alada:ma claims. 150 



ing out of a state of war being thus disposed of, we 

 arrive at tlie great class of private losses, ^vbicb chief- 

 ly occupied the time of the Tribunal. 



DECISION AS TO TKIVATE LOSSES. 



The Arbitrators, assuming that, pursuant to the 

 command of the Treaty, they are to be governed by 

 the three llulcs, and tlie principles of international 

 law not incompatible therewith, proceed to lay down 

 the following prefatory positions, namely : 



1. "Tlic 'due diligence' referred to in the first .'\nd third of 

 the said llulcs, ought to be exercised by neutral Go.erunicnts 

 in exact proportion to tiic risks to ■which either of the IJelligcr- 

 cnts may be exposed from a failure to fulfill tiic obligations of 

 neutrality on their part. 



2. " The eircunislances, out oi^ wliieh the facts constituting the 

 fiubject-niatter of the i)resent controversy arose, were of a na- 

 tui'e to call for the exercise on tlic part of Her llritannic ^laj- 

 csty's Government of all j)0ssible solicitude for the observance 

 of the rights and the duties involved in the proclamation of 

 neutrality issued by Iler 3I.ijesty on the 1.3th day of ^Nlay, 1861. 



3, "The elfects of a violation of neutrality committed by 

 means of the construction, equipment, and armament of a ves- 

 sel are not done away with by any commission ■whicli the Gov- 

 ernment of the belligerent I'ower benetited by the violation of 

 neutrality may afterward have granted to that vessel; and the 

 ultimate 8te)>, by which the offense is completed, can not be 

 admissible as a ground for the absolution of the oliendor; nor 

 can the consummation of his fraud become the means of estab- 

 lishing liis innocence. 



4. "The privilege of cx-tenitoriality accorded to vessels of 

 war lias been admitted into the laws of nations, not as an ab- 

 solute right, but solely as a proceciling founded on tlie princi- 

 ple of courtesy and mutual deference between ditferent na- 

 tions, and therefore can 3ievcr be aj)pcaled to for the protcc- 

 lion of acts done in violation of neutrality. 



