Mr. Stuart to Mr. Seward.

Sir: In the note which you addressed to Lord Lyons on the 9th of April last, relative to the steamer Labuan, you did him the honor to inform him that the district attorney at New York would be immediately instructed to give notice to the claimants or their counsel, as he might be able, of an early day when he would move the court to proceed to consider and determine what damages and what costs should be awarded to the claimants of the ship Labuan and her cargo for her unlawful seizure, and to place before the court, on that occasion, all the proofs which have been furnished to the United States government by her Majesty’s government; and that, in pursuance of such notice, the district attorney would be instructed to prosecute the question of damages and costs to a decision, whether the claimants appear or not.

It appears, however, from a statement which has been lately made to me on the part of the claimants, that the district attorney, instead of acting in the sense of the above instruments, has made application through the State Department to the United States consul at Matamoras for ex parte affidavits from that place relative to the movements of the Labuan and of her officers while off the Rio Grande, as well as to the origin of her cargo and other matters, with the intention of laying the same before the court.

This proceeding is stated to have been adopted without any notice having [Page 696] been given to the claimants or their counsel; and upon the latter calling the attention of the court to the matter, on the 15th instant, the district attorney is said to have met the question by arguing that some new proceeding was to have been initiated by the complainants before the court upon the subject of damages and costs, and that owing, as he alleged, to this omission in that respect, he had himself taken the initiative by sending out to Matamoras to procure the fresh ex parte evidence referred to.

But I would submit that the district attorney must have been under a misapprehension upon this point, as the substance of the above-cited portion of your note has been communicated to the claimants, and they, consequently, could not with propriety have initiated any new proceedings before the court.

Supposing the fresh evidence to arrive in course of time and to be submitted to the court, it might then be found necessary for the interests of the claimants that they also should be enabled to procure fresh counter evidence from Matamoras. Besides the almost endless delays which might thus arise, questions would be reopened which have already been decided by the prize court; whereas, after carefully perusing your note, I cannot believe that it was your intention to reopen the whole case upon its merits, and to cause so much additional delay in procuring a decision upon the single reserved question of the amount of damages and costs due to the claimants—a question which, unless I am misinformed, is usually decided by the court upon the evidence previously laid before it during the trial of the case.

I trust, therefore, that you will see fit to remind the district attorney of your previous instructions, and to urge that functionary to take immediately such steps as may be proper to prosecute the question of damages and costs in the case of the Labuan to a decision, in so far as the prize court is concerned, the delay which has already occurred having been a great aggravation of the injury done to the claimants by the illegal seizure of this vessel, and the consequences resulting therefrom.

I avail myself of this opportunity to renew to you the assurance of my high consideration.

W. STUART.

Hon. Wm. H. Seward, &c., &c., &c.