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sent the following dispatch to ('ol. George, our consul at Charlottetown, P. E. 1.:

HALIFAX, July 25, 1887. To Col. GEORGE, ('. S. Consul,

Charlottetown, P. E. I. What do you know of the captured boats at Souris P. E. I.?

PHELAX.

('ol. George replied as follows:

CHARLOTTETOWX, P. E. I.. July 20,157. To M. II. PUELAX, Consul General,

Ihalifar, X. S. Critic seized two seine trawls, seines and fourteen men belonging to our fishing schooners Fruch and roast capture effected off East Point schooners escaped.

V. J. GEORGE.

It was claimed by the friends of the seized boats that the seizure had been made outside the three-mile limit. I therefore telegraphed as follows:

ILALIFAX, July 2017 To (ol. GEORGE,

CharlottetowP. E. I.
Jscertain, if possible, exact location of seizure.

PHELAX

Thereupon ('ol. George sent me the following despatch received by him from the l'. s. ('onsular Igent at Souris:

SOURIS, July 2.5th, 15.07

To Col. N. J. GEORGE,

C.S. Consul.

their boats off Eastpoint yesterday I have telegraphed owners vessels escaped.

C. C. CARLTON.

SOURIS, July 25th, 1887. Col. GEORGE,

U.S. Consul. Collector will not allow me to put men on board other vessels they are destitute of clothing and will have to be clothed. I send them all with you Thursday for Ame. G. Tr.

C. C. CARLTOX. sent the following dispatch :

HALIFAX, July 27, 1887. To Col. GEORGE,

Charlottetown, P. E. I. Refusal of collector to permit transportation of destitute seamen a serious matter. Send them home by first vessel, fishing or other. Report any interference.

PHELAN.

I also sent the following despatch to lIon. M. Bowell, Canadian Minister of Customs:

HALIFAX, July 27, 1887. To Hon. M. BOWELL,

Ottawa, Collector Souris, P. E. I. will not allow consul to send destitute seamen of seized boats home by fishing vessel. IS he justified?

M. II. PHELAN, U'. s. Consul General.

I received the following reply from J. Johnson, the ('ommissioner of Customs:

OTTAWA, July 27, 1887. To ('. S. ('onsul VI. H. PHELAX :

Could not decide whether seamen could be allowed to go home by fishing vessels without knowing all the circum

I received the following from the Captain of cruiser Critic:

GOVERNMENT SCHOONER Critic,

St. East Point, P. E. I., July 29, 1887. It is my duty to inform you that I have this day seized the United States seining boat and seine named the trgonaut for violation of the statutes in force in Canada relating to foreign fishing vessels.

The digonaut will of course be held for any other offense which may have been committed by those in charge of her against the laws of the Dominion of Canada, and which warrant her detention. I am, Sir, Your obedient servant,

WM. MCLAREN, Jer.

To UNITED STATES ('OXSUL GENERAL,

llalilar, X. S. I received another copy of this printed circular notifying me of the seizure of the seining boat and seine of the schooner (ol. J. Il. French.

Mr. George sent the men captured with these boats by the ITorrester of the B. II. & P. E. I. line, to Boston.

It appears from the statement of the men taken in this city that on Sunday morning, July 24, two boats, one from the Im. schooner ). II. French and the other from the schooner trgonaut, set their seines about four miles from shore on the south side of Prince Edward Island. Ou the (ruise of the forenoon a strong tidle set in and the boats and seines were carried shorewards. They became aware in a short time that they were in prohibited waters and dropped the fish out of their nets and were preparing to return to their vessels when Captain VoLaren, of the Canadian (ruiser Critic, came alongside and asked them what they

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wards he returned and seized the boats, which were taken alongside the Critic and they were put on board her.

The crew of the boat from the Argonaut consisted of the following persons: Wm. Brown, of Port Medway, N. B.; Frank Dickson; Wm. Barker, Wm. Cross, Embrey Paul, Albert Butterwill and Robt. Wright, of Eastport, Me.; John Jellow, of Port Hawkesbury, N. S.; Chas. Innis. Geo. Jennings and Robt. Cosgrove, of Gloucester, Mass., and Freeman Kent, of Swans Island, Me.

The crew of the boat of the French consisted of two persons, Norman M. Isaac and George McLeane, both natives of Nova Scotia, but living for some years in Gloucester. The crews say Captain McLaren threatened to imprison them unless the vessels they belonged to were surrendered. The men were almost nude when taken before the consular agent. The latter, as will be seen from the dispatch he sent to this office, was not permitted to send the men home by a fishing vessel which was about to sail for Gloucester. The collector of customs telegraphed the collectors along the Straits of Canso to seize the French and Argonaut should they pass through. The steam cruiser dicudia was undergoing some repairs in this city and she was immediately ordered to sea, and she made a circuit of Cape Breton Island searching, as I was privately informed, for the escaped schooners. Should either be seized I shall make a peremptory demand for their immediate release, as ('anada interprets the treaty to apply to vessels and boats and not to men. The boats were caught within the three-mile limit and must pay the penalty. The vessels were not in prohibited waters, were not guilty of any violation of law and must be protected from seizure.

The action of the men in dropping the fish out of their nets and getting ready to draw out from land would indicate that they did not intend to violate the law, especially as they did it of their own motion and before the cruiser hove in sight. Their story is all the more plausible be

treacherous along this coast and it was quite possible for them to have been drawn beyond their limits without their perceiving it.

The boats and seines are in the hands of the marshal of the Admiralty court of Prince Edward Island, and will be condemned and sold.

I shall watch the French and argoment and telegraph in cipher, should they be captured, to let the Department know at once my action in the matter. I am, Sir, Your obedient servant,

M. II. PHELAX.

Consul General

EXHIBIT 3.

The American Consul General at Ilalifar to the issi tant

Secretary of State. No. 18).

C. S. CONSULATE GENERAL,

HALIFAX, X. S., Jug. 12, 1857. llon. JAMES 1. PORTER, Assistant Secretary of State',

Washington. SIR: I have the honor to refer to my dispatch No. 182, (lated ing: 5th, 1887, concerning the seizure of the schooners ('ol. J. II. French and dryonant, mention was made of certain movements of Canadian (ruisers which seemed to indicate an intention to capture those vessels. At the time of writing that dispatch I did not imagine that such capture would be attempted on the high seas. Minister Foster arrived in this city on the 5th inst. and in an interview, after wards published in the Halifax Herald, a government paper, il copy of which I herewith onelose, he distinctly

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