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to wit: Her Britannic Majesty-Sir Alexander James Edmund Cockburn, Baronet, a member of her Majesty's Privy Council, Lord Chief Justice of England; the President of the United StatesCharles Francis Adams, Esq.; his Majesty the King of Italy-his Excellency Count Frederic Sclopis of Salerano, a Knight of the Order of Annunciata, Minister of State, Senator of the Kingdom of Italy; the President of the Swiss Confederation-Mr. James Staempfli; his Majesty the Emperor of Brazil-his Excellency Marcus Antonio d'Araujo, Viscount d'Itajubà, a Grandee of the Empire of Brazil, member of the Council of his Majesty, the Emperor of Brazil, and his Envoy Extraordinary and Minister Plenipotentiary in France. And the five Arbitrators above named having assembled at Geneva (in Switzerland) in one of the chambers of the Hôtel de Ville on the 15th of December, 1871, in conformity with the terms of the 2nd Article of the Treaty of Washington of the 8th of May of that year, and having proceeded to the inspection and verification of their respective Powers, which were found duly authenticated, the Tribunal of Arbitration was declared duly organized.

"The Agent named by each of the High Contracting Parties, by virtue of the same Article II., to wit: For her Britannic Majesty-Charles Stuart Aubrey, Lord Tenterden, a Peer of the United Kingdom, Companion of the Most Honourable Order of the Bath, Assistant UnderSecretary of State for Foreign Affairs; and for the United States of AmericaJohn C. Bancroft Davis, Esq.; whose powers were found likewise duly authenticated, then delivered to each of the Arbitrators the printed case prepared by each of the two parties, accompanied by the documents, the official correspondence and other evidence on which each relied, in conformity with the terms of the 3rd Article of the said Treaty.

"In virtue of the decision made by the Tribunal at its first session, the Counter Case and additional documents, correspondence and evidence, referred to in Article IV. of the said Treaty, were delivered by the respective Agents of the two Parties to the Secretary of the Tribunal on the 15th of April, 1872, at the Chamber of Conference, at the Hôtel de Ville of Geneva.

"The Tribunal, in accordance with the vote of adjournment passed at their second Session, held on the 16th of December, 1871, re-assembled at Geneva on the 15th of June, 1872, and the Agent of each of the parties duly delivered to each of the Arbitrators and to the Agent of the

other party the printed argument referred to in Article IV. of the said Treaty.

"The Tribunal having since fully taken into their consideration the Treaty and also the Cases, Counter-Cases, documents, evidence and arguments, and likewise all other communications made to them by the two parties during the progress of their sittings, and having impartially and carefully examined the same, has arrived at the decision embodied in the present award.

"Whereas, having regard to the 6th and 7th Articles of the said Treaty, the Arbitrators are bound under the terms of the said 6th Article, 'in deciding the matters submitted to them, to be governed by the three rules therein specified and by such principles of International Law not inconsistent therewith as the Arbitrators shall determine to have been applicable to the case.'

"And whereas the due diligence' referred to in the first and third of the said Rules ought to be exercised by neutral Governments in exact proportion to the risks to which either of the belligerents may be exposed from a failure to fulfil the obligations of neutrality on their part.

"And whereas the circumstances out of which the facts constituting the subjectmatter of the present controversy arose were of a nature to call for the exercise on the part of her Britannic Majesty's Government of all possible solicitude for the obser vance of the rights and the duties involved in the Proclamation of Neutrality issued by her Majesty on the 13th day of May, 1861;

"And whereas the effects of a violation of neutrality committed by means of the construction, equipment, and armament of a vessel are not done away with by any commission which the Government of the belligerent Power benefited by the violation of neutrality may afterwards have granted to that vessel; and the ultimate step, by which the offence is completed, cannot be admissible as a ground for the absolution of the offender, nor can the consummation of his fraud become the means of establishing his innocence;

"And whereas the privilege of exterritoriality accorded to vessels of war has been admitted into the law of nations, not as an absolute right, but solely as a proceeding founded on the principle of courtesy and mutual deference between different nations, and therefore can never be appealed to for the protection of acts done in violation of neutrality;

"And whereas the absence of a previous notice cannot be regarded as a failure in any consideration required by the law of nations, in those cases in which a vessel carries with it its own condemnation;

"And whereas in order to impart to any supplies of coal a character inconsistent with the second Rule, prohibiting the use of neutral ports or waters as a base of naval operations for a belligerent, it is necessary that the said supplies should be connected with special circumstances of time, of persons, or of place, which may combine to give them such character;

"And whereas with respect to the vessel called the Alabama 'it clearly results from all the facts relative to the construction of the ship at first designated by the 'Number 290,' in the port of Liverpool, and its equipment and armament in the vicinity of Terceira through the agency of the vessels called the Agrippina ' and the 'Bahama' despatched from Great Britain to that end, that the British Government failed to use due diligence in the performance of its neutral obligations; and especially that it omitted, notwithstanding the warnings and official representations made by the diplomatic agents of the United States during the construction of the said Number 290,' to take in due time any effective measures of prevention, and that those orders which it did give at last for the detention of the vessel were issued so late that their execution was not practicable;

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And whereas, after the escape of that vessel, the measures taken for its pursuit and arrest were so imperfect as to lead to no result, and therefore cannot be considered sufficient to release Great Britain from the responsibility already incurred;

"And whereas, in despite of the violations of the neutrality of Great Britain committed by the 290,' this same vessel, later known as the Confederate cruiser 'Alabama,' was on several occasions freely admitted into the ports of Colonies of Great Britain, instead of being proceded against as it ought to have been in any and every port within British jurisdiction in which it might have been found;

"And whereas the Government of her Britannic Majesty cannot justify itself for a failure in due diligence on the plea of the insufficiency of the legal means of action which it possessed;

Four of the Arbitrators, for the reasons above assigned, and the fifth for reasons separately assigned by him, are of opinion that Great Britain has in this case failed, by omission, to fulfil the duties prescribed in the first and the third of the Rules established by the 6th Article of the Treaty of Washington.

"And whereas, with respect to the vessel called the Florida,' it results from all the facts relative to the construction of the Oreto' in the port of Liverpool, and to its issue therefrom, which facts failed to

induce the authorities in Great Britain to resort to measures adequate to prevent the violation of the neutrality of that nation, notwithstanding the warnings and repeated representations of the Agents of the United States, that her Majesty's Government has failed to use due diligence to fulfil the duties of neutrality;

And whereas it likewise results from all the facts relative to the stay of the 'Oreto' at Nassau, to her issue from that port, to her enlistment of men, to her supplies and to her armoury with the cooperation of the British vessel Prince Alfred,' at Green Cay, that there was negligence on the part of the British Colonial authorities;

"And whereas, notwithstanding the violation of the neutrality of Great Britain committed by the Oreto,' this same vessel, later known as the Confederate cruiser Florida,' was, nevertheless, on several occasions freely admitted into the ports of British Colonies;

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"And whereas the judicial acquittal of the Oreto' at Nassau cannot relieve Great Britain from the responsibility incurred by her under the principles of International Law, nor can the fact of the entry of the Florida' into the Confederate port of Mobile, and of its stay there during four months, extinguish the responsibility previously to that time incurred by Great Britain :

"For these reasons the Tribunal, by a majority of four voices to one, is of opinion that Great Britain has in this case failed, by omission, to fulfil the duties prescribed in the first, in the second, and in the third of the Rules established by Article VI. of the Treaty of Washington.

"And whereas, with respect to the vessel called the Shenandoah,' it results from all the facts relative to the departure from London of the merchant vessel the Sea King,' and to the transformation of that ship into a Confederate cruiser under the name of the Shenandoah,' near the island of Madeira, that the Government of her Britannic Majesty is not chargeable with any failure, down to that date, in the use of due dili gence to fulfil the duties of neutrality;

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"But whereas it results from all the facts connected with the stay of the Shenandoah' at Melbourne, and especially with the augmentation which the British Government itself admits to have been clandestinely effected of her force by the enlistment of men within that port, that there was negligence on the part of the authorities at that place ;

"For these reasons the Tribunal is unanimously of opinion that Great Britain

has not failed, by any act or omission, to fulfil any of the duties prescribed by the three Rules of Article VI. in the Treaty of Washington, or by the principles of International Law not inconsistent therewith, in respect of the vessel called the Shenandoah' during the period of time anterior to her entry into the port of Melbourne.

"And by a majority of three to two voices, the Tribunal decides that Great Britain has failed by omission to fulfil the duties prescribed by the second and third of the Rules aforesaid in the case of this same vessel from and after her entry into Hobson's Bay, and is, therefore, responsible for all acts committed by that vessel after her departure from Melbourne on the 18th day of February, 1865.

"And so far as relates to the vessels called the Tuscaloosa' (tender to the 'Alabama'), the Clarence,' the Tacony,' and the Archer' (tenders to the Fiorida), the Tribunal is unanimously of opinion that such tenders or auxiliary vessels, being properly regarded as accessories, must necessarily follow the lot of their principals, and be submitted to the same decision which applies to them respectively.

"And so far as relates to the vessel called the 'Retribution,' the Tribunal, by a majority of three to two voices, is of opinion that Great Britain has not failed by any act or omission to fulfil any of the duties prescribed by the three Rules of Article VI. in the Treaty of Washington, or by the principles of International Law not inconsistent therewith.

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"And so far as relates to the vessels called the Georgia,' the 'Sumter,' the Nashville,' the Tallahassee,' and the 'Chickamauga,' respectively, the Tribunal is unanimously of opinion that Great Britain has not failed, by any act or omission, to fulfil any of the duties prescribed by the three Rules of Article VI. in the Treaty of Washington, or by the principles of International Law not inconsistent therewith.

"And so far as relates to the vessels called the Sallie,' the Jefferson Davis,' the Music,' the Boston,' and the V. H. Joy,' respectively, the Tribunal is unanimously of opinion that they ought to be excluded from consideration, for want of evidence.

"And whereas, so far as relates to the particulars of the indemnity claimed by the United States, the costs of pursuit of the Confederate cruisers are not, in the judgment of the Tribunal, properly distinguishable from the general expenses of the war carried on by the United States, the Tribunal is, therefore, of opinion, by a majority of three to two voices, that

there is no ground for awarding to the United States any sum by way of îndem nity under this head.

"And whereas prospective earnings cannot properly be made the subject of compensation, inasmuch as they depend in their nature upon future and uncertain contingencies, the Tribunal is unanimously of opinion that there is no ground for awarding to the United States any sum by way of indemnity under this head.

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"And whereas, in order to arrive at an equitable compensation for the damages which have been sustained, it is necessary to set aside all double claims for the same losses, and all claims for gross freights so far as they exceed 'net freights;' and whereas it is just and reasonable to allow interest at a reasonable rate; and whereas, in accordance with the spirit and the letter of the Treaty of Washington, it is preferable to adopt the form of adjudication of a sum in gross rather than to refer the subject of compensation for further discussion and deliberation to a Board of Assessors, as provided by Article X. of the said Treaty, the Tribunal, making use of the authority conferred upon it by Article VII. of the said Treaty, by a majority of four voices to one, awards to the United States the sum of $15,500,000 in gold as the indemnity to be paid by Great Britain to the United States for the satisfaction of all the claims referred to the consideration of the Tribunal, conformably to the provisions contained in Article VII. of the aforesaid Treaty.

"And, in accordance with the terms of Article XI. of the said Treaty, the Tribunal declares that all the claims referred to in the Treaty as submitted to the Tribunal are hereby fully, perfectly, and finally settled.'

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Furthermore, it declares that each and every one of the said claims, whether the same may or may not have been presented to the notice of, or made, preferred, or laid before the Tribunal, shall henceforth be considered and treated as finally settled, barred, and inadmissible.'

"In testimony whereof this present decision and award has been made in duplicate, and signed by the Arbitrators who have given their assent thereto, the whole being in exact conformity with the provisions of Article VII. of the said Treaty of Washington.

"Made and concluded at the Hôtel de Ville of Geneva in Switzerland, the 14th day of the month of September, in the year of our Lord 1872.

"C. F. ADAMS,

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FREDERIC SCLOPIS, "STAEMPFLI,

"VISCOMTE D'ITAJUBA."

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PUBLIC INCOME AND EXPENDITURE, AND OTHER EXCHEQUER RECEIPTS AND PAYMENTS, IN THE YEAR 1871-72. Account showing the whole of the Receipts into and Payments out of the Exchequer in the year ended 31st March, 1872, and the Balances in the Exchequer at the commencement and termination of the Year.

To Balance in the Exchequer on the

1st April, 1871 :

At the Bank of England

At the Bank of Ireland

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20,326,000 00

23,326,000 0

Stamps

Terminable Annuities (including Sinking Fund Annuity)

4,512,706 1 0

9,772,000

Land Tax and House Duty

2,330,000

£26,669,658 4 4

Property and Income Tax

9,084,000

Interest of Unfunded Debt

169,943 3 4

Post Office

4,680,000

Telegraph Service

755,000 0 0

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26,839,601 7 8

Crown Lands (Net)

375,000 0 0

Annuities and Pro

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Miscellaneous

4,060,314 13 1

103,320 11 6

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649,200 10 8

282,966 11 2

50,869 7 8

1,797,475 1 2

900,000 0 O

1,407,079 7 6

80,000 0 0

2,387,079 7 6

By Payments for voted (Supply) Services, viz.:

Army Services (including 340,000l.on account of Abolition of Purchase)

Navy Services

Vote of Credit (War in Europe)

Miscellaneous Civil Services

15,861,580 1 0

9,900,486 0 0

!

101,096 16 3

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138,991 15 1

Customs and Inland Revenue De

partments.

2,578,093 14 6

Post Office

2,455,691 19 8

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454,477 3 3

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