(COPY)
Your Excellency.
Enclosure!
551
C. O.
2974
WWW 50 JA 05
In compliance with your instructions I furnish herewith a report on the circumstances connected with the discharge of the crew of the British S.S. "Inxula":
The Master of this vessel informed me on the 13th instant that he desired to pay off the crew here. An examination of the men's accounts showed however that the balance of wages due would not justify so doing. The Master then pointed out that by the terms of the agreement it lay in his option, should the men be discharged abroad, to either send them home or give them a month's wages in lieu. I informed him that I was prepared, in case the men agreed to the latter course, to sanction their discharge, but that the money, or such portion of it as I deemed sufficient, must be handed to me as guarantee for the men's maintenance while they remained in Hongkong. To this plan, however, which is the usual procedure adopted here whenever men are paid off, the men would not assent, and my advice to the Master was that he should, under the circumstances, agree to the alternative mentioned in the articles and send the men home as passengers at a cheap rate. This counsel appeared wise to the Master and the ship's agent, who was present, and I learnt later that arrangements had been made with a German firm to take the men to Genoa, which port the men, being principally Italians, had asked to be sent to. Later the Master informed me that the owners refused to send the men back, and the telegram from London to Your Excellency's care asked whether Section 5, subsection 7 of M.S. Ordinance could not be complied with by discharging the crew in accordance with agreement coupled with owners' guarantee of cost of repatriation if they become distressed seamen.
I conferred with the Master as to this and informed the Agent that the Agreement must include the expenses of the