You could just wait a bit more. I torpedoed a medium cargo with one eel (out of four) in very rough seas. At first it did not seem to have much effect, but I just followed it for a bit while reloading the tubes.
It took a while but in that rough of a sea, any damage is bound to sink a ship.
But morally, I agree with the other posters. An Armed Merchant is combatant vessel.
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abusus non tollit usum - A right should NOT be withheld from people on the basis that some tend to abuse that right.
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