Others claimed that, as nothing but direct
damages were lawfully assessable, the balance should be paid
back to Great Britain. Still others claimed that the persons
who had suffered indirectly by the loss of voyages, the increased
rates of insurance, and the breaking up of business, were
justly entitled to the money. Still others, perhaps the most
formidable and persistent of all, claimed that the underwriters
who had paid insurance on vessels or cargoes destroyed, were
entitled to the money on the familiar principle that an insurer
who pays a loss is subrogated to all the legal and equitable
claims of the party insured.
These disputes prevented any disposition of the fund by Congress
until the summer of 1874.
Judge Hoar, who was then a Member of the House of Representatives,
suggested that as everybody agreed that the claims for direct
damage ought to be paid, that it was not fair that they should
be kept waiting longer in order to settle the dispute about
the rest of the fund. In accordance with his suggestion a
Court was provided for by Act of Congress, whose duty it was
to receive and examine all claims directly resulting from
damages caused by the insurgent cruisers.
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