[Enclosure 2: Letter from Mr. Anderson to the British Ambassador.] AMERICAN AND BRITISH CLAIMS ARBITRATION TRIBUNAL. APRIL 21, 1915.

MY DEAR MR. AMBASSADOR: I have received your letter of the 12th instant, enclosing from the Governor of Newfoundland a copy of the Prime Minister's letter to him of March 20th last, together with a memorandum and statement with regard to the pecuniary claims filed by the United States Government against the Government of Newfoundland. It appears that these documents are forwarded in consequence of a suggestion made by me to the Prime Minister of Newfoundland at our recent conference in New York, but there has, I fear, been some misunderstanding, as my suggestion was that he should take the matter up directly with the Department of State. My only connection with these cases is as a member of the American and British Claims Arbitration Tribunal, before which they will be presented for decision, if not settled by diplomatic arrangement. I notice, however, that the Prime Minister assumes that I was representing the Department of State at our conference, and I gather that his request that these documents be sent to me was made on that understanding. I will, therefore, subject to your approval, refer them to the Department for action.

To make the situation clear, perhaps I should explain that Sir Charles Fitzpatrick, the British member of the Claims Arbitration Tribunal, was also present at the conference in New York, to which the Prime Minister refers, and that this conference was held at the request of the two Governments in order to determine whether it might not be possible for the Tribunal to take up these cases and render awards without the delay and expense of hearing oral arguments. This was found to be impossible because the proceedings in these cases had not advanced to a stage which would enable the Tribunal to render a decision or recommend any settlement on the merits of the claims, without further facts and arguments. This was explained to the Prime Minister, and my suggestion was that inasmuch as the Tribunal could not deal with these cases at present, an early settlement of them could be arranged only by diplomatic discussion, and any terms of settlement which he wished to propose on that basis, should be submitted directly to this Government. Please advise me of your wishes as to the disposition of the documents.

I am, my dear Mr. Ambassador, Yours sincerely,
CHANDLER P. ANDERSON.

His Excellency

(Sgd.)

Sir Cecil Arthur Spring-Rice,

[Enclosure 3: Letter from the British Ambassador to Mr. Anderson.]

BRITISH EMBASSY, Washington, May 21, 1915.

MY DEAR MR. CHANDLER ANDERSON: I informed the Governor of Newfoundland of the sense of your letter of April 21st on the subject of the claims of the United States Government against the Government of Newfoundland and in his reply he asks me to cause the documents enclosed in my letter to you of April 12th to be forwarded to the Department of State.

I should accordingly be greatly obliged if you would, as you suggest, refer them to the Department for action.

I am, Dear Mr. Chandler Anderson, Yours sincerely,

CECIL SPRING RICE.

The Honourable CHANDLER P. ANDERSON, etc.,

Department of State.

EXHIBIT 26.

Affidavit of A. H. McKenzie.

I, A. H. McKenzie, of Gloucester, County of Essex, and Common wealth of Massachusetts, being duly sworn, hereby make affidavit and state as follows:

I am Deputy Collector of Customs of the United States in charge of the Port of Gloucester, Mass.

Vessels of the United States, twenty tons and over, are documented either under registry or under enrollment and license to carry on the coasting trade or the fisheries. Fishing schooners are sometimes registered; sometimes they are enrolled and licensed to carry on the fisheries. Under the law of the United States, vessels, in order to be documented in either of these ways, must be wholly owned by American citizens. Sections 4132 and 4312 of the Revised Statutes of the United States bearing on this matter read as follows:

SEC. 4132. Vessels built within the United States, and belonging wholly to citizens thereof, and vessels which may be captured in war by citizens of the United States, and lawfully condemned as prize, or which may be adjudged to be forfeited for a breach of the laws of the United States, being wholly owned by citizens, and no others, may be registered as directed in this Title.

SEC. 4312. In order for the enrollment of any vessel, she shall possess the same qualifications, and the same requirements in all respects shall be complied with, as are required before registering a vessel; and the same powers and duties are conferred and imposed upon all officers, respectively, and the same proceedings shall be had, in

enrollment of vessels, as are prescribed for similar cases in registering; and vessels enrolled, with the masters or owners thereof, shall be subject to the same requirements as are prescribed for registered vessels.

Section 4141, and Section 4312, above quoted, of the Revised Statutes of the United States provide for the registration and enrollment of vessels by the Collector of Customs of the collection district which includes the port to which the vessel belongs at the time of registry or enrollment. Section 4141 reads as follows:

SEC. 4141. Every vessel, except as is hereinafter provided, shall be registered by the collector of that collection district which includes the port to which such vessel shall belong at the time of her registry; which port shall be deemed to be that at or nearest to which the owner, if there be but one, or, if more than one, the husband or acting and managing owner of such vessel, usually resides.

Licenses to carry on the coasting trade or the fisheries are granted to enrolled vessels for a period of one year, and no longer. Such licenses, are, however, subject to renewal. (R. S. 4321.)

Pursuant to Sections 4132, 4141 and 4312 of the Revised Statutes of the United States, the following persons, firms and corporations of Gloucester, Mass., were granted certificates of registry or licenses to carry on the fisheries for the fishing schooners named below, wholly or partly owned by them, on the dates indicated; these documents were granted upon the submission, conformably to law, of evidence of the American citizenship of the owners of the vessels:

1 The partnership of Cunningham & Thompson was incorporated in 1909, the corporation being known as The Cunningham & Thompson Co.

Dec. 27, 1899.

Mar. 22, 1894.

Mar. 19, 1900..