tunity to show their contempt for the government of the United States, and whose warehouses are made the depot for goods awaiting shipment to rebel ports on the order and under the direction of rebel agents resident at Nassau, among which may be named John B. Lafitte, agent for the house of Trenholm, Frazer & Co., of Liverpool and Charleston, and Captain Maffitt, late of the United States navy, now special navy agent for the so-called confederate government. Her Majesty's government expresses the opinion that a distinction ought to be made between shipments of coal and "articles of innocent use," enumerating dry goods, cotton fabrics, shoes, medical drugs, flour and provisions. While acknowledging the soundness of the argument that there should be such a distinction, I also acknowledge my inability to make the requisite discrimination. For example, the rebel steamer Nashville, lying at one of the British West Indies islands, is supplied by the British ship Mohawk with coal, by which she is enabled to run the blockade, and the articles of "innocent use" we are called upon to supply to the Nassau market, to be transferred to her, or some other vessel systematically using the British flag to advance secession interests, are sulphate of quinine in quantities of one thousand ounces, chloroform by the hundred pounds, surgical instruments by the dozen cases, cotton cards by the hundred dozen, and uniforms or clothing and shoes for an army. Her Majesty's government labors under a serious misapprehension when stating that the authorities of the New York custom-house have attempted to interfere with the ordinary and legitimate trade to the Bahamas. It is only in cases of extraordinary shipments, or when we have had good and sufficient reasons, founded on the statements of merchants here engaged in the trade, for the belief that they were intended for interdicted ports in the southern States, that we have intervened for the protection of the interests of our government by prohibition, or by requiring bonds that the goods thus sought to be shipped should not be permitted to be sent to ports in the insurgent States in aid of the existing rebellion, and in no case has any discrimination been made by me in favor of American vessels or American citizens over those of any other nationality. Your instructions relative to our action in future cases arising out of this question, and your request that we shall furnish the Treasury Department with a statement setting forth our reasons for refusing clearances without the usual bond for goods not deemed contraband of war to any British port, will receive due attention. I have the honor to be, very respectfully, your obedient servant, Hon. S. P. CHASE, HIRAM BARNEY, Collector. Secretary of the Treasury No. 1.] 30 GREAT WINCHESTER STREET, March 21, 1862. GENTLEMEN: I will take your freight-say 290 tons, the whole not to weigh more than 130 tons, more or less-at the rate of £13, with customary primage. To deliver the same cargo, with all possible despatch, at Charleston or some other confederate port. Yours, obediently, Messrs. JORSS & NORTH, Leeds. JO. LAWSON. Supercargo to be furnished with a first class passage, free of charge. J. L. P. S.-Payment of freight and insurance to be paid by bill of four months drawn on Jorss & Worth. J. L. No. 2.] 27 LEADENHALL STREET, LONDON, March 21, 1862. GENTLEMEN: In consideration of your undertaking to ship by my vessel (the Pacific) 250 tons or more of freight by Tuesday next, if possible, the 25th instant, I hereby agree to effect insurance to the extent of £25,000, and more, if possible, at the best current rate at Lloyd's. I am, gentlemen, yours, faithfully, Messrs. JORSS & NORTH, Leeds. A. T. CLARK. Underwriter's name shall be such as may be satisfactory to insured. A. T. C. 27 LEADENHALL STREET, LONDON, No. 3.] April 8, 1862. DEAR SIR: I acknowledge to have received bills of lading from you to a port in the Confederate States, which I undertake to get insured and returned to you, leaving one copy on board with your brother. Yours, faithfully, Mr. F. NORTH. A. T. CLARK. No. 4.]. LONDON, April 8, 1862. Received from Messrs. Jorss & North, of Leeds, their acceptances, at four months from the 5th instant, for the sum of £2,655, which, with £1,000 in bills drawn by Mr. Huxley & Co., to be handed over to me as per order of Mr. North, makes the total amount of freight account per Pacific £3,655 15s. 3d A. T. CLARK & CO., Broker for Pacific. No. 5.] PACIFIC, Falmouth, April 14, 1862-3 p. m. MY DEAR SIR: Clark has dodged me and avoided signing-i. e., indorsing the bills of lading for a confederate port. He has never once alluded to the subject, and I confess I am astounded at his temerity. He obtained the bills from Mr. North under a threat, and then deceived him by promising through bills of lading. I confess that I feared this, as I told you and Mr. Barkley at the time; but I did not think he would dare to leave England without giving said bills, signed by some one. You must at once apply to Clark for the promised through bills of lading which Mr. North told me he had promised by letter from Clark. I will try to carry everything out properly, but fear I have much to contend with. Mr. North and several others will aid me here. Adieu, JO. LAWSON. Remarks.-On Friday, March 21, 1862, at about 2 p. m., the agreement No. 1 was written and signed by Lawson, whereupon he, North, and myself called upon Clark, to whom L. submitted the contract. After carefully perusing the same, Clark objected to the time of payment being four months, saying he had instructed L. to accept three months' bills of Jorss & North. He, however, consented to the terms, and wrote out the insurance agreement No. 2 at about 4 p. m., the shipment by the Pacific being conditioned, viz: that Clark should be able to effect the required amount of insurance and on the four months' bills. This, he stated, could be easily done at from 17 to 20 G. per cent., possibly less; and thereby obtained the freight. Query: By the above, does not Clark indorse, approve, and confirm the contract of Lawson's, and is he not as much bound thereby to deliver the goods in the confederacy as if he himself had signed the contract or given a through set of bills of lading? If this be not sufficient, is he not then committed, by receiving the acceptances of Jorss & North for £3,655-being at the rate of £13 per ton, same as stipulated by L., and the current rate charged for a confederate port? If bound by this contract, then he must carry the goods through with all possible despatch, or he becomes liable for damages, and upon a suit in the south his ship can be tied up till the claim is satisfied. If the acceptances of Jorss & North are in his possession at maturity, payment can be resisted, either by want of consideration or non-fulfilment of contract. The promise in letter No. 3 induced Mr. North to give the acceptances which are acknowledged in No. 4, but as this promise was not performed, (vide Lawson's letter, No. 5,) can he not, under a charge of "false pretence," be restrained from using the papers? The greater part are in his possession. J. N. BEACH. MY DEAR JORSS: I have sent all the papers in re Clark to North, and herewith I hand you copies of the papers you may need. I would advise you, while on board ship, to make exact copies of what I have here written, so that (if necessary) you may send them to Root immediately upon your arrival at Nassau. Clark has called to say that he expects to get the steam yacht; and if so, he, Scott, and some others will go over in her in some four or five days, and he will want you to go too; but I think your own plan much better. If he signs the agreement we have prepared, and gives us the other undertakings, he can take the ship across at once, and it is not material whether you are there or not. If he does not effect this arrangement, he probably will not wish to run, or, at least, before you arrive out. I think, if he starts at the appointed time, you will reach there first, via New York; and should he not start at all, but send out an agent by the Liverpool steamer, where will you be then, if you wait for him? My advice is, carry out your own plan, independent of him. Your duties at Nassau will be very light and pleasant if Clark obtains the insurance and takes the ship over to a confederate port; but if you leave on Saturday, and the arrangement is not perfected before you go, your course will be one of some anxiety. With all due deference to your good judgment, I submit the following for your consideration: Being advised by Mr. North you will, of course, know your legal rights and the better way of securing them. If not in conflict with his views, I would first call upon Messrs. Henry Adderley & Co., John B. Lafitte, esq., (agents of Fraser, T. & Co.,) and confer freely with them. You will then have all the local information you need to act wisely. I would then insist upon the ship completing her voyage at once, and, if not done, I will duly protect and then remove the whole or part of the goods, and, sending them over by different vessels, lessen the risk of capture. This plan seems advisable from this point; but possibly, if on the spot, it would be declined. I can only hope the difficulties may be removed by Clark's agreement to-morrow, yet I have some doubts about it. I wish you would write to Root fully and freely as soon as you can; send him samples; also full descriptions of both the cargoes, and he will be the better able to effect sales. To-morrow I will write to you at the "Adelphi Hotel." Bache will do £3,000 on freight and £5,000 on merchandise. How will you do about paying him the premium? I wish to send F., T. & Co. their policy for £5,000, also the Galbraith policy as per my agreement. If Clark does not set tle with us, I presume Mr. North will commence proceedings as soon as you leave. I do not think of anything else at present. If you wish to write to me, address to Davison's care; and if not here, he will forward it to me. I should not advise sending the money to Bache direct, but by draft or some other way. You have, my dear Jorss, my sincere wishes for a pleasant, safe, and prosperous voyage, a successful issue from these difficulties at Nassau, and a speedy return to your dear wife and friends. Should you visit the south, I need only commend you to Root's care; in him you will find a friend and brother. God bless you, and keep you in health and prosperity is the wish of Your attached friend, BEACH. This agreement, made this thirteenth day of March, one thousand eight hundred and sixty-two, between Messieurs Frederick Henry Jorss and Frederick North, of the one part, and John N. Beach, of London, in England, on behalf of himself severally, as well as on behalf of his partner, Sydney Root, who carry on business together, copartnerships under the firm of Beach & Root, in the city of Charleston, in the Confederate States of America, as merchants of the other part, whereby the said Jorss & North and Beach & Root, for the considerations herein set forth, contract and agree with each other, as hereinafter appears: 1. That the said Beach & Root shall, on the signing of this agreement, pay to the said Jorss & North the sum of three thousand pounds, either in cash or by acceptances, which acceptances are to be approved by the said Jorss & North. 2. That on receiving the said sum of three thousand pounds, as hereinbefore stated, the said Jorss & North shall, with all practicable expedition, engage a ship and freight the same with such goods as the said John N. Beach shall direct, and which ship shall be chartered to convey such goods to the said city of Charleston. 3. That the said Jorss & North shall insure the said ship and cargo for the city of Charleston, or any other port of the said southern States of America, in such an amount as the said Jorss & North may think proper; the said Jorss & North advancing the insurance premium, freightage money for goods, and all other expenses in and about the execution of this agreement, and all matters herein contained or relating hereto. 4. That the said Jorss & North shall appoint such party or parties as they may think proper, to take charge of the said goods and act as supercargo thereof, and that all such goods shall remain the property of the said Jorss & North till they shall have been reimbursed all money out of pocket in relation to this agreement and the matters herein contained. Such amount to be fixed by the receipts in their possession of moneys paid by them on account hereof, or accounts claimed from them and admitted by them to be due in respect hereof and the matters herein contained. 5. That the said John N. Beach hereby undertakes, on behalf of himself and his said partner, that within one fortnight after his said partner, Sydney Root, shall have been apprised of the arrival of the said ship in any southern port as aforesaid, that the said Sydney Root, acting on behalf of himself and the said John N. Beach, shall remit to the said Jorss & North, in such manner as shall be satisfactory to William North the younger, of Leeds, who will go out with such ship as supercargo of the goods, such an amount as will cover the said Jorss & North all outlays by them, of whatever kind, in relation to the execution and carrying out of this agreement, and which amount shall be conclusively fixed at such total sum as the said William North the younger shall produce invoices and accounts for, whether paid or owing by the said Jorss & North, bearing the signature of the said Jorss & North. Should the said Sydney Root neglect to remit such amount to Jorss & North, as before stated, within the said fourteen days, the said William North the younger shall be at liberty to dispose of the cargo as he thinks fit; the proceeds of which disposition shall be for the benefit or loss of both the said parties hereto, in the same manner as though the said Sydney Root had complied with and performed that condition. 6. That after the arrival of the ship and payment of the invoices and accounts thereof and expenses relating to this agreement, as lastly before expressed, the said Sydney Root and William North the younger shall sell jointly the cargo as equal partners; the said William North the younger acting for and on behalf of and as the attorney of the said Jorss & North. 7. That in case of capture or loss of the said ship and cargo, or other prevention of their reaching their destination, as before expressed, the said Jorss & North shall, out of the insurance to be effected, as before expressed, and which insurance it is intended shall be a protection against risks of war as well as of the sea, refund to the said Beach & Root, as they or one of them may direct, the said sum of three thousand pounds, only retaining for themselves the balance of such insurance money, it being intended and hereby agreed that the said Beach & Root shall not be interested in, liable for, or entitled to participate in such goods until their arrival in a southern port, as hereinbefore expressed, or in the port of Nassau or any other intermediate port, as next hereinafter mentioned. 8. That should the said William North the younger find or consider it in his absolute discretion advisable to effect sales of the said goods or cargo at an intermediate port, the said Beach & Root shall participate in the profits thereof as though they were sold in a southern port, according to the terms hereinbefore stated; the said William North the younger, out of the proceeds of such sale or sales, retaining for the said Jorss & North all moneys payable by them or liabilities of them, fixed in the manner hereinbefore mentioned. 9. That should there be a loss to the said Jorss & North, on the close of the execution of this agreement, in the sending out of goods, as hereinbefore named, the said Beach & Root shall pay to the said Jorss & North one-half of such loss, and which loss shall be taken to be settled between both the said parties hereto, at such sum as the said William North the younger shall declare to be the difference between the sums paid by or liabilities of the said Jorss and North in respect of the matters in this agreement contained, as shall be evidenced by the invoices and accounts produced by the said Jorss & North, as hereinbefore mentioned, and the account sales of the said goods, comprising the cargo of the said ship. 10. If the said William North the younger and Sydney Root, after the sale of the said cargo, and completing of the agreement herein before contained, shall think it desirable to reload the ship with cotton for the return journey to England, they shall be at liberty to do so in such manner as they shall think fit, and the clear profits arising from such cargo of cotton (and which cotton shall be paid for equally by the said William North the younger, on behalf of the said Jorss & North, and Sydney Root, on behalf of Beach & Root, out of the proceeds of the outward cargo) shall be divided equally between the said parties hereto. 11. That until the final completion hereof, and sale and realizations of the said outward cargo, the said Beach & Root shall have no claim on the said Jorss & North for the said sum of three thousand pounds, or any part thereof, but which said sum shall be credited and allowed to the said Beach & Root |