aps 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. They were directed,
however, not to allow any claim where the party injured had
received indemnity from any insurance company, except to the
excess of such claim above the indemnity. They were further
authorized to allow interest at the rate of four per cent.
The Court performed its duty. When its judgments had been
paid there still remained a large balance. The ablest lawyers
in the Senate, in general, pressed the claim of the insurance
companies to the balance of the fund, including Mr. Edmunds,
Judge Davis, Judge Thurman and Mr. Bayard. I took up the
question with a strong leaning for the insurance companies.
I was, of course, impressed by the well-known principle of
law that the underwriter who had paid for property destroyed
by the cause against which he had insured, was entitled to
be substituted to all other rights or remedies which the owner
may have for reimbursement of his loss. I was very much impressed
also in favor of the insurance companies, who were making
what they doubtless believed an honest and just claim, fortified
by many of the best legal opinions in Congress and out of
it, by the character of the attacks made on them, especially
by General Butler. These attacks appealed to the lowest passions
and prejudices. It was said that the companies were rich;
that they made their money out of the misfortunes of their
countrymen; that they were trying to get up to their arm-pits in
the National Treasury, and that they employed famous counsel.
If there be anything likely to induce a man with legal or
judicial instincts to set his teeth against a propositi