"4. His Majesty's Government has felt most reluctant, at the moment of initiating a policy of blockade, to exact from neutral ships all the penalties attaching to a breach of blockade. In their desire to alleviate the burden which the existence of a state of war at sea must inevitably impose on neutral sea-borne commerce, they declare their intention to refrain altogether from the exercise of the right to confiscate ships or cargoes which belligerents have always claimed in respect of breaches of blockade. They restrict their claim to the stopping of cargoes destined for or coming from the enemy's territory. "5. As regards cotton, full particulars of the arrangements contemplated have already been explained. It will be admitted that every possible regard has been had to the legitimate interests of the American cotton trade. "6. Finally, in reply to the penultimate paragraph of your Excellency's note, I have the honor to state that it is not intended to interfere with neutral vessels carrying enemy cargo of non-contraband nature outside European waters, including the Mediterranean." (Here follows the text of the Order in Council, which already has been printed.) American Ambassador, London. VI. FRENCH GOVERNMENT'S ANSWER. The French Government transmitted the following message: PARIS, March 14, 1915. French Government replies as follows: "In a letter dated March 7 your Excellency was good enough to draw my attention to the views of the Government of the United States regarding the recent communications from the French and British Governments concerning a restriction to be laid upon commerce with Germany. According to your Excellency's letter, the declaration made by the allied Governments presents some uncertainty as regards its application, concerning which the Government of the United States desires to be enlightened in order to determine what attitude it should take. "At the same time your Excellency notified me that, while granting the possibility of using new methods of retaliation against the new use to which submarines have been put, the Government of the United States was somewhat apprehensive that the allied belligerents might (if their action is to be construed as constituting a blockade) capture in waters near America any ships which might have escaped the cruisers patrolling European waters. In acknowledging receipt of your Excellency's communication I have the honor to inform you that the Government of the republic has not failed to consider this point as presented by the Government of the United States, and I beg to specify clearly the conditions of application, as far as my Government is concerned of the declaration of the allied Governments. As well set forth by the Federal Government, the old methods of blockade cannot be entirely adhered to in view of the use Germany has made of her submarines, and also by reason of the geographical situation of that country. In answer to the challenge to the neutrals as well as to its own adversaries contained in the declaration, by which the German Imperial Government stated that it considered the seas surrounding Great Britain and the French coast on the Channel as a military zone, and warned neutral vessels not to enter the same on account of the danger they would run, the allied Governments have been obliged to examine what measures they could adopt to interrupt all maritime communication with the uerman Empire and thus keep it blockaded by the naval power of the two allies, at the same time, however, safeguarding as much as possible the legitimate interests of neutral powers and respecting the laws of humanity which no crime of their enemy will induce them to violate. ership, but it will not go to the length of seizing any neutral ship except in case of contraband. The discharged cargo shall not be confiscated. In the event of a neutral proving his lawful ownership of merchandise destined to Germany, he shall be entirely free to dispose of same, subject to certain conditions. In case the owner of the goods is a German, they shall simply be sequestrated during the war. "Merchandise of enemy origin shall only be sequestrated when it is at the same time the property of an enemy. Merchandise belonging to neutrals shall be held at the disposal of its owner to be returned to the port of departure. "As your Excellency will observe, these measures, while depriving the enemy of important resources, respect the rights of neutrals and will not in any way jeopardize private property, as even the enemy owner will only suffer from the suspension of the enjoyment of his rights during the term of hostilities. "The Government of the republic, being desirous of allowing neutrals every facility to enforce their claims, (here occurred an undecipherable group of words,) give the prize court, an inde pendent tribunal, cognizance of these questions, and in order to give the neutrals as little trouble as possible it has specified that the prize court shall give sentence within eight days, counting from the date on which the case shall have been brought before it. "I do not doubt, Mr. Ambassador, that the Federal Government, comparing on the one hand the unspeakable violence with which the German Military Government threatens neutrals, the criminal actions unknown in maritime annals already perpetrated against neutral property and ships, and even against the lives of neutral subjects or citizens, and on the other hand the measures adopted by the allied Governments of France and Great Britain, respecting the laws of humanity and the rights of individuals, will readily perceive that the latter have not overstepped their strict rights as belligerents. "Finally, I am anxious to assure you that it is not and it has never been the intention of the Government of the republic to extend the action of its cruisers against enemy merchandise beyond the European seas, the Mediterranean included." SHARP. LONDON, March 15.-The British Order in Council decreeing retaliatory measures on the part of the Government to meet the declaration of the Germans that the waters surrounding the United Kingdom are a military area, was made public today. The text of the order follows: Whereas, the German Government has issued certain orders which, in violation of the usages of war, purport to declare that the waters surrounding the United Kingdom are a military area in which all British and allied merchant vessels will be destroyed irrespective of the safety and the lives of the passengers and the crews, and in which neutral shipping will combatant life and in strict observance of the dictates of humanity; and Whereas, the allies of his Majesty are associated with him in the steps now to be announced for restricting further the commerce of Germany, his Majesty is therefore pleased by and with the advice of his Privy Council to order, and it is hereby ordered, as follows: First-No merchant vessel which sailed from her port of departure after March 1, 1915, shall be allowed to proceed on her voyage to any German port. Unless this vessel receives a pass enabling her to proceed to some neutral or allied port to be named in the pass, the goods on board any such vessel must be discharged in a British port and placed in custody of the Marshal of the prize court. Goods so discharged, if not contraband of war, shall, if not requisitioned for the use of his Majesty, be restored by order of the court and upon such terms as the court may in the circumstances deem to be just to the person entitled thereto. Second-No merchant vessel which sailed from any German port after March 1, 1915, shall be allowed to proceed on her voyage with any goods on board laden at such port. All goods laden at such port must be discharged in a British or allied port. Goods so discharged in a British port shall be placed in the custody of the Marshal of the prize court, and if not requisitioned for the use of his Majesty shall be detained or sold under the direction of the prize court. The proceeds of the goods so sold shall be paid into the court and dealt with in such a manner as the court may in the circumstances deem to be just, provided that no proceeds of the sale of such goods shall be paid out of the court until the conclusion of peace, except on the application of a proper officer of the Crown, unless it be shown that the goods had become neutral property before the issue of this order, and provided also that nothing herein shall prevent the release of neutral property, laden at such enemy port, on the application of the proper officer of the Crown. Third-Every merchant vessel which sailed from her port of departure after March 1, 1915, on her way to a port other than a German port and carrying goods with an enemy destination, or which are enemy property, may be required to discharge such goods in a British or allied port. Any goods so discharged in a British port shall be placed in the custody of the Marshal of the prize court, and unless they are contracand of war shall, if not requisitioned for the use of his Majesty, be restored by an order of the court upon such terms as the court may in the circumstances deem to be just to the person entitled thereto, and provided that this article shall not apply in any case falling within Article 2 or 4 of this order. Fourth-Every merchant vessel which sailed from a port other than a German port after March 1, 1915, and having on board goods which are of enemy origin, or are enemy property, may be required to discharge such goods in a British or allied port. Goods so discharged in a British port shall be placed in the custody of the Marshal of the prize court, and, if not requisitioned for the use of his Majesty, shall be detained or sold under the direction of the prize court. The proceeds of the goods so sold shall be paid into the court and be dealt with in such a manner as the court may in the circumstances deem to be just, provided that no proceeds of the sale of such goods shall be paid out of the court until the conclusion of peace except on the application of a proper officer of the Crown, unless it be shown that the goods had become neutral property before the. issue of this order, and provided also that nothing herein shall prevent the release of neutral property of enemy origin on application of the proper officer of the Crown. Fifth-Any person claiming to be interested in or to have any claim in respect of any goods not being contraband of war placed in the custody of the Marshal of the prize court under this crder, or in the proceeds of such goods, may forthwith issue a writ in the prize court against the proper officer of the Crown and apply for an order that the goods should be restored to him, or that their proceeds should be paid to him, or for such other order as the circumstances of the case may require. The practice and procedure of the prize court shall, so far as applicable, be followed mutatis mutandis in any proceedings consequential upon this order. Sixth-A merchant vessel which has cleared for a neutral port from a British or allied port, or which has been allowed to pass as having an ostensible destination to a neutral port and proceeds to an enemy port, shall, if captured on any subsequent voyage be liable to condemnation. Seventh-Nothing in this order shall be deemed to affect the liability of any vessel or goods to capture or condemnation independently of this order. Eighth-Nothing in this order shall prevent the relaxation of the provisions of this order in respect of the merchant vessels of any country which declares that no commerce intended for or originating in Germany, or belonging to Germar subjects, shall enjoy the protection of its flag. Germany's Submarine War LONDON, March 13.-The Admiralty announced tonight that the British collier Invergyle was torpedoed today off Cresswell, England, and sunk. All aboard were saved. This brings the total British losses of merchantmen and fishing vessels, either sunk or captured during the war, up to 137. Of these ninety were merchant ships and forty-seven were fishing craft. A further submarine casualty today was the torpedoing of the Swedish steamer Halma off Scarborough, and the loss of the lives of six of her crew. The Admiralty announces that since March 10 seven British merchant steamers have been torpedoed by submarines. Two of them, it is stated, were sunk, and of two others it is said that "the sinking is not confirmed." Three were not sunk. The two steamers officvially reported sunk were the Ivergyle and the Indian City, which was torpedoed off the Scilly Islands on March 12. The crew of the The two steamers whose reported sinking is not yet officially confirmed are the Florazan, which was torpedoed at the mouth of the rBistol Channel on March 11, all of her crew being landed at Milford Haven, with the exception of one fireman, and the Andalusian, which was attacked off the Scilly Islands on March 12. The crew of the Andalusian is reported to have been rescued. The Adenwen was torpedoed in the English Channel on March 11, and has since been towed into Cherbourg. Her crew was landed at Brisham. The steamer Headlands was torpedoed on March 12 off the Scilly Islands. It is reported that her crew was saved. The steamer Hartdale was torpedoed on March 13 off South Rock, in the Irish Channel. Twenty-one of her crew were picked up and two were lost. Supplementary to the foregoing the Admiralty tonight issued a report giving the total number of British merchant and fishing vessels lost through hostile action from the outbreak of the war to March 10. The statement says that during that period eighty-eight merchant vessels were sunk or captured. Of these fifty-four were victims of hostile cruisers, twelve were destroyed by mines, and twenty-two by submarines. Their gross tonnage totaled 309,945. In the same period the total arrivals |