fund was to be devoted by the Government of the United States, in such manner and according to such rules as it might prescribe, to the satisfaction of claims "for the depredations, sequestrations, confiscations, and destruction of the vessels and cargoes of merchants of the United States (and for every expense of every kind whatsoever incident to or growing out of the same) inflicted by Murat during the years 1809, 1810, 1811, and 1812." It was further agreed that the indemnity should be paid in nine equal annual installments of 235,000 ducats each, with interest at the rate of 4 per cent a year, to be calculated from the date of the exchange of the ratifications of the convention till the whole sum should be paid. The first installment was made payable twelve months after the exchange of ratifications. The exchange took place at Naples June 8, 1833.

Modification as to
Payment.

By an arrangement concluded at Washington December 26, 1835, on the proposal of the government of the Two Sicilies, and with the concurrence of the claimants, by Mr. Forsyth, Secretary of State of the United States, and the Chevalier Dominico Morelli, His Sicilian Majesty's consul-general, it was agreed that the balance of the indemnity remaining unpaid should be discharged by the payment in Naples on February 8, 1836, of the sum of 1,500,000 ducats. This arrangement was carried into effect. The whole fund yielded about 94 per cent of the total amount awarded to the claimants.

Establishment of a
Commission.

By an act of Congress of March 2, 1833, provision was made for the appointment by the President, by and with the advice and consent of the Senate, of a board of three commissioners, whose duty it should be to receive and

1

1 Equivalent to $1,755,450, estimating a Neapolitan ducat at 834 cents. 2 S. Ex. Doc. 351, 25 Cong. 2 sess.

examine all claims presented to them under the convention of October 14, 1832, which were "provided for by the said convention, according to the provisions of the same and the principles of justice, equity, and the law of nations." It was further provided that the board should have a secretary, versed in the French and Italian languages, and a clerk, both to be appointed by the President, by and with the advice and consent of the Senate, and that the commissioners, secretary, and clerk should, before entering upon the duties of their offices, "take oath well and faithfully to perform the duties thereof." The members of the board were required to sit in Washington, and to terminate their duties within one year from the time of their first meeting. They were empowered to make rules and regulations. The Department of State was required to deliver to them all records and papers relating to the claims in question, and it was provided that, on the completion of their labors, all the records and papers of the commission should be deposited in the Department of State. The commissioners were required to report to the Secretary of State a list of all their awards, and it was made the duty of that official to transmit a certified copy of it to the Secretary of the Treasury. On receiving this list, the Secretary of the Treasury was directed to distribute in ratable proportions, among the persons in whose favor awards should have been made, such moneys as had been received into the Treasury for that purpose. The salary of the commissioners was fixed at $3,000 a year, of the secretary at $2,000, and of the clerk at $1,500.'

Organization of the
Commission.

To carry the convention and act into effect the President appointed as commissioners Wyllys Silliman, of Ohio, John R. Livingston, jr., of New York, and Joseph S. Cabot, of Massachusetts. Thomas Swann, jr., of the District of Columbia, was appointed as secretary, and John W. Overton, of Kentucky, as clerk. The board appointed a messenger at a salary of $500, as the Danish commission had done.

On September 18, 1833, the commissioners, the secretary, and the clerk qualified by taking the necessary oath before a justice of the peace of the District of Columbia, and the commissioners notified the Secretary of State of their readiness to proceed to business.3 In reply the Secretary of State transmitted to them for their inspection the journal of the commissioners under the Florida treaty, as well as that of the Danish commission.

Rules.

On September 19, 1833, the board adopted the following rules:

"Ordered, That all persons having claims under the convention between the United States and His Majesty the King of the Kingdom of the Two Sicilies, concluded at Naples on the fourteenth day of October one thonsand eight hundred and thirty-two, which are to be received by the commissioners, do file a memorial of the same with the secretary of the board, to the end that they may hereafter be duly examined, and the validity and amount thereof decided upon, according to the merits of the several cases,

14 Stats. at L. 664.

Mr. Cabot was appointed to fill a vacancy caused by the resignation of Peter V. Daniel, of Virginia, who was originally appointed a commissioner.

3 They took the rooms that had lately been occupied by the commission under the convention with Denmark.

and the suitable and authentic testimony concerning them, which may hereafter be required. The said memorial must be addressed to this board. It must set forth, minutely and particularly, the various facts and circumstances whence the right to prefer such claim is derived; it must be verified also by the affidavit of the claimant.

"And in order that claimants may be informed of what is now considered by the commissioners as essential to be averred and established, before any such memorial can be received by this board, it is further

"Ordered, That each claimant shall declare in his said memorial, for and in behalf of whom the said claim is preferred; and whether the amount thereof, and of any part thereof, if allowed, does now, and at the time when the said claim arose did, belong solely and absolutely to the said claimant, or to any other, and if any other, what person. And in cases of claims preferred for the benefit of any other than the claimant, the memorial to be exhibited must further set forth when, why, and by what means, and for what consideration, such other has become entitled to the amount or any part of the amount of said claim.

"The memorial required to be exhibited by all claimants, must also set forth and certainly declare, whether the claimant as well as any other for whose benefit the claim is preferred, is now, and at the time when the said claim arose was, a citizen of the United States of America, where he is now, and at the time the said claim arose was, domiciliated; and if any, what change of domiciliation has since taken place.

"The said memorial must also set forth whether the claimant, or any other who may have been at any time entitled to the amount claimed, or any part thereof, hath ever received any, and if any, what sum of money, or other equivalent, or indemnification, by way of insurance or otherwise, for loss or injury sustained, satisfaction for which is therein asked. And if any such payment or indemnification has been made, to set forth when, and from whom, the same was received. And that time may be allowed to claimants to prepare and file the memorials above mentioned, it is further

"Ordered, That when the board shall close its present session, it adjourn to meet again on the third Wednesday in November next, at which time it will proceed to decide whether the memorials filed with the secretary are in conformity to the foregoing orders, and proper to be received for examination.

"Ordered, That the secretary of this board do cause three hundred copies of the above orders to be printed for the use of the claimants; and also that the publishers of the laws of the United States at Portland, in Maine; Portsmouth, in New Hampshire; Boston, in Massachusetts; Providence, in Rhode Island; Hartford, in Connecticut; New York, in the State of New York; Philadelphia, in Pennsylvania; Baltimore, in Maryland; Richmond, in Virginia; Raleigh, in North Carolina; Savannah, in Georgia; New Orleans, in Louisiana, and also the Commercial Advertiser in Salem, Massachusetts, be requested to publish this notice, three times a week, for three weeks."

Second Session.

The first session of the board closed with the adoption of the foregoing rules. An adjournment was then taken to the third Monday in November, in order to afford time for the filing of memorials. The commissioners met again, pursuant to their adjournment, on the 20th of November. On the following day they authorized the secretary "to permit claimants or their agents to examine and, if needful, copy any papers in his possession; no paper, however, to be taken or copied out of the office of this commission." On November 26 it was

"Ordered, That no memorial, document, or other paper, which may at any time have been deposited or filed in the office of the secretary of this board shall be withdrawn therefrom without an order from the board on a special application to be made for that purpose.

"All applications shall be submitted in writing addressed to this board; shall assign the reasons for the same, and be signed by the claimants on whose behalf they shall be made, or their representatives."

1833.

The second session of the board continued till the Orders of December 12, 12th of December 1833, when an adjournment was taken to the first Monday in the ensuing March. In adjourning the commissioners made the following orders:

"Ordered, That all persons having claims to be decided upon by this board, memorials of which claims have not yet been presented, or which, having been presented, have not been received by this board, do file origi nal or suppleineutal memorials as the case may be, in their several claims, on or before the first Monday of March next; and that each of the said memorials shall be prepared and verified in conformity with the rules prescribed in the order of this board of the 19th of September last.

"Ordered, That all cases in which memorials have been received by the board be set down for examination after the expiration of four months from the date hereof; if, however, after the lapse of said time, any claimant shall show cause for not then entering upon the examination, a further time may be allowed.

"Ordered, That all cases where the claimants shall deem it necessary to take testimony in support of their claims, the said testimony, if taken within a district where commissioners have been appointed by a court of the United States to take affidavits, shall be taken before such commissioner; if no such commissioner, then before any officer qualified by law to administer an oath.

"Ordered, That all persons having claims under the convention between the United States and His Majesty the King of the Two Sicilies, be permitted to support their respective claims by the argument of counsel, but that every argument shall be submitted in writing and filed with the secretary of this board.

"Ordered, That the several claimants under the said convention be permitted to file objections, accompanied by arguments, in such cases as in the opinion of the remonstrants ought not to be favorably received; and no case shall be examined by the board until a reasonable time shall have elapsed, after the documents and proofs by which it may be supported shall have been filed, for preparing the necessary arguments and objections on the part of the remonstrants.

"Ordered, That when this board adjourn, it adjourn to meet on the first Monday of March next, at which time it will proceed to decide whether any memorial which may have been filed with the secretary prior to the said first Monday of March, in pursuance of the foregoing order, shall be received for examination.

"Ordered, That the foregoing resolutions of this board be published in all the papers designated in the order of the 19th of September last."

Extension of Commission.

When the third session of the board began, on March 3, 1834, the state of the business was found to be such as to render an extension of time necessary. Two hundred and ninety-nine memorials had been presented, and it was probable that the number would reach 400. Nearly 200 were presented before the adjournment in December, and of these more than a half were suspended for want of material averments. Great delay had also been encountered by the claimants in obtaining proofs. Under the circumstances President Jackson recommended to Congress an extension of the term of the commission beyond the year originally allowed, which would expire on the 18th of September. By an act of June 19, 1834, an extension of six months was granted.'

14 Stats. at L. 680.

Fourth and Fifth
Sessions.

On the 29th of March 1834 the commission adjourned till the second Monday in May, on which day, the 12th of May, the fourth session opened. This session continued till the 23d of June, when the board adjourned to the first Monday in October. On the 6th of October the board reassembled pursuant to adjournment, for its fifth session, which continued till October 31, when an adjournment was taken to the third Wednesday in December.

Sixth Session.

December 17, 1834, the board met for its sixth session, which continued till the close of the commission. On January 2, 1835, the claimants were ordered to present, as part of their proofs, a certificate of the collector of the port from which the vessels sailed of the quantity of merchandise shipped, the names of the shippers, and the amounts of the drawbacks allowed on the various articles.

On the 24th of January the board, having completed Principles of Decisions. its examination of the various claims submitted, established and published the following principles to govern

the making of its awards:

"Ordered, 1. That in cases of condemnation indemnity shall be made according to the actual value of the vessel and cargo, respectively, at the commencement of the voyage.

"2. That a commission of two and one-half per cent be allowed on the value of the cargo in full satisfaction for the purchase and charges thereon at the port of exportation.

"3. Freight according to the registered tonnage of the vessel at and after the rate of forty dollars per ton.

"4. All necessary expenses incurred at Naples by reason of illegal capture and condemnation to be allowed in full.

"5. Interest at the rate of 20 per cent on the amount awarded.

"As the board can not at this time ascertain whether the fund to be disbursed by them will or will not be sufficient to the payment of all the sums which shall be awarded by this commission, it is

"Ordered, That in each case such sums shall be awarded and reported, as the board shall believe would be justly payable were the fund adequate; and that if the fund shall not be sufficient to pay the aggregate amount allowed to all the claimants, a pro rata distribution shall be made in conformity with the provisions of the convention. It is further

"Ordered, That an entry be made on record of all the decisions made by the board up to this date."

In adopting the value of the vessel and cargo at the commencement of the voyage as a measure of damages, the commission seems to have acted from necessity. In a letter of June 10, 1833, to Mr. A. Davezac, chargé d'affaires of the United States at Naples, Mr. Alex. Hammett, who held the office of United States consul at that port during the period of the confiscations, and who still continued to hold it, declared that the value of each cargo as sold never could be obtained. Not only were papers destroyed, but by an arrangement between the custom-house and the buyers false weights were used, bona fide bidding was prevented, and vessels and cargoes were thus disposed of on terms previously agreed upon.'

Pilchard Cases.

In most of the cases before the commission there was little difficulty in determining whether the claimant was entitled to relief. As a rule, where the case appeared to be within the terms of the convention, the wrong was so flagrant as to leave little room for discussion. The principal argument appears to

MSS. Dept. of State.

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