REPOT? T 
OF THE 
IStntiencc 
AND 
REASONS OF THE AWARD 
BETWEEN 
•Tohauwis Orlandos Audreas Luriottis, 
Grreek Deputies, ot the one part, 
AND 
LE ROY, BAYARD & CO., and 
G. G. &. S. HOWLAND, of the other part. 
THE ARBITRATORS. 
NEW YORK. 
Printed by W. E. Dean, No. 3 Wall-Street. 
1826. REPORT, 
8fc. 8fc. 
The frigates Hope and Liberator lately built and equipped 
in the port of New-York, by Messrs. Le Roy, Bayard & 
Company, and Messrs. G. G. and S. Howland, have long 
been the subject of ominous mystery to some, and of deep 
interest and solicitude to many of our fellow-citizens. 
The claims and accounts of those Houses for their ex- 
penditures and services in building and equipping those 
ships, have been adjusted by the undersigned as Arbitra- 
tors : and although the investigation was conducted in as 
private a manner as the nature of the subject and the just 
rights of the parties would permit; yet without the privity 
or consent of the Arbitrators, and, contrary to their sense of 
duty and propriety, the prominent facts relating to that en- 
terprize have gained publicity; and in a form grossly cari- 
catured and incorrect. The Arbitrators therefore feel con- 
strained, by a due respect to public opinion, and a just re- 
gard to their own character, to make an exposition of the 
subjects of controversy submitted to them, with the grounds 
of their award. Until the clearance and departure of the 
ship Hope, it would have been a breach of trust in the Ar- 
bitrators, to have made the disclosures which the subject 
involve?. The undersigned have also felt the full force of 
those delicate considerations, which, as dutiful citizens, they 
owe to the United States; and which forbid a wanton and 
unnescessary exposure of any facts which might induce a 
belief, that our Government has connived at an entei^rize 4 
forbidden by the laws of our own country, and in violation 
of national neutrality. 
We now respectfully present to the public a statement, 
which calumny has extorted, and which the duty of self- 
defence, we hope, will justify. 
In the month of June last, application was made to us 
by the Counsel for the contending parties, to become Arbi- 
trators, to adjust and determine their differences in relation 
to the building and equipping those ships: and we agreed 
to accept that office. Soon afterwards the Counsel present- 
ed to us an ag.eement of submission, of which the following 
is a copy. 
This Agreement, made this twenty-third day of June, in the year of our 
Lord, oDe thousand eight hundred and twenty-six : Between Johannes Or- 
landos, and Andreas Luriottis of the first part, and William Bayard, Wil- 
liam Bayard, Junior, and Robert Bayard of the house of Le Roy? Bayard 
& Co. and Gardiner G. Howland & Samuel S. Howland, of the Firm of 
G. G. and S. Howland, of the second part. Whereas a controversy has ari- 
sen between the said Parties respecting certain charges, claims, and accounts 
of the said Parties of the second part, arising out of the Contract or agree- 
ment between the said Parties of the lirst and second parts, for the building 
and equipment of two ships or vessels, called the Liberator and the Hope. 
Now it is hereby agreed between the said Parties, to refer the said accounts, 
and all claims of the respective Parties, or either of them, in any wise relat- 
ing to the said ships, or growing out of the Contract or agreement aforesaid, 
for the building and equipment thereof, to the arbitration of Jonas Platt, 
Henry C. De Rham, and Abraham Ogden, mutually chosen by the Parties 
aforesaid ; and their award in the premises, or that of any two of them, shall 
be conclusive between the Parties, and shall be made within twenty days 
from the date hereof. And it is hereby agreed between the said Parties, 
that the said ships shall be forthwith conveyed by good and sufficient instru- 
ments in the Law, for that purpose, to the said Jonas Platt, Henry C. De 
Rham, and Abraham Ogden, in trust for the following purposes: that is to 
say, the said Jonas Plait, Plenry C. De Rham, and Abraham Ogden shall 
convey one of the said ships to any person or persons nominated in writing 
by the said Parties, and for a price to be agreed to by the said Parties. Pro- 
vided such nomination and agreement shall be made within thirty days from 
the date hereof; and in that case the purchase-money of the said ship, so to 
be sold and conveyed, shall be paid to the said Arbitrators in trust for the 
said Parties as hereinafter mentioned. 
And further, that with the exception of the power of the said Parties to 
direct such conveyance as aforesaid within the period aforesaid, the said 
Jonas Platt, Henry C. De Rham, and Abraham Ogden shall hold the said 
ships in trust to be sold or otherwise disposed of, as the said Arbitrators, or 
any two of them, shall award : And it is hereby further agreed, that in case 
one of the ships shall not be sold with the assent of the Parties aforesaid, and 
within the time aforesaid, the said Arbitrators, or any two of them, shall sell, 
or direet-v and cause, that the ships or either of them, as the ease may require. 5 
be sold or mortgaged within ten days after Uie expiration of the said thirty 
days above mentioned, for the purpose of raising monies to the amount of 
the award, Provided that in the opinion of the said Arbitrators, such sale 
within the ten days can be made without an unreasonable sacrifice ; but if 
in the opinion of the said Arbitrators a longer period shall be required in 
order to avoid such sacrifice, then such sale shall be postponed for such fur- 
ther short period, as the said Arbitrators, or any two of them, may judge to 
be reasonable, not exceeding twenty days thereafter. And out of the Pro- 
ceeds of such sale or mortgage the said Arbitrators, or any two of them, after 
deducting their own costs and charges for their services as Arbitrators, shall 
pay to the Parties of the second part respectively the amount or sums of mo- 
ney (if any) to be awarded to them, and the residue (if any) of the said pro- 
ceeds shall be paid to the Parties of the first part. 
And in case either of the Parties shall revoke this submission, the Arbi- 
trators, or any two of them, shall dispose of the said ships or their proceeds 
for the benefit of the Parties, or either of them, as to them the said Ar- 
bitrators, or any two of them, the rights of the Parties respectively shall ap- 
pear to require, and as to them (the said Arbitrators) shall seem agreeable to 
justice and equity. In testimony uhereoj the Parties to these presents have 
hereunto set their hands and seals, the day and year first above written. 
The Counsel at the same time delivered to us a formal as- 
signment, of the ship Hope, executed by Le Roy, Bayard & 
Company ; and a like assignment of the ship Liberator, ex- 
ecuted by G. G. & S. Howland; together with “ all the 
“ tackle, apparel, furniture, materials, sails, anchors, boats, 
“ equipments and appurtenances,” belonging to said ships 
respectively: but without any Inventory. 
On the 28th June the Arbitrators met; and were attended 
by Thomas Addis Emmett and David B. Ogden Esquires, 
as Counsel for the Commercial Houses of Le Roy, Bayard 
& Company, and G. G. & S. Howland; and by John 
Duer, Henry D. Sedgwick and Robert Sedgwick Esquires, 
as Counsel for Johannis Orlandos and Andreas Luriottis, the 
Greek Deputies. Mr. William Bayard Jun’r. and Mr. G. 
G. Howland were also present. The Arbitrators opened 
the subject by stating, that they had consented to act as Ar- 
bitrators, in hearing and deciding the matters in controversy; 
and they now discovered that it was proposed to invest 
them with the arduous and responsible duties of trustees, 
by the assignments of the ships; and that they had never 
been consulted in regard to such trust; and felt anxiety and 
reluctance in undertaking it: that the amount of property 
was very large, and there were considerations peculiar to 6 
those ships, which rendered it very uncertain, whether the 
trust would be simple and of short duration; or whether it 
would be onerous and long protracted. To this objection, 
the Counsel for the Parties answered, that it had been found 
indispensably necessary to connect the trust with the sub- 
mission, in order to effectuate the objects which the parties 
had in view: that Mr. Contostavlos, the sole agent of the 
Greek Deputies, was then at Washington ; that there would 
be great difficulty in agreeing on other Arbitrators, if he were 
here: that delay was one of the greatest evils to be deprecat- 
ed : and that it would subject the interest of the immediate 
parties, and the heart-felt cause of .Greek emancipation, to 
great hazard, if the arbitration should be defeated. The 
Arbitrators yielded to these considerations; and then stated 
explicitly to the Counsel, and such of the parties as were 
present, that in regard to their services as Arbitrators mere- 
ly, they should expect a compensation according to the 
practice in like cases ; but that in regard to the trust of re- 
ceiving the title, and keeping, securing and selling the ships, 
it would be considered as a matter of agency ; for which a 
reasonable compensation would be charged, according to 
the services, risques, and probable extent of responsibility ; 
to be judged of at the time of making the award. To this 
frank avowal by the Arbitrators, the Counsel on both sides 
expressed their entire satisfaction ; and declared that such 
a rule of compensation entirely corresponded with the views 
of the parties. 
The Arbitrators then stated, that by the terms of the sub- 
mission and assignments, the ships, and a large amount of 
loose property in naval stores, armaments, &c. were cast 
upon their hands; without any provision or stipulation for 
the heavy current expenditures of keeping, guarding and 
insuring them, during the long interval that might ensue 
between the date of the submission and the making of the 
award : and the Arbitrators expressed their unwillingness 
to make such advances from their own pockets. Jt was 
conceded that there was an inadvertent omission toprovide for 7 
such expenditures in the agreement, of submission ; and that 
it would be unreasonable to ask the Arbitrators to make 
such advances. Messrs. G. G. Howland and Mr. William 
Bayard Jun’r. then promptly proposed to* obviate the diffi- 
culty, by engaging verbally to pay all those current ex- 
penses up to the time of making the award ; and that such 
disbursements should be charged and allowed in their ac- 
counts, on the same footing as all previous expenditures. 
Which proposition was distinctly assented to by the Counsel 
for the Greek Deputies : and the Arbitrators acted upon the 
faith of that agreement. It is here proper to remark, that 
Mr. Contoslavlos being absent, and not soon expected tore- 
turn to New-Yark, it was impossible to enlarge or modify 
the terms of the submission, in a formal and obligatory man- 
ner ; because he was the only person authorized to act for 
the Greek Deputies in that matter. 
The Arbitrators then inquired who had the charge and 
custody of the ships and stores, as agent for the Commer- 
cial Houses, and were informed that Captain Wolcott Chaun- 
cey, of the Navy of the United States, was such agent; and 
that he had the requisite number of sub-agents and sea- 
men under his controul, to guard and protect the ships and 
their appurtenances. The Arbitrators then inquired, whe- 
ther the parties were satisfied of the fidelity of Captain 
Chauncey and the other persons employed under him ; and 
whether any change was desired ? To which the Counsel 
on both sides answered, that they were satisfied with Cap- 
tain Chauncey and the persons employed by him, and wish- 
ed no change. 
The Arbitrators then adopted the proper means to obtain 
the possession of the ships and other property, by virtue of 
the assignments; and obtained an Inventory, including a 
large amount of property, not immediately connected with 
the ships, and distributed in various store-houses, and other 
places of deposit: and gave the necessary written instruc- 
tions to Captain Chauncey as their agent. Ten or twelve 
different policies of Insurance in various offices, covering the 8 
ships and the other property, for portions of their value, 
were transferred to the Arbitrators; and regular notice 
given of such transfers: and several of those policies were 
renewed to the Arbitrators, as they afterwards occasionally 
expired. 
A paper, whereof the following is a copy, was delivered 
to the Arbitrators, on the 29th June. 
Whereas, at the request of the parties, and in consideration of the urgency 
and magnitude of the case, Jonas Piatt. Henry C De Rham, and Abraham 
Ogden have consented to become Arbitrators between Johannes Orlandos 
and Andreas Luriottis on the one part, and the mercantile firms of Le Roy, 
Bayard & Co. and G. G. & S. Howland on the other part; and have al- 
so consented to receive a conveyance of two ships and other property to a 
large amount as trustees of the said parties, or some of them ; now therefore 
this is to declare, that the said Arbitrators are in no case to be responsible for 
any loss or misfortune which may happen to the said ships or property, whe- 
ther by the employment of agents or otherwise, excepting only that each of 
the said Arbitrators is to be answerable for his own wilful act or default, but 
no otherwise howsoever. June 28, 1826. 
John Duer, 
H. D. &. R. Sedgwick, 
For Orlandos, 
and Luriottis, 
Thomas Addis Emmett, 
David B. Ogden, 
G. G. & S. Howland, 
Le Roy, Bayard & Co. 
The Arbitrators had no objection to receiving that expla- 
natory declaration of the responsibilities of their trust, but 
it was considered by them of little value or importance : 
1st. because, if obligatory, it made no essential variation 
in the duties or liabilities of the trust. It does not indemni- 
fy against seizure, or the expenses of litigation, or the hea- 
vy expenditures for keeping, guarding, and insuring the 
ships &c. after the date of the assignments: and who 
can define the construction or effect of the terms, “ that 
each of the said Arbitrators is to be answerable for his 
own wilful act or default ?” 2ndly. The Counsel for the 
Greek Deputies had no authority to make any alteration in 
the terms of the trust. It was not within their powers as 
Counsel, and had no binding effect upon their clients. 
On the 29th June the counsel for Le Roy, Bayard & 
Company, and G. G. & S. Howland, opened their cause ; 
and stated their claims generally against the Greek Depu- 
ties. 9 
1st. For large balances clue to the respective Houses for 
monies expended and liabilities incurred in building and 
equipping those ships, and purchasing the extra armaments 
and naval stores appertaining to them, including commis- 
sions, and charges for drawing bills for those expenditures. 
2nd. Damages at 20 per cent, upon two bills drawn by 
Le Roy, Bayard and Company on J. & S. Ricardo of Lon- 
don, viz. 
1 Bill drawn 23d Nov. 1825, for £15,000 sterling 
1 do. 15th Dec. 1825, £13,000. 
And like damages drawn upon two bills by C. G. &: S. 
Howland on J. & S. Ricardo, viz. 
1 bill 23d. Nov. 1825, for £ 15,000 sterling 
1 do. 16th. Jan. 1826, for £12,000. 
Which four bills were protested for non-acceptance and 
non-payment. 
3d. For £7,500 sterling lost to G. G. & S. Howland, 
without their negligence or fault, by the failure of Samuel 
Williams of London ; he being their agent and banker, in 
whose hands the monies for which they were required to 
draw on J. & S. Ricardo had been deposited for safe keep- 
ing, with instructions to keep it separate, &c. 
A large mass of written correspondence and documenta- 
ry evidence was introduced in the progress of the hearing, 
which the limits of this publication will not permit us to 
present entire. We feel the difficulty of making an impar- 
tial and correct discrimination between the parts to be in- 
serted, and those which may with the most propriety be 
omitted. We undertake to give only the most prominent 
parts of the correspondence. 
Instructions from Greek Deputies to Gen. Lallemand and the Houses. 
Art. 1. General LalleroanJ, on his arrival in the United States of America, 
will call on Messrs. Le Roy, Bayard and Co. and Messrs- G. G. and S. How- 
land, who have the confidence of the Grecian Deputies, and will hand to these 
Houses the letter pf Credit for j£50,000 which he takes, and will concert with 
them the measures to be employed in their operations. 
Instructions. 10 
2J. An attempt will be made, with all possible precaution, to procure from 
the United States, Frigates ready for sea. 
3d. Should this attempt be successful, the sums provided for by the letters of 
credit will be employed for the payment of the said Frigates. 
4th. After this attempt is made, orders will be given and contracts be made 
by the American houses for the immediate construction of two Frigates, 
for the payment of which, the method which shall be pointed out by the De- 
puties is to be followed. 
5th. General Lallemand will ascertain that the contracts are for Frigates 
of the Jirsl class, and that none other than the best of materials be employed; 
and that in the building, rigging, equipping and arming the same, the same 
rules shall be followed as are laid down by the Admiralty of the United States 
for Government Frigates. 
6th. The conditions are to be very explicit and decisive, that the building, 
equipping, and arming, may be accelerated by every possible means ; and 
that the Frigates may be ready for sea with the least possible delay. 
7th. The boats, launches, &c. are to be included in the contract, agreeably 
to the rules referred to in No. 5. 
8th. To the usual outfit will be added a double set of spare spars, sails, 
and rigging of every kind; 60 that after having deposited one complete spare 
set at the seat of Government in Greece, each vessel may have on board the 
usual spare spars, &c. carried by a vessel on going to battle. 
9th. The armament is to consist not only of artillery, but is to include all 
the smaller weapons used on board a Man of War, such as pistols, cutlasses, 
pikes, &c. 
10th. The Frigates are to be furnished with warlike stores of every descrip- 
tion, sufficient for a campaign, and will each have a treble supply of missiles 
'shot,) so that they may deposit at the seat of Government two of the above 
supplies of missiles. 
11th. They must have on sailing from the United States, a supply of pro- 
visions sufficient for a complete crew for at least 6 months. 
12th. They are to be furnished with medicine, surgical instruments, lint, 
bandage, &c. &c. 
13th. American officers will be chosen to command these frigates when 
they sail from the United States. 
14th. The said commandants will be chosen by the American Houses who are 
in the confidence of the Grecian Deputies, and by the General Lallemand. 
15th. The commandants will necessarily be chosen from the United States’ 
Navy; and will be those, who being recommended by the Navy Department, 
will be best entitled to responsibility and confidence in business which is most 
important to the Grecian Government. It is understood that each Frigate is 
tqhave its own Commander in Chief, who is to have the sole command there- 
of. The Greek Deputies, in order to insure as much as possible the safe and 
speedy arrival of the vessels at the seat of Government-in Greece, will re- 
quire that the two Commandants, and each of their officers, shall take a 
solemn oath that they will faithfully execute their mission. 
16th. As soon as the contracts are arranged for the building of the Frigates, 
the officers are to be chosen asspecified in Art. 14and 15. It must, however, 
be observed, that if possible, no compensation should be allowed the officers 
thus engaged, until they have taken an active part in the execution of their 
mission. If this will not answer, the best possible arrangements must be 
made. 
17th. The officers will receive temporary commissions from the two above- 
mentioned Houses and General Lallemand, which will be signed by the De 
puties and reft with the said parties in deposit; 11 
18th. The commandants, as well as their officers, will, as soon as their ser- 
vices are required after their nomination, rendevouz at the ports where their 
respective frigates may be. 
19th. The pay, Sic. of the officers will commence from the day of their ar- 
rival at the sea-port to take an active part in the duty. 
20th Each captain will choose his own officers and crew, consulting,how 
ever, with the Gentlemen who deliver them their commissions. 
21st. The crews are to consist of a sufficient number of men, for the ma- 
noeuvering of the frigates, and for sailing them with safety and dispatch to the 
Greek ports. Care will be taken to enlist among them a number of boat- 
swains, mates, experienced sailors and gunners, that they may immediately 
instruct the Greek crews these frigates will take. 
22d. The pay, &c. of the commissioned and warrant officers, and the crews 
of different grades, will be regulated by the principles adopted by the United 
States. These principles will be the basis, and may, if that be necessary, be 
modified. General Lallemand, will, on this subject, consult the Houses he is 
referred to; and between them they will adopt such measures as may be most 
beneficial to Greece. 
23d. The crews are to be shipped to sail the vessels to Napoli de Romanie 
in Greece. «* 
24th. The navy officers, health officers, warrant officers and sailors, will 
have the privilege on the arrival in Greece, of enlisting in the Greek ser- 
vice, as is specified in the instructions to the Deputies; a copy and translation 
of which they now transmit. The frigates, after receiving from the Greek 
Government the national flag, will necessarily take Greek commanders, un- 
der whom the American officers, after their arrival in Greece, will be bound 
to serve. 
26th. The American officers and sailors, who ship in the Greek fleet, will 
receive, when there are prizes taken, theirdueproportion of the same; which 
will be punctually paid to them according to the regulations established by 
the Greek Government. 
27lh. The Deputies, in the name of their Government, assure the American 
officers and sailors, by these presents, that they will grant rewards equal to 
the services that may’be rendered ; and that all brilliant actions will be dis- 
tinguished by the sincere marks of the nation’s gratitude. 
28th. In case that any important question should present difficulties in the 
conclusion of the operations, or which would interfere with the welfare of 
Greece, it is the wish of the Greek Deputies to have the same referred to 
the members of the Navy Department of the United States ; and that they be 
requested to give their advice confidentially, which will be taken as the ulta- 
matum. Should there be any difficulty in procuring the opinion of the mem- 
bers of the Navy Department, then one or two of the officers of superior grade 
of the United States’ Navy shall be consulted, and their opinion adopted. 
29th. These instructions, delivered by the Deputies to General Lallemand, 
are to be considered as comprising all the rules which are to regulate the 
operations as well in his proceedings with the United States’ Government, as 
with individuals, and agreeable to which the Houses chosen by the Deputies 
are to proceed. These instructions are to be considered as common to the 
two Houses and to General Lallemand. The Deputies are aware how much 
they are dependent on the good understanding between the Houses and Ge- 
neral Lallemand, whose devotion to the cause of Greece is well known. 
(Signed) 
Jean Orlandos, 
Andreas Ldriottis. 
Charles Lallemand. 12 
Additional Article. 
Before any arrangement is made for executing these orders by purchasing 
or building the frigates, the two Houses to whom General Lallemand is re- 
ferred, must ascertain in the most unequivocal manner, that their Government 
will permit the sailing of the frigates, and the enrolling of the men ; and that 
this operation, so important to the welfare of Greece, will meet no opposition 
from the Government or the laws of the United States. 
JS’eio-York, 10 May, 1825. 
Gen. Charles Lallemand. 
Dear Sir. 
After possessing the necessary information in this and the other sea-port 
towns in the United States, and receiving estimates and proposals for build- 
ing two Frigates of the first class, wre are of opinion that the Greek inter- 
est will be most benefitted, in the building and dispatch of said vessels by 
days’ work, under the inspection of an experienced officer of the Navy of 
the United States and our direction, and if from the information you pos- 
sess, the conferences we have had, on the subject; you are of the same mind, 
you will express it to us in a written communication, and give us such ad- 
vice and instructions as you may conceive will best meet the wishes and 
views of the brave and geuerous nation for which we are to act. 
Respectfully yours, 
(Signed) 
G. G. & S. Howland, 
Le Roy, Bayard & Co. 
New-York, 11<A. May, 1825. 
Messrs. G. G. & S. Howland, 
Le Roy, Batard & Co. 
Gentlemen.—After having attentively compared the proposals received 
forth© building of two Frigates ol the first class for the Grecian Government, 
and from the information obtained on this subject, I am convinced the method 
you mentioned, in your note of 10th Instant, is in conformity with the in- 
terest of Greece. The plan you propose, after a deliberate examination, 
appears to be the best calculated, both for economy and dispatch; as by hav- 
ing funds at your disposal, you may provide for and hurry the works. 1 
therefore give my entire approbation to the proposition in your note of 10th 
Instant, of building the frigates by days’ works, under the inspection of an ex- 
perienced officer of the United States’Navy and your directions. 
Being called on to co-operate with you in this sacred cause, 1 am happy to 
have it in my power to thank you for the interest you take in it, and the 
zeal which marks your operations. The sentiments you have expressed, 
lead me to place implicit confidence in you in any business we may 
have between us, relative to the brave nation whose toils and fate I am im- 
patient to share. 
I have the honour to remain 
Respectfully yours, 
(Signed) Charles Lallemand, 
Translation. 
[ Messrs. Orlandos & Luriottis, New-York, 15/A May, 1825. 
Deputies of Gieece, Loudon. 
Gentl.mcn.—After many difficulties in combining the different condi- 
tions, which for the benefit of Greece it will be necessary to adopt, we have 13 
at last determined on the measures for building two frigates of the first 
class. 
Circumstances are at present unfavourable for making contracts, as owing 
to the great number of vessels of war which have already been commenced 
for different foreign Governments, the carpenters ask very high prices. 
The builder generally looked upon as most capable of executing the work 
well and expeditiously, asked at first §'455,000 tor one frigate, without refer- 
ence to the armament. After many consultations, he fixed as his ultimatum, 
and as a price from which he would notdeviate. §377,000, also without arma- 
ment ; but he would not engage to deliver the first frigate under 14 months, 
nor the second under 18 mouths. This proposition could not be acceded to, 
either as to price or time. 
We have consulted some of the most experienced officers of the United 
States’ Navy, and in compliance with the advice of one of them, who for ma- 
ny years has been entrusted with the superintendence of the building of ves- 
sels of war for the Government, we have agreed to build the two frigates by 
days’ work, that is to say, by directing the materials to be purchased and 
paying for the work as it is done. 
Orders have consequently been given to the carpenters who have gone to 
different places to purchase the timber. Messrs. Le Roy, Bayard & Co. 
and Messrs. G. G.&S. Howland having furnished the necessary funds. These 
gentlemen draw on Mr. Williams for the sum which you have placed at 
their disposal, so as to accelerate the work by every possible means. An of- 
ficer of the United States’ Navy will be entrusted with the superintendence 
of the work. This is necessary to ensure its being conducted in the most 
advantageous manner for Greece, and we will then feel certain that the build- 
ing is as it ought to be. 
I ought not to conceal from you that the Government of Greece cannot 
have these frigates at their disposal this campaign ; but at the same time I 
do not think it possible for them to procure others elsewhere. Feeling how 
important it is that your country should receive prompt aid, I shall continue 
my endeavours to find for your Government two well armed vessels, which 
may be considered as good corvettes If I succeed I will sail in these ves- 
sels, as, the important operation being determined on, as soon as it is in full 
operation it will no longer be proper for me to remain here, whilst I think 
1 might render important services by going to Greece and taking a part in 
the operations during the campaign. 
It is important that you should write immediately, authorizing the pur- 
chase of 2 corvettes; they would be substantial and prompt aid while the 
frigates are building. 
(Signed) Charles Lallemand. 
General. London, \5th June, 1825. 
We have just received your letter of 15th ult. and notice the exor- 
bitant prices asked for the frigates by your carpenters. You can easily ima- 
gine that the time required for the building was entirely out of the question. 
We believe that the plan you have adopted to proceed by days' work is the 
most suitable ;but we must str ongly urge the greale-t vigilance and care, so as 
not to be deceived in the quality of wood, or the other materials. We have 
full confidence in Messrs. Le Roy, Bayard & Co. and we are pleased to find 
thatsimilar undertakings are not novel to them. As relates to the time which 
■will be requisite for the completion of these vessels, we flatter ourselves that 
at any rate it will not exceed more than one or two months the time fixed 
in your first letters.' You will remember that you fixed the maximum in 
the month of November. 
Translation. 14 
We have already given you our ideas about the purchase of two corvettes. 
It will in no wise answer ; having no instructions from our Government. If 
your friends intend sending vessels with the intention of endeavouring to 
sell them to the Greek Government, they may do it, but we can give no 
opinion on this subject. 
(Signed) 
Jean Orlandos, 
And. Luriottis, 
To General Lallemand. 
New-York, May 31, 1325. 
Jean Orlandos & And. Luriottjs 
Gentlemen. — We confirm the several letters we have had the honour of 
writing you, the last of which was on the 23d Inst. We hope they may 
have’salely come to hand, and had your attention. We do not doubt that ere 
this you will have forwarded us Credits, confirmed by your Banker , as 
Drafts on a strauger, with foreign countries, and without confirmed Credits, 
are not considered as in order: and in the event of absence from London, 
our Drafts might not be immediately accepted, which would be unpleasant 
in the extreme; besides, we make great progress in the building, and we 
have to pay in advance for the materials. If you have not yet procured the 
confirmed Credits, we beg your particular attention,.that our Drafts may be 
regularly accepted on presentation. 
We are, &c. & c. 
(Signed) 
Le Hoy, Bayard & Co. 
and G. G. & S. Howlanp. 
London, 15 June, 1825. 
Messrs. Le Roy, Bayard & Co. G. G. & S Howland. 
Gentlemen.—Since our last respects of 31 May last, which we now con- 
firm, we have been favoured with yours of 14th of same month ; we notice 
your determination to have the frigates built by days’work, as the most eco- 
nomical and beneficial plan : we also hope, that the time necessary for the 
building of these frigates will not be long. General Lallematid, in his let- 
ter of 16th April, informs us that they can be got ready lor sea in the month 
of Novembe next; and we flatter ourselves, if this time is exceeded, it will 
not be for more thau one or two months The Drafts you have drawn on S. 
Williams have been already accepted, and the same honour is reserved for 
those y.'U intend drawing on Messrs J. & S. Rica* do, for our account. Ex- 
pecting to hear from you shortly, we remain, &c. 
(Signed) 
Jem* Orlandos, 
Andreas Lcriottis. 
Translation. 
London, 29tli June, 1825. 
Messrs. Le Roy, Bayard & Co. and G. G. S. Howland, New-York. 
Gentlemen.—Conformably to the desire you express in your letter of 
the 23d May received yesterday, wesend you enclosed two credits of £ 15,000 
each, making together the sum of £30,900 sterling, for which you can draw 
on London. Agreeably to the former practice, we have divided the credit 
to enable you to draw separately. If we could presume what would be the 
amount which you would want for the building of the frigates, and when 
the money would become necessary, we should not have hesitated to increase 15 
the credits we have this day opened for you; at any rate, if it should so hap- 
pen that you should not think the sum sufficient even for urgent wants, we 
wrote you on the 23d Inst, that you could draw on Messrs. Ricardos, who 
have received our orders to accept your Drafts. We add that you may be 
perfectly easy about the fate of your signature, which would not in any case 
be disgraced. We learn with much pleasure that you are getting on with 
the frigates, and we rely entirely on your zeal in gettiug the work forward 
as fast as possible. We have the honour, &c. 
(Signed) 
Jean Orlandos, 
Andreas Luriotti?. 
New-York, October 31*/, 1825. 
Gentlemen.—We have the honour of advising you that your two fri- 
gates progress rapidly, and that we entertain the hope that they will be rea- 
dy for sea in four months at the furthest, our calculation is that the cost and 
outfits will amount to about five hundred thousand dollars each, which for 
prudence it will be well to call $550,000 in your arrangements. When the 
amount of the Drafts already passed are deducted from the above sum, there 
will be still a heavy amount to be lira wn for, which is of the more importance 
as there now exists here a heavy and pretty general want of confidence, caused 
by the failures which have taken place in England; and prudence prompts 
us to come to a candid explanation with you. Our confidence in you, Gen- 
tlemen, is entire; we have never entertained the least doubt of your princi- 
ples, of your promptness, or your means of providing for the payment of our 
disbursements; and we feel a pleasure in repeating our feelings in that respect. 
But we cannot forbear considering that, notwithstanding your honourable and 
good feelings towards us, a series of events might render it impossible tor you 
to meet your engagements with us; and the brave Greeks may be checked by 
the contrivances and intrigues of their ill disposed neighbours. The public 
prints seem to dread that envy, malice, and despotical principle will triumph 
over courage, even sustained by the love of liberty. In the critical situation 
in which Europe is now placed we find ourselves necessitated to claim from 
you, Gentlemen, that you place us in such a situation as to banish all uneasi- 
ness as to our punctual reimbursement for all advances made and to be made 
in order to send frigates to sea. We will continue to draw on the House 
or Houses you may direct, but we have to request you to make in the hands 
of our London friends such a deposit as will ensure at all events the pay- 
ment of the drafts, and will enable us to suffer the vessels to depart without 
our waiting to hear the fate of our bills. We do not ask you to make an ac- 
tual deposit if it would interfere with your arrangements; it will be sufficient 
for us to receive from our respective friends a guarantee of the present pay- 
ment of all our Drafts. In order to fix the amount of the guarantee, you will 
please deduct from the probable amount of our disbursements say $550,000 
dollars, estimated at par for each ve-sel, the amount of our Drafts which are 
paid, and send us for half the balance a guarantee from Samuel Williams, 
Esq. in favour of G. G. & S. Howland; and for the remaining half, one fro n 
Messrs. Baring, Brothers k Co. in favour of Le Roy, Bayard & Co. We 
flatter ourselves, Gentlemen, that in reflecting on the motives which actuate 
us, you will admit that our demand is perfectly natural,and not in opposition 
with the feelings we have manifested towards you. 
We repeat that your known honourable character and our confidence in 
your integrity, would render the precaution useless were the business of a 
private nature : but it becomes indispensable w hen we consider you as the 
Agents of a Government which struggles against a power and principles 
Translation. 16 
which are calculated to enslave a nation ; though we cherish a hope that 
Greece will triumph, that hope will not suffer us, as commissioners intrusted 
with interests not their own. It is with a profound respect and the hope that 
you will do us justice, that we sign ourselves. &c. 
Messrs. Jean Orlnados. ... ( Le Roy, Bayard & Co. 
Andreas Luriottis, 1£ueL ) } G. G. & S. Howland. 
London. 
We consider it our duty to inform you that we have entered into con- 
tracts for all the articles necessary for the armament and equipment, &c. 
New-York,23<l. Nov. 1825- 
Messrs. Jean Ori andos & Andreas Luriottis. 
Gentlemen.—We have the gratification of informing that one of the 
ships was launched on the,18th, and the other will be so in 8 or 10 days, 
which will be only about 4 months since their keels were laid. This is great- 
er dispatch than our most sanguine expectations led us to expect; and what 
is still more gratifying, is that it is universally acknowledged that they are 
the two finest and most superior frigates in the world. Their equipment is 
in great progress, and every earthly effort shall be made to give them dis- 
patch. A further amount being necessary to facilitate our operations, we have 
this day drawn on Messrs. Ricardos for the sum of £15,000; and our friends 
and neighbours Messrs. Le Roy, Bayard and Co. do the same; and we beg 
that you will see due honour paid to our signatures. 
General Lallemand will confirm the above by this opportunity. 
Interim, Your’s truly, 
(Signed) G. G. and S. Howland. 
Translations. 
London, 21 st Nov. 1825. 
Messrs. G. G. and S. Howland. 
Gentlemen.— We are favoured with your letter of 22d Oct. and take 
note of your Drafts for £10,000 on Messrs. Ricardo, which we will see ho- 
noured on presentation. In conformity with what we had the pleasure of 
writing on (he 15th Oct. to your good selves and Messrs Le Roy, Bayard & 
Co., you will perceive that we had anticipated your wishes as regards con- 
firmed Credit; and that we have placed at your disposal with Messrs. Ricar- 
do, the sum of £12.000; so that your Draft will go against this Credit, and 
leave you £2,000 still to draw for. 
We thank you much for your attention to the building of the frigates. It 
is of great importance that they should arrive in Greece before the opening 
of the approaching campaign : that we beg leave again to call your attention 
to our wishes for accelerating their departure. You will therefore please 
redouble (ifpossible) your care and activity, that not a moment may be lost 
in fitting them out. 
The importance that these vessels will be in the Mediterranean is incalcu- 
lable ; and we rely implicitly on your well known zeal for our cause, to hasten 
the completion of the work with all diligence. 
We write by this opportunity, to Messrs. Le Roy, Bayard & Co and to 
Gen. Lallemand,onthe subject of their armament. In the arrangements made 
on this head, we doubt not that you have followed the tenor of our instruc- 
tions: and we trust you will have paid particular attention to the character of 
the persons who are to form the crew. As our sailors begin to submit to dis- 
cipline, and to understand the tactics, our Government would be pleased to 17 
retain in their service, the oilicers and crew who c&iue in her, who would 
consent to remain ; and we beg you to take measures accordingly. 
We remain, &c. 
Johannis Orlandos, 
Andreas Luriottis. 
Letter of advice for Bill on them £ 12,000, 15th Feb. 
A’av-York, 8 Feb. 1826. 
Messrs. Jean Orlandos & Andreas Luriottis. 
Gentlemen.—We have the honour of confirming ours of the 7th and 8th, 
a copy of the latter of which precedes. We cannot refrain expressing our 
surprise at not having heard from you since the protest of our Draft, on your 
account, on J. S. Ricardo, of 23d Nov. for £15,000. These latter gen* 
tlemen write us under date of 14 Dec. that they had had an interview with 
you on the subject of the frigates and their cost; and the result was, that one 
of the Deputies should come out here. This intelligence was very gratify* 
ing to us, a3 we have no doubt this visit would tend to remove the erroneous 
impression of the Messrs. Ricardo, as relates to the building of such vessels 
as we now have in hand. These gentlemen, in their letter of Oct. make 
mention of the cost of the frigates, and to oblige them gave them in reply 
the particulars of the expenditures; but the style of their last letter has 
prompted us to inform them that we could only view them as your bankers, 
aod that in the business of the frigates, we only held ourselves accountably 
to you for our proceedings. 
Your agent, General Lallemand, is also deprived of your letters ; we hare 
had several long conferences with him, the particulars of which he will give 
you. 
We therefore think it useless to enlarge, especially from what Messrs. Ri» 
cardos write us we may soon expect to see one of you. 
We reply under this date to those gentlemen, who will probably commu- 
nicate to you the contents of our Letter. We repeat, &c. 
Le Roy, Bayard, & Co. 
G. G, & S. Howland. 
Il was then proved that after the joint efforts of Gen. Lalle- 
tiiand and the two House? to purchase frigates ready for ser- 
vice had proved abortive; and after the reconnoissances, poli- 
tical and diplomatic, which the object and the occasion de- 
manded ; the agent determined to build two frigates ; and 
opened a negotiation with Henry Eckford, a distinguished 
ship-builder, for building the frigates by contract for a gross 
sum. Mr. Eckford first offered to build them for $487,000 
each, with armament; one to be completed in >4, and the 
other in 18 months. 2d. For $455,000 each, without ar- 
mament or sea stores ; one to be launched in January, and 
the other in April, 1820. 3d. For $375,ooo eaclvwitU-sin- 
gle equipments, without armament or sea stores; one to 
be completed in 14 months, and 1 hr other in 18 months. 18 
These propositions were all rejected, because they were 
deemed extravagant in price ; but more decisively, because 
the time required by M. Eckford, was much greater than the 
imperious necessity of the Greek cause would allow. Eco- 
nomy was important, but the utmost dispatch was infinite- 
ly more important- 
Contracts were then made by the two Houses (with the 
approbation of Gen. Lallemand) with Christian Bergh, 
Robert Carnley and John A- Westervelt, respectable 
ship-builders in this city, for building the ship Hope with 
all possible expedition. The terms were, that said build- 
ers were to commence the work immediately, were to em- 
ploy their skill, and devote their time and best services 
in const ructing the ship as master-builders; they were to 
abandon all other work, and engage in no other business till 
the completion of the ship ; they were to select and employ 
the best workmen, and purchase timber as sub-agents of the 
Houses ; and to devote their extensive ship-yard with the 
work-shops, mould-lofts.tools and appurtenances, exclusive- 
ly for the purpose of building that ship ; for which the 
Houses stipulated to pay them twenty-five thousand dollars. 
A similar contract was made with Stephen Smith and 
John Demon, two other eminent ship-builders in this city, for 
the like services, and devotion of their skill and time, and 
for the exclusive use of their ship-yards, workshops, tools, 
&c. for the purpose ofbuilding the ship Liberator; for which 
the Houses agreed to pay them the like sum of twenty-five 
thousand dollars. 
The next object was to employ an ofticer of the Navy 
of the United States, of suitable rank and character, to su- 
perintend and inspect the operations and materials in build- 
ing, equipping, and arming the two ships. 
A contract was accordingly made with Capt. Wolcott 
Chauncev, which will be hereafter set forth. 
Although the two Houses contracted jointly for the build- 
ing and materials of both ships ; yet it was agreed between 
fhem, by the consent of General Lallemand, that Messrs-. 19 
■He Koy, Bayard and Co. should pay tiio hills, and keep the 
accounts for the ship Hope ; and that Messrs. G. G. Si, S. 
Howland should do the like in regard to the ship Liberator. 
General Lallemand testified, that when lie undertook the 
agency, it was understood that he was not to have any thing 
lodo with the financial” part: that his agency related to the 
“executive” part merely: that he stated this to the two Houses 
distinctly on his arrival here, about the 10th of April 1025; 
and he has invariably acted on that system. But the prac- 
tice has been, for the Houses to inform him 10 or 15 days 
before they drejv bills ; in order that he might apprize his 
Principals. His habit was to ascertain the amount ad- 
vanced by the respective Houses previous to each intended 
draft; and then to write to the Deputies, informing them of 
the amount, in order that they might provide and arrange 
their funds- The bills that were protested were drawn 
with his knowledge ; and he gave the usual previous notice 
of them to the Deputies. In the latter part of October 
1825, the Houses informed him that they had received alarm- 
ing news respecting the Greek funds ; they said it was the 
more embarrassing, because they had made all the con- 
tracts, and were bound to pay by the 1st of December then 
next: and they asked him to write to the Deputies, giving 
this information. He answered that he thought their re- 
quest reasonable, and engaged to write accordingly ; which 
he did on the 1st of November, 1 825 ; stating the facts and 
the reasons urged by the Houses, lie showed the contents 
of that letter to the two Houses for their satisfaction; which 
is the only one of his letters which he did show to them. 
About the 1st of Nov. 1825, the Houses informed him, 
that the ships could not be permitted to depart, till they 
were paid or secured for all their advances and responsibi- 
lities : and in his letter of that date, he communicated that 
information to the Deputies. He communicated to his 
Principals the various proposals of Mr. Eckford, and the 
reasons for refusing them. He was unable to form a cor- 
rect estimate of the whole cost of tlie ships; but supposed 20 
it Would be much less than the 2nd proposal ot Eckford, 
and even less than his 3d proposition ; and that the ships 
would be much sooner finished. 
fI’he Houses informed him about the last of October 1825, 
that the ships would cost $500,000 or $550,000 each ; and 
he then communicated it to the Deputies- 
Mr. Contostavlos arrived here in April last, and witness 
immediately conducted him to the Houses. Air. Contos- 
tavlos theii*applied to them for accounts of what they had 
received of the bills drawn ; what they had paid ; and how 
much remained to be paid; which accounts were furnished 
by the Houses, and were examined by Air. Contostavlos 
with the aid of Captain Chauncey; and the witness also 
assisted in the examination- Air- Contostavlos then said, 
he regretted that the Houses had not drawn their bills 
sooner for the whole sum; for then the ships would have 
been finished. Witness observed to Air- Contostavlos, it 
was a pity that the Greeks should be ruined by Ricardo's 
misconduct; that Ricardo was endeavouring to provoke or 
draw a letter from the Houses, which would enable him 
(Ricardo) to get possession of the ships; that he (the wit- 
ness) had advised Air. Bayard to be very guarded in his 
letters to Ricardos; and that he (witness) had communi- 
cated to the Deputies the substance of Ricardo’s letter to 
Ce Roy, Bayard &, Co. To which Air. Contostavlos re- 
plied, “Your opinion of Ricardo is perfectly correctand 
he added, that he was the more convinced of it, because 
Ricardo had opposed his coming to America. Mr. Contos- 
tavlos said, Ricardo had told him that if they sent any more 
money to this country, they would never see the money nor 
the ships. Air. Contostavlos also said that Ricardo refused 
to advance money for these frigates; because they should 
want all their funds to build Steam-boats for Lord Coch- 
rane. He (Contostavlos) further said, that when the bills 
(afterwards protested) arrived there, the Deputies urged Ri- 
cardo to pay them: but he refused. Air. Contostavlos said 
the Deputies had done all in their power to have the hills paid ,* 
hut they could not help the protests. 21 
The witness (General Lallemand) says, that during the 
13 or 14 months since he arrived here, the Houses have 
acted with all possible. activity, zeal, and fidelity, in these 
operations ; and they liave acted throughout with his ad- 
vice and co-operation *, and the houses were studious of eco- 
nomy in all their measures in relation to these ships- Live 
oak could not-be procured; and by his consent the ships 
were built of white oak. On his cross-examination. Gmc* 
ral Lallemand testified, that he made inquiries at Boston, 
Philadelphia, and Baltimore, in regard to the expense of 
building ships; and found the comparison in favour of build- 
ing in I\ew-York. He said Mr- Eckford told him, that 
tnere were so many ships then building here, that these fri- 
gates, if built here, would cost one-third more than the Co- 
lumbian frigates had been contracted for. And it was said 
that the increased amount of ship-building had produced a 
similar effect in the other ports of the United States. He 
said they hoped to build the ships for less than Eckford’s 
proposals, but they made no detailed estimate of the ex- 
pense by days’ work. The object was to build as quick as 
possible, and that was a greater object than the expense. 
Messrs. Howland objected to thawing on Ricardo, and 
wished to have the privilege of drawing on Samuel Williams; 
because Ricardo was not much known here : but witness 
told them they must draw on Ricardo- 
The witness (General Lallemand) says he expressed his 
opinion to the Houses, that they ought to draw for money as 
seldom as possible ; and to give notice as long time as possi- 
ble *, so as to accomodate the Deputies in regard to their 
loans. But when he (the witness) heard that the funds in 
London were about to be applied to purchase steam-boats; 
he advised the Houses here to draw as soon as they could, 
in order to expedite these ships: and he wrote to the De- 
puties urging them to place funds in the Bank of the Unit- 
ed States ; because, unless the funds were secure, the fri- 
gates would be retarded and detained. When he sent to 
the Deputies the estimate of the expense of the frigates; 
he informed them that commissions were to be added. 22 
Soon after his arrival here, and before the contract for 
building the ships, he was informed by Mr. William Bayard 
Junr. that their commissions would be 10 per cent, for all 
expenditures in building the ships that they had received 12], 
per cent, on the Columbian frigates; and that the House 
of Le Roy, Bayard & Company, would not divide com- 
missions with G. G. & S. Howland. Witness asked him 
“ are those your definitive terms To which Mr. Bayard 
answered “ they are.” Witness made no reply, b ecause 
he did not consider himself authorized to contract for com- 
missions ; and he supposed it would be a subject of ulteri- 
or arrangement, to be settled by the Committee, consisting 
of the two Houses, Captain Chauncey and himself; and 
would depend on the nature of the operations. He never 
gave any explanation of his views on that subject to the 
Houses ; and the subject was never mentioned afterwards, 
till this controversy arose. He never communicated this 
conversation (about commissions,) to the Deputies. It 
was verbally agreed, between the Deputies and himself, 
that the frigates should be the strongest of the first Class ; 
sufficient to contend with Turkish Seventy-Fours. 
The Counsel for the Greek Deputies, at this point of the 
evidence, expressly admitted to the Arbitrators, and the op- 
posing Counsel ; that the Deputies were chargeable for the 
actual fair and reasonable cost of the frigates ; but they 
objected to the commissions as excessive. 
John Demon, a witness for the Houses, one of the firm of 
Smith fy Demon, testified that he and his partner contracted 
with the two Houses, with the concurrence of General Lal- 
lemand, for building the ship Liberator: a contract was 
written, but he thinks never signed. The terms were, that 
Smith and Demon were to furnish their ship-yards, work- 
shops, blacksmith’s shop, mould-lofts, and tools ; for which, 
and for their personal services and skill, as master-builders, 
they were to receive $25,000; and were to quit all other 
work, and to engage in no other business, till the ship was 
built ; all the materials were to be paid for by the two 23 
Houses ; and the builders, without further compensation, 
were to purchase the materials, and employ the best work- 
men ; and every possible exertion was to be made to expe- 
dite the work. Under this contract the ship was built : 
and he is of opinion, they would have made more by other 
business ; especially when it is considered, that they were 
obliged to turn away, and lose other regular employers. 
Every thing was done in the most economical manner, and 
they could not have built such a ship by contract, for less 
money than she cost. Wages were much higher last sum- 
mer than usual increased during the last season, at 
least one-third above common price. The builders declin- 
ed making a contract for any sum in gross ; it was too ha- 
zardous. Materials were nearly double the present prices, 
and much higher than in any former year. Very difficult to 
procure timber of sufficient size. There were many large 
ships more than common, built last year, in Philadelphia, 
Baltimore, &c. as well as in New-York. Live oak could 
not be procured in season to build these ships. Greatest 
possible dispatch was insisted on by the Houses. The Libe- 
rator’s keel was laid 16th July, 1825, and she was launched 
on the 19th November following. Has never known such a 
ship built in so short a time, or any thing like it. No pos- 
sible effort was spared to build the ship as soon, and as 
well as possible. Mr. G. G. Howland paid all the bills. 
On cross-examination, he said, the builders had on hand 
when they made the contract, a considerable quantity of 
materials, which they furnished for the ship by fair appraise- 
ment : other materials were purchased by the builders ac- 
cording to directions. Gave no estimate of the probable 
cost of the ship. Did not know that Eckford had offered to 
contract for the ships. He told Mr. Howland they might 
possibly launch the ship in January last, but perhaps not 
till spring following. Price of materials and wages were 
very high when they began, and rose very much during the 
work. A contract for all the timber could not be made at 
the commencement of the work. He went to Connecti- 24 
cut and up the North River to procure timber. Copper 
rose during the summer. The usual profit for their personal 
services, and theuse of their ship-yard and shops &c. is not 
so much as $25,000 per year, in ordinary seasons- This 
contract required extraordinary exertions and diligence- 
Their yard was found not spacious enough for these opera- 
tions ; and they had to buy an additional piece of ground 
for the use of this ship; for which nothing was charged to 
the Houses. The Houses visited the yard very frequently, 
to oversee and advise about the ship : as often as twice or 
three times a week : and the builders saw Mr- G- G. How- 
land every day on that business. Captain Chauncey super- 
intended the planning of the ship, and attended to inspect 
the materials and to see the work well done- The builders 
had the immediate oversight and direction of the labourers; 
and they hired the workmen, and retained nothing out of 
their wages- Thinks Messrs- Bayard gave not as much 
personal attention to this ship (Liberator) as Mr- Howland- 
A small proportion of the work of the ship was done after 
she was launched. The materials were paid for when de- 
livered at the yard. The overplus timber and refuse was 
appraised and taken by the builders, and credited in their 
accounts with the houses. Direct Examination.—The build- 
ers actually declined all other work for their old customers; 
and they have for that reason, lost rather than gained, by 
this contract. He never saw a ship better built, nor built 
with so muchdispatch. Commodores Chauncey, Bainbridge, 
and Jones came on board about six weeks ago, and exa- 
mined the ship very particularly. Cross Examined.—lie 
says it is very unusual to build vessels in this port by days’ 
work. The ship was built of best white oak ; about half 
well seasoned, and half green timber; the knees were all 
seasoned. She was thoroughly salted with several thou- 
sand bushels of salt, filling all vacant spaces, if Eckford 
had contracted, he could not have obtained seasoned tim- 
ber. 
Captain Wolcott Chauncey.-—General Lallemand applied 25 
to him to superintend the ships. He declined, till he could 
consult the Government at Washington. They assented, 
and gave a furlough which suspended his pay as an officer 
of the Navy ; and then he agreed with General Lalle- 
mand and the Houses, according to a written contract, 
which he produces, and it is as follows : 
It has been judged indispensable that an officer of experience of the United 
States’ Navy, should be charged with the superintendence of the building, 
equipment and armament of the frigates ordered for the Government of 
Greece, and with the direction of all the works relatiug to them, until they 
shall be ready for sea. 
The purpose of adopting this measure is to establish system and regularity 
in the various parts of this operation, which is to be carried on according to 
the principles adopted by the Government of the United States, for the con- 
struction, equipmenfand armament of its ships of war. 
Captain Chauncey has been chosen to exercise this superintendence of the 
construction of these frigates, ordered for the Government of Greece ; and 
he has accepted this commission. 
In consequence, the contracts made for the building of the two frigates, 
have been communicated to him. He shall immediately inform himself of 
every thing which has been done ; he shall proceed to examine every thing 
which has been furnished; he shall make report of the quality of the tim- 
ber and other articles, and on the existing state of things in detail. 
For the future, every proceeding taken shall be settled by Capt. Chaun- 
cey, and presented by him to be examined in Committee. 
AH the proposals for the various supplies shall be received under seal, ami 
addressed to the office which shall be appointed. They shall afterwards 
be examined in Committee, in order that the furnishing of the supplies may 
be giv en to those whose offers shall be deemed the most advantageous, all 
things considered 
It shall be the duty of Captain Chauncey to present models, plans and 
descriptions of every thing to be furnished for the building, equipment and 
armament of the two frigates, never leaving out of view, that every thing is 
to be conducted according to the principles adopted for the building, equip- 
ment and armament of the ships of war of the United States. 
It shall especially be the duty of Captain Chauncey to examine and ap- 
prove every article of every description to be furnished for the two frigates; 
he shall allow of no articles which shall not conform to the models, plans 
and conditions prescribed j and he shall make report as to the observance of 
this provision. 
The object of the superintendence confided to Captain Chauncey is to es- 
tablish uniformity (I'entemble) regularity, expedition and economy in the 
building, &c. of the two frigates. This superintendence, therefore is to be 
exercised over every department of the operations, the work, the supplies, 
the employment of the funds placed in the hands of the builders, aud the 
system of accountability to be established on this subject. 
Consequently nothing is to be delivered to the builders, nor any payment 
made to them, but on Captain Chauncey's order. 
In satisfying himself that the builders employ the number of workmen ne- 
cessary for the greatest possible expediting of the operations, Captain Chaun- 26 
tev shall examine the propriety of the wages to be allowed the workmen, 
and take care that they be regularly paid off at stated periods by the buil- 
ders. 
Captain Chauncey shall have an office as near as possible to the ship- 
yards where the ships are building; so that the builders may confer with 
him every day at stated hours and whenever it shall be necessary. 
All the proposals relative to the building, equipping and arming of the 
two frigates shall be addressed to this office. 
A meeting in Committee shall take place three times a week on stated 
days and hours; and at the first meeting in every week, Captain Chauncey 
shall make his weekly report on every subject of the superintendence com- 
mitted to him ; that is to say, on the progress of the work, the fulfilment of 
the plans and contracts, (marches) and the payment of the workmen. 
Captain Chauncey shall devote the employment of all his time, talents 
and experience to the commission which he has accepted. He shall exercise 
(be superintendence with which he is charged, and shall fulfill all its duties 
with the exactness which an officer of the navy of the United States ought 
to display in performing the duties of his service in the Navy. 
The success of an operation of the deepest interest to a just and sacred 
cause is reposed on the character and zeal of Captain Chauncey. 
As a compensation for his time, his services, and the sacrifices made in ac- 
cepting his present employment, Captain Chauncey shall be allowed the 
iutn of Ten Thousand Dollars, for his superintendence of all the operations 
relating to the building, equipping and arming of the two frigates until ready 
to sail. Of this sum Five Thousand Dollars shall be paid to Captain Chaun- 
cey by the house of Le Roy, Bayard, and Co. and Five Thousand Dollars 
by the house of G. G. and S. Howland by the funds placed at their disposal 
by the Greek Deputies at London. 
In case Captain Chauncey shall, in consequence of any resolution in Com- 
mittee, make any journies from New-York, he shall be allowed for his in- 
demnity five Dollars a day for every day’s absence. 
Captain Chauncey further testified that the ships were 
t© be ready for sea by 1st March 1826. He exerted him<- 
gelf as much as possible to build the ships as soon, and 
with as much economy as possible. Don’t believe that so 
good ships, of equal size, were ever built on the Atlantic, 
in so short a time. Has never witnessed more active ex- 
ertions, more strict regard to economy, nor more fidelity, 
than were evinced by these Houses, in the building and 
equipping these ships. 
Carpenter’s wages about 1st July 1825, were from 12s 
to 13s per day ; and, in consequence of the great amount of 
ship-building, carpenters’ wages rose soon after to 18s and 
2os per day ; and a corresponding rise took place in the 
wages of all other mechanics and workmen employed 
about sRip-btiildiu'g: 27 
Prices of materials also were much higher than usual ; 
and extra allowances were frequently made for extraordi- 
nary exertions of the workmen. He inspected all the tim- 
ber that was used ; and so far as he observed, the utmost 
economy was used in purchasing materials. All ships 
for our Government are built under the immediate superin- 
tendence of a naval officer of suitable rank and experi- 
ence. He estimated the whole expenses of each of the 
ships fitted completely for sea, (about 1st September 1826,) 
at $515,000 exclusive of commissions. About 2nd Dec- 
1825, his estimate was $523,000, without commissions. 
On 3d Feb. 1826, his estimate was $508,099, including ex- 
tra armament-and equipments, and not including commis- 
sions. 
Thinks the frigate Brandywine, when equipped and fur- 
nished for sea, cost $400,000 and upwards. 
The contracts for materials for building these ships were 
made judiciously, and according to the rules and mode 
practised by the Government of the United States. It 
will require $86,000 to complete the equipments, with stores 
and provisions for a crew of 200 men for 4 months, or 150 
men for 6 months, not including pay of officers and men. 
He would not have retired from the regular active ser- 
vice on furlough, and undertaken the charge of these ships 
for less than the stipulated sum of $ 10,000. Captain Rogers 
of the United States’ Navy refused to do it, for that allow 
ance. 
Materials were considerably lower in April and May, 
when Eckford made his proposals, than in July, and the 
whole season afterwards. 
All contracts were submitted to the Committee and ap- 
proved by them before signed; but in many instances ver- 
bal contracts were made and part performed, before writ- 
ten contracts were signed : but no monies were paid till 
the contracts were agreed toby the Committee and reduced 
to writing. 
Jacob A. Weslervelt, ship-builder, partner of C. Bergh in 
building the Hope, testified that that ship was built as' cheap., 28 
and as soon as it was possible to do it. Le Roy, Bayard 
& Company were constantly attentive, and seemed very 
anxious to promote economy, as well as dispatch. Wages 
in the ship-yards were much higher last year than he has 
ever known : in some cases 100 per cent, more than usual. 
Timber was unusually scarce and dear. There were 
four ships of nearly the same class built here last season. 
Captain Chauncey was active and very faithful in superin- 
tending, and inspected every thing. Thinks he and his partner 
have lost rather than gained by the job, at $25,000 for their 
skill, services, and exclusive use of their ship-yard and 
shops. 
Cross-examined, says Messrs. Bayard and Howland visit- 
ed the ship as often as three or four times a week on an 
average. 
Le Roy, Bayard & Co. paid the bills for the Hope. 
Direct.—He and his partner have often built ships for Le 
Roy, Bayard & Co.; and they were never half so attentive 
to any ship as to this. The keel of the Hope was laid on 
the day of July, and she was launched about the 1st day 
of December following. 
General Lallemand, testified that he requested of the 
Houses that all the armaments and stores from Georgetown 
might be insured ; anck he understood, that about $5000 
worth of shot had been lost by shipwreck, and that it was 
not insured. The reason assigned for the omission was, 
that the Houses here did not know in season, when, or on 
board of what vessel the shot was shipped. 
Commodore Isaac Chauncey, testified that he was one of the 
commissioners appointed by the Government, to examine 
and appraise these ships a few weeks ago ; and he per- 
formed that service in conjunction with Commodores Bain- 
bridge and Jones- Has never known ships to be built in 
less time than these, on the Atlantic. It must have cost 
great extra exertion, as well as much extra expense. 
Wages were increased here last season, from 12s and 14s 
to IBs and 20s per day. He then had charge of a ship, build- 
ing for United States, at the Navy Yard at New-York- 29 
Materials were raised in price, about in the same proportion 
as wages ; and the necessary haste in building these ships, 
must have enhanced the expense of procuring materials. 
These ships were well built : and they are of the very 
first class of frigates. 
The Liberator was thought rather the best ship, but no 
material difference between her and the Hope- They arc 
full as large and perhaps larger than the Brandywine, and 
equal to her in every respect; except that she has a live 
oak frame, and these ships have white oak frames. The 
ordinary difference in price between live oak and white oak 
is from $25,000 to $30,000, for each ship- Thinks the ex- 
tra expense of -building these ships in so short a time, at 
that particular season, was from 25 to 30 per cent more than 
ordinary Thinks these ships as efficient as any of the fri- 
gates of the United States: and thinks the salting will pre- 
serve them longer than is commonly supposed Bcrgh and 
Smith Demon are builders of first reputation for skill and 
integrity. These are as good ships as ever were built in a pri- 
vate yard The public statement of the cost of the Brandy- 
wine ($273,000) does not include her masts, spars, sails and 
rigging: she could not wait for them to be made, and they 
were taken from another ship, to which they stand charged. 
Government contracts for timber, cut to moulds, in which 
there is a great saving. Is of opinion that the ships could 
not have been built in so short a time, nor with so small 
expense in any other port of the United States. 
If the same expedition had been continued after the ships 
were launched, as before; they might have sailed in Fe- 
bruary or March, 1826. 
General Lallemand again called, says that when he, from 
time to time, wrote to the Deputies, as to the amount ex- 
pended for the ships, he did so upon statements made to 
him by the Houses, and from accounts kept by Captain 
Chauncey. 
On the 12th day of July, Robert Sedgivic/c, Esq. opened 
the cause on the part of the Greek Deputies; and with- 30 
out any previous intimation of such a course, insisted that 
the instructions by the Deputies to the two Houses and 
General Lallemand forbid any operations or expenditures, 
without the concurrence and consent of our Government, 
or contrary to our laws: that the Houses have violated 
those instructions in that particular; and have kept the De- 
puties in ignorance of the illegality of equipping and fitting 
out these belligerent ships. The enterprize was forbidden, 
under penalty of forfeiture, and by the act of Congress 20th 
April, 1818: and the Deputies have therefore a right to 
abandon the contract, and recover back all the monies 
paid by them, with interest; and the ships are to be regard- 
ed as a mere pledge under the submission, for the repay- 
ment of the money. But he offered to wave this ground, 
upon condition that Captain Chauncey’s compensation be 
deducted from the commissions of the Houses; that the 
commissions be reduced to 2i per cent, for whole expen- 
ditures, and 1 per cent, for drawing bills; and that the allow- 
ance to ship-builders be reduced to a reasonable sum ; and 
that all other claims should be abandoned by the Houses- 
He objected to the Commissions in toto; because Cap- 
tain Chauncey and the builders had performed the services, 
had earned the commissions ; and had been richly reward- 
ed. 
If commissions were to be allowed to the Houses, they 
ought not to exceed 2| per cent, with per cent, for draw- 
ing the bills ; according to the regulation of the Chamber 
of Commerce in this city- 
He objected to the item of law-charges as extortionate, 
&c. 
He objected to the claim for damages on the protested 
bills, because those bills were not drawn and sold in the 
usual course of mercantile business ; but were remitted on 
account of the Houses to their own agents in London, 
Barings and Williams, for account of the drawers them- 
selves ; and because they had no right to draw those bills. 
He denies that Le Roy, Bayard & Co. are entitled to 31 
damages on bills drawn by them on Baring & Co. in faith 
of bills drawn by them on Ricardo and payable to Baring 
k Co. 
As to amount of cannon shot lost, the agents ought to 
bear the loss. 
He objects to any commissions on articles sold and fur- 
nished by Lc Roy, Bayard & Co. for the ships. 
Claims benefit of an Interest account. 
Denies the right of G- G. k S. Howland, to charge for 
£7,500 sterling, lost by the bankruptcy of their agent Wil- 
liams. 
Objects to the rate of exchange credited by the Houses. 
Henry D. Sejvall, Merchant, a witness for the Deputies, 
testified that the usual commission for disbursing money in 
repairing ships is 2| per cent. If goods are consigned to 
several Houses jointly, and part sold by one and part by 
the other, no more than one commission of 2£ per cent, is 
usually charged. If the factor draws bills instead of re- 
ceiving the money, it is usual to charge 1 per cent, on the 
bills. Refers to the regulations of Chamber of Commerce. 
Cross-examined—On foreign business, he thinks 5 per cent, 
commission a justifiable charge; though he thinks it good 
policy generally to charge less. If he drew foreign bills to 
reimburse for advances, he should think himself entitled to 
per cent, commission on the bills, in addition to the 5 
per cent, for the purchases. If he were to divide the busi- 
ness with another house here, no more than single commis- 
sion would be charged. He would not engage to build a 
frigate for a foreign Government without guaranty. It is 
a business aside from all mercantile usage. If he had the 
security of a House of first respectability, he would charge 
5 per cent- for building a ship. 
According to mercantile usage, no more than 5 per cent, 
is charged for extra risks ; without express stipulation. 
Direct.—If he had funds in hand, he should think he had 
a right to charge 5 per cent, commission, but that he should 
allow Interest- 32 
William W. Russel, Commission Merchant, witness for 
Deputies, testified that usual commission is 2| per cent- for 
disbursements, and 2£ per cent for drawing foreign bills 
for reimbursements. In case of joint consignees, there 
is but one commission. He has in one case charged 5 per 
cent, on expenditures, and 2£ on the bills. When there are 
two consignees they divide the commission. 
George W Talbot, Merchant, witness for the Deputies, 
testifies that he charges commission on purchases of goods 
at 2J- per cent- and 5 per cent, for repairing vessels : inde- 
pendent of drawing bills- There cannot be two commissions 
on the same agency. 
James King, Merchant, witness for the Deputies, testified 
that usual commission with funds in hand is 2£ per cent.; 
without funds 5 per cent- without risque. When 5 per cent, 
is charged, has never known commission charged on draw- 
ing bills to reimburse. 
If he were to draw on his principal (having a right to 
draw) payable to the agent of the drawer, and then should 
draw on his agent against the first bill ; and the second 
bill were protested on account of the dishonour of the 1st 
bill; he would consider it as tantamount to a protest of 
the first bill, in regard to damages- 
John J. Palmer, Merchant, witness for the Deputies, tes- 
tified that ordinary commission for building and repairing 
ships was 5 per cent.; on goods, only 2j per cent. There 
are very few other houses in New-York who have the means 
for such an agency as this. He would charge 2| per cent, 
for drawing bills- 
Jonathan Ogden, Merchant, a witness for the Deputies, 
testified two usual commission for disbursements in fitting 
out ships, is 5 per cent- w ithout funds in hand ; that is, 2£ 
for the expenditures, and 2£ for drawing bills. Was never 
employed to build a ship. 
George Barclay, Merchant, witness for the Deputies, tes- 
tifies that the usual commission for disbursements is 5 per 33 
cent, when he draws bills for reimbursement. The house 
of Ricardo is very respectable. If he had a confirmed cre- 
dit, he should charge 5 per cent, for building a ship for a fo 
reign correspondent. 
John R. Heard, Merchant, witness for the Deputies, says 
commissions vary from to 5 per cent- for disbursements, 
independent of drawing bills. Commission always divid- 
ed where several consignees. 
George Brinktrhojf, Counsellor at Law, a witness for the 
Houses, says he was employed to draw the various contracts 
for building the ships : his account for law charges was $800, 
which Counsel fee of $50 for himself; and a like 
sum paid to J. Kent, Esq- as a Counsel fee ; which Counsel 
fees were for advice generally in regard to the powers and du- 
ties of theHouses ; alsotheeffectof the protestedbills,drawn 
by G- G. & S- Howland on Samuel Williams; and also as 
to the legality of the enterprize, under the laws of the Unit- 
ed States. It was about the time that the first bills return- 
ed protested. 
Peter Harmony, Merchant, witness for the Houses, says 
the ordinary commission for building a ship here is 5 per 
cent. He has refused to do it for that, even where an agent 
was sent out to superintend the building. If he drew fo- 
reign bills to reimburse, he should charge per cent. more. 
If such a commission were given to him and another agent, 
he should consider each as entitled to full allowance of 5 
per cent, where they were jointly bound by contracts- He 
should consider an agency of this kind under a foreign Go- 
vernment, as entitled to much larger commission than if it 
were for an individual: and he would not undertake such 
an agency as this, at any rate of commission ; because he 
considers it altogether more hazardous and difficult, than a 
mere commercial agency. 
Christian J. Bnrckle, Merchant, a witness lor the Houses, 
proves the signature of John P- Elbers, to a contract for a 
Columbian frigate: which was read. (We have it not.) 
Witness has a commission of 10 per cent- for repairing a ship 34 
for a foreign Government now on hand *, and would not du 
it for less for any Government. For this agency no com- 
missions would have tempted him to undertake to build 
such ships as these, under such circumstances. He thinks 
it was worth more than 10 per cent- besides 2| per cent- for 
drawing the bills. He has had occasion to see and examine 
several accounts for building ships of war for Columbia ; 
and the commissions charged and paid, were from 10 to 30 
per cent, upon the cost. He would not have built these 
ships for the Greek Government upon a confirmed credit on 
Baring & Co. for less than 10 per cent- 
William C, Wallace, a witness for the Houses, says, that 
he was sent by the Houses to Georgetown to receive cannon 
shot. There was shipped at that place about March 1 st 1826, 
ge.oOGyVu in shot. He wrote to Le Roy, Bayard & Co. 
informing of the shipment, and inclosed a bill of lading; 
put the letter into the post-office at Georgetown or Wash- 
ington the same day ; but thinks it was after the ship had 
sailed for New-York, not insured. 
G •oss-examined, says there were two other shipments of 
shot which were insured This vessel (“ the Exchange”) 
was lost on the coasl of Maryland in March 1826. 
By consent, G G. Howland and Wm. Bayard, Jun. were 
sworn, and they severally testified that they never received 
and have no knowledge of the letter mentioned by last wit- 
ness ; and never had any intelligence of the shipment of the 
shot, till they heard of the loss. They expected the shot 
would be shipped; but had no particular vessel in view, and 
could not name any to the Insurance offices. 
James Boorman, Merchant, a witness for the Deputies, 
says the regular commission on purchases of goods is 5 per 
cent- and jingle commissions only in case of consignment 
to two persons. 
Samuel Hicks, Merchant, a witness for the Deputies, says 
the usual commission for building or repairing vessels is 2| 
per cent, for advances, and 2£ per cent- for drawing bills. 
In contracting with a foreign Government, he should think 35 
jt more hazardous : and lie would not contract lor a ship oj 
war for any commissions: would not contract for so large 
amount: but if he did undertake, would not think it right 
to charge more afterwards. 
Lewis Attcrbury, chief clerk of Le Roy, Bayard & Co. a 
witness for the Houses, explains and accounts for an error 
of $1000 in the account furnished Mr. Contostavlos, in 
June last. The account on its face professed to be imper- 
fect, and several items were “ estimated,” and there were out- 
standing accounts which could not then be adjusted : the 
aggregate of that account was $396,851-j0 At the hear- 
ing, a complete account was rendered, containing several 
items not in the first account, and the sum of £1000, which 
by inadvertence and mistake of the witness had been in- 
serted in the first account, was omitted in the correct ac- 
count last rendered, which explanation was admitted at the 
hearing to be satisfactory : and that $1000 was not allowed 
to Le Roy, Bayard &. Co. in the award. The account so 
last rendered was adjusted at $397,569-,-®^. 
George Griswold, Merchant, witness for the Deputies, says 
the usual commission for selling goods is per cent, and 
1| per cent, for drawing bills on confirmed credits; but 
practice is variable. Commission for repairing vessels is 
more than on sale of goods. For building ships and draw- 
ing bills to reimburse, 5 per cent.; whentwo persons execute 
an agency, they divide the commissions; each takes half. 
Alexander Contostavlos, the Greek agent, a witness for the 
Deputies, testified that he arrived in London from Greece 
on the 28th or 29th day of January, 1826. The Greek Depu- 
ties then informed him they had only about £250,000 in scripts, 
worth about £50,000 sterling. They said they were dissatis- 
fied with the expenditures here. They ordered Ricardo to 
accept no more bills, and they gave him positive instructions 
to that effect. 
On cross-examination. he was asked how he could recon- 
cile the testimony now given by him, with the statement he 
made to General Lallcmand and the two Houses, on his arri- 36 
val here ? With much embarrassment, he admitted, that the 
statement he then made (to General Lallemand and the 
Houses) was untrue; and he said he was induced to make 
such false statement, because he thought it would promote 
the object of his mission. 
Inventories, accounts and vouchers were examined and 
discussed in a manner, and to an extent which cannot be de- 
tailed in this Report. 
No other witnesses were produced on either side. 
The evidence being now closed, a question arose whether 
the Houses or the Deputies were to be regarded as claimants 
or plaintiffs, so as to be entitled to the closing argument. 
The Arbitrators Were unwilling to express any opinion pre- 
liminarily, on any question, upon the merits; to wit, whether 
the Deputies had a right to abandon the contracts and recover 
back the money paid? It was therefore decided that the 
privilege of the closing argument should be determined by 
lot: and it fell to the Deputies. 
Mr David B. Ogden then argued for the Houses. He was 
followed by Mr. Henry D.Sedgzvick for the Deputies. Mr. Em- 
met then replied for the Houses; and Mr. Duer, for the De- 
puties, conluded the argument- 
The illegality of this enterprize was strongly urged on the: 
one side, and denied on the other; and after Mr. Emmet had 
finished his argument; and in the morning when Mr. Duer 
■was about to address the Arbitrators, it w’as perceived that 
several persons came into the room as auditors; and it w\as 
intimated that many others were expected to attend, to 
hear the interesting argument of Mr. Duer. The Arbi- 
trators then said, they had a private Communication to make 
to the parties and their Counsel. Upon which intimation, 
all other persons withdrew. 
The Arbitrators then stated that one avowed object of Mr. 
Duer’s argument would be to show the illegality of the en- 
terprize; and that the ships were liable to seizure and for- 
feiture, for having been built and equipped in violation of the 
Act of Congress: that in the opinion of the Arbitrators, such 
an argument ought not to be addressed to the public ear: that 37 
it would provoke, and compel the officers of the Government 
to enforce the law; and would tend to invite common inform- 
ers : that if the Government had thus far winked at the pro- 
ceeding, and lent their indirect aid to the enterprize ; it would 
be ungrateful and dishonourable in the parties for whose be- 
nefit it was intended, to expose the conduct of the adminis- 
tration ; and that it was a delicate question, as between our 
Government and foreign nations. The Counsel for the De- 
puties, however, insisted that the discussion ought to be pub- 
lic, because the Counsel for the Houses had assailed the cha- 
racter and conduct of Mr. Contostavlos. The Arbitrators 
decided that no persons should be admitted as auditors, ex- 
cept those who had been present during the argument of 
Messrs. Ogden and Emmet, and those who had attended as 
witnesses during the hearing. In truth, our meetings had 
never been public 5 except that the witnesses occasionally 
remained some time to hear the discussions ; and several gen- 
tlemen were introduced by the respective Counsel on both 
sides, by special permission of the Arbitrators ; and about as 
many persons attended during the argument of Mr. Duer, as 
at any former period. 
The arguments of Counsel were concluded on the 22d 
duly; the hearing having continued with the utmost diligence 
from the 28th June inclusive. The time limited for making 
the award, had been twice extended by consent of the par- 
ties ; the Arbitrators were now obliged to complete their 
award, by the 27th July inclusive : and the utmost impatience 
of all parlies urged us to the task. 
At the conclusion of the argument it was mutually agreed 
by the Counsel, that the accounts and vouchers for several 
items, and particularly for the current expenses of the ships, 
might be afterwards presented to the Arbitrators; due no- 
tice being given to the opposite Counsel, or one of them. 
Neither of the Counsel appeared afterwards before the Ar- 
bitrators; but in pursuance of the above arrangement re- 
specting the accounts, the following written communications 
n'ere made. 38 
New-York, 24,thJuly, 1826. 
Messrs. H. D. and R. Sedgwick. 
Gentlemen.—In reply to your note of this morning, we have to state— 
that the accounts left with us, were all handed to the Arbitrators before 
they met this morning, under the impression that such a disposition of them 
was intended by you. 
The only variation of moment, was in the value at which you charged, 
and at whieh we credited the bills and in the interest. 
Respectfully, 
Your obt. Servants, 
Le Roy, Bayard & Co. 
To the Arbitrators. 
Anbreas Luriottis 
with 
Le Roy, Bayakd k Co. 
G. G. k S. Howland. 
The amount of Captain Chauncey’s vouchers as handed 10 us is $12,801 77 
Amount of Requisitions 14,000 00 
Deficiency 1,198 24 
Mr. Hoffman (Captain Chauncey’s clerk) called and stated that he did so 
by request of Mr. Howland. He stated Captain Chauncey’s vouchers at a 
smaller amount than the above, and that he could send a certificate to that 
effect, but he has not done it. 
July 25,1826. H. D. & R. Sedgwick. 
You will find inclosed our bill of after disbursements, made up as correct- 
ly as it is in our power to do, and which we believe embraces every thing; 
still we hold ourselves as well as the other party bound for the correction 
of errors. Mr. Ogden has taken Captain Chauncey’s account i® the Messrs. 
Sedgwicks, and promises to send it to you by nine o’clock in the morning ; 
and it the Messrs. Sedgwicks have any objections to make, they no doubt 
will present them in due time. 
We have just seen a letter from the Messrs Sedgwicks, objecting to our 
charge of £peroent. for effecting the marine insurance ; and stating also, 
that they suppose the same charge is made on the Fire Insurance, which is 
not correct. As it regards our charge, you are well aware that £ per cent, for 
effecting Insurance, is the usual rate in all cases, a.M what we are fully en- 
titled to. 
Very respectfully yours, 
G. G. & S. Howland. 
Ntw-York, Wednesday 26th July, 1826. 
To the Arbitrators. 
To J. Platt, for Arbitrators. 
Messrs H. D. & R. Sedgwick feel it to be their duty to inform the Arbi- 
trators, that on pointing out to Mr. G. G. Howland since the hearing was 
closed, what they supposed a mistake in his account in an item for insurance 
of the armament, he (Mr. G. G. Howland,) explained it by saying that it 
included a charge of £ per cent for effecting the insurance on the amount 
insured. 39 
This is the first information the ’counsel of Mr. Contostavlos had that the 
accounts contained such a charge, not having seen the policies until nearly the 
close of the hearing. 
It is presumed that the Fire Insurances, which were repeatedly renewed, 
contain the same charge ; and if so, the charge of 10 per cent, on the disburse- 
ments includes the J per cent charged as above. 
We object to any charge for effecting insurance. 
Mr. Duer is confined at home, or would undoubtedly unite in this state- 
ment, of which a copy is sent to Mr. Ogden. 
Dated July 26,1826. 
Messrs. H. D. &R. Sedgwick present their respects t® the Gentlemen Ar- 
bitrators, and beg to acknowledge that they have been informed since writ- 
ing their note of this morning, respecting the charges on Insurance, by Mr. 
D. B. Ogden, that no charge was made by the Messrs. Howlands for effecting 
the Fire Insurances. Itis presumed thatnone was made by Messrs. Le Roy, 
Bayard & Co. " 
July 26, 1826. 
Jonas Platt, 
H. C. De RHAM,and 
Abkaham Ogden, 
Esquires. 
The enclosed account was given to me by Mr. Howland yesterday after- 
noon, who had, I believe, first received it from Captain Chauncey. 1 imme- 
diately handed it, or a copy of it, to Mr. Robert Sedgwick, and told him it 
would be presented to you that morning, and that he might send such re- 
marks upon it to you as he thought proper. 
With respect, 
Yours, &c. 
D. B. Ogden. 
Thursday Morning, 27 July 
Mr. D. E. Ogden, having handed to H. D. & R. Sedgwick, the account 
of Captain Chauncey, with an intimation that it would be handed to the 
Arbitrators to-morrow morning, and with a request, that they would make 
such remarks in relation to it as they should deem proper—Messrs. H. D. & 
R. Sedgewicb beg leave to observe: 
1st. That they do not consider the Greek Deputies in any view of the case, 
chargeable with any amount paid to Captain Chauncey, for disbursements 
beyond what he has produced vouchers for heretofore, and may now pro- 
duce. This was repeatedly assented to by Messrs. Bayard & Howland, and 
their Counsel before the Referees. 
The amount for which vouchers were thus presented, prior to the close of 
the hearing, was according to the present statement . . . $12,133 46 
To which is to be added, according to the present statement, 
(if the vouchers are produced.) 358 75 
2d. It is to be observed, that Captain Chauncey credits $15,000 for dis- 
bursements : whereas Messrs. Le Roy, Bayard Sc Co. and Messrs. G. G. & 
S. Howland, charge but $14,000. The Vrbitrators will recollect the mistake 
To the Arbitrators. 40 
of an overcharge of $1000, in the account of Messrs. Le Roy, Bayard & Co. 
on this account, which was explained by Mr. Atterbury's testimony. 
3d. We know not by what authority Captain Chauncey charges for his 
services from the first of March. 
It is not authorized by t|je contract. There was no limit fixed thereby 
for the duration of his services. 
New-York, July 26,1826. 
We here remark, that these communications impliedly ad- 
mit the parol agreement made on the first day of the hearing; 
that all current expenses accruing after the date of the sub- 
mission, were to be paid by the Houses; and were to be pre- 
sented in their accounts, and to be included in the award. 
With a perfect devotion of their time and faculties, the 
Arbitrators were enabled to complete the award at the close 
of the day limited for that purpose. But they then felt occa- 
sion to deplore the necessary haste, which compelled them 
to adjust the balances of such large and complicated accounts, 
without reasonable time for critical accuracy in all the minute 
details ; and their embarrassment was much increased by the 
fact, that some of the accounts were not, and could not, be 
made up and rendered, till the last day for completing the 
award. 
At 9 o’clock in the evening of the 27th July last, the award 
was published, and copies delivered to the respective parties. 
It is as follows :— 
{After the formal part and Recitals.) 
Now Know Ve, That we the said arbitrators, whose names are hereunto 
subscribed, and whose seals are hereunto affixed, taking upon us the burthen 
of the said award, and having fully examined and duly considered the proofs 
and allegations of the said parties, do make and .publish this our award be- 
tween the said parties, in manner following : that is to say, First, we do award 
and order that all actions, suits, quarrels, and controversies whatsoever, had, 
moved, arisen, and depending between the said parties, in law or equity, for 
any manner of cause whatsoever, touching the said premises, to the day of the 
date hereof, shall cease and be no further prosecuted; and that each of said 
parties shall pay and bear their own costs and charges in any wise relating to 
or concerning the premises. 
Secondly, we do award, adjudge, and determine, that there is justly due from 
the said Johannes Orlandos and Andreas Luriottis, to the said William Bay- 
ard, William Bayard, Junior, and Robert Bayard, the sum of seventy-five 
thousand nine hundred and thirty-three dollars and eighty-one cents. 
Thirdly, we do award, adjudge, and determine, that there is justly due from 
the said Johannes Orlandos and Andreas Luriottis, to the said Gardiner G. 41 
Howland and Samuel S. Howland, the sum of eighty thousand nine hundred 
aud twenty-two dollars and fifty-two cents. 
Fourthly, we do a. ard, adjudge, and determine, that from the avails of the 
Said ship or ships, and their tackle, apparel, furniture, and equipments, and 
other property contained in said assignments, or such part thereof as shall be 
6old by us, pursuant to the terms of the said submission, there shall be first de- 
ducted the sum of four thousand five hundred dollars, for our own costs and 
charges for our services, as arbitrators in the premises, to be equally divided 
between us; next, there shall be deducted from said avails, all incidental ex- 
penses of keeping, guarding, preserving, and insuring the said ships and other 
property, and all other incidental expenses relating thereto, until the sale or 
delivery thereof; and of the residue of said avails, the aforesaid balances due 
to the said houses of Le Roy, Bayard Co., and G. G. k S. Howland, respect- 
ively, shall be paid ; aud if from any cause, the surplus avails of said ships and 
property, so to be sold, shall not be adequate to the payment of said balances 
in full, then the said houses shall be entitled to pro rata shares of said surplus. 
Fifthly, we do award, order, adjudge, and determine, that after paying and 
satisfying the aforesaid costs, charges, expenses, and balances, such part of 
said ships and property as shall remain unsold, together with any balance of 
money in our hands, (if any,) shall be delivered to the said Johannes Orlandos 
and Andreas Luriottis, or their agent, as their absolute property, free from all 
claims whatsoever on the part of the said houses of Le Roy, Bayard k Co., and 
G. G. k S Howland, or either of them. 
Sixthly, we do award and order, that upon payment of said balances so as 
aforesaid ascertained to be due to the said houses of Le Roy, Bayard & Co., 
and G. G. Sc. S. Howland, respectively, the said houses shall jointly and se- 
verally enter into a written engagement to save harmless, and indemnify the 
said Johannes Orlandos and Andreas Luriottis, and their heirs, executors, and 
administrators, of, from and against all claims and demands, for services ren- 
dered, or materials furnished, towards the building or equipment of the said 
ships, or the keeping, guarding, or preserving the same, up to the date hereof; 
and against all and every lien or liens on said ships, or either of them, for such 
services or materials. 
Seventhly, we do award, order, adjudge, and determine, that upon the pay- 
ment of the aforesaid balances so ascertained to be due to the said houses 
respectively, the said parties shall mutually execute releases to each other of 
all causes of action, claims and demands, in law or equity, touching or con- 
cerning the premises aforesaid, from the beginning of the world until the said 
twenty-third day of June last. 
Eighthly, we do award, order, adjudge, and determine, that if from any 
cause or accident whatever, the fund now provided shall prove inadequate to 
the payment and indemnity of the said sum of four thousand five hundred dol- 
lars, due to us as arbitrators, together with such contingent expenses as we may 
hereafter be liable for in keeping, guarding, preserving, insuring, or other ne- 
cessary charges in relation to said ships md other property now held by us in 
trust; then and in such case, the said parties shall be jointly and severally 
bound to pay and indemnify us to the extent of the said sum last mentioned, 
together w'ith said contingent charges and expenses, with interest thereon. 
In witness whereof, we ha ve hereunto subscribed our names and affixed our 
seals, at the city of New’-Ynrk, the twenty-seventh day of July, in the year of 
our Lord one thousand eight hundred and twenty-six. 
Jonas Platt, (L. S.) 
Henrt C. De Rham, (L. S.) 
Abraham Ogden, (L. S.) 
When the award was read to the parties that evening, the 
persons present were, Mr. Contostavlos, Messrs. Henry P. 42 
and R. Sedgwick, Mr. Samuel S. Howland, 
for Le Roy, Bayard, and Company, and all the arbitrators. 
The arbitrators then stated to the parties, that the time 
had expired, within which they (the parties) had reserved to 
themselves the right of selling one of the ships, according to 
the submission; and that the duty of selling had devolved on 
the arbitrators, as trustees: and they inquired of Mr. Contos- 
tavlos, whether the United States were willing to purchase 
one of the ships on terms satisfactory to him ? To which his 
counsel, Mr. Robert Sedgwick, answered in the affirmative ; 
and said, the arbitrators need take no steps towards a sale, 
for the money would be here ready on the part of the govern- 
ment to purchase and pay for the Liberator, within four or 
five days, or as soon as they could write to Washington and ob- 
tain an answer. Until this explanation, the arbitrators were 
ignorant of the state of the negotiations for that object at 
Washington. 
Messrs. Sedgwick then applied to the a rbitrators for a re- 
delivery of all the papers, accounts, and correspondence, 
which had been submitted by them on the hearing : and pre- 
suming that all parties assented to the award, the arbitrators, 
without reserve, and without note or memorandum, distri- 
buted the large mass of books and papers relating to the con- 
troversy, to the respective parties as claimed by them, with- 
out nice discrimination or inquiry w ho had furnished them. 
Several of those papers and documents have since been sought 
for in vain. The persons then present dispersed, leaving J. 
Platt, and his son, Z. Platt, in the office. In a few minutes 
afterwards, Henry D. Sedgwick, Esq. returned to the office, 
aud stated to J. Platt that he came to inform him that since 
the interview at the reading of the award, Mr. Contostavlos 
had altered his views, and he did not believe that he would 
abide by the award ; and he had thought it his duty to give 
that early intimation of it. To which no reply was made; 
and Mr. Sedgwick retired. 
The following correspondence ensued. 43 
Mr. Contostavlos thinks it an imperious duty to request the arbitrators that 
he be furnished with the reasons at length of the decision which has been pro- 
nounced. Mr. Contostavlos has uniformly expressed this wish as well to his 
counsel as through them to the arbitrators; and the result of the arbitration 
has rendered it more important than ever. In the responsible situation in 
which Mr. C. is placed, it is hoped that this request will be complied with, even 
at sume inconvenience; and the controversy being in the nature of a suit in 
equity, the party, whose interest is so seriously affected by the decree, thinks 
himself entitled to know the reasons. 
Mr. Contostavlos and his counsel are also desirous to be informed whether 
the claim made in behalf of the deputies for the reimbursement of the whole 
of the monies advanced, on the ground that they had been expended in an ille- 
gal transaction, contrary to the instructions of the deputies, was rejected by 
the arbitrators as not comprehended in the power of Mr. Contostavlos, or the 
terms of the submission. 
For Mr. Contostavlos. 
J. Duer. 
H. D. Sedgwick. 
July 28, 182&T R. Sedgwick. 
To Judge Platt, for the Arbitrators. 
Mew- York, 28th July, 1826. 
To John Duer, Henry D. Sedgwick, Robert Sedgwick, Esquires. 
Gentlemen, 
Your letter of this morning, requesting us to furnish Mr. Contostavlos <l with 
the reasons at length of the decision which has been pronounced,” has been 
received; and we regret that our indispensable engagements, as well as our 
sense of duty and propriety, forbid a compliance with your request at this 
time. 
With great respect, Gentlemen, 
Your obedient servants, 
Jonas Platt. 
Henry C. De Rham. 
Abraham Ogden. 
Jonas Platt, Esq. Mrm. Ogden, Esq. H. C. De Rham, Esq. 
Gentlemen, 
We have to acknowledge the receipt of your note of this morning, declining 
a compliance with the request of Mr. Contostavlos “ at this time.” 
We take the liberty to inquire whether we may expect this at any future pe- 
riod, and if so, at what period. 
We beg leave to call your attention again to the last paragraph of our note, 
respecting which you are silent, and to which we consider ourselves entitled to 
an explicit answer. 
We are, Gentlemen, 
Very respectfully, 
Your obedient servants, 
John Dour. 
H. D. Sedgwick, 
July 29, 1326. R. Sedgwick. 
_ Kew-York, 29th July, 1326. 
T.o John Duer, Henry D. Sedgwick, Robert Sedgwick, Esquires. 
Gentlemen, 
T.out note °f this day is received ; and under the circumstances of the case. 
- e feel constrained by what we deem a correct sense of propriety, to decline 44 
giving the reasons of our award on any point, in the manner insisted on uy 
you, on behalf of Mr. Contostavlos ; until the irritations of the occasion have 
ceased, and until such reasons or explanations can no longer minister to liti- 
gation ; which it was the object of the submission to avoid. 
Both parties express dissatisfaction at the award; and we think it improper 
now to give statements to either, unless upon their joint application or consent. 
Whenever the award shall be carried into effect, we shall not decline to give 
our reasons, and especially to Mr. Contostavlos. 
Permit us to inquire whether Mr. Contostavlos has taken any measures 
since the award, towards completing the negotiations at Washington for the 
sale of one of the ships l 
Very respectfully, Gentlemen, 
Your obedient servants, 
Jonas Platt. 
Hbnky C. De Rham. 
Abraham Ogden. 
Ncw-York, 31st July, 1826. 
To Jonas Platt, Henry C. De Rham, and Abraham Ogden, Esquires. 
Gentlemen, 
Your note, dated 29th inst. was received this day. Our first note to you con- 
tained the following passage:—“ Mr. Contostavlos and his counsel, are de- 
sirous to be informed, whether the claim made in behalf of the Deputies for the 
reimbursement of the whole of the moneys advanced, on the ground that they 
had been expended in an illegal transaction, contrary to the instructions of the 
Deputies, was rejected by the arbitrators as not comprehended in the powers 
of Mr. Contostavlos, or the terms of the submission.” 
In consequence of receiving no answer to this in your first note, we called 
your attention to it in our second note, and lequested an explicit answer. We 
regret, that even in your last letter, the desired information is withheld; Rnd 
we again, in the most respectful, but urgent manner, renew our request for an 
explicit answer. 
In reply to the last paragraph in your letter, we can only state, that until 
we receive the information requested, we cannot advise Mi. Contostavlos to 
do any act which may be construed into an affirmance of the award. 
In the mean time, we are instructed by Mr. Contostavlos to state, that he 
cannot consider you as authorized to make any sale or transfer of the pro- 
perty. 
We are, with great respect, 
Your obedient servants, 
John Duer. 
H. D. Sedgwick. 
R. Sedgwick. 
JVew-York, 3J st July, 1826. 
To John Duer, Henry D. Sedgwick, Robert Sedgwick, Esquires. 
Gentlemen, 
Your note of this morning is before us, and we regret to be under the ne- 
cessity of saying, that for the reasons adverted to in our letter of Saturday, 
we must decline answering the interrogatory stated in your last note, until our 
reasons and statements can no longer subserve the purposes of litigation. 
Very respectfully, 
Your obedient servants, 
Jonas Platt. 
H. C. De Rham. 
\braha.m Ogden. 45 
JYew-York, 1st August, 1826. 
Gentlemen, 
We perform a painful but imperious duty in behalf of Mr. Contostavlos 
and his unfortunate country, in apprizing you, that upon full deliberation we 
consider your award as invalid and nugatory, on several distinct grounds. 
As we have not received the reasons of the award, we do not feel ourselves 
bound to state our reasons for considering it void. It follows, of course, that 
we cannot recognise your power to dispose of the vessels, or either of them. 
We are preparing a bill in equity to obtain an injunction ; and in the mean 
time we are directed by Mr. Contostavlos to piohibityou from making any dis- 
position or transfer of the property. 
IVe are, iviih the highest respect, 
Your obedient servants, 
H. D. Sedgwick. 
R. Sedgwick. 
To Messrs Platt, De Rham, and Ogden. 
P. S. Mr. Duer has seen and app.oved the draft of this letter, but has just 
left town. 
August 2d, 1826. 
Gentlemen, 
Upon examining the provisions of the submission made to you as arbitrators 
in the controversy between Johannes Orlandos and Andreas Luriottis of the 
one part, and the commercial houses of Le Roy, Bayard & l o. and G. G. & 
S. Howland of the other part, it will be found that the vessels, in relation to 
which the controversy between those paities arose, weie conveyed to you in 
trust, to sell and convey one of them to any person or persons, and at any 
time that might he named by the paities, provided such sale was made within 
thirty days fiom the date of the said submission; and if no such sale took 
place with the consent of the partie- within the time aforesaid, then in trust, 
for you or any two of you to sell or mortgage the said ships or eithei of them, 
within ten days after the expiration of the said thirty days ; and out of the 
proceeds of the said sale or mortgage, after deducting your costs and charges 
as arbitrators, to pay to the said Le Roy, Bayard Az Co. and G. G. Az S. How- 
land, the amount of such sums as may be awarded to them respectively by 
you. 
The thirty days within which the parties had the power, by mutual consent, 
to make a sale of one of the said ships, having expired, and the ten days there- 
after being also about expiring, as counsel for Messrs. Le Roy, Bayard Az Co. 
and G. G. Al S. Howland, we call upon you to mortgage or sell one or both of 
the said vessels, for the purposes mentioned in the said submission. As the 
time left of the said ten days is so extremely shoit, you are, of course, at li- 
berty to take a longer period to make the said sale or mortgage, provided you 
think it proper to do so, in order to avoid a sacrifice of the property ; but wo 
shall expect the sale to be made within twenty days from this time. 
We are, Gentlemen, with great respects 
Your humble servants, 
Thomas Addis Emmet. 
David B. Ogdew. 
to Jonas Platt, Henry C. De Rham, Abraham Ogden, Esquires. 
To J. Duer, H. D. Sedgwick, and R. Sedgwick, Esquires. 
Gentlemen, 
New- York, 3d August, 1826. 
We have received your letter of 1st inst., and upon reflection, we consider it 
to be our duty to proceed to sell the ships Liberator and Hope, with their an- 46 
purtenances, and the extra property assigned to us, according to the terms oi 
the submission and the assignments. 
With gi eat respect, Gentlemen, 
Your obedient servants, 
Jonas Platt, 
H. C. De Rham, 
Abraham Ogdew. 
On the 3d of August, we prepared our advertisement for 
the sale of the ship or ships, &c., as the case might require; 
appointing the 19th of August for the auction: and on the 
same day (3d August) a bill was filed on behalf of the Greek 
deputies, in the equity court of 1st circuit, and an injunction 
granted by his Honour Judge Edwards, staying the sale of the 
frigates. This was an ex parte proceeding, without previous 
notice to the houses or the arbitrators of such application for an 
injunction. The bill was sworn to by Mr. Contoslavlos : and 
the principal facts and grounds stated in the bill are, that the 
proceedings and expenditures of the houses in building, aim- 
ing, and equipping these ships for the belligerent service of 
Greece, while the Ottoman empire was at peace with the 
United States, was an express violation of the laws of our 
country, and contrary to the law of nations; that the pro- 
ceeding was unauthorized and forbidden by the instructions of 
the Greek deputies ; and that the award was made partly upon 
matters not included in the submission, and which arose 
after the date of the submission. 
This, it will be perceived, was notice of record, and upon 
oath, that the ships and their armament were liable to 
seizure and forfeiture; and was a flagrant provocation to the 
officers of government to enforce the law; and an open, un- 
disguised temptation to the cupidity of common informers; 
who, by law, would be entitled to one half the value of the 
ships, &c. 
Under these circumstances, the houses were induced to 
make the sacrifice of $12,000 each, in order to secure the 
residue of their demands under the award. 
Tn all the negotiations, however, for a compromise between 47 
the parties ; the arbitrators maintained a passive neutrality• 
In consequence of that arrangement, the arbitrators proceeded 
to sell the ship Liberator to the United States, including her 
armament and equipments, for the sum of $233,570 T9a\, 
pursuant to an arrangement previously made by the parties; 
and on the 30th day of August last, we assigned the ship Hope 
to agents, designated by Mr. Contostavlos, for the Greeks; 
with all the residue of the armaments and equipments (of 
which there was a large surplus over and above the compli- 
ment for that ship); and on the same day, we went on board 
the ship, and made a formal and complete delivery of her to 
the agent for the-G reeks. 
The following account shows the receipts and payments 
made by us as trustees. 
Dr. Arbitrators in Account with Trust Fund. Cr. 
1826. _ 1826- 
Aug. 23. Cash received of J. K. Aug 24. By Cash paid G. G. & S. 
Paulding, Esq., Navy Howland, - $20,000 00 
Agent, upon sale by them “ “ L.0 Roy, Bayard 
of Ship liberator, to the & Co. - - 20,000 00 
United States, - - ,4200,000 00 “ “ Greek Deputies, 20.000 00 
Sept. 9. Cash drawn from Navy “ “ Arbitrators, - 4,500 00 
Agent of United States, 30. “ G. G- & S. How- 
by a Draft in favour of land, - - 48,922 52 
Greek Deputies, - - 33,570 97 “ “ Le Roy, Bayard 
& Co. - - 39,392 48 
•* “ Griffin & Strong, 
Esqr’s. fees for 
defending suit in 
• Equity against 
Arbitrators, 69 74 
Sept. 9. '* wharfage ofShip 
Hope, - - 190 13 
“ “ wharfage of Ship 
Liberator, and 
custom house 
fees, - - - 118 22 
“ “ Capt. Chauncey’s 
account for him- 
self and men, 
from 27th July, 
to 30th August, 698 60 
“ “ Greek Deputies, 46,108 31 
“ Order on Navy Agent, in 
favour of Greek Deputies, 33,570 97 
$233,570 97 1233,570 97 
On our final settlement with Mr. Contostavlos, we asked of 
him the following guaranty, which he admitted to be reason- 
able. and gave without reluctance. It imposed no hardship 48 
or risk on Henry D. Sedgwick, Esq., who succeeded us as 
trustee of the ship Hope ; and who consequently held security 
for his indemnity. 
September 9tk} 1826. 
In the matter of the arbitration between Johannes 
Orlandos and Andreas Luiiottis, of the one part, I 
and Le Roy, Bayard &£ Company and G. G- I 
S. Howland, ol the other, pait. 
The arbitrators being now about to pay over to Alexander Contostavlos, 
Esquire, Agent of the Greek Deputies, the final balance of money accruing un- 
der their award ; it is understood and believed, thai ail claims in law or equity 
against the said arbitrators, as trustees of the ships Hope and Liberator, with 
their equipments, and naval stores, and armaments, appurtenant thereto, for 
keeping, guarding, insuring, storage, wharfage, or other incidental charges, 
arising out of the execution of their trust, since the said ships were assigned to 
said arbitrators, have been all presented aud paid. But, inasmuch as some 
such contingent claims may still exist, we, the subscribers, jointly and severally 
engage to indemnify and save harmless, the said arbitrators, from all claims in 
law or equity, which shall arise or be discovered within three weeks from this 
date, for or on account of the incidental expenses aforesaid, it being understood 
that this guaranty is not to extend to any claims for labour, materials, costs, 
or charges, for building and equipping said ships, or for the cost of the arma- 
ments, equipments, and naval stores, nor for any charges whatever in relation 
to said ships and other property, which accrued previous to the assignment 
thereof to said arbitrators ; nor to any charges for which the said Le Roy, 
Bayard & Co., or said G. G. & S. Howland have been allowed by said arbi- 
trators. 
J. ORLANDAS and A. LURIOTTIS. 
By their Attorney, A. Contostavlos. 
H. D. SEDGWICK. 
Signed in presence of 
DAVID D. FIELD. 
We have the satisfaction to state, that no su' sequent claim 
has been made against us ; and Mr. Sedgwick is exonerated. 
We rejoice that the gallant ship “ Hellas” has at last sailed, 
according to her original destination ; and we cherish the fond 
hope, that she will be a minister of vengeance to the oppres- 
sors of the heroic Greeks. 
One subject of complaint is, that the arbitrators obstinately 
and perversely refused to remove Captain Chauncey from the 
charge and superintendance of the ships, although such re- 
moval was urgently and repeatedly made by Mr. Contostavlos 
and his counsel. 
On this point, we have already shown, that when we as- 
sumed the trust, we inquired of the parties and their counsel 49 
(the same counsel), whether they were satisfied with the 
duct and fidelity of Captain Chauncey in that office ; and they 
informed us that there was no objection. Immediately after 
reading and explaining the award, on the evening of the 27th 
July, at J. Platt’s office, Mr. Contostavlos and his counsel 
(Messrs. Sedgwick) stated, that the charge by Captain Chaun- 
cey of $10 per day was so exorbitant that they wished him 
removed, and that a substitute should be appointed. To 
which the arbitrators answered, that they thought it alto- 
gether inexpedient, because they had just been informed by 
Mr. Co.itostavlos and his counsel, that the sale of the Libera- 
tor would be completed in a few days, and then the award 
would be immediately carried into eliect; that it would create 
great additional labour and expense, because no prudent man 
would undertake such a charge for a few days, or without 
testing the accuracy of the inventory, which would require 
more time than would elapse before the award was to be car- 
ried into execution. Mr. Contostavlos and his counsel, how- 
ever, could perceive no force in these objections, and still urged 
such removal. A similar request was several times repeated 
by them, after they had intimated a determination to contest 
the award. There were other reasons, also, which induced 
us to refuse a compliance. We had seen no evidence of a 
want of fidelity in Captain Chauncey ; and we thought it pru- 
dent to avoid the irritation which such a harsh measure would 
excite. We thought his public and official character served to 
mask the trust property, and to shield it against common in- 
formers. “ Quieta non movere,” seemed to us a maxim suited 
to the case. Besides, we had the personal responsibility of 
Captain Chauncey, accurately defined, by the inventory 
which he had furnished to us; and we could not make a proper 
substitution without much time and expense. In taking the 
inventory of one of the ships only, with her appurtenances, 
on our subsequent sale to the United States, about ten days 
were faithfully occupied under the direction of Commodore 50 
Isaac Chauncey, which was necessary to consummate that 
sale and transfer, by the arbitrators. 
Our remaining duty is, to assign some reasons for oup 
award. 
On the cardinal point relied on by the counsel for the de- 
puties, their right to rescind the contract, and recover back 
all the money paid under it, with interest, on the ground that 
the expenditures were unauthorized by the deputies ; we are of 
opinion, that such a right did not exist at the time of the 
award. 
First. Because we think it very questionable whether the 
mere existence of the act of congress referred to, is within the 
spirit and intention of the prohibitory clause in those instruc- 
tions. The article relied on is in these words : “ Before any 
“ arrangement is made for executing these orders by purchasing 
“ or building the frigates, the two houses to whom General Lal- 
“ lemand is referred, must ascertain, in the most unequivocal 
C{ manner, that their government will permit the sailing of the 
“ frigates, and the enrolling of the men ; and that this opeta- 
11 tion, so important to the welfare of Greece, will meet no op- 
“ position from the government, or the laws of the United 
<c States.” 
By the law of nations, which the deputies were bound to 
know, it was unlawful for our government to “ permit the 
sailing of the frigates, and the enrolment of the men,” for 
intended hostility against the Turkish government, being at 
peace with us. ' The obligation on our government to enforce 
that general law, was as positive, as the duty of executing the 
act of congress. The same duty of neutrality was imposed 
on every nation in the world. Yet the Greeks determined to 
build frigates in foreign countries. If they could not do it in 
the United States, where did they expect to do it? We think 
it not a forced construction, to infer, from the language and 
spirit of that article ; that the deputies meant, that the agents 
here should ascertain unequivocally, that our government 
would refrain from any exertion of authority, and secretly 
favour the enterprise. Whether the agents did unequivocally 51 
ascertain this disposition in the government / whether the 
“ operation has met no opposition from the government or 
laws of the United States ?” and whether the “ Hellas'1' 
has been “ permitted to sail, and to enrol her men ?” are de- 
licate questions ; and we deem it unnecessary to discuss or 
weigh the evidence on those points. The duty of these 
houses, aud General Lallemand, in relation to our government, 
required great circumspection, fidelity, and address. How 
far the duty has been successfully performed, the public will 
now judge. 
Secondly. We are decidedly of opinion, that if such right 
to rescind the contract, ever existed ; it was waved by the 
silent acquiescence in a series of acts done under the con- 
tract, ever since the receipt by the deputies of the letter of 
the houses of 15th of February, 1326, and the letter of Gene- 
ral Lallemand of 16th of same month, expressly informing 
them, that the ships were liable to seizure, as having been 
built in violation of law. Whenever the deputies acquired 
this information, they were bound to elect, either to rescind 
or affirm, the contract; and to give notice of such election in 
case of rescinding. They had a right to take a reasonable 
time to ascertain the truth of that information, and to take 
counsel on the subject; and for that, and other purposes, Mr. 
Contostavlos was sent to this country. He arrived in April 
last, and immediately consulted counsel; and no intimation 
to rescind the contract was ever given by him; although he 
knew that the houses were then at work in finishing the ships, 
and doing other acts in reference to that contract. The first 
intimation of any intention to rescind the contract, was made 
by Robert Sedgwick, Esq. when he took that ground, as coun- 
sel, in openin ; the defence of the deputies, on the 12th day of 
July last. On the 6th of July, the counsel for the deputies 
expressly and distinctly admitted to the arbitrators, and to the 
opposite counsel, that the deputies were liable for the fair ac- 
tual cost of the ships, upon proof and vouchers ; and that 
their objection was to the commissions on those expenditures: 52 
and the examination afterwards proceeded for six days, on 
that basis. By this admission, the counsel for the deputies, 
in the most deliberate form, elected for their clients to affirm 
the contract; and an election once made, is irrevocable and 
conclusive. Tney had no right to vascillate, and speculate 
upon the evidence as it was gradually unfolded ; and thereby 
hold the opposite party in suspense. If that objection was 
ever waved for a moment, it could never be revived. 
Thirdly. We are of opinion, that the true construction of 
the submission implies a ratification of the contract, (if that 
were necessary.) and the parties mutually agree to liquidate 
their claims arising under it, upon the principle and assump- 
tion, that it was a valid and subsisting agreement. As arbi- 
trators, therefore, we had no right to assume any other ground, 
and we should have exceeded our commission if we had 
done so. 
On the important point of commissions for building, arm- 
ing, and equipping the ships, it was proved, that in all the con- 
tracts for labour, services, and materials, the two houses 
contracted jointly and severally, so that each house was re- 
sponsible, in all contracts, for the expenses of both ships. 
The evidence shows, that the ordinary commissions for build- 
ing and repairing ships vary from two and a half to five per 
cent, with two and a half per cent, in addition, on drawing 
hills for reimbursement; and the general rule, according 
to mercantile usage, is, not to exceed the above rate of 
charges, unless by express stipulation. 
We are of opinion, that the usage thus proved, does not go- 
vern this case ; because the agency of these houses was not 
within the ordinary range of commercial transactions, to 
which that usage applies. Here was a special confidence of 
a political as well as commercial character. The houses with 
General Lallemand, were, in fact, diplomatic agents, in a very 
difficult and delicate affair with our government; whether 
that part of their agency has been discreetly and successfully 
accomplished; and whether they have procured the favour of 53 
the government in the manner contemplated in their instruc- 
tions, is a point on which we express no opinion. 
So far as the houses had not money in hand, or confirmed 
credits, this agency was attended with peculiar risk, with refe- 
rence to the credit of the Greek funds, which were extremely 
precarious, dependent on the fortunes of war, as well as the 
faith of a government yet struggling for existence. As the 
Greek deputies profess to act in a public character, and 
a copy of their commission under the Greek government 
forms part of the instructions to these houses, it is very clear 
that the deputies were not personally liable under the con- 
tract. The real parties were the government of Greece, 
and these houses. 
We are of opinion, that the transaction was illegal as 
against the law of nations. If the government authorized, or 
assented to it, the offence was national; if the government did 
not permit it, then it was an individual transgression, which 
the government had a right to arrest and defeat. We are 
also decidedly of opinion, that this enterprise was within the 
purview, and subject to the penalties, of the third section of 
the act of congress of 20th of April, 1818. 
The ships and materials were liable to seizure and condem- 
nation under that act: and therefore the agents had no secure 
lien, as in ordinary commercial agencies, in building ships, 
&c. In reality the houses had no security, which could be 
enforced; except so far only, as they had money in hand, or 
confirmed credits: and as soon as the monies were vested in 
the ships, or materials, or armaments, the whole was liable 
to forfeiture. Besides, every intelligent man knows, that of 
all chatties, a large ship of war, is of least value as security, 
in proportion to its cost. 
We are also of opinion, that the commercial usage re- 
quiring an express stipulation, where more than ordinary 
commissions are chargeable, does not apply to this case ; 
because the distance between the contracting parties, and 54 
the indispensable expedition required, did not reasonably ad- 
mit of’ a previous stipulation in regard to the rate of com- 
missions. It would have occasioned a delay, utterly ruinous 
to the object and design of the' deputies. What could have 
been more affrontful to the deputies, or more injurious to the 
cause of Greece, than a letter from the houses, saying, “ we 
cannot commence operations till the rate of our commissions 
is settler) by special agreement.” It is to be remembered, 
that General Lallemand came addressed to the three houses 
exclusively, and if they declined, he could make no contract 
with others, without new powers. 
We are also of opinion, that the preliminary conversation, 
wherein Mr. Bayard stated to General Lallemand that his 
house should charge ten per cent, commissions, and that they 
would not divide commissions with G. G. S. Howland; 
with the uniform silence and acquiescence of General Lalle- 
mand, are evidence in law, of an agreement to that rate of 
commissions so far as General Lallemand was authorized 
to contract for the deputies in that particular. And here 
arises the question, whether General Lallemand had power 
to bind his principals by acceding to the terms proposed by 
Mr. Bayard ? We are of opinion, that he had such power in 
this case, and in relation to these houses : on the ground, that 
the general authority of contracting for commissions, was 
incidental to, and included in, the powers conferred on the 
joint agents, General Lallemand and the two houses. There 
can be no doubt that they jointly could have made a valid 
contract with any other person, for the rate of commissions, 
as well as for any other necessary charge in building the 
ships. General Lallemand was not merely a joint agent 
with the houses : he alone had a negative on all the mem- 
bers of the two houses ; and they collectively had a negative 
on him. Le Roy, Bayard &z Co. had offered to build these 
ships ; and were in treaty with the deputies for that purpose 55 
before General Lallemand was sent to the United States ; 
and in the event that the agents could not purchase frigates 
of our government, it is apparent that the deputies contem- 
plated, what has happened ; viz. that the houses would con- 
tract to build them. With this reasonable expectation. Ge- 
neral Lallemand was sent here to represent the deputies, 
with power to check and oontroul the houses, who are res- 
tricted from doing any act without Ins consent and approba- 
tion ; and there is no express power or instructions in regard 
to commissions. We think, by fair implication, General 
Lallemand was clothed with power to stipulate wi h these 
houses on that point. Because the main object of building 
and equipping the frigates, as soon as possible, by the per- 
sons, and in the manner contemplated by the deputies, could 
not have been carried into effect without such a power. A 
general power to accomplish an object, includes all the 
means ordinarily necessary to that end. 
General Lallemand testifies, that he did not suppose him- 
self authorized to contract for commissions; and that he 
thought it would be a subject of ulterior arrangement. By 
whom ? He explains 4‘ by the committee,” consisting of him- 
self and the two houses, with Captain Chauncey. This 
shows, that he judged that the Committee had power to fix 
the rate of commissions : and if the committee could do it, 
certainly General Lallemand and the two houses could do it, 
without Captain Chauncey, their own agent. But General 
Lallemand never gave any such explanation to the houses. 
The only answer made by him to Mr. Bayard was, “ are 
those your definitive terms? ” To which Air. Bayard answered, 
“ they areand nothing more was said. They proceeded in 
the execution of the contract; and the subject was never af- 
terwards mentioned, till this controversy arose. Mo silent 
thoughts or opinions of General Lallemand, could affect the 
legal rights of the houses : and in judgment of law they had 56 
a right to consider the contract proposed by them, as assent- 
ed to by General Lallemand ; inasmuch as he made no ob- 
jection to the terms ; stated no reason for his silence on that 
point; and induced the houses to proceed in executing the 
contract. This was a case wheie silence was as expressive 
as any thing he could have said. There is no ground to sus- 
pect, for a moment, that General Lallemand meant to deceive: 
he evidently was not aware of the legal effect of his silent re- 
serve : and if he now intends to be understood as saying 
that he had no power to stipulate for commissions in this case, 
we think he errs in judgment, on that point of law. 
General Lallemand has also been calumniated: and we 
deem it our duty to him, and to the much abused public, to 
state, that in the course of our investigations, we have ne- 
cessarily had occasion to examine and scrutinize his conduct, 
in relation to these frigates, and the controversy submitted to 
us ; and the result has produced entire conviction in our minds, 
that he is a man of distinguished talent, and accomplish- 
ments, of firm integrity, perfect truth, and the most delicate 
and refined honour. He has been the constant, faithful guar- 
dian of the interest of his principals ; and his character af- 
fords strong assurance to the public, that no deception, fraud, 
or foul speculation, has been practised by these houses. 
If there was no special agreement, nor any commercial 
usage to govern this case; the houses are entitled to reason- 
able commissions, having regard to all circumstances. And 
measuring by this rule; we are of opinion, that the sum 
charged, viz. five per cent, for each house on both ships, or 
ten per cent, to each house on the ship under its immediate 
charge, is not unreasonable. We are persuaded that no pru- 
dent and intelligent man who had a fortune to hazard, would 
have undertaken it for less; and we think the testimony of 
the witnesses on this point, warrants the same conclusion. 
The example in building ships for the government of Colum- 57 
bia, is in point; and that would authorize a much heavier 
charge. 
Whether we allowed five per cent, to each house, upon the 
expenditures for both ships ; or ten per cent, to each house, 
for the particular ship under its more immediate charge, 
would of course be the same thing in amount to the Greeks 
The reason why we preferred to state the allowance at the rate 
of ten per cent, to each house, upon one ship only, was, that 
it was more equal as between the houses that each should re- 
ceive the commissions on its own disbursements, which were 
unequal in amount. 
We saw no foundation for the argument, strenuously urged 
at the hearing, that the compensation to captain Chauni ey; 
and the master ship-carpenters, should be deducted from the 
commissions. The question is, whether they were the suita- 
ble and necessary agents for such operations? of this we 
can entertain no doubt. It would have been presumptuous 
folly, in the merchants who compose these houses, to at- 
tempt to perform the offices assigned to captain Chauncey 
and the master builders, in constructing ships of war. They 
werp indispensable subordinate agents: and the deputies 
migh£ on the same principle, claim a deduction for wages 
paid to any of the workmen engaged in constructing the 
ships. Besides, it is important to remark, that by the in- 
structions of the deputies, it was wisely enjoined as follows: 
“ General Lallemand will ascertain that the contracts are 
“ for frigates of the first class ; and that none other than the 
“ best materials be employed ; and that in the building, rig- 
u ging, equipping and arming the same, the same rules shall 
“ be followed as are laid down by the admiralty of the 
c United States, for government frigates:” and it is 
that our government uniformly assigns a naval officer of first 
rank, to superintend and inspect the building of such ships ; 
and employs a master carpenter, to oversee and direct 58 
the workmen. We therefore think it is clear, that if' the 
two houses had omitted to employ such a naval officer, or 
other person of equal skill and experience, it would have 
been a gross abuse of discretion, and a violation of their in- 
structions. 
In regard to the amount of compensation to Captain Chaun- 
cey, the contract was to pay him $10,000 for his skill and ta- 
lent ; for his sacrifice in retiring from the public service; and 
losing all pay and emoluments as a captain in the navy ; and 
for the complete devotion of his time and services to this en- 
terprise, which was calculated to endure till the 1st of March, 
1826. The same terms were offered to, and refused by an 
other captain in our navy. There is no evidence, nor was 
there any attempt to show that such services, by an officer of 
equal rank, could have been obtained for a less price. And it 
stands proved and admitted, that he has ably and faithfully 
performed his contract. We considered the $10,000 as the 
stipulated reward for his services, Sic., until the period when 
the ships ought to have been ready for sea, and would have 
sailed, if the funds had not failed, and there had been no inter- 
ruption occasioned by the Deputies : and upon the evidence, 
we fixed that period at the 1st of March last. From that 
period down to the delivery of the Hope to the Deputies, we 
allowed him ten dollars per day. 
In regard to the charge of $25,000 paid to Christian Bergh 
Si Co., and a like charge of $25,000 paid to Smith Demon ; 
the price was paid for their skill and personal services; for 
the immediate and exclusive devotion of their extensive ship- 
yards and workshops, tools, Sic.; and for engaging to forego 
all other contracts and employment, till those ships were built. 
The evidence is, that they are men of first character in their 
line of business; that they refused to build by contract for a 
gross sum ; that they have faithfully, and with unexampled 
despatch, fully performed their contract; that they have rather 59 
lost than gained by their contract; and there is no evidence, 
nor any attempt to prove, that any other ship-builders could 
have been procured to do the same for a less price. 
In regard to the interest account, we found some difficulty 
in establishing a correct rule as to dates; because it was not 
easy to determine the precise periods when the Houses had a 
right to draw their bills. Their engagements here were posi- 
tive and persona!; and as far as they had not cash in hand, 
or confirmed credits, it was not safe to commit themselves in 
advance, as the work required. We thought they had a right 
to draw in advance to a reasonable extent; that they might 
know the fate of their bills, before the monies were actually 
due to the w orkmen and contractors; and the progress of the 
work could nut be exactly foreseen. We think a liberal con- 
struction should be given to the right of drawing bills, as to 
time. The complaint of the Deputies has been, not that the 
bills were drawn too soon; but that the aggregate amount was 
vnreasonably large. It is also worthy of notice, that Messrs. 
Ricardo request the houses to draw “ as seldom as possible,” 
because “ they did not like to be under many acceptances at 
the same time;” which was an invitation to draw for large 
sums in advance, in order that few bills might be draw n. We 
also think it was justifiable in the Houses to draw in advance, 
for an amount sufficient to indemnify for the whole expense, 
so long before the completion of the ships, that they might 
have time to hear the fate of their bills before the expected 
departure of the ships, ft could not reasonably be expected, 
that they would allow the ships to sail, until they were paid or 
secured. Upon weighing all considerations, and on examin- 
ing the state of the accounts, we adopted the 28th day of 
November, as the common epoch for the calcuation of interest. 
As to the item of shot lost by shipwreck, and uninsured ; we 
understand the general rule to be, that agents or factors are 
not bound to insure, unless directed by their principals to do 60 
i>u. Hut here the principals were remote, and probably igno- 
rant of the fact, that shot were to be transported by sea to 
New-York. We think the rule applicable to this case is, that 
which requires the agent to use 1 he same diligence, and exer- 
cise the like sound discretion, which a prudent and intelligent 
man would ordinarily do in his own business. The proof is, 
that General Lallemand advised the Houses to insure on all 
the shipments from the Potomac ; and on examining six other 
policies, we find that they did insure on all the other naval 
stores, shipped from Georgetown and Alexandria, but not till 
they were apprised of the shipment, and of the name of the 
particular vessel named in the policy; and all the policies 
were written in New-York. In this case, their agent was sent 
to Georgetown, to expedite the shipments; and on the day of 
putting the shot on board the schooner “ Exchange,” he wrote 
by mail, giving information of the shipment, and naming the 
vessel. That letter was never received ; and the first informa- 
tion the Houses had of the shipment, was an account of the 
loss. The question then is, were the Houses guilty of culpable 
negligence, for not insuring the cargo of shot? We thought 
not; and therefore the loss fell on the principals, and not oit 
the agents. 
We here deem it proper to state the fact, that the same 
number of persons, and the same individual men, who were 
employed to keep and guard the ships, at the time the trust 
devolved upon us, were afterwards continued by us in the same 
employment; and the parties assured us, on the 28th June, 
that they desired no change in that respect. We do not 
believe, however, that any unnecessary expense was incurred 
in that particular. 
There was an account for law charges, amounting to $800, 
for drawing contracts ; and, including two counsel fees of fifty 
dollars each. Accordiug to the testimony of George Brincker- 
hotf, Esquire, which we have before stated, we were of opinion 61 
that the lees were not extravagant; and that, situated as the 
Houses were, at the period when they first received notice of 
the protest of their bills, and before any litigation had i om- 
menced, they were authorized, on the score of agency, to take 
advice as to their l ights and duties, in the critical and embar- 
rassing situation in which they were placed. We think it very 
creditable to the sagacity and prudence of the Houses ; that in 
a business involving contracts for nearly $900,000, and of a 
hurried and complicated character, the law charges do not 
exceed $800. 
As to the damages of 20 per cent, claimed by the Houses on 
their protested bills, it appeared that two bills drawn by Le 
Hoy, Bayard k Co., and two bills drawn by G. G. & S. How- 
land, on I. k S. Ricardo, were protested for non-acceptance 
and non-payment, at a time when we think the Houses had a 
right to draw such bills. Those of Le Hoy, Bayard k Co. 
were drawn payable to Baring, Brothers, Co.; and those 
of G. G. & S. Howland were payable to Samuel Williams, who 
appears to be the agent, or banker, for the respective Houses 
who drew the bills. It was stated, but the proof is defective, 
that in confidence that those bills would be duly honoured, the 
Houses drew bills on their respective agents, against the bills 
on Ricardo, and specifically on that fund; and that the latter 
bills were protested in consequence of the protest of the first 
bills; and the drawers made liable for damages. We do not 
feel called on now, to enter at large into the merits of this 
question ; and our limits compel us to dispose of it, by say ing, 
that we deemed ihe charges for damages inadmissible; and 
they were rejected. 
It appeared, on the hearing, that soon after Mr. Contostavlos 
arrived, Messrs. Le Roy, Bayard k Co. rendered to him their 
account, professing, on the face of it, to he imperfect and un- 
certain as to some items. The aggregate amount was 
$396,S5l 66 ; and, the comolete account rendered at the hear- 62 
nig, was adjusted by the arbitrators at $397,569 91 ; contain- 
ing several items not in the first account, and omitting a charge 
of $1000, contained in the first account. Mr. Atterbury was 
called to prove that the insertion of that item, in the first 
account, was an inadvertent mistake made by himself, by 
charging the same sum twice in the first account, which 
explanation was admitted, on the arguments, to be satisfactory. 
As to the claim of Messrs. Howland, for the £7,500 sterling, 
drawn from Ricardo, and deposited in the hands of Williams, 
and which was lost by his failure; it appears by the accounts 
of Williams, that lie placed the avails of those bills to the credit 
of M essrs. Howland, in his general account, and not as a spe- 
cific trust fund. We felt the hardship of this case, but we per- 
ceived no justifiable ground on which we could consider Wil- 
liams as the agent and depositary of the Greek Deputies; and 
therefore we rejected the claim. 
The Houses charged 2| per cent, commission on all their 
bills drawn on the Bankers of the Deputies in London. There 
was no stipulation, or conversation with General Lallemand, 
in regard to that charge ; and it rested upon the usage, and 
special circumstances of the case We do not deem it neces- 
sary to enter into a minute detail of the reasons and discrimi- 
nations on which we came to the conclusion that this claim 
should be reduced to one per cent; and confined to a part of 
the bills only : as will be seen by the abstracts furnished to 
the parties , with our award. It was intended as the smallest 
commission known in commercial usage in such cases ; cover- 
ing all contingent charges of brokerage, agencies, notarial 
expenses, &c. &c. which by accounts rendered on the back of 
some of the protested bills, were very considerable. We felt 
bound by rigid rules of law, to reject the claims for damages 
on the protested bills : but having come to the conclusion, 
with perfect satisfaction to our own minds, that the Houses had 
a right to draw those bills, under the contract ; we also felt 
the hardship to which the Houses had been subjected, by 63 
the violation of the contract on the part of the Deputies; 
in the repeated dishonour of their bills, on the great theatre 
of London, at that crisis of panic and alarm in the commer- 
mercial world:—and it more forcibly reminded us of the 
risks, which form part of the consideration for the commis- 
sion on drawing bills. Upon the whole, we deemed it just and 
equitable, to allow one per cent, on part of the bills drawn ; 
and especially those without confirmed credit. 
It appeared that Le Roy, Bayard & Company furnished of 
their own property, some iron and copper, amounting to 
$49 15.bO, for the use of the ships : (which was the only in- 
stance in which either of the Houses supplied any thing from 
their own stores) ; and it appears that commissions were al- 
lowed on that item, indiscriminately with the other expendi- 
tures, Through hurry and inadvertence, the objection to 
commissions on that item, (which had been hinted merely in 
the argument) escaped our attention. In truth, we never de- 
liberated on the point; if we had done so, we probably should 
have come to the conclusion, that a commission was allowa- 
ble, according to mercantile usage. 
Upon the subject of the expenditures generally, and of 
their very large amount, we lake occasion to say, that it is 
very evident from the retrospect, that the Greek Deputies 
have miscalculated the extent of their funds ; and have con- 
tracted for more ships and steam boats, than they are able to 
pay for; and hence has resulted the sacrifices and delay in 
regard to the Hope and Liberator. We believe it is equally 
true, that the New-York Houses, and General Lailemand, 
have been disappointed in their early sanguine calculations as 
to the expense of these ships. They have, no doubt, cost 
much more than General Lailemand and the Houses antici- 
pated. But there was no evidence, nor any attempt to 
prove, that there had been any waste of labour or materials ; 
or that more had been paid, in any instance, for labour or 
materials, than was necessary : and it is known that the arbi- 
tration was held in this City, which was the theatre of opera- 
tions $ and thereby every facility was afforded to detect false. 64 
charges, frauds, or misconduct. We perceive no evidence of 
deceit, embezzlement, fraud, or breach of trust, in the con- 
duct of these Houses. They were reduced to the necessity 
of building by days’ work, because no builder would con- 
tract for a gross sum, without requiring more time than could 
be aiiowed. And even if the time could have been allowed, 
the price demanded by Mr. Eckford, $‘>75-000, for each ship, 
without armament or stores, was little short of the present 
cost. The Deputies were apprised of the offers of Mr. 
Eckford at the commencement ; and said they were inadmis- 
sible as to time. They were also then informed of the con- 
tracts to build by days’ work, and approved of them. We 
here remark, that the Houses were probably less communica- 
tive, because they knew that General Lallemand was station- 
ed here for the express purpose of guarding the interest of 
the Deputies, and keeping them well advised of the opera- 
tions. Now, every man of sense and experience knows, 
that as soon as the latter plan (by days’ work) was adopted, 
it was utterly impossible to calculate with any degree of pre- 
cision, the final amount. It depended upon contingencies and 
fluctuations, which human sagacity could not foresee. Com- 
modore Isaac Chauncey swears, that in his opinion, the extra 
expense of building these shins, in so short a time, and at 
that particular season, was ‘lo or 30 per cent more than ordi- 
nary.” This opinion is corroborated by the uniform current 
of the testimony : and if that fact be established, it accounts 
for the unexpected extra cost of these ships, in a manner per- 
fectly consistent with the good faith and integrity of these 
Houses. It is unjust to test the fair price of these Frigates 
by a comparison with Goverment-ships. The Government 
has the means of practising more economy; it purchases 
when it chooses, and at the lowest rates : it has its own spa- 
cious yards and work-shops, and tools, and complete assort- 
ments of timber on the spot, already cut to moulds: it chooses 
its own time (during Peace) with reference to the rate of wa- 
ges : it employs its own officers to superintend and inspect 
the work; and the Commissioners of the Navy Department 65 
and the Navy agents ex officio perform the services, for which 
these Houses charge commissions, and those for which Gene- 
ral Lallemand was paid. But if such a comparison be insti- 
tuted, let the expenditures for these frigates be compared 
with the forced operations of our Government, in building 
ships at Sackett’s-Harbour, during the last war. 
Upon the final liquidation made by us, it appears, that the 
expenditures, and commissions allowed to Le Roy, Bayard, 
& Company, including their whole agency, without Interest, 
are $443,486 76 
And the expenditures and commissions allowed to G. G. 
& S. Howland, including their whole agency, without interest, 
are $451,421 86 
Total amount for both ships $894,908 62 
It is here proper to remark, that part of expenses of Gene- 
ral Lallemand’s special mission and agency ; and a great part 
of the heavy expenses of keeping these ships, and stores, in- 
cluding wharfage, insurance, &c. since the 1st. March last, 
(when the ships ought to have sailed) are included in these 
accounts : and there were also included extra armaments and 
equipments, beyond the complement ordinarily required for 
such frigates; consisting of the following articles, according 
to an inventory and estimate furnished to us by Captain 
Chauncey, viz. 
“ All the shot from General Mason’s, viz. 
“ 6800 32 Pound round shot, 217,600 lb. at 5 
cents $10880 00 
“ 6000 42 Pound round shot, 252,000 lb. at 5 
cents 12G00 00 
“ 1920 Stands 32 Ponnd grape, 61,440 lb. at 
6£ cents 3993 60 
“ 1282 Stands 42 Pound grape, 53760 lb. at 
6£ cents 3494 40 
“ Quilting shot, according to the charge in Ge- 
neral Mason’s contract. . . . 1728 00 
u Extra Spars from Norfolk. . . • 1560 44 66 
l< The Sails, rigging and cables were so far 
“ extra, that they were calculated for a 
“ three years’ cruise. 
$34,256 44” 
To which extra charges may be added $4741 18 paid for 
insurance. 
As Arbitrators, we endeavoured to conform to the establish- 
ed rules of law and equity. We considered ourselves bound 
to decide, according to the evidence before us: and we did 
not suppose we had a right to settle the balances of these ac- 
counts, with any reference to the merits of the war between 
the Greeks and the Grand Seignior. We feel, in common 
with our fellow-citizens, a deep interest in the cause ofGreece, 
against her bloody and ferocious tyrants: but we disclaim all 
right to indulge generous sympathies, at the expense of either 
of these parties. 
The power of fixing our own compensation, was a delicate 
trust. We were fully aware of this, when we were urged to 
accept our office; and then frankly apprised the parties, that 
if we became trustees as well as Arbitrators, we should consi- 
der the execution of the trust as a matter of business aside 
from the office of Arbitrators; and should charge a reason- 
able commission accordingly. This was admitted to be just; 
and on that basis we undertook the trust. The subject has 
occupied a very large portion of our time, ever since the 26th 
June last: we have neglected our own business, in order 
that we might devote ourselves to this duty; and we have 
felt with deep and painful anxiety, the momentous conse- 
quences of our award. Our path has been rugged, and 
thorny, and arduous ; and we have met with few cheering 
consolations by the way. 
We thought these parties had no right to cover the ships, 
&c. under our names, and to involve us in the difficult re- 
sponsibilities peculiar to them, without a full compensation. 
We perceived an angry spirit of litigation, during the hearing; 
and had reason to dread a seizure and condemnation of the 67 
whole trust-fund: and by becoming the legal owners, we 
should, in such event, be necessarily made parties. Of course it 
would be our duty to defend those suits and incur personal 
responsibilities for the costs of protracted litigation:—and 
from the date of our award, till the completion of the exe- 
cution of our trust, we were personally liable for the enor- 
mous expenses of keeping, guarding and insuring the ships, 
and naval stores distributed in several store-houses ; which 
current expenses amounted to about $40 per day. And if 
that fund should at last be condemned as forfeited, we should 
have had no means of indemnity. The parties have never 
stipulated to save us harmless against those adverse contin- 
gencies : and, if they had done so, the consequences might 
have been disastrous. Our compensation was to be deter- 
mined, conclusively, by our award; and could not afterwards 
be increased in any event. 
On weighing all considerations of labour, perplexity, and 
risk, we awarded to ourselves fifteen hundred dollars each, 
for our services as Arbitrators, and for our entire compensa- 
tion for the complete execution of our trust. Whether this 
allowance was extravagant, the public will judge. We re- 
mark incidentally, that the respectable Counsel who attend- 
ed the hearing for the two Houses, charged and received fif- 
teen hundred dollars each for their services on that occasion. 
We think those fees were well merited : and we do not per- 
ceive that those Counsel fees have shocked the moral sense of 
the community. 
The 8th article of our award provides, “that if from any 
“ cause or accident whatever, the fund now provided, shall 
“ prove inadequate to the payment and indemnity of the said 
££ sum of $4500 due us as Arbitrators, together with such 
“ contingent expenses as we may hereafter be liable for in 
“ keeping, guarding, preserving, insuring, or other ne- 
“ cessary charges in relation to said ships and other pro- 
“ perty now held by us in trust; then and in such case, the 
;t said parties shall be jointly and severally bound to pay and 
“ indemnify us, to the extent of the said sum last mentioned, 68 
” together with said, contingent charges and expenses, with in- 
“ terest thereon.” 
It will be perceived, that we foresaw the possible contin- 
gencies of protracted litigation and final forfeiture, and the 
vast expenditures of keeping the ships during that anxious 
period; and we deemed it reasonable to secure indemnity, 
not only for those large expenditures ; but also for our award- 
ed compensation, with interest on the whole; in the contem- 
plated case of a loss of the entire fund. In no other event 
was interest to be exacted. 
The terms of the submission, in regard to our compen- 
sation, are, that the Arbitrators shall sell or mortgage one 
or both of the ships as occasion might requre; “ and out 
“of the proceeds of such'sale or mortgage, the said Ar- 
“ bitrators or any two of them, after deducting their own costs 
“ and charges for their services as Arbitrators, shall pay 
“ to the parties of the second part (the Houses) respec- 
“ tively the amount or sums of money (if any) to be awarded 
<cto them; and the residue (if any) of the said proceeds shall 
“ be paid to the parties of the first part (the Greek Depu- 
ties).” 
Our construction of this clause in the submission was, that 
in)any event (as to the balance of accounts) the whole 
charges of the Arbitrators, as well as the contingent expenses 
of the ships, should be charged to the fund: and that we had 
no right to impose them on either of the parties, independent 
of the fund; nor to award that each party should pay half. 
The parties had settled that point, in the express terms of their 
submission. 
In conclusion, we freely admit the probability, that in de- 
ciding on the multifarious and complicated questions of law 
and fact in this great controversy ; we have committed many 
errors. We were bound to hear the parties with patient at- 
tention ; and to examine and decide with impartiality, with 
firmness, and with the best efforts of our understanding. We 
are conscious of having thus discharged our duty: and we 
are responsible for nothing more. We know that we are 69 
heirs of human frailty, and daily experience admonishes us 
of our own fallibility: but standing on the solid ground of 
truth, and conscious rectitude; we submit our conduct, and 
our motives, to the enlightened discernment, and the candid 
judgment of our Country. 
Neio-York, 25th Oct. 1826, JONAS PLATT. 
HENRY C. DE RHAM. 
ABRAHAM OGDEN. APPENDIX. 
Copy of a Letter from J. Platt, to Capt. Chauncey. 
Ntw-York, 27th July, 1826. 
Captain Wolcott Chauncey. 
Sir.—I this morning had the honour of calling on you at the City Hotel 
(about 8 o’clock), in order to ask some explanations, and to confer with you, 
informally, in regard to your account. We are compelled to complete the 
award this day; and cannot expect a personal interview with you to-day. 
On behalf of the Arbitrators, and by the request of my colleagues, I take 
this early opportunity of informing you, that we have fell ourselves constrain- 
ed to reduce the compensation for your services, in regard to the ships, to 
$300 per month (say $1500) from the 1st March last; the time when the 
Parties contemplated the ships would be ready for sea, if no obstacle had oc- 
curred. Your valuable services, during the operation of building the ships, 
deserved a high reward, because they were of extraordinary value : but 
that value consisted, in a great degree, in your professional skill; and in aid- 
ing the enterprize, by the influence of your name and public station. Since 
the 1st March last, your services have, indeed, been important; but the em- 
ployment has been, chiefly, of a different character. And considering the 
unfortunate result of the whole affair, we hope you will, on re-consideration, 
believe with us, that $300 per month is as much as we ought to allow. In 
confidence that such will be your opinion, we request you to continue in 
charge of the ships, and all the moveables appurtenant to them, to which we 
now have title, at the same rate of compensation, (in proportion to the num- 
ber of days), until one of them can be sold, and the other delivered to Mr. 
Contostavlos, as we hope. Please favour us with your answer. 
I have the honour to be, with great respect, 
Your obt. Servt. 
Jonas Platt. 
New-York,30th August 1326, Received of Jonas Platt, Henry C. De Rhara 
and Abraham Ogden, Arbitrators, &.c. an assignment of the ship HopS, with 
her tackle, apparel, furniture, equipments, materials, saih, anchors, and ap- 
purtenances to the same belong ; the said assignment having been made to 
William Bayard, William Bayard, Jun. and Robert Bayard, by our request, 
under the award in relation thereto : and we do hereby acknowledge, and 
declare, that in regard to the materials, equipments, armaments, and other 
property mentioned, and comprized in two certain bills of sale, or assignments 
made to the said Arbitrators, to wit : one by Le Roy, Bayard &Co. and the 
other by G. G. & S. Howland, for the ships Liberator and Hope, and bear- 
ing date the 26th day of June last: it is understood and agreed, that the as- 
signment aforesaid, this day executed by the said Jonas Platt, Henry C. De 
Rham, and Araham Ogden, is to include the said ship Hope, together with 
all the other property of every name and description, which wa3 enumerated 
and comprized in the aforesaid two several assignments so as aforesaid made 
to said Arbitrators; excepting only the shipLiberator, and her tackle, apparel, 
armaments, and other property which has lately been conveyed by the said 
Arbitrators to the United States of America ; and the residue of said mate- 
rials, property, armaments and equipments, be the same more or less, and whe- 
ther the inventories thereof be accurate or not, shall be understood to pass 
by and be included in the said assignment from the said Jonas Platt, Henry 
C. De Rham, and Abraham Ogden, to said Le Roy, Bayard Si Co. for the 
use of the Greek Deputies; and the said Arbitrators are not to be account- 71 
able for any losses or deficiencies therein. And it is further stipulated and 
agreed, that for the complete and certain indemnity and security of the said 
Arbitrators, the whole amount of the balance of monies in the hands of the 
said Arbitrators, including the sum due to them from the Navy Agent of 
the United States, shall remain in the hands of the said Arbitrators, till all 
claims and demands in law or equity now existing, or hereafter to arise, for, 
or on account of said ships, Liberator and Hope, or either of them, or on ac- 
count of the property before mentioned, or for keeping, guarding and insur- 
ing the same ; and also as a fund to indemnify the said Arbitrators for all in- 
cidental expenses, charges and expenditures in the due execution of their 
trust as Arbitrators and trustees in the premises. It is understood aud ex- 
pected, that the contract of sale to theUnited States is to be completed as soon 
as possible ; and whenever the same shall be consummated by complete pay- 
ment and delivery, then the said Arbitrators shall account for, and pay over 
to the said Johannes Orlandos and Andreas Luriottis, or their agent, the 
final balance due to them under the said trust and award ; upon their exe- 
cuting to the said Arbitrators a release according to the form this day exe- 
cuted to them by the said Le Roy, Bayard k Co. and the said G. G. it S. 
Howland. 
Johannes Orlandos, f By their attorney, 
Andreas Luriottis. $ A. Contostavlos. 
Copy Reciept for $3000. 
In the matter of 1826, Sept. 7, Received of Jonas Platt, Henry 
the Greek Deputies C De Rham and Abraham Ogden, Aibitrators, 
with &c. Three Thousand Dollars; the same being the 
Le Rot, Bayard k Co. amount allowed by the United States’ Govern- 
and G. G. k. S. IIowlasd. ment, towards ship Liberator, over and above 
the sum of Two Hundred and Thirty Thousand 
Five Hundred and Seventy Dollars T#JL., first paid. 
$3000 was so allowed by Government, after the examina- 
tion by them of the said ship and ship’s property at the Navy-Yard New- 
York, 9 Sept. 1826. 
Orlandos k Luriottis. 
By their Attorney, A. Contostaylos. 
Know all men by these presents, that whereas in and by a certain agree- 
ment of submission, bearing date the 23d of June 1826, and executed by and 
between Johannis Orlandos and Andreas Luriottisof the one part, and Wil- 
liam Bayard, William Bayard, Jun. Robert Bayard, Gardiner G. Howland 
and Samuel S. Howland, of the other part, Jonas Platt, Henry C. De Rham 
and Abraham Ogden were appointed Arbitrators to hear and determine cer- 
tain matters in difference between said Parties. 
And whereas in and by a certain instrument in writing, dated the 26thday 
of June 1826, and executed by said Gardiner G. Howland and Samuel S. 
Howland, the said Gardiner k Samuel did assign and convey to the said Jo- 
nas Platt, Henry C. De Rham an 1 Abraham Ogden, a certain ship, called 
the Liberator, with her appurtenances, in trust, for certain purposes therein 
mentioned. 
And whereas in and by a certain instrument in writing, dated the 26th day 
of July 1826, aud executed by said William Bayard, William Bayard, Jun. 
and Robert Bayard, the said William, William, Jun. and Robert did assign 
and convey to the said Jonas Platt, Henry C. De Rham, and Abraham Og- 72 
deu, a certain ship called “ the Hope” with the appurtenances, in trust, for 
certain purposes therein mentioned. 
And whereas the said Arbitrators did on the 27th day of July 1826, make 
and publish their award. 
Now Know Ye, that in pursuance of said award, and also in pursuance of 
an agreement in writing, entered into between said Parties on the 11th day 
of August instant, subsequent to said award, and in modification thereof, the 
said Jonas Platt, Henry C De Rham, and Abraham Ogden did on the 
day of August instant, sell and convey the said ship Liberator, with her ap- 
purtenances, to the United States of America, for the sum of Two Hundred 
and Thirty Thousand Five Hundred and Seventy Dollars. 
And the said William Bayard, William Bayard, Jun. and Robert Bayard, 
hereby acknowledge that in further pursuance of said award, and said subse- 
quent agreement, they have received of said Jonas Platt,HenryC. De Rham, 
and Abraham Ogden the sum of Fifty nine Thousand Three Hundred 
Ninety-two Dollars Forty-eight cents, in full of all moneys due to them in and 
by said award and said subsequent agreement. 
And the said Gardiner G. Howland and Samuel S. Howland truly acknow- 
ledge that in further pursuance of said award and said subsequent agree- 
ment, they have received of said Jonas Platt, Henry C. De Rham, and Abra- 
ham Ogden, the sum of Sixty-eight Thousand Nine Hundred Twenty-two 
Dollars Fifty-two cents in full of all moneys due to them in and by said award 
and said subsequent agreement. 
And the said Johannis Orlandos and Andreas Luriottis hereby acknow- 
ledge, that in further pursuance of said award and said subsequent agree- 
ment, they have received of said Jonas Platt, Henry C. De Rham, and 
ham Ogden, the sum of Ninety-six Thousand Six Hundred and Twenty-nine 
Dollars and Twenty-eight cents- 
And also that in further pursuance of said award, the said Jonas Platt, 
Henry C. De Rham, and Abraham Ogden, have “ delivered to the said Jo- 
hannis Orlandos, and Andreas Luriottis, or their agent, the said ship Hope, with 
her appurtenances, as their absolute property, free from all claims whatever 
on the part of the Houses of “ Le Roy, Bayard & Co.” and “ G. G. & S. 
Howland,” or “ either of them.” 
And the said Johannis Orlandos, Andreas Luriottis, William Bayard, 
William Bayard, Jun. Robert Bayard, Gardiner G. Howland, and Samuel 
S. Howland, do hereby confess and acknowledge, that the said Jonas Platt, 
Henry C- De Rham, and Abraham Ogden, have well and faithfully done, 
performed, and fulfilled, every thing which was required of them to do, per- 
form, and fulfil, in and by said award and said subsequent agreement. And 
we do hereby release and forever discharge, the said Jonas Platt, Henry C.- 
DeRham, and Abraham Ogden, their heirs, executors, and administrators, of 
and from all actions, causes of action, claims or demands whatsoever, in law 
or equity, touching or concerning the discharge by them, of the trust confided 
in them, in and by the said first mentioned agreement. In witness whereof, 
we have hereto set our hands and seals this day of August, 1826- 
Johannis Orlandos, 
By his attorney A Contostavlos. 
Andreas Luriottis, 
By his attorney A. Contostavlos. 
In presence of ) By Contostavlos, 
Zephaniab Platt. \ Sept. 9, 1826. 
William Bayard, 
By his attorney Robert Bayard. 
William Bavard, Jun. 
Robert Bayard, 
G. G. Howland, 
S. S. Howland, 
By his attorney G. G. Howland,