892 CORRESPONDENCE, ETC. 



[Sub-lnclosure.] 



Report of a committee of the honorable the privy council for Canada, 

 approved ~by his excellency the governor-general in council, on the 

 18th November, 1886. 



The committee of the privy council are in receipt of a telegram 

 from the right honorable the secretary of state for the colonies, in 

 the words: 



" United States Government protest against proceedings of Cana- 

 dian authorities in case of Pearl Nelson and Everett Steele, said to 

 have put into Arichat and Shelburne, respectively, for purposes sanc- 

 tioned by convention. Particulars by post. Send report soon as 

 possible." 



The minister of marine and fisheries, to whom the telegram was 

 referred, submits a copy of a letter addressed by the commissioner of 

 customs for Canada to the consul-general of the United States at 

 Halifax, and also a copy of Mr. Phelan's reply thereto. 



The minister submits that it is clear, from Captain Kempt's affi- 

 davit, that he was guilty of an infraction of the customs regulations 

 in allowing men to land from his vessel before she had been reported, 

 and the minister of customs having favorably considered Captain 

 Kempt's representations as to his ignorance of the customs regula- 

 tions requiring that vessels should be reported before landing either 

 men or cargo therefrom, has remitted the fine of $200 which had been 

 imposed in the case of the American schooner Pearl Nelson. 



The minister further submits that it would appear from the col- 

 lector of customs' report that his remark that " he would seize the 

 vessel " had reference solely to her violation of the customs law, and 

 that no evidence is given of any desire or intention of denying to the 

 captain of the Pearl Nelson any treaty privileges he was entitled to 

 enjoy. 



The committee, concurring in the above, respectfully recommend 

 that your excellency be moved to transmit a copy of this minute, if 

 approved, to the right honorable the secretary of state for the col- 

 onies. 



All which is respectfully submitted for your excellency's approval. 



JOHN J. McGEE, 

 Clerk Privy Council, Canada. 



[Inclosure No. 3.] 



Mr. Parmelee to Mr. Phelan. 



OTTAWA, October 88, 1886. 



SIR : I have the honor to acknowledge the receipt of your letter of 

 the llth instant, re seizure of the American schooner Pearl Nelson 

 for an infraction of the customs laws, etc. 



The commissioner of customs' report in connection with this mat- 

 ter, which has been approved by the minister of customs, reads as 

 follows : 



" The undersigned, having examined this case, has come to the con- 

 clusion that the captain of the vessel did violate the provisions of 

 sections 25 and 180 of ' the customs act, 1883,' by landing a number of 



