BANCROFT LIBRARY -o- THE LIBRARY OF THE UNIVERSITY OF CALIFORNIA REPORT OF NICARAGUAN MIXED CLAIMS COMMISSION REPORT OF NICARAGUAN MIXED CLAIMS COMMISSION TRANSMITTED WITH REPORT OF ITS PRESIDENT TO THE SECRETARY OF STATE OF THE UNITED STATES OTTO SCHOENR1CH, PRESIDENT CARLOS CUADRA PASOS ARTHUR R. THOMPSON P10 BOLANOS, SECRETARY (037BO INDEX. Page. Report of Otto Schoenrich, President of the Nica- raguan Mixed Claims Commission to Honorable William J. Bryan, Secretary of State of the United States 3 English translation of report presented by the Nica- raguan Mixed Claims Commission to the Presi- dent of Nicaragua, don Adolf o Diaz 7 I. Summary of the work of the Mixed Com- mission 9 II. Origin of the Nicaraguan Mixed Claims Com- mission 16 III. Organization of the Commission 18 IV. Laws and Decrees relative to the Commission . 20 V. Rules of Procedure of the Commission 23 VI. Status of the Commission 28 VII. Proceedings of the Commission 31 VIII. Work accomplished by the Commission 37 1. Concessions and contracts 39 (a) Concessions compromised 39 (b) Concessions declared lapsed up- on suit of Government 43 (c) Concessions and contracts on which claims were based 44 2. War Claims 58 (a) War Claims of 1893 to 1909. . . 67 (b) War Claims of 1909 to 1910. . 67 (c) War Claims of 1912 69 3. Claims for denial of justice 71 4. Miscellaneous claims . . 7SP IX. Payments made by the Commission X. Payment of the remaining awards X I . Records of the Commission Nil. G inclusion 80 English translation of letter of acknowledgement ad- dressed by Sr. don Adolfo Diaz to Otto Schoen- rich, President of the Nicaragua!! Mixed Claims Commission 8 Appendix I. Laws referring to the Mixed Claims Commission and Rules of Procedure o the Commission. Appendix II. List of Judgments rendered by the Ni araguan Mixed Claims Commissio showing payments made. Appendix III. Accounts of payments made by the Ni araguan Mixed Claims Commission. A. Summary of accounts of payments made by tl Mixed Commission. P>. Table No. 1. Summary of warrants sent to t Department of Finance. C. Table No. 2. Amounts returned to the gene fund. D. List of warrants sent to the Department of Fi nance, and of payments made. u WASHINGTON, January 20, 1915. HONORABLE WILLIAM J. BRYAN, Secretary of State, Washington, D. C. SIR: In the month of March, 1-911, I had the honor to be designated by the Department of State of the United States as president of the Nicaraguan Mixed Claims Com- mission. After constant and arduous work the Commis- sion has now concluded its labors and has rendered its final report to the President of Nicaragua. I transmit herewith a copy and a translation of the said final report. The report contains an epitome of the work accomplished ; statistical tables relating thereto ; an account of the origin, organization, status, rules and pro- ceedings of the Commission ; a review of the various classes of claims based on the cancellation or violation of concessions and contracts, on damages caused by war, and on other grounds ; and a statement of the claims paid through the Commission. To the report are appended a copy of the laws creating the Commission and of the Rules of Procedure of the Commission, a list of the 7,911 judgments rendered by the Commission, and an account of the claims paid through the Commission. I also transmit a copy, with translation, of a letter addressed to me by the President of Nicaragua, under date of November 23d, 1914, in which he expresses his high appreciation of the work accomplished by the Com- mission. I further transmit a copy of each of the 7,911 judg- ments rendered by the Commission. They are in Span- ish, in which language all the proceedings of the Com- mission were held, but eight of them are accompanied by an English translation. The first name appearing under each judgment indicates which one of the Commissioners drafted the respective opinion. The various documents so transmitted will afford an idea of the work of the Commission. It is proper to re- fer especially to the remarkable fact that all the judg- ments were rendered by the unanimous vote of the three Commissioners. In connection with the report of the Mixed Claims Commission, I have the honor to make two recommenda- tions. One pertains to the fund for the payment of the smaller claims. About the end of 1913, a fund which ultimately amounted to $158,548.00 was set aside for the payment of the smaller awards of the Commission. This sum was placed in trust subject to the direction of the Secretary of State of the United States and the attorney for Nicaragua in Washington, and in accordance with their instructions, the Commission made payments t<> the amount of $1 57, 700.77, as explained in the report. \o accounting between the National Bank of Nicaragua and the Commission has been possible, because checks were issued up to the last moment and many had not been presented at the bank for payment when the Commission ended its sessi< ns. I beg to recommend therefore that the Secretary of State and the attorney for Nicaragua in Washington instruct the National Bank of Nicaragua to have an accounting with the Government of Nicaragua with reference to the fund for the payment of awards o the Mixed Claims Commission, within a reasonable time, , by May 1st. 1!H.">. and that any balance then remain- ing in such fund be turned over to the Government of Ni tia. My other recommendation pertains to the claims pend- ing payment and which, as will appear from the report, 6 in number and amount to SI .('.; 1. 1^.1 ">. When the Commission was organixed. the Nicaraguan Govern- ment was encouraged by the American Government to hat the treaty between Nicaragua and the United .vhich lias been pending in one form or another (HI, would be ratified promptly by the United ml that Nicaragua could then look for- d to peace in the future and make a loan which would provide funds for the payment of our awards and other- wise assist in the financial and economic rehabilitation of the country. The treaty has never been ratified, and as a result the position of the Claims Commission lias been embarrassing and painful, the Nicaraguan Treasury has been gasping in a condition of chronic deficit, the financial and economic state of the country has become indescribably bad, and the turbulant element has pro- voked one civil war and is constantly plotting for an- other. For the prestige of the United States Govern- ment as well as of the Nicaraguan Mixed Claims Com- mission, for the relief of our trusting friends in the Nicaraguan Government, for the assistance of the suf- fering Nicaraguan people, for the mutual advantage of Nicaragua and the United States, and for the furtherance of peace and civilization in Central America, 1 earnestly recommend that every effort be made to secure imme- diate ratification by the United States Senate of the pend- ing Nicaragua Canal Treaty and of provisions extending to Nicaragua benefits similar to those of the "Platt Amendment." For further information with regard to the work of the Commission, I beg to refer to my communications to the Department, of June 2d, December 12th, and De- cember 19th, 1913, and of January 4th, 191 r>. I have the honor to be, sir, your obedient servant, OTTO SCHOENRICH. 6 DOCUMENTS TRANSMITTED. , Exhibit No. 1. English translation of Report sented by the Nicaraguan Mixed Claims Commission to the President of the Republic of Nicaragua, don Adolfo Diaz. With appendices. Exhibit No. 2. English translation of letter dated No- vember 23, 1914, from Sefior Don Adolfo Diaz, Presi- dent of Nicaragua, to Otto Schoenrich, President of Nicaraguan Mixed Claims Commission. Exhibit No. 3. Spanish copy of Report presented by the Nicaraguan Mixed Claims Commission to the Presi- dent of Nicaragua, don Adolfo Diaz. With appendices in full. Exhibit No. 4. Spanish copy of letter dated Novem- ber 23, 1914, from Sefior Don Adolfo Diaz, President of Nicaragua, to Otto Schoenrich, President of Nicara guan Mixed Claims Commission. Exhibit No. 5. Spanish copy of circular letter of De cember 9, 1911, issued by Department of Foreign Af fairs of Nicaragua, relative to Nicaraguan Mixed Claim Commission. Exhibit No. 6. Memorandum of wars and civil di turbances of Nicaragua since 1893. Kxhibit Xo. 7. Extract from message of President Diaz, December 15, 1914, in Spanish with English transla- tion. Exhibit No. 8. Spanish copies of the 7,911 judg- ments rendered by the Nicaraguan Mixed Claims Com- mission, with English translation of eight judgments. EXHIBIT No. 1 ENGLISH TRANSLATION OF REPORT PRESENTED BY THE NICARAGUAN MIXED CLAIMS COMMISSION TO THE PRESIDENT OF THE REPUBLIC OF NICARAGUA DON ADOLFO DIAZ 9 ( Translation) NICARAGUAN MIXED CLAIMS COMMISSION. MANAGUA, November 24th, 1914. His EXCELLENCY, DON ADOLFO DIAZ, President of the Republic, Managua. The Nicaraguan Mixed Claims Commission has the honor to present to your Excellency the following re- port with reference to its labors. I. SUMMARY OF THE WORK OF THE MIXED COMMISSION. The total number of cases filed with the Commission was 7,911. Of these cases three were suits entered by the Government of Nicaragua against concessionaries who had failed to comply with their contracts, and the other 7,908 cases were claims presented against the Gov- ernment of Nicaragua. In the three suits filed by the Government anullrnent was requested, for non-compliance with conditions, of a concession for the sale of land bonds; of a concession relating to the dredging of the bar at the mouth of the Rio Grande and the construction of a wharf; and of a concession for railroad construction between Matagalpa and the Atlantic Coast. These three cases were decided by the Commission in favor of the Government. In the 7,908 claims the total amount claimed was C$13,- 808,161.00 and the Commission awarded a total amount of C$1,840,432.31. It should be noted that the claims were presented in different kinds of money, but that almost all the awards were expressed in cordobas, ex- cept a few which were given in gold. For the purposes of the awards of the Commission, of this report and of the statistics, a cordoba (C$1.00) is estimated as equiva- lent to one dollar American gold, to $2.50 silver, and to $12.50 national paper currency. The rate of exchange at which other coins were calculated is expressed in the respective awards. The majority of the 7,908 claims were for small sum$ as can be seen from the following table : 10 TABLE I CLAIMS FILED WITH THE NICARAGUA MIXED CLAIMS COMMISSION classified according to amount claimed. Claims of No. of claims Total claimed Total awarded C$100 or less 4,536 C$163,839.13 C$98,210.47 C$100 01 to C$500 2072 488,971 63 200 910 59 C$500 01 to C$1,000 501 360,005.32 113,661.33 C$1,000.01 to C$100,000... Over C$100000 787 12 4,090,517.14 8,704,827.78 638,294.92 789 355 00 Total 7,908 C$13,808,161.00 C$1,840 432.31 The greater portion of the awards of the Commission was also for small sums. The following table gives de- tails with reference to the size of the awards of the Commission: 11 TABLE II JUDGMENTS RENDERED BY THE NICARAGUAN MIXED CLAIMS COMMISSION classified according to amount awarded. Judgments No. of judg- ments Total claimed Total awarded In cases rejected or dis- missed 661 C$4,772.809.12 Awards of C$100 or less.. 100.01 to C$500 5,638 1,252 504,079.11 1,018,271.37 C$175,827.37 283,649.08 Awards of C$500.01 to C$1 000 201 486,009.21 150,039.06 Awards of C$1,000.01 to C$100 000 153 3,507,607.14 550,641.80 Awards of more than C$100 000 3 3,519,385.05 680,275.00 Total 7,908 C$13,808,161.00 C$1,840,432.31 The great majority of claimants were Nicaraguans, but the sums claimed by American citizens amounted to more than the claims of all other persons together. With the exception of American citizens, very few for- eigners addressed themselves to the Commission, but as the Commission was charged with revising the awards of local Boards of Exactions, it decided many foreign claims which had been filed with such Boards. The fol- lowing table shows details with reference to the nation- ality of the claimants: 12 TABLE III NATIONALITY OF CLAIMANTS in claims filed with the NICARAGUAN MIXED CLAIMS COMMISSION Nationality of claimant No. of claims Total claimed Total awarded 1 Nicaraguan 7,491 C$5,491,533.13 C$1,217,650.43 2 British 149 152,540.56 24,426.82 "} American 66 7 576,564 13 538,749.71 4 German 34 49,173.92 16,692.99 5 Chinese 28 37,796.93 5,565.52 6 Italian 25 139,510.97 9,032.31 7 Spanish 21 135 348 54 2 697 46 8 French 20 34,834.13 5,958.80 9 Colombian 17 38,553.52 3,160.00 10 Honduran 13 12 916 42 68240 11 Turkish 9 6,417.83 1,312.83 12 Salvadorian 7 4,116.14 49700 13 Costa Rican 5 42 078 80 1 576 00 14 Mexican 4 2 736 88 257 00 15 Dutch 4 844.52 67056 16 Austro-Hungarian 17 Panamanian 3 3 12,205.67 10 173 80 1,174.88 8 109 60 18 Danish 2 640 00 150 00 I'J Swiss 1 35 000 00 20 Guatemalan 1 16 000 00 21 Ecuadorian 1 4 192 00 800 00 22 Belgian 1 2 585 59 700 00 23 Cuban 1 1 859 52 20000 ~4 Kervotian . 1 29000 280 00 25 Venezuelan 1 248 00 88 00 Total 7908 C$13 808 161 00 C$1 840 432 31 (NOTE When a claim belongs to. persons of different nation- alities, it is classified according to the nationality of the largest owner.) 13 From table III the following percentages are derived : TABLE IV AVERAGES OF NATIONALITIES in claims filed with the NICARAGUAN MIXED CLAIMS COMMISSION. Nicaraguans Americans Foreigners other than Americans Proportion of the num- ber of their claims with respect to total number of claims filed Proportion of amount claimed by them with respect to total claimed before Com- mission 95% M-ft% 1% 55% 4% 5% Proportion of amount awarded them with respect to total award- ed by Commission... Proportion of amount awarded them with respect to amount claimed by them 66% 222% 29% 7.1% 5% 12.7% It should be observed that in the preceding tables, as in the others presented by the Commission, there are in- cluded as well the claims dismissed on motion of claim- ants as those decided on the merits of the case. From the preceding table, it will be seen that American claim- ants received a much smaller sum in proportion to the amount claimed, than other foreigners or Nicaraguans. The reason for the difference consists in the fact that almost all the important American claims were based^ on the cancellation of illegal concessions and included 14 large items for estimated future profits, which items were rejected by the Commission, while claims of other foreigners and of Nicaraguans were almost in their en- tirety war claims and in the majority of such claims the question was only one of valuation of the losses. The greater number of claims was based on losses and damages suffered during various wars in Nicaragua. The number of claims founded on the cancellation or viola- tion of concessions and contracts was small, but their amount exceeded that of the war claims. The follow- ing table shows the different classes of claims : TABLE V NATURE OF CLAIMS filed with the NICARAGUAN MIXED CLAIMS COMMISSION. Nature of claim No. of claims Total claimed Total awarded War claims of 1893 to 1909 War claims of 1909 to 1910 War claims of 1912 181 :,.:;:'. 2 2.">7 C$755,019.62 1,495,776.32 2 050 523 11 C$73,194.65 495,705.17 405 766 61 Cancellation or violation of concessions and con- tracts 18 8 813 927 71 813 275 00 Denial of Justice 3 99 712 32 50 00 Miscellaneous 70 593 201 92 52 240 88 Total 7,908 C$13,808,161 00 C$1 840 432 31 ( N'OTK When a claim comprises several items, it is classified according to the nature of the most important item.) l ; n>m the- foregoing, it will appear that the amount awarded by all the judgments of the Commission is C$1,- 81. In the be^innin^ of the present year the ^Commission was assigned a sum of C$158,548.00 for 15 the payment of small claims. Of this sum C$847.23 lias been reserved for commissions of the National Bank and with the remainder, C$157,700.77, the Mixed Commission has paid or has issued checks for the payment of 4,618 claims. As the Commission paid only small claims, the claimants in 84 cases voluntarily reduced the amount <>i~ their awards in order that they might receive payment, and the sum which was thus saved to the Government amounted to C$2,787.89. The Commission is also ad- vised that at least 13 claims have been paid or settled directly by the Government. The state of the debt >f the Government of Nicaragua, on account of the awards of the Mixed Commission, will appear from the follow- ing table : TABLE VI CLAIMS PAID AND PENDING PAYMENT. No. of claims Amount paid or owing Claims rejected or dismissed 661 Claims paid by Commission 4,618 C$157,700.77 Claims paid or settled by Government Claims pendincr payment 13 2616 5.821.52 1 674 122 13 Amount renounced in 84 claims in order to secure payment 2,787.89 Total 7,908 C$1,840,432.31 It is thus evident that the Government of Nicaragua continues to owe on account of the awards of the Mixed Commission, the sum of C$1,674,122.13 on 2,616 claims. Even this sum is subject to a small reduction, because, under the compromise in the case of the wharf of San Juan del Sur, the debt decreases in each month, and be- cause it is possible that more claimants have been paid by the Department of Finance. 16 II. ORIGIN OF THE NICARAGUAN MIXED CLAIMS COMMISSION. After the fall of the Governments of Zelaya and Madriz in Nicaragua, the new Government which came into power in September, 1910, as a result of the Revo- lution of October 11, 1909, found among the many prob- lems confronting it a heavy internal debt and an enor- mous number of claims pending against a bankrupt treas- ury. The claims were principally war claims, arising in the various civil commotions to which Nicaragua had been a prey, and especially in the Revolution that had just ended. Further, during the Zelaya regime, the country had been plastered with concessions which were regarded as unconstitutional, illegal and burdensome monopolies, and of which many were held by foreigners. The liqui- dation of the claims and the cancellation of illegal con- cessions were necessary incidents in the task of rehabilitat- ing the financial and economic condition of the country. In the conferences held in November, 1910, between Charge d'Affaires T. C. Dawson, representing the United States, and Nicaraguan authorities, as to the most effi- cient method of securing a stable government for Nic- aragua and reconstructing the country's finances and economic situation, it was determined that Nicaragua was to contract a loan for the purpose of funding her debt, placing her finances upon a sound basis, and other- wise promoting the prosperity and progress of the coun- try. It was also determined that the claims arising out .f the cancellation of concessions should bo passed on by a Mixed Commission, appointed by the Nicaraguan ernmcnt in accord with the American Government. In the note datod November 10th, I'.UO, and addressed by the Minister of Foreign Affairs of Nicaragua, Mr. Tomas Martinez, to Charge d'Affaires Dawson. the fol- lowing paragraphs appear: "The principal obstacle to reorganization lias been found in the nt of Finance, which was debilitated by the abuses com- mitu-d therein by the Governments of General Zelaya and Dr. Ma- 17 driz. An important cause of this ruin consists in the illegal conces- sions granted for private gain and to the detriment of the public in general and of national prosperity. Foreigners have participation in these contracts; and the Government, which will tend to destroy all these illegalities, may find difficulties in the distrust with which the Governments of such foreigners may view the proceedings of my Government, because of its character of a de facto government which originated in a Revolution. "The Government "It will abolish the monopolies, the concessions, leases and other illegal contracts relating to national funds and properties which were created during the administrations of Zelaya and of Madriz. "In order to give a full guarantee of impartiality to foreigners in these actions, the Government desires to place itself in accord with the State Department with reference to the formation of a tribunal, which is to decide the claims that may arise from such actions. I therefore submit for the approval of the State Department the sug- gestion that a Commission be appointed, consisting of a Nicaraguan citizen and an American citizen recommended by the Government of the United States. "This Commission is to give awards, and in case of disagreement among its members, is to submit to the decision of an umpire to be appointed by them by common accord. "It is understood that this tribunal will have jurisdiction only over unliquidated claims. As for liquidated claims, my Government will respect agreements made between the former Governments of Nica- ragua and those of other nations, paying the sums which this Re- public may owe by virtue of such liquidations." The creation of the Mixed Claims Commission was thus provided for in one of the agreements which are commonly known as the "Dawson Pacts." It was later decided that the Commission be composed of three mem- bers and that its jurisdiction comprise not only matters connected with concessions and contracts, but all claims arising from any cause whatsoever against the Govern- ment of Nicaragua. The objects for which the Commission was established are concisely stated in the preamble of the decree of the President of Nicaragua, approved by the National As- sembly, May 17th, 1911, as amended by a later decree, ap- proved October 14th, 1911. The said preamble reads: "The President of the Republic, having con- ferred with the Government of the United States as to the best mode of affording a just and equit- * 18 able solution with regard to the validity or validity of all claims pending against the C ernment of Nicaragua, including those which i arise out of the cancellation or suspension of the monopolies, leases, concessions, and contracts entered into by the former Governments of the Republic, and in order to guarantee to citizens and foreigners, equally, their legitimate rights," etc. For the payment of the awards of the Commission, it was agreed in the conditional loan contract of Sep- tember 1st, 1911, between the Republic of Nicaragua and Brown Bros. & Co., and J. & W. Seligman & Co., of New York, that in the projected loan a fund which might be increased to five million dollars, be set aside. Later, in the supplementary loan contract, between the same parties, authorized by the National Assembly, March 20th, 1012, it was expressly provided that, while the debt created by the said contract remained unpaid, the Gov- ernment would pay no pending debt except current ex- penses and especially no war debt, but that all such claims should be submitted to the Mixed Claims Commission. Unfortunately, the principal loan contract of September 1st, 1911, could never take effect, and a fund of C$158,- 548.00 granted at the end of the year of 1913, has been the only one assigned for the payment of awards of tf Commission. ill. ORGANIZATION OF THE COMMISSION. As appears from the note of Minister Martinez, a quoted, the first intention was to appoint a Commission \vo members, with a third person acting as umpire in case of their disagreement. Later it was determined to create a Commission of three members, who were all to vole on each question. The decree approved by the National Assembly of Nicaragua on May 17th, It'll, provided that the Mixed Commission be composed o three members, chosen as follows: one of its members 19 to be a Nicaraguan citizen appointed by the Government of Nicaragua; another likewise appointed by this Gov- ernment, but on recommendation of the Government <>f the United States of America ; and an umpire to be <'< nated by the Department of State of the American Gov- ernment. The word "umpire" was a misnomer, as it was further provided that a majority vote should suffice for a final decision in any case, ''the three members being always present and all three voting." The amendatory decree approved by the National Assembly on October 14th, 1911, designated the Commissioner appointed by the Department of State as the President of the Tribunal. The Commission thus finally came to be composed of a President, designated by the State Department of the United States, a Nicaraguan citizen, appointed by the Nicaraguan Government, and another member appointed by the Nicaraguan Government on the recommendation of the American Government. The Nicaraguan Commissioner appointed by the Nic- araguan Government, was Dr. Carlos Cuadra Pasos, a member of the Nicaraguan bar. On the recommendation of the American Government, the Government of Nic- aragua further appointed as Commissioner Mr. Thomas P. Moffat of the consular service of the United States. As President of the Commission, the State Department designated Mr. Otto Schoenrich, Judge of the District Court of Mayaguez, Porto Rico. These appointments were made upon the publication of the first legislative provision with reference to the Commission towards the end of March, 1911. In the beginning of May, 1911, Mr. Moffat went to the United States because of his health. He remained away for some time and was appointed to another post in the con- sular service of the United States. On November 6th, 1911, the Government of Nicaragua declared his post vacant. In December, 1911, the American Government recommended for appointment in his place, Mr. Arthur R. Thompson, of the bar of Washington, D. C. Mr. Thompson's departure from the United States was de- 20 layed, and he arrived in Managua on March 5th, 1912. Since then the membership of the Commission has r< mained unchanged. IV. LAWS AND DECREES RELATIVE TO THE COMMISSIO] On March 29th, 1911, the President of Nicaragua i sued a decree creating the Mixed Claims Commissio It was approved with several additions by the Nationa Assembly of Nicaragua, but doubts having arisen as to the legality of its passage, the National Assembly again adopted it on May 17th, 1911. An amendatory decree was issued by the President of Nicaragua on Octobe 9th, 1911, and approved by the National Assembly October 14th, 1911. In the said decrees of May 17th and October 14t 1911, it was recited that the President of Nicaragu has conferred with the Government of the United States as to the best mode of affording a just and equitable solu- tion with regard to the validity or invalidity of all claims pending against the Government of Nicaragua, including those which may arise out of the cancellation or su pension of monopolies, leases, concessions and contrac made by the former Governments of the Republic and that the Commission is created with the said object and in order to guarantee to citizens and foreigners equally, their legitimate rights. The said laws thereupon proceeded to establish a tri Initial or Mixed Commission which was to examine an adjudge, without further recourse, all unliquidated claim ling against the Government of Nicaragua, includ- ing those growing out of the cancellation or suspension of concessions nes, but even so the answers were filed very tardily and it was evident that the work of the Commission would bi- indefinitely prolonged if it were necessary to wait for the answers. The Commission might have declared the Government in default, but disliked to do so because of ant desire to give both parties every possible op- portunity to set forth and defend their rights. In view of the difficulty Rule No. 19 was adopted on February l!Hh. 11)14, providing that in claims in which the Gov- ernment tiled no answer, it was to be understood as ob- jecting to the claim in general terms and requiring the claimant to prove his ease. Notwithstanding Rule l ( ->, the Commission insisted ;hat the Government file some answer in cases for can- 27 cellation of concessions in which the amount claimed ex- ceeded $500,000.00. The tardiness of the Government in answering some of these claims is one of the rea why the Commission has not been able to terminate its work before this date. The answer of the Govmiim-m in the case of the Corinto Wharf was not filed until Oc- tober 1st, 1914, a year and five months after the expira- tion of the period designated in the rules of the Com- mission. In justice to the attorney for the Government, it should be stated, however, that some of these delays were due to the poverty of the Government of Nicaragua, which did not even permit the employment of a clerk to the attorney, and also in part to the fact that for a long time negotiations were on foot with a view to com- promising the most important cases. It was also the original idea to hold hearings in all cases except small war claims. Many claims were set for hearing, but in only a few cases did the claimants ap- pear, and even then they generally contented themselves with ratifying what they had already stated in their plead- ings. With the object of gaining time, the Commission therefore, on February 19th, 1914, adopted its rule No. 20, in which it was provided that the Commission would give judgment without a public hearing in cases in which the sum claimed did not amount to forty thousand cor- dobas, unless the claimant or the Government requested that a date be set for hearing, or the Commission ex- pressly ordered otherwise. The primary objects of these rules of procedure were to protect the rights of both parties, to give each the op- portunity of duly presenting his case, and to obtain a prompt decision. Notwithstanding the broadness of the rules, the majority of claimants violated them in one way or another, either through ignorance, carelessness or in- difference. Nevertheless the Commission has in all cases endeavored to give judgment according to the evidence presented, overlooking violations of the rules, unless such violations were so .serious as to render the evidence value- less or injure the rights of the other party. . 28 VI. STATUS OF THE COMMISSION. From the above, it will be evident that the Commission technically is a Nicaraguan court, but at the same time, a quasi-international tribunal. In rendering decisions, the Commission has constantly applied international law, and its rules of procedure were similar to those adopted by other international mixed commissions. We have been informed that various foreign govern- ments were dissatisfied because they were not represented on the Commission, and that one government went so far as to protest, but was answered that the court was purely a Nicaraguan tribunal and that foreigners should not ex- pect less justice from the court because of the fact that two of its members were American citizens. On Decem- ber 9th, 1911, the Minister of Foreign Affairs of Nic- aragua, sent to the foreign diplomatic representatives accredited to Nicaragua, a circular in which he explained the nature and jurisdiction of the Mixed Commission as a special Nicaraguan court of claims, called attention to the rule of international law that local legal remedies must be exhausted before recourse can be had to diplo- matic channels, and gave notice that all claims against Nicaragua must be presented to the Mixed Commission. He insinuated that only in the remote case of denial of justice by the Commission could a claim be taken up through diplomatic channels. The Government of the United States constantly and loyally directed its citizens to file their claims before the Mixed Commission, where judgment would be rendered in accordance with the law and the evidence. The same cannot be said with reference to all other foreign govern- ments. According to information we have received, the representative of one of these governments even pro- hibited the subjects of his country from presenting any claim before this Commission. A number of foreign claims were presented directly to the Government of Nicaragua, and the Government, as we understand, in of the circumstances, felt itself obliged to yield to 29 the pressure exerted upon it and settle claims without sub- mitting them to the Commission. Such direct settle- ments had the natural effect of diminishing the prestige of the Commission. They further placed other foreigners in a position of preference over American citizens, as well as over Nicaraguan citizens. In some of the diplo- matic settlements, which we have seen published in the Official Gazette and other official publications, the com- promise appears just and equitable, but in several other cases we are convinced that the judgments would have been more in accord with law and equity if they had been rendered by the Mixed Commission. Although many foreign countries were not enthusiastic about the Commission, the number of foreign claims, as indicated in the statistical tables, amounted to 417, twenty-four countries being represented. It should be observed, nevertheless, that many of these were not filed directly with the Commission, but with local Boards of Exactions, without knowledge that the Commission would render final judgment in the case. Though the number of foreign claims constitutes only 5 per cent, of the claims filed with the Commission, the amount claimed therein was 60 per cent, of the total amount claimed. The number of American claims was only 66, or less than 1 per cent., but the amount claimed was C$7,576,564.13, or 55 per cent of the total amount claimed. It is quite possible that in reality the number of for- eign claims is somewhat larger than here stated, because the only claims counted were those of persons who stated that they were foreigners, or whose nationality was known to the Commission, and all others were classified as Nicaraguan claims. It is not probable, however, that the difference is very large. The great majority of claims, 95 per cent, of the whole number, were Nicaraguan claims. They were 7,491 in number and the amount claimed was C$6,491,533.13 or 4-0 per cent, of the total amount claimed. It should be remembered, nevertheless, that this sum comprises the. 30 claim of the Compafiia de Aguardiente Limitada, and that, although this company was a Nicaraguan corpora- tion, its stock belonged almost entirely to foreigners. If the amount of this claim, which was C$1,235,390.24, is taken off, 7,490 Nicaraguan claims remain, with an amount claimed of C$4,256,142.89. As in the case of the foreign claims, so also in that of Nicaraguan claims, not all were decided by the Commis- sion. During the year 1911, the Government of Nic- aragua settled directly and paid a number of war claims belonging to Nicaraguans, without reference to the Com- mission. At that time the Nicaraguan Government be- lieved itself empowered to make direct settlement wher- ever it thought advisable. The specific pledge to send all war claims to the Commission, was contained in the supplementary loan law, of March 20th, 1912. Of the claims arising during the war of 1912, many have also been decided by the Government, without ex- amination by the Commission. By the law of January 10th, 1913, the National Assembly directed that damages caused by insurgents during the war of 1912, to persons who remained loyal to the Government, should be con- sidered as part of the national debt, and authorized the Executive to decree the form in which the recognition of such exactions should be made. As the law creating the Mixed Commission, which was part of the Constitution of Nicaragua, had conferred upon the Commission jur- isdiction over all claims, which from any cause whatso- ever might arise against the Government before the con- clusion of the Commission, we rendered many decisions in cases comprised in the provisions of the said law of January 10th, 1913. At the same time, in Government circles, the law was interpreted in the sense of authoriz- ing the Executive to recognize the respective claims, and the Kxecutive, by means of decrees, rendered decisions in many cases. It is probable that it would have been pre- ferable if all these cases had been sent to the Commission. In the decrees published in the Official Gazette, it is to be observed that these claimants were conceded larger 31 sums for their horses and cattle than those awarded by the Commission, and that a preference was thu> estab- lished. The greatest obstacle to a frank and general accept- ance of the Commission by natives ,and foreigners, has always been the lack of funds to pay the Commission's awards. At the time the Commission was created, it w r as supposed that within a few months a loan would pro- vide the necessary money. Over two and one-half years passed before a penny became available, and the sum which was then assigned to the Commission was insuffi- cient even for the payment of the small awards. Had the awards been promptly paid, as rendered, the argument would have been strong enough to induce foreigners and natives to resort to the Commission in the first place, in- stead of bothering the Government authorities. Under the conditions which prevailed, all the arguments were the other way. The filing of a claim with the Commis- sion seemed to condemn the claimant to wait for an in- definite time for the payment of his credit, while, by presenting their claims to the Government, many persons believed that there would be no such careful examination of the evidence and that it might be possible to obtain, by entreaties or importunities, the payment of the whole or part of a claim. This state of affairs became embar- rassing in the highest degree to the members of the Com- mission. VII. PROCEEDINGS OF THE COMMISSION. The presidential decree of March 29th, 1911, ap- pointed as members of the Commissions, Dr. Carlos Cuadra Pasos and Mr. Thomas P. Moffat, who at that time were already in Managua. At the same time, Mr. Otto Schoenrich, designated as member of the Commis- sion by the State Department, was called from Port-. Rico to Washington, from where he continued to Nic- aragua, arriving in Managua on May 5th, 1911. On account of ill health, Mr. Moffat was only awaiting , 32 the arrival of Judge Schoenrich to leave the country. The members of the Commission held an informal meeting on May 6th, 1911. It was decided that during the ab- sence of Mr. M off at Messrs. Schoenrich and Cuadra Pasos were to select and furnish quarters for the Com- mission, adopt and publish rules of procedure, and re- ceive and study claims. Mr. Moffat left Managua for the United States in the evening of May 6th. The occurrences which accompanied the resignation of President Estrada, on May 8th, 1911, constituted the first delay for the members of the Commission, but in the same month, Messrs. Schoenrich and Cuadra Pasos in- stalled the Commission and formulated and published rules of procedure. As already explained, those rules were very similar to those adopted by various interna- tional commissions on which the American Government has been represented, and at the first formal session of the Commission in March, 1912, they were ratified, sev- eral modifications and additions suggested by experience being made at that time and subsequently. For about a year, the members of the Commission prej ent in Managua, were frequently called on by the ernment of Nicaragua for advice and assistance in coi nection with various laws under consideration, such the laws relating to the loan contracts and the currenc law. While such work had no direct relation with theii duties, the Commissioners were glad to give the Gove] ment what help they could, in the development of il program of rehabilitating the country. In June, 1911, the first claim was filed and in Auj the Minister of War began to forward thousands oi claims presented to the local Boards of Exactions. Tl members of the Commission were soon busily engaged ii studying these claims and in drafting decisions. In November and December, 1911, Messrs. Schoen- rich and Cuadra Pasos acted as mediators between the Government and representatives of a group of conces- sions, known as the Deitrich concessions. The compn uinise which was effected after long and wearisome negc 33 tiations, and which will be further referred to hereinafter, is one of the most important achievements t<> tin- credit of the Commission. This one service is more than suf- ficient to justify the entire cost of the Commission fn.in its incipiency to its termination. Mr. Moffat not having returned to Nicaragua, Mr. Arthur R. Thompson was appointed in his place in De- cember, 1911. Mr. Thompson arrived in Managua on March 5th, 1912. The notice to claimants required by the law creating the Mixed Claims Commission, was im- mediately published in the Official Gazette and on March 26th, 1912, the Commission formally opened its sessions. It will thus be seen that almost a year elapsed between the creation of the Commission and the beginning of its sessions, but that this time was not lost. There were two circumstances which seriously hamp- ered the Commissioners in the performance of their duties. One of these was the difficulty of obtaining a competent clerical force. Stenography is practically un- known in Managua and it was impossible to secure a single shorthand writer. There are also few expert type- writers, and these were employed in good positions, which they were not desirous of leaving. With great difficulty, and after numerous trials, each member of the Commis- sion finally secured a typewriter. It has been necessary to dictate all decisions to the machine or to draft judg- ments in longhand for the typewriters to copy. Another difficulty was the poverty of the Government of Nicaragua. On this account, it was necessary to limit the office force to the smallest possible number; it was impossible to appoint attorneys, agents or investigators in other places as a thorough compliance with the Com- mission's duties would have required ; and journeys of investigation or inspection were not to be thought of. For many months the salaries of the Commissioners and clerical force were far in arrears. It became difficult to obtain the most essential office supplies, and the members of the Commission were obliged to pay the rental of the Commission's quarters out of their own pockets, and to. n re- four advance money to their employees to keep them from signing. In May, 1912, the salaries were about months in arrears and the Commissioners were consider- ing presenting their resignation, but at this time an ar- rangement was made between the Government and the bankers who collected the customs revenues of Nicaragua, by which a small sum was assigned in each month for the maintenance of the Commission. The law of October 14th, 1911, empowered the Commission to employ a cleri- cal force necessary for the conduct of its work, which was to be compensated by the Nicaraguan Government in the same manner as the Commissioners, but in view of the lack of funds, the Commission has not been able to employ the whole force which was necessary, but only the most indispensable clerks. The Commission had entered upon a regular routine and was handing down decisions daily, when its labors were suddenly interrupted by the insurrection of 1912. On July 29th, 1912, the 'Minister of War rose against the Government and the disturbances which followed caused a suspension of all work. Several employees of the Commission were drafted into the army and another was imprisoned by the insurgents. When the revolu- tionists approached Managua a part of the archives wen sent to the American Legation for safe-keeping. Dur- ing the bombardment of Managua, August 11-14, 1912, the members of the Commission shared the dangers of the other inhabitants of the city. Shells fell around the offices of the Commission which were then situated in a building opposite the Presidential Mansion. On Aug- ust 12th, during the heighth of the bombardment, the Commissioners held a meeting and resolved that inas- much as the country was in a state of war, and the city besieged and bombarded, the public sessions of the Com- mission be suspended until the war ended and the country returned to normal conditions. Upon the termination of the bombardment on August 1-lth. the two American members proceeded to the port oiinto with the intention of looking after certain 35 Red Cross supplies and returning within a few days. Their return was prevented when the City of Leon against the Government and the insurgents stopped rail- road communications. They were obliged to remain in Corinto while that port was besieged by the revolution- ists. After marines had been disembarked and had taken possession of the railroads, Judge Schoenrich returned to Managua on September 16th, on the first train carry- ing civilian passengers. The war had paralyzed the activities of the Commission completely, and it was evident that until peace was re- stored, the work could not be resumed. With the ap- proval of the President of Nicaragua, it was determined that the Commission take a recess until the end of Janu- ary, 1913, and that the two American Commissioners pro- ceed to the United States. Judge Thompson left Corinto on September 17th, and Judge Schoenrich on September 24th, after having put the archives of the Commission in order. Both Commissioners took with them a large num- ber of claims and continued their examination of these in the United States. Peace having been restored in Nicaragua, Judges Schoenrich and Thompson returned in January, IDI'J. Upon their arrival, it was found necessary to transfer the Commission's headquarters to another building as our lease had expired and this caused some delay in the work; but arrangements were soon completed and the Commission began handing down decisions in a large number of claims. Other difficulties arose, however, to hamper the work. Almost two years of continuous economic difficulties had passed over the country. The loan which the Government had expected to make had not materialized, the financial situation of the Govern- ment had become acute, and the position of the Commis- sion and of its members was most embarrassing. The Government decided to send to the United States the Minister of Finance of Nicaragua, who was to endeavor to find means in banking circles to alleviate the economic difficulties. With the approval and consent of the Gov- 36 eminent of Nicaragua, it was also determined that the t\vo American Commissioners return to the United States to give advice and assistance to the Minister of Finance and in order to be in the United States upon the expira- tion of the arrangement for defraying the expense of the Commission out of the customs receipts. The work of the Commission, in the meantime, was to go forward, the two American Commissioners taking with them 1,500 claims for study and for the drafting of decisions. The said Commissioners left Corinto on May 1st, 1913, and proceeded to Washington. After a conference with the Secretary of State, they presented a memorandum dated June 2d, 1913, containing a resume of the labors of the Mixed Claims Commission. They participated in the negotiations between the Nicaraguan representa- tives and the State Department in Washington, and the bankers in New York. At the same time, they continued the study of the documents they took with them and drafted many judgments. Upon the extension of the ar- rangement for the payment of the Commission from the customs revenues, Judge Thompson returned to Nicaragua in October, 1913. Judge Schoenrich, on Sep- tember 1st, 1913, was granted a leave of absence with- out pay. He resumed his work in matters of the Com- mission in December, 1913, and sailed for Nicaragua at the end of the same month. After resuming its regular sessions in the beginnin of the year 1914, the Commission was able to make rapid progress because of the study which the Commissioners had given to the various cases. Numerous hearings were held and awards were published in thousands of cases. More than !,<;<)> small awards were paid with a sum as- ned for that purpose by the Government. At the mid- dle of July, not more than fifty cases remained undecided, but these omprised the cases which required most study and those of larger amount in which the Government had n<>t filed its answer. On account "f ill health Judge Thompson was obliged Uo sail on July 22d, for Panama, and later for the United 37 States, returning to Nicaragua about the middle of No- vember. Judges Schoenrich and Cuadra Pasos remained in Managua and drafted the judgments of several im- portant eases in the form agreed upon before the de- parture of Judge Thompson, held hearings in other c prepared the drafts of decisions in cases submitted by the Government at the last moment, and made the necessary preparations for the conclusion of the work of the ( mission. As soon as Judge Thompson returned, the work was formally concluded and the sessions of the Cumini closed. VIII. WORK ACCOMPLISHED BY THE Mixn* COMMISSION. Under the various laws passed by the Nicaragua!! Congress, with reference to the Mixed Commission, the time for filing claims expired on July 8th, I!*!:!. An ex- ception was made in claims arising out of the cancella- tion of concessions, which were to be filed within six months after the concessionary was notified of the can- cellation, even though such notification might take place subsequent to July, 1913. No time was fixed within which the Government of Nicaragua must present the suits it might desire to file against concessionaries. The first claim was filed in June, 1911. In the last months of the same year the larger portion of the war claims of 1909-1910 were submitted to the Commission after having been passed on by the War Department, and others were sent about the middle of 1912. The war of 1912 gave rise to more than two thousand new claims which were filed in the first half of the year r.M:i. In the final days of the period within which claims might be filed, hundreds of cases were presented. In August, 1914, the Government of Nicaragua filed two suits again >t concessionaries and subsequently another claim was filed against the Government under a special act of the Na- tional Assembly extending the term for the claimant.* 38 Finally, on September 29th, 1914, the Executive referred to the Commission one hundred and forty cases, stating that they had, within the time provided by law, been pre- sented by mistake to the Executive instead of to the Com- mission. Notwithstanding the irregularity, the Commis- sion also rendered judgment in these cases. The total number of cases filed is 7,911. Of these, three are suits filed by the Government of Nicaragua and the other 7,908 are claims against the Government of Nicaragua. As will appear from the statistics at the be- ginning of this report, the amount claimed is C$13,808,- 161.00- and the amount awarded C$1,840,432.31. All the original judgments are attached to the papers of the respective cases. The first name signed shows which one of the Commissioners drafted the decision. The work of drafting decisions was not equally distributed, but each Commissioner drafted as many judgments as he possibly could, without reference to the work of the others, and with the single object of concluding the work of the Commission as soon as possible. The amount oi each claim and the amount awarded in each case are als< indicated in two registers of the Commission : the regist< of cases and the register of judgments or book of award* These registers, as also the papers of the cases and oth< books and archives of the Commission, will be delivere< to the official of the Republic whom the Executive ma] designate. It is a remarkable fact that all the judgments wen rendered by unanimity of votes of the Commission. Not- withstanding the enormous number and great variety oi cases, there was a constant and very pleasant harmony among the members of the Commission. There were frequently differences of opinion, but upon discussion it was always possible to arrive at an agreement acceptable to all. This unanimity in the awards was due in great measure to the method of adopting, at the first session, several general rules with regard to responsibility of the Government, and applying these rules in the various cases, will be hereinafter explained. 39 The awards of the Commission were expressed in cordobas, the cordoba being the new monetary unit of Nicaragua, equal to the American dollar. A few judg- ments drafted in the beginning, before the cordoba was adopted as the Nicaraguan unit, were given in gold, as well as several others, where it was proper to return sums delivered in gold or where there were other special cir- cumstances. The cases in which the debt was n nized in gold are few and exceptional. It was the idea of the Commission, nevertheless, that its awards should have a gold value, and if the judgments were exnre in cordobas, this was done because the cordoba was established as equal to gold and has been so maintained. Besides the assistance rendered to the Government of Nicaragua by the Commissioners, as individuals, and out- side of the time taken up in making payments, the atten- tion of the Commission has been divided between the study of concessions and contracts and the study of claims for other causes. 1. Concessions and Contracts. Without doubt, the most important matters submitted to the Commission involved concessions and contracts made by the previous Governments of the Republic. From the study of such concessions, it was evident that during the administration of President Zelaya, many un- constitutional, illegal or imprudent privileges had been granted, which were insufficiently beneficial, or were even harmful, to the people of Nicaragua. The Commi.- obtained the modification of some of these concessions, declared others lapsed upon petition of the Government of Nicaragua, and decided claims founded on the can- cellation of others. (a) Concessions Compromised. Under the law creating the Commission, the President of Nicaragua was to cancel concessions regarded as illegaf 40 ipply r-r^n or unconstitutional, and the concessionaries were to appl for redress to the Commission, and in case a new con- cession was granted in the same matter, the previous con- cessionary was to be preferred if he had special equip- ment or experience. The officials of the Government, as well as the members of the Commission, took the view that if compromises could be affected by which the ob- jectionable features of the concessions were eliminated, the result would be the most satisfactory solution of the problem. It usually appeared, however, that while both the Government and the concessionaries expressed them- selves as desirous of a friendly settlement, both parties, and especially the concessionaries, were determined in their respective positions. In several cases the Govern- ment requested the members of the Commission to act in a semi-official capacity of friendly mediators. As such mediators, they were able to bring about compromises i several concessions of great importance. The most important concessions so settled constitute a group of six, which were known as the "Deitrich Con- cessions." They had originally been granted to a pro- moter named Deitrich, who had formed companies i which, as it later turned out, he retained control, and th stock of which he had sold or tried to sell to the genera public. These concessions contained several provision that appeared to be in conflict with the Nicaraguan con stitution and laws, but the principal objection to them was that the rights they granted were far too broad. It probable that in a few years they would have develope into formidable and odious monopolies. The companie owning them had spent some money in preparatory wor and entertained great hopes for the future, so that it wa evident that no cancellation of these concessions would be possible without struggles and great expense to the Government. After weeks of negotiations the two mem- bers of the Commission who were in Nicaragua in the latter part of 1911 were able to secure a compromise that appeared just to all parties. Practically all that was granted by the Government, in this compromise, was the 41 acceptance as sufficient of the reasons advanced 1,\ the concessionaries for not concluding certain work within the time specified in their contract. The companies, on their part, accepted substantial modifications with ref- erence to five concessions and renounced all rights as i<> the sixth. These concessions were the following : ^ (1) A concession held by the "European American Finance and Development Company" for the sale of Gov- ernment land and the promotion of immigration in the Rio Grande district. Under this concession, the right to sell one million hectares of Government land had been granted, but the Government deemed this amount of land too great, and, accordingly, a reduction of 10 per cent, was made. According to the original contract, the com- pany was entitled to issue land bonds, being obliged to pay the Government $15.00 gold for every bond it sold and make payment within two years. Under the new agreement, all the payments were to be made within three months, and it was provided that in case of failure to pay within the time specified, the company was to lose all right to the sale of the land bonds on which the Gov- ernment had not received the corresponding payments, and such bonds were to revert to the Government. (2) A concession held by the "Agriculture and Min- ing Company of Nicaragua," for the dredging of the bar of the Rio Grande, the development of the banks of the river, and the building of a wharf and warehouse at its outlet. This was a far-reaching concession, the principal feature of which was the right to build a wharf at the mouth of the Rio Grande and charge wharfage on everything passing in and out of the river for a period of thirty years. During the next ten years the concession would probably not have been a burden for the district, but later the rights it involved would probably have be- come very irksome. For these reasons it was provided in the compromise that the wharf fees must be referred to and approved by the Government and that the Govern- ment might grant exemptions in certain cases. The con-^ cession also provided that the company might charge an* 42 impost of five cents on every bunch of bananas exported from that region; new provisions were inserted to make this privilege clear, and to reserve to the Government an important part of the amount collected. Other important amendments were made to provide greater clearness as to the rights of both parties and to reduce certain broad exemptions from customs dues and other taxes, to rea- sonable limitations. (3) A concession held by the "Company General of Central America, Atlantic Pacific Railway'' to construct a railroad from Matagalpa to a navigable point on the Rio Grande and from there to the sea. In its original form, this concession was so broad and vague, that it permitted the construction of railroads in any part of the country with the right to occupy great tracts of pub- lic lands and the prohibition to build any other railroad within thirty miles of the lines of this company. The amendments comprised in the new agreement reduced the privileges of the company to more reasonable limits and provided greater clearness as to the rights of the com- pany and of the Government. (4) and (5) Concessions held by the "Great Southern Cattle and Land Company" for the establishment of slaughterhouses and plantations in the Rio Grande dis- trict. Both of these concessions were made clearer and a reduction was made in the exemptions from customs dues. ((J) A concession held by the "Chinese-American Plantation Company," for the importation of Chinese laborers into Nicaragua. As a part of the general set- tlement, the Company renounced all rights to this con- cession, and submitted to its annullment. The settlement of these concessions cost the Govern- ment nothing, but on the other hand, if the concessionaries had carried out their contracts, the Government would have been provided with money, new sources of revenue would have been obtained, and a region which is now but wilderness would have been developed. Unfortunately, nhe concessionaries did not comply with their promises. 43 The Government's drafts issued in accordance with the land bonds concession, were protested, and, although ex- tensions were allowed, the company has paid almost noth- ing. In the other concessions also the concessionaries failed to begin work within the time stipulated. The o m- cessions above designated as (4) and (5) expired auto- matically, and as to the other three, the Government filed suit before the Commission to declare them lapsed. As will be hereinafter explained, the Commission declared such annullment. The Government has thus attained its original purpose without payment of damages and the concessionaries have no ground for complaint. There were settlements of several other concessions, but they were made after claims had been filed by the respective owners of the concession, and reference there- to will be made further on in this report. (b) Concessions Declared Lapsed Upon Suit of the Government. Article 12 of the law of May 17th, 1911, provided that the Mixed Commission has jurisdiction also over claims to be made by the Government for violations committed by the holders of contracts or concessions. Under this provision, the Government of Nicaragua filed suit against the European American Finance and Development Com- pany, on July 19th, 1913, against the Agriculture and Mining Company of Nicaragua, on August 6th, 1914, and against the Company General of Central America, At- lantic Pacific Railway, also on August 6th, 1914, alleg- ing that the companies failed to comply with the condi- tions of their contracts and had given rise to the nullity of the said contracts in accordance with the terms thereof, wherefore it was prayed that the Commission declare the concessions lapsed and void. The cases are numbered 7,734, 7,769 and 7,770 in the register of this Commission and were decided by judgments No. 7,755, 7,898 and 7,899, respectively. It was impossible to find represen- tatives of the companies in Nicaragua, although two of* 44 the contracts expressly provided that a fully authorized representative should always reside in the country, and the Commission was obliged to publish the summons in newspapers. Publication was made in a newspaper of Managua and another of New York. The Commission found that the concessionaries had failed to comply with their obligations and declared the concessions lapsed. (c) Concessions and Contracts on which Claims were Based. As a result of the general irritation produced by the great number of concessions which had been granted by President Zelaya, the Government of Nicaragua which emerged from the Revolution of 1909-1910, at first con- sidered the cancellation of all concessions of whatever nature. Later, by law of October 14th, 1911, the Na- tional Assembly ordered that only such contracts and concessions as were illegal or unconstitutional should be cancelled. The Government therefore cancelled merely those concessions which it believed violated the consti- tution or the laws because of involving monopolies or for other reasons. The Commission is not apprised as to the number of cancellations decreed by the Government, but the number of claims filed with the Commission by reason of such cancellations was nine. Eight other claims were filed in which it was alleged that the present Government or former Governments had failed to fulfill their contract, and one claim for a can- cellation decreed by President Madriz. The cases relating to concessions and contracts which were decided by the Commission are the following, stated in the order in which the judgments were rendered. ( 1 ) Judgment No. 2011 ; Case No. 5027. Caligaris Pine Timber Concession. Claim for $116,500.00 gold and other damages. r.y concession of June :2/, 1906, approved by the Na- tional Assembly of Nicaragua on January 8, 1908. Angel i .:iris. an Italian subject, was given the exclusive right 45 to cut pine lumber for 25 years on government land in a large area on the eastern coast of Nicaragua paving a designated rental. On March IS. l n 1 :>, the Government of Nicaragua cancelled the concession whereupon Cali- garis filed his claim. In April, 1913, the attorney for the Government of Nicaragua and Caligaris announced to the Commission that they had compromised the case. According to their agreement the concession was to continue in force, but with sweeping modifications. The zone of the concession was reduced to less than one-third its original area; the time of the concession was reduced ; a large cash payment was required besides a rental; certain broad exemptions from customs duties were made to expire in two years; Caligaris agreed to return a certain amount of land to the Government in each year, even though the timber had not been cut; and the rights of the government were made more clear in other respects. The zone of the con- cession still appeared large, but the parties stated that it contained much land which did not belong to the Govern- ment and much land on which there was no pine timber. The compromise reduced the concession to legal pro- portions and was approved by the Commission. (2) Judgment No. 2786; Case No. 1. Lease of Gov- ernment Printing Office. Claim for $70,000.00 gold. Augusto Mulct de Chambo, a Spanish subject, alleged that in 1905 he leased the Government printing office, but that in 1906 the Government of Nicaragua broke the con- tract and sold and delivered the printing office to a com- pany, wherefore he claimed damages. The Commission held (a) that claimant did not comply with the terms of his contract of lease ; (b) that claimant consented to the rescission of the contract and is estopped from demanding damages; and (c) that the evidence in respect of damages is insufficient. The claim was therefore rejected. (3) Judgment No. 4366; Case No. 5135. Ice Con- cession. Claim for $309,389.33 gold. The Central American Commercial Co., an American 46 corporation, was the owner of an ice concession, granted in 1906, according to which this company had the ex- clusive right of manufacturing ice in the Republic of Nicaragua for a period of fifty years. On March 15, 1912, the Government of Nicaragua cancelled the con- cession, whereupon the company filed its claim for the amount stated, $309,389.33, the principal items being $40,000 as the value of the plant and $250,000 as the value of the concession. The Government alleged that the concession was granted in violation of the constitutional provision which forbids monopolies. The company contended that the concession was granted in accordance with the constitu- tional provision which permits temporary privileges in certain cases. The Commission held (a) that the constitutional pro- visions must be harmonized, and applied in the light of reason ; (b) that the concession is clearly a monopoly pro- hibited by the constitution; (c) that the company may continue to manufacture ice under the general laws of the country; (d) that the company is not entitled to dam- ages for the cancellation of an unconstitutional conces- sion; and (c) that in any case the evidence with respect to damages is insufficient. The cancellation of the concession was therefore up- held and the claim rejected. The Company retained its plant and has since continued t<> manufacture ice in accordance with the general laws of the country. (4) Judgment No. 4543; Case No. l(5i>. vSoap Fac- i.'i-v Concession. Claim for C$41,01 4.C.5. Fernando and Manuel Lacayo, Nicaraguan citizens. acquired a concession granted in 1891 involving the free importation, during a period of ten years, of machinery and raw materials for the manufacture of soap, candles and perfumery. In ItMr* the Minister of Finance ex- tended the time in which they might import these articles free of duty, but in !'.<);> the privilege was withdrawn. For this reason and on account of other annoyances 47 which they alleged, they closed their factory, \\-hirh be- came an almost total loss. They claimed the sum ab mentioned as the value of the factory, the estimated profits, and the customs duties they were required to pay. The Commission held (a) that the extension of permis- sion of free importation, in 1902, could not. under the circumstances of the case, be considered an extension of the original contract but a mere privilege revocable at will; (b) that the granting of such privilege by the Min- ister of Finance was illegal; (c) that even if it had I approved by the Executive, it would have been ui: stitutional; (d) that in no case could claimants have re- covered more than the amount of the customs dm (e) that no provocation sufficient for the abandonment of the factory has been alleged or proved. The claim was therefore rejected. (5) Judgment No. 5118; Case No. 6081. Aguar- diente Concession. Claim for C$1,235,390.24. In 1903 the Government of Nicaragua farmed out its internal revenue on aguardiente (the native brandy), and on alcohol and other spirits, to the Compafiia de Aguar- diente Limitada, a Nicaraguan corporation, the stock of which was held principally by Italian, Spanish and Brit- ish capital. The original period of the lease was six years, but in 1908 was extended for 34 years. During this time the Company was to administer the internal revenue on spirits as it is administered in Nicaragua, that is, it was to have the sole right to purchase distilled liquors from the manufacturers and to sell the same to the public. The Company frequently advanced or lent large sums of money to the Government. It was well administered and paid large dividends, so that its stock became quite valuable. Its gains were so great as to arouse public indignation, and the concession constituted one of the causes of the revolution of 1909 against Zelaya. In April, 1910, the Madriz Government issued a decree canceling the concession, and seized 727,r>!>:, liters of aguardiente and alcohol belonging to the Com- pany, as well as all the Company's apparatus, tanks, fur- 48 niture and other property. The Company therefore filed its claim in the following form : A. Value of the aguardiente, alcohol, and other property of the Company, seized by the Government, with interest C$320,082.23 B. Amounts advanced or loaned to the Government, with interest 162,508.01 C. Value of the concession 852,800.00 Total C$1,235,390.24 In April, 1914, the Government and the Company reached a compromise according to which the Govern- ment is to pay the Company, as indemnity in full, the sum of $276,275.00 gold. This amount is approximately the value of the property of the Company seized by the Government and the amounts advanced or loaned by the Company to the Government, without making any allow- ance for interest or for the value of the concession. The compromise was advantageous for the Govern- ment and was approved by the Commission. (6) Judgment No. 5321; Case No. 7736. San Juan del Sur Wharf Concession. Claim for $70,000 gold. The Compania Limitada del Muelle y Agencia de San Juan del Sur, a Nicaraguan corporation, was the owner of a concession granted in 1904 for the building of a wharf in the port of San Juan del Sur, and for its exploitation during the period of 30 years. In May, IDL'J, the Gov- ernment canceled the concession and the company brought this claim for the value of the wharf and of the conces- sion. In the beginning of 1914 the Government and the company reached a compromise according to which the company accepted the cancellation and sold the wharf and all its rights thereto to the Government for the sum of $15,000 gold, this sum to be paid out of the proceeds of the wharf, which is to be administered by the Collector General of Customs. 49 The compromise was legal and was approved by the Commission. The wharf was on June 1, HM4. turned over to the Collector General of Customs. \\h<> is ii<>\v collecting the wharf dues, and paying them to the com- pany on account of the purchase price. The wharf dues amount to between $500 and $600 a month, and tin's wharf will therefore be paid for in about two years. (7) Judgment No. 0385; Case No. 7655, Aguar- diente sub-contract. Claim for $24,000 gold. Jorge Deshon, an American citizen, claimed to be the assignee of a contract made with the Compania de Aguar- diente Limitada, which had the aguardiente concession, for providing the Company with aguardiente in certain towns. When the Government canceled the aguardiente concession, the Company no longer carried out this sub- contract. The Commission held that the claimant has no case against the Government of Nicaragua: (a) because there was no privity of contract between the claimant and the Republic of Nicaragua; (b) because claimant has not proved that he is the assignee of the sub-con- tract; (c) because several documents offered in evidence are not properly authenticated; (d) because it does not appear that the sub-contract was legally binding on the aguardiente company; (e) because there is no proof of the cancellation of his contract; (f) because the aguar- diente company has accepted the cancellation of its concession; and (g) because there is no proof of dam- ages. (8) Judgment No. 6500; Case No. 6220. Contract for maintenance of telegraph line. Claim for C$S,7 1 <.r>0. Erwin Kneifel, an Austrian subject, as assignee of the rights of Isaac Toledo, alleged that in October, 1010, To- ledo made a five-year contract with the Government Tele- graph Office for the maintenance of the telegraph line from San Carlos to San Juan del Norte, and that in con- sequence of Toledo's participation in the events con- nected with the resignation of President Estrada in May, 1911, the Government illegally cancelled the contract. 50 The Commission held: (a) that the contract of Oc- tober, 1910, was not made in accordance with law; (b) that the evidence is unsatisfactory; and (c) that there is no proof of the cancellation of the contract nor the reasons therefor. (9) Judgment No. 7542; Case No. 5139. Commer- cial Agency Concession. Claim for $400,000 gold. The Central American Commercial Co., an American corporation, filed this claim on account of two contracts made between the Government of Nicaragua and T. M. Solomon, in September, 1902, and April, 1904. Under these contracts the Government appointed Solo- mon its commercial agent, agreed that until April, 1914, his agency was to have the exclusive right to the Gov- ernment's orders, and that during the said period the agency was to receive a commission of 5 per cent, on all orders of the Government whether given to the agency or to any other merchant or agent. Solomon on the other hand promised to open a credit in favor of the Govern- ment to the amount of $80,000 gold. In 1906 the Gov- ernment began to give its orders to other merchants who offered to take them at lower commissions, and the claim- ant company demanded the 5 per cent, commission on all such orders. The Commission held: (a) that the claimant company had not complied with the rules of the Claims Commis- sion; (b) that it does not appear that the claimant com- pany has ever acquired any interest in the said con- tracts; (c) that the said contracts were not made with the formalities required by law; (d) that there is no evi- dence with respect to damages. (10) Judgment No. 7900; Case No. () per cent, of the value of the work to be t done fur the ('.uveniment in the company's shops. On 51 April 7, 1911, the Executive cancelled tin- contract of sale on the ground of illegality, and a few days later the Government took possession of the shops of t ; pania Tipografica. The company presented its claim be- fore the Commission asking for the return of the former National Printing Office or for the payment of $10,000 gold, and also asking for an indemnity of $816,954.75 national paper currency for damages suffered. On October 31, 1914, after the case had been heard, the Government and the company made a compromise according which the Government agreed to concede to the company the sum of $25,000 gold, and the company accepted this sum in lieu of all indemnity and further obligated itself to deliver to the Government the ma- chinery and tools corresponding to a section of its shops which it had not acquired from the Government, and the value of which it guaranteed to be not less than $5,000 gold. The Commission approved the compromise. (11) Judgment No. 7901; Case No. 2. School Text Book Contract. Claim for $10,000 gold. By contracts of October 30, 1889, and March 24, 1900, Dr. Belisario Porras, a Panamanian citizen, who in ac- cordance with an offer of the Government of Nicaragua had written a book on the geography of the country, agreed with the Government for the publication of said book and its adoption as text book in the national schools. The Government received the manuscript but never pub- lished the work, for which reason this claim was filed. The claimant being President of the Republic of Pan- ama, and the Government of Nicaragua believing the claim meritorious, there was a desire to make a friendly settlement. The Government of Nicaragua agreed to concede to the claimant in lieu of all indemnity the sum of C$8,000. The Commission approved the agreement, stating that it is understood to comprise both the value of the damages and of the manuscript. (12) Judgment No. 7902; Case No. 5. Rubber Con-i cession. Claim for $35,000 gold. 52 Carlos Bohnenblust, a Swiss citizen, alleged that by contracts made in September and November, 1907, and February, 1908, the Government of Nicaragua granted to various Nicaraguan citizens the exclusive right of ex- ploiting during eight years the rubber trees belonging to the Government in the Departments of Jerez and Rivas and the districts of Siquia and San Juan del Norte; that on January 8, 1910, the Madriz Government suspended the rubber contracts of Chontales and Rivas; that the Revolution of 1909 to 1910 rendered the contracts rela- tive to the rubber trees of Siquia and San Juan del Norte ineffective; and that by deed of September 20, 1911, the rights derived under the said contracts were transferred to the claimant Bohnenblust. The Commission besides referring to the doubts ex- isting with reference to the validity of the said contracts, declared: (a) that the evidence is deficient and defective, and (b) that the claimant knowingly bought a law suit. The claim was therefore rejected. (13) Judgment No. 7903; Case No. 5136. Rio Escon- dido Navigation Concession. Claim for $471,529.83 gold. The Bluefields Fruit & Steamship Co., an American corporation, presented this claim as successor to the Blue- fields Steamship Co., Ltd. This company was the owner of a concession granted it in 1904, which gave it the ex- clusive right, for 2,~> years, to navigate by steam, naphtha, electricity or alcohol, on the Escondido River and its af- fluents, paying the Government an annual sum of $15,000 gold. The Escondido River and its affluents flow through a fertile region, the most developed portion of the east coast of Xirara-tia, where there are many plantations. Because <>f its strong current, its high banks and its many curves, it can only with difficulty be ascended l>v sailing els, and, furthermore, since the products of the plan- tations are almost exclusively bananas and other fruits, the planters require the most rapid transportation facili- ties. The company thus in effect had the exclusive right 53 of traffic on the said river. This concession pn>v.kcd great irritation among the inhabitants of the east < and was one of the causes of the revolution of I'.MMI. On March 14, 1912, the Government cancelled the con- cession, whereupon the company presented its claim, the principal items of which were an item for estimate* 1 profits during the remainder of the term of the col sion, and another for annuities paid the G< nt while the company enjoyed its rights. The Commission held: (a) that the company violated the rules of procedure of the Commission; (b) that tin- evidence is very deficient; (c) that the concession involves a monopoly prohibited by the Constitution; fd) that the concession also violates the Civil Code that judgments of higher courts of Nicaragua have already de- clared the illegality of the concession; (f) that future profits cannot be claimed under an illegal contract; (g) that the value of the annuities paid by the compan compensated by the benefits which it derived from the concession; (h) that one of the clauses of the contract provides that the company cannot make claim if by force majeure or judicial decision the Government should be compelled to suspend or rescind the contract. The cancellation of the concession was therefore sus- tained and the claim rejected. Several other items of the same claim alleging denial of justice, damages inflicted by strikers, and losses suf- fered because of war, were also rejected. (14) Judgment No. 7907; Case No. 5003. I.n Villc- beuvre Mining Concession. Claim for $7 ! ". .-' old. On December 0, 1907, R. J. La Villebeuvre was exclusive mining rights in a zone of 467 square miles in the jurisdiction of Prinzapolka, in the eastern portion of Nicaragua, for 30 years, and a few days later th j concessionary transferred his rights to Julian Irias. At a later date the Mining Exploration Company, an An can corporation, obtained an option on the saiV sion, and after the expiration of the option, purch; the concession from Dr. Irias in March, ll'l 1 While 54 holding the option the company made expensive explora- tions in the zone. On March 18, 1912, the Government cancelled the concession, whereupon the company pre- sented this claim for $238,181.96 for expenditures which it alleged it incurred, and $509,400 gold for the value of the land, claiming also the value at which the future profits may be estimated. The Commission held: (a) that the concession was granted in violation of the Mining Code which does not permit the concession of zones of more than four square miles; (b) that the company acquired the concession after having been notified that the Government would not rec- ognize the transfer because of the illegality of the con- tract; (c) that the accounts presented by the company comprise items which have no connection with the con- cession; (d) that it is not proper to grant indemnity for the value of the concession; and (e) that it is equitable to grant the company C$20,000 for certain disbursements made by it. (15) Judgment No. 7908; Case No. 5143. Ander- son Pine Timber Concession. Claim for $1,134,700 gold. By concession of September 1, 1905, amplified by an- other contract of April 17, 1907, Lomax S. Anderson, an American citizen, was granted the exclusive right of cutting pine timber on Government land in a zone of 8,000 square miles in the northeastern part of the Re- public, for 50 years, paying a stipulated annual sum. The concession carried other very broad privileges and was equivalent to placing the development of the entire region in the power of the concessionary. Anderson transferred his rights to the Louisiana Nicaraguan Lumber Co., an American corporation. On March 30, 1912, the Gov- ernment cancelled the concession whereupon the company filed this claim, the principal item of which was one of $840,000 gold for estimated future profits. The Commission held: (a) that the concession in ef- fect constitutes a monopoly prohibited by the Constitu- tion; (b) that there is a lamentable lack of evidence; 55 (c) that in view of the circumstances of the case il is equitable that the Government repay $r,:>.oon gold whirl) it has received from the company. (10) Judgment No. 7909; Case No. .Mil. U Navigation and Mining Concessions. Claim foi 134.81 gold. The United States and Nicaragua Co., an American corporation, was the owner of five contracts which in ef- fect delivered to the company until the year 1953 a strip of 'about 7,000 square miles in the northern part of the Republic. The said contracts were (1) contract of Aug- ust 22, 1899, granting the exclusive privilege of steam navigation on the Coco River and its affluents f"i years; (2) contract of August 15, 1901, granting the right to establish tramway lines around the rapids of the Coco River; (3) contract of January 7, 1903, grant- ing exclusive mining rights in a large region in the north- ern part of the Republic for 25 years, the right to operate a railroad and other important privileges; (4) contract of January 16, 1903, granting the right to construct and to operate for 50 years a wharf at the mouth of the C River and collect wharfage for every passenger and f >r all merchandise imported or exported by way of the Coco River or any of its affluents or branches during the aforesaid period, as well as other important privik (5) contract of June 18, 1906, approved January '. )( .>. 1908, granting the right to open a channel at the mouth of the Coco River and collect live cents gold on every bunch of bananas embarked for exportation. The com- pany spent large sums, but its affairs were badly n aged and it suffered considerable loss. In the \\ difficulties arose with the Government and the latter insti- tuted legal proceedings alleging that the company had failed to comply with its obligations. The company then withdrew from the country. By decrees of March 29, 1912, and April l:;, 1!H:J. the Executive cancelled the concession. The company presented this claim, which it did not base on the cancella- tion but on the legal proceedings instituted by the ( ernment in the year 1908. 56 The Commission held: (a) that there is a lack of es- sential evidence; (b) that the Government was acting within its rights when it instituted proceedings in 1908 ; (c) that the concession constitutes a monopoly prohibited by the Constitution; (d) that the Government should return to the company the sum of $100,000 gold which it received as a loan, and a further sum equivalent to $4,000 gold, which it received as a deposit and for the return of which it has long since acknowledged liability. (17) Judgment No. 7910; Case No. 7440. Pearl La- goon Concession. Claim for $1,793,865.31 gold. By contract of July 24, 1906, approved by the Na- tional Assembly January 14, 1908, the Government granted to A. F. Piazza, as representative of the Central American Growers & Transportation Co., a concession for dredging the bar at the entrance of Pearl Lagoon. The company was to begin dredging within one year and finish the work within three years, construct a custom house and wharf and establish a navigation line, receiv- ing in return the right to take up 40,000 manzanas of public land, to collect wharf dues, to be exempt from cer- tain customs dues and to enjoy other valuable privileges. The concession was later transferred to the Atlantic Fruit & Steamship Co., which in turn transferred it to the Atlantic Fruit Co. The three companies are Ameri- can corporations. The companies took up 18,000 manzanas of public lands and tried to obtain more, enjoyed other privileges of the contract, and established important plantations, but never dredged the bar nor began the work seriously, and did not construct the wharf of the dimensions required by the contract. On March 29, 1912, the Executive cancelled the con- cession whereupon the said companies filed this claim, the principal items accede to tin- ; tion of the Government to declare the contract rescinded ; (c) that it is not necessary to consider whether the tract was legal or illegal; (d) that the claimants have no right to claim for estimated future profits; (e) that it is not equitable to grant the request of the companies that the Government reimburse all their expenses n.r that of the Government that all grants of land to the companies be annulled; and (f) that under the circumstance- of the case it is proper to declare that the Government ha pecuniary liability with respect to the claimants, and that these have no such liability with respect to the Govern- ment, and that the Atlantic Fruit Co. may retain such lands as were obtained before the cancellation of the con- cession. (18) Judgment No. 7911; Case No. 5138. Corinto Wharf Concession. Claim for $1,721,860 gold. On February 5, 1902, the Government of President Jose Santos Zelaya granted to Luis A. Cousin a contract conceding the right to construct a wharf in the port of Corinto and collect wharfage for 50 years, it being pro- vided that all merchandise imported and exported must pass over the wharf and that no other wharf can be con- structed at a less distance than 1,500 metres on each side of the wharf in question. The concession was afterwards transferred to General Jose Santos Zelaya himself who in 1904 sold it to the Central American Commercial C >. On March 14, 1912, the Executive cancelled the con- cession, whereupon the company presented this claim, the principal items of which are : $100,000 gold which it alleged it paid for the concession, $200,000 gold as the value of the wharf and a warehouse, and $l,2 ( ,)o.onn gold for estimated future profits. On November 19, 1914, the representatives of the parties stated that they had agreed upon a compromise according to which the company obliges itself to a 1 loa- the Government ten per cent, of the net proceeds of the wharf; to deliver the wharf to the Collector General of 58 Customs for administration by him ; to enlarge the ware- house on the wharf, expending $15,000 gold thereon; to pay the Government $75,000 gold; and to grant the Government of Nicaragua an option to purchase the wharf and the rights of the company, at any time, for $300,000 gold. The Government, on the 'other hand, agreed that the concession remain in force until the right to purchase were exercised according to the option. The Commission approved the compromise, but stated that such approval involved no decision with reference to the legality or illegality of the concession. The owners of the lottery concession also filed a claim which is numbered 5,030, but subsequently with- drew it as will be seen from judgment No. 5,891. 2. War Claims. The greater portion of the claims received by the Com- mission, 7,817 out of the 7,908 claims, were based on damages and losses suffered in consequence of wars, be- cause of the carrying off of cattle, horses, mules, pigs, poultry, saddles, grain, provisions and every other con- ceivable object which might be of use to an army, the destruction of crops, the burning of houses and other similar damages. Almost all these claims were filed by Nicaraguan citizens. The total amount claimed for war damages was C$4,301,319.57 and the amount awarded C$974,664.43. The laws relating to the Commission conferred juris- diction over all claims which originated since the be- ginning of the administration of President Zelaya. The Commission therefore held that it has jurisdiction over claims which arose on and after July 25th, 1893. Claims were presented before the Commission based on dam- ages suffered during the following wars and revolutionary disturbances : 1893. End of the Revolution, after July 25th. 1893 to 1894. War with Honduras, t 1896. Revolution of Leon. 59 1897. Revolution of Granada and Jinotepe. 1898. Invasion from Costa Rica. 1899. Revolution of Bluefields. 1903. Revolution in Chontales. 1907. War with Honduras. 1909 tp 1910. Revolution of Bluefields. 1911. Disturbances of May 8th. 1912. Revolution of July 29th. 1913. Disturbances at Nagarote. Also in other years, when the Republic was at peace, there were governors and other authorities who took from private persons articles necessary for the army, and claims for such seizures were also filed with the Com- mission. In practically all of these war claims, the evidence consisted either of receipts given by the corresponding authorities, or was contained in depositions rendered be- fore local magistrates under the procedure provided for investigations for perpetual memory (informaciones para perpetua memoria). The Commission has reasons for complaint with reference to both kinds of evidence. It became clear that many military chiefs and some civil authorities issued documents without ascertaining whether the party in interest had really delivered the number of animals or objects expressed by the document. In some cases the negligence of the signer of the document was so evident and so serious as to be inexcusable. But if the evidence, by means of receipts and signa- tures of authorities, was not entirely satisfactory, the depositions of witnesses were still less so. In such pro- ceedings the law provides that the petitioner notify the representative of the Department of Public Prosecution and the representative of the Finance Department, so that they may cross-examine the witnesses, and the law further requires that after the testimony has been given these officials file reports thereon. If the provisions and the intent of the law were duly observed, the right the Government would be well protected. In fact, how- ever, in the majority of cases, the notifications of the 60 representatives of the Government and the reports of these officials, were a farce. With a few honorable ex- ceptions, the representatives of the Government paid no attention to the notifications, took no interest in ascer- taining whether the witnesses had testified the truth, and afterwards either permitted the time for filing their re- port to pass or gave a favorable report, however exag- erated the claim may have been. The Commission begs to call the Government's attention to this state of affairs. The evidence adduced by means of investigations for "perpetual memory," also contained other deficiencies. In general, the questions asked of the witnesses were exceedingly vague and the witnesses merely answered affirmatively without giving any explanation. Such evi- dence was far from convincing the Commission of the truth of the matters alleged by the claimant. When the facts had been admitted as true by the local Boards of Exactions, or by other authorities of the Government, the Commission also generally accepted them. But in other cases, in spite of the ample criterion which it ob- served, it was obliged to make great reductions in the amount claimed, because of the insufficiency of the proof. In studying the cases, it was observed that many claims were based on losses for which, according to the rules of international law, the Government should not be con- sidered responsible. In some cases the Boards of Ex- actions and even the War Department had acknowledged liability for such losses. Many persons made claims for damages caused by the projectiles of rifles and artillery during battles, and there were many claims for property stolen during the war, although there was merely a sus- picion that the larceny might have been committed by soldiers, and although the stolen property could not be used for military purposes. The Commission therefore at the beginning of its sessions adopted various funda- mental rules with reference to the responsibility of the C.overnment, and these rules were applied to the facts in t-.'icli case. This method of procedure is the principal .explanation of the unanimity observed in the judgments 61 of the Commission. Although the principles announced slightly relaxed in at least one case the rules of interna- tional law, relating to the liability of the Ciovernn they were considerably more rigid than the principles heretofore followed in Nicaragua. The rules so adopted were as follows : "(1) The Government is not responsible for damages suffered during a battle, or as a direct consequence of military operations." This rule was applied especially in the claims for dam- ages suffered in consequence of the battle fought at Pearl Lagoon on July 27th, 1910, the bombardment of Prinzapolka also in the year 1910, the bombardment of Managua, on August 11 to 14, 1912, and the bombard- ment and battles around Masaya during the same war of 1912. Nevertheless, indemnity was granted when the damages were inflicted maliciously or without military necessity, as w r ere some of those caused by the garrison of the fortress of San Francisco in Granada in the final days of the siege in August, 1910. "(2) The Government is not responsible for 'lucro cesante' (unaccrued or uncollected profits), or indirect damages suffered in business as a con- sequence of war." The number of claims of this kind was greater than expected. During the war of 1909 to 1910, most of the military operations took place in the Department of Chontales and many cattle ranches had to be abandoned for months; some of the losers afterwards claimed t he- value of the cheese which they would have made with the milk they would have obtained had there been no war. Various persons claimed the amount of damages they suffered in their property or business while they were in the army. Others claimed the value of their horses and also the profits they would have derived if their horses* 62 had not been taken. Of the claimants of the war 19 IS, there were several who asked for indemnity for the profits they failed to make because the corn and other provisions imported by them were detained at the port of Corinto while the means of transportation to the in- terior were blocked by the state of war, or for the value of corn and other grain which was damaged by re- maining in storage in consequence of the state of war, or for the value of the extra freight they were obliged to pay because steamers were unable to discharge in Corinto. A number of individuals made claims for "paralyzation of their business during the war." It is evident that if indemnity were allowed for such losses, no treasury would be rich enough to make payment. "(3) The Government is not responsible for thefts committed by individuals of the army with- out the knowledge of their chiefs. Nevertheless, such responsibility may exist if, in consequence of unjustified orders of the chiefs, the owners of the property were obliged to abandon it and leave it exposed to being stolen, or if, after the thefts were committed, complaint was made and the chiefs refused to make the proper investigation." Many claimants believed that any deed done by any in- dividual of the army, although it might be a crime com- mitted in contravention of all laws and orders, created liability for the Government, every soldier being thus con- verted into a fully authorized representative of the Gov- ernment. The result was that claims were made for jewelry, articles of personal adornment, women's cloth- ing and many other objects which could not serve for military purposes and which were stolen by soldiers or civilians during campaigns. The Commission rejected such claims unless it was proved that some officer had knowledge of the depredations and did not try to avoid them, which unfortunately happened only too often. In the same manner the Commission as a general rule re- 63 jected the claims for looting committed by ungovernable soldiery in the capture of a town. For damages sulY during the looting of Masaya on October 4th, I'.MM, l.v?:> claims were filed in which approximately C$440. f 1912 broke out, the value of everything had incn and the Commission adopted a new list of prices which will also be given hereinafter. As already stated, the awards of the Commission were expressed in cordobas, the new monetary unit, and the rate of exchange fixed by the Government was applied, namely, 1,2~>0 per cent., or $12.50 national paper currency for one cordoba. At this rate of exchange the prices applied by the Commis- sion were very low, but not more so than the prices al- ready applied by the War Department. The result was almost the same as paying only a certain percentage of the loss in each case. It was necessary to adopt some provision of this kind, as well because of the weakness of the evidence as because of the enormous number of claims and the high amounts claimed. If high prices had been allowed for all animals and objects, there was no possibility that the Government X:ould ever pay the entire debt. There were few complaints on account of the val- uations made by the Commission. Poor persons who constituted a great majority of the claimants, were gen- erally glad to receive anything at all and disposed to add another sacrifice to the many they have made for their country. Almost the only persons who complained were persons in affluent circumstances and it was curious to observe that the richer the claimant the more he insisted on being paid the full value at which he calculated his losses. The most serious protests came from several foreigners who had become rich in the Republic but com- plained bitterly because the Commission took off a few dollars from the price they asked for their horses or other animals. "(6) The Government is not responsible to a soldier for arms or other effects taken from him in case of capture." 66 "(7) Indemnity will not be paid for the taking of arms of private persons unless it is clearly proved that the claimant was entitled to bear or have them." "(8) The Government is not responsible for damage done to property or for property taken by insurgents in revolutionary uprisings which were unsuccessful." The last rule was applied several times with reference to damages caused by the unsuccessful revolution of 1903 and by other revolutionary disturbances and with ref- erence to the claims of persons who demanded that the State indemnify them for all the expenditures which they incurred during many years in their efforts to overthrow President Zelaya. Such claims were not only completely at variance with the principles of law, but their payment would have been a dangerous precedent for the future. There was an exception, nevertheless, with reference to the damages caused by the insurgents of 1912 to the property of persons who remained loyal to the Govern- ment, because the Congress of Nicaragua expressly so provided by the law of January 10th, 1913. A recog- nition of such claims, however, must be considered as a matter of grace. There was also an exception in the case of the damages caused by the insurgents of 1896, as the national assembly so provided by the law of Feb- ruary 18th, 1910. The first of these two laws can be understood because the idea of the legislator was to re- ward loyalty, but the law relating to the war of 189(> appears completely unjustifiable. Nevertheless, it was necessary to apply this law, because the Government IKK! recognized other laws of the Madriz Congress, because the principal claims comprised in said law had been paid by the Madriz administration, and because only a few claims of this kind remained to be settled. A number of claimants sustained that the rules of international law are not applicable to Nicaragua, and especially not to its civil contentions. The Commission 67 decided that the rules of international law form a part <>f the body of laws of every civilized nation, that Mich rtiU-s define the rights, duties and responsibilities of Govern- ments in cases of foreign war or invasion, and that they are also of general application to civil wars e when such wars attain the character and niagnitud. some which have occurred in late years in Nicaragua. The war claims decided by the Commission 'can In- divided into three classes : (a) War Claims of 1893 to 100!). During the period of 1893 to 1009, there were a num- ber of civil struggles in Nicaragua, as already explained, but it was the custom after each war to appoint a board of claims to liquidate the debt of the Government. In this manner the greater part of the claims which ai in such wars had already been paid, or converted into documents of credit against the State. Only a few remained and of these many belonged to persons perse- cuted by General Zelaya and who had therefore been un- able to present them at the proper time. As the law creating the Commission gave it jurisdiction over all claims which, from any cause whatsoever, may have arisen against the Government of Nicaragua from the beginning of the administration of President Zelaya, the Commission also accepted the said war claims. In many of these cases the amount claimed was very high and the evidence very weak. One hundred and eighty- one claims were filed, asking for the payment of C$7 .">".- 019.62, and in which C$73,194.65 was awarded. (b) War Claims of 1909 to 1910. . The last revolution against the Government of Zelaya began in Bluefields on October llth, 1909, continued against Zelaya's successor, Madriz, and terminated with the triumph of the revolutionists about the end of Aug- ust, 1910. It caused losses in greater or less amount in 68 all parts of the country, and especially desolated the east coast, the Department of Chontales and the country about Granada. The law of October 14th, 1911, provided that the Commission have jurisdiction over claims filed on account of the belligerent operations of both factions. It also expressly directed the Commission in its con- sideration of claims, to give precedence to claims arising out of military loans, requisitions or exactions, by either faction during the said civil war. In December, 1910, the Government had already estab- lished "Boards of Exactions" in the various departments, before which claims for damages suffered during the civil war were to be presented. The Boards examined the claims and proofs and rendered judgment, after which all the papers were sent to the War Department which, in many cases, reviewed the evidence and rendered judg- ment anew. Towards the end of 1911 and in the begin- ning of 1912, all these claims were referred to the Mixed Commission for study and final decision. The double examination, which many claims had thus undergone in the Boards of Exactions and the War Department, was of great assistance to the Commission, but it was to be observed that the local Boards were somewhat generous in their awards and had not taken into account that similar claims were made against the Government in all parts of the country. The Boards gave certified copies of their awards to the parties in interest, a procedure which produced great confusion as a large number of persons believed these certifications to be copies of final awards, and there are reasons to believe that even certain offices of the Government have accepted such documents supposing them to be legal documents of credit against the State. In conformity with the law of October 1 1th, 11M1, the Commission, in its study of claims, gave preference to those of the war of 1909 to 1910, and as they were about :>.:;;: in number, the first two years of the Commission were dedicated almost exclusively to these claims. The ( majority were very small claims, the total claimed being 69 C$1,495,776.82 and the total amount awarded 7'0;J.17. There were several claims of only tuent\ four cents, but there were others of thousand COrdobas. In making valuations <>f losses, the pi above indicated were generally applied. In the DC] inent of Minefields, it was necessary to make price list for the reasons already explained. The values awarded for losses in Bluefields were as follows : Silver. Horses ...................... .Slno.OO Mules ....................... i ;,().o() Cows ........................ ;,().(io Fresh cows ................... 60.00 Oxen ............... . ........ ;().< H.I Saddles ...................... 55.00 Pigs ......................... 30.00 Chickens ..................... 1.00 Oars ........................ 1.00 Boats, 10 yds. long .......... 100.00 $y 2 yds. long lyd. wide. 80.00 9 yds. long, lyd. wide. 80.00 8 yds. long, 1 yd. wide. SO.on 7 yds. long, lyd. wide. 45.00 6% yds. long, 1 yd. wide. 45.00 5 yds. long, lyd. wide. 30.00 yds. long, lyd. wide. :!n.nn In the case of better boats, the prices were increased by about 25 per cent. The rate of exchange bei\ silver and cordobas, as applied by the Commission was 250 per cent. ; that is, $2.50 silver was taken as equiva- lent to one cordoba. The claims for damages suffered during the war of 1909 to 1910, took up more time of the Commi- than all other claims together. (c) War Claims of 1912. 70 The civil war which broke out July 29th, 1912, was one of the most violent and disastrous wars that have desolated the Republic. It affected the most populous and developed departments of the country, comprised various important bombardments, battles and assaults, and caused much damage until its termination by the triumph of the Government in the beginning of October, 1912. This war brought the Commission new claims which could not have been foreseen when the tribunal was formed. The greater part of them were based on seiz- ures, damages and losses caused by the armies of the Government. Some were founded on damages caused by the insurgents, but such claims were rejected by the Commission unless it appeared that the provisions of the law of January 10th, 1913, were applicable. In many claims filed with the Commission, great ex- aggeration was to be observed, as was natural, but in the claims of 1912, the exaggeration, as well with ref- erence to the losses themselves as to their value, ap- peared greater than in other claims. The number of cases in which attempts were made to deceive the Com- mission with completely unfounded claims, was relatively small, at least as far as the Commission knows, but the attempts at fraud which were discovered, were more numerous in the claims of the war of 1912 than in other claims. When the war of 1912 began, all prices had risen, and the Commission was obliged to adopt a new price list for the losses suffered in this war. The list adopted as a guide was as follows : Horses . ..C$16.00 Mares Mules . . . Cows Bulls .... Draft oxen Pigs 16.00 32.00 8.00 8.00 24.00 4.00 71 Chickens .24 Turkeys 40 Saddles of dressed leather l.oo Saddles of undressed leather .... l.r.n Large mounted saddles KJ.no Smaller saddles 1 :J Bridles l.r.n Halters .08 Spurs ,16 Ropes ,12 Pack saddles l.->o Cheese, per pound . K' Maize, per fanega 4.00 Beans, per fanega t,80 Spur straps .08 Ox carts 20.00 As, in the case of the other lists, these prices were subject to increase when it was proved that the animals or objects were of better quality. Many claims of the war of 1912 were based on 1< ing committed by the Government forces in Masa\a and Jinotepe or by the insurgent forces in Leon, Chin- andega, Diriamba, Jinotepe and Santa Teresa. As al- ready explained, such claims were rejected unless spe- cial circumstances were proved such as the consent <>f superior officers, etc. The number of claims of the war of 11)12 amounted t< about 2,257, in which the sum of C$2,n:,n. :>>:>,. 11 was claimed and the Commission awarded the sum of C$ 1 7Vr.6.1. If it had not been for the paralyzation of our work by the said war, and the multitude of new claims to which the war gave rise, it is probable that the Com- mission would have concluded its labors a year ;i 3. Claims for Denial of Justice. A number of claims filed with the Commission v based in whole or in part on alleged denial of justice* 72 by the courts or authorities of the Republic. The most important case of this class was that of Federico Alva- rado, case No. 3, judgment No. 2010. No claim of this kind was sufficiently proven and they were all rejected, with the exception of case No. 6374, judgment No. 6536, in which a small sum was awarded for unlawful imprisonment. 4. Miscellaneous Claims. Besides the claims for cancellation and violation of concessions and contracts, the war claims, and claims for denial of justice, other claims were filed based on every conceivable ground. Many alleged illegal or arbi- trary acts committed by the authorities of the Govern- ment of Zelaya. Other claims were presented for ex- pulsion from the country, others for confiscation or il- legal seizure of properties, others for death illegally caused by agents of the Government, others for customs bonds and other documents of credit issued by authorities of the Government, others for false imprisonment, others for services rendered to the present or former Govern- ments, one for violation of a concordat with the Holy See, etc. In very many cases, it happened that a single claim comprised the most diverse items. Occasionally claim was made for damages suffered in various wars, for arbi- trary acts of authorities, for money lent the Govern- ment, and for other causes. The Commission has, there- fore, in view of its lack of resources and time, and its small office force, been unable to make exact statistics of its work. For this reason, when a claim comprises more than one item, it has been classified according to the nature of its most important item. IX. PAYMENTS MADE BY THE COMMISSION. During the greater part of the existence of the Com- 1 mission, the position of its members has been embar- 73 rassing, because of the lack of funds to pay judgments. In October, 1913, the Government in contracting a small loan in New York, was able to make arrangement the payment of some of the smaller judgments. In the agreement it was provided that the sum of CSloo.nuo.on and 20 per cent, of the customs receipts of November, 1913, be set apart for the payment of awards of the Commission of C$100.00 or less. It was also agreed that 20 per cent, of the customs receipts of the months of December, 1913, and January and February, HH-I, be set aside for the payment of awards of the Commis- sion, without limitation as to amount. In the beginning of 1914, the agreement was modified and it was pro- vided that after the month of January the said 20 per cent, should no longer be set aside for the awards of the Commission. The twenty per cent, of the customs receipts of No- vember amounted to C$17,153.86, which, with the sum of C$100,000.00 made available by the loan, gave a fund of C$117,153. 86 for the payment of awards of the Com- mission of one hundred cordobas or less. The twenty per cent, of the customs receipts of December, 11)13, and January, 1914, amounted to C$41,394.14, which con- stituted the fund for the payment of awards of the Com- mission without limitation as to amount. The total sum thus obtained available for the payment of awards was C$158,548.00. The Commission endeavored to pay only small claims where the awards amounted to one hundred cordobas or less, and for this purpose utilized not only the fund which expressly designated such limitation, but also the other fund for awards without limitation as to amount. Jn 82 cases persons who had received awards of some- thing over one hundred cordobas and who did not wish to wait, appeared before the Commission requesting that such judgment be reduced to one hundred cordobas in order that payment might be made at once, and the Commission acceded to the requests, the total amount thus renounced being C$2,676.89. There were also cases* 74 in which more than one hundred cordobas had been awarded and in which the claimants were very poor or special circumstances existed, wherefore the Commission ordered that payment be made in full of some of these awards; at first, such payments were made only in very exceptional cases, but later when the end of the Com- mission drew near, a more ample rule was followed. In two cases of awards of over one hundred cordobas, the claimants made a reduction in their awards for the purpose of obtaining immediate payment, the amount thus renounced being C$111.00. The total number of payments of awards of one hundred cordobas and less is 4,527, the amount paid being C$140,147.82. The total number of awards of over one hundred cordobas, paid by the Commission is 91 and the amount paid there- on C$17,552.95. That is to say the Commission has paid a total number of 4,618 claims and the total amount of such payments is C$157,700.77. Inasmuch as there were reductions in 84 cases, in which the claimants renounced C$2,787.89, the full value of the awards paid was C$160,488.66. When the payments began, the Commission was under the impression that the National Bank, where the money was deposited, would allow interest on the same, but after several months it was notified that the bank would not allow interest, but, on the contrary, would deduct from the amount set aside a commission for its services. For this reason we have not been able to draw up to the last cordoba of the sum reserved for payments. The sum so reserved amounted to C$158,548.00, and the net amount drawn to C$157,700.77, a balance of C$847.23, thus remaining for commissions of the bank in accord- ance with the accounts which the bank will have to render to the Government. In many cases there was more than one claimant, and therefore while the number of claims paid was 4,618, the number of claimants was 4, (.">:). In making payments, it became necessary to adopt a f 76 claimants were delivered to them in the office of the Com- mission in Managua, but others were distributed by mem- bers of the Commission in Granada, Masaya, and Leon, others were forwarded to different governors of de- partments to be delivered to their owners, and those of the east coast were sent to the Collector of Customs of Bluefields, Mr. I. A. Lindberg, who kindly consented to distribute them. In the Department of Chontales there were more than a thousand claimants who lived in remote regions where there was no facility for exchanging checks; the Commission therefore sent a paymaster to said Department with C$22,465.78, to pay the claim- ants designated in a long list. The paymaster went to Juigalpa, the capital of the Department, paid C$21,- 099.27, and returned to Managua to render accounts and return the balance C$1,366.51 to the Commission. This was the only occasion on which any part of the money was in the office of the Commission, and after the pay- ment of C$1,001.48 to claimants who had arrived too late in Juigalpa the balance was returned to the bank. A check was also issued to the governor and administra- tor of San Juan del Norte, for the payment of the small number of claimants at that place, as there were no bank- ing facilities which would make individual checks pos- sible; and in the same manner a check was issued in favor of Mr. Lindberg for the payment of various In- dians in the district of Cape Gracias a Dios. On the 16th of November, 1914, a sum of C$622.98 remained pending for the payment of 28 claimants, almost all per- taining to the last warrant; for this sum the correspond- ing checks were prepared for such claimants as might appear before the date of this report, and the remainder will be delivered to the secretary of the Commission to make payment and render accounts to the Department f Finance. With the exceptions noted, all payments i" the Commission were made by means of checks in favor of the claimants or their representatives. When checks were delivered the signatures of the ^claimants were required on the stub of the check, or on 77 special receipts when delivery was made by mean ernors or other functionaries. As many claimants lived in remote regions, and have changed their place <>f dence, and up to the last moment it was necessary 1<> forward checks by mail, it is possible that tht : still be several checks undelivered. As to these also the secretary of the Commission will make report. In con- nection with the cash payments made in Chontalcs and elsewhere, the signatures of the paymasters were required as well as the receipt of the claimants. The only receipts of this kind which are still lacking are those of ; of C$1,407.50, for the Indians in the forests of the Dis- trict of Cape Gracias a Dios, and these receipts will be presented within a reasonable time or the money re- turned. All receipts given for checks or cash have been attached to the respective cases. The best vouchers to prove the payment of awards for which checks were issued will be the checks them- mission has had no accounting with the bank because have to render account to the Government. The Com- mission has had no accounting with the Bank becan-e checks were being issued up to the last moment and be- cause several checks issued some time ago have not yet been presented for payment. Inasmuch as on this date there are still several checks undelivered and others not presented for payment, and as no accounting has been possible between the bank and the Commission, we recommend: (a) that the retary of the Commission be allowed a term of a few \veeks more to find and pay the claimants for whom the amount of their awards has been set aside; (b) that the Government agree with the National Bank to wait a reasonable time, for example, until May 1st, 1 !)!.">. for the presentation of all checks which are lacking, after which date an accounting is to be had between the Gov- ernment and the bank, and the bank is to return to the Government the entire balance remaining of the funds for the payment of awards of the Mixed Commission, and (c) that upon the return of the balance by the bank 78 to the Government, the latter order that in the accom- paying list of payments made and in the summary of cases and awards of the Commission, all annotations be cancelled which refer to the payment of judgments whose amount should be found not to have been collected from the bank. In effecting the payments the Commission met with .special difficulty because of (a) the excessive number of persons claiming very small amounts; (b) the fact that the majority of claimants lived in remote regions; (c) the complicated procedure for obtaining and disbursing the money; (d) the lack of competent employees, and (e) the fact that the Commission had neither organiza- tion, facilities nor time for this work. Even before be- ing charged with making payments, the Commissioners and the office force were overwhelmed with the work con- nected with the study of claims and drafting judgments, and the additional task of making payments has been arduous, has consumed valuable time and has given rise to many annoyances. X. PAYMENT OF THE REMAINING AWARDS. With this report a list is submitted of all the awards of the Commission, and a list of the cases paid by the Com- mission in the respective warrants. From these lists and from the register of cases of the Commission, as also from the papers in the various cases, it will be easy to see which cases are still unpaid. When it comes to pay- ing these awards, it will be advisable to make use of the services of the secretary of the Commission, Mr. Bolaiios, who is well acquainted with the details of the Commis- sion's work. Various claimants have requested certificates of their awards and the Commission is advised that some of these certificates have been sold to third parties. Although such documents should not be considered as documents of credit against the State, it will be advisable, in order to r avoid complaints and claims in the future, to require all 79 persons holding such certificates to present them by a cer- tain date before payment is made. Also when payments are made, the Commission nrom- mends that a time be fixed within which every claimant should appear to receive what is due him, losing his rights in case of non-appearance. Further, before making new payments, it will be ad- visable for the Government carefully to revise the list of unpaid* claimants, in order to see whether any have been paid from the general treasury. The Minister of Finance has notified us that in this way the awards made in eight cases were paid, amounting to C$3,sl:2..Vj. but the Commission has information that several claims were paid without advising us, as for instance, in cases No. 1499, 16.r/, 2759 and 2760, in which the awards amounted to C$1,991.00. XL RECORDS OF THE COMMISSION. The records of the Commission comprise : (a) Register of Cases and Judgments. (b) Docket of Cases. (c) Register of Judgments, or Book of Awards. (d) Record of Proceedings. (e) Papers filed in the 7,911 cases. (f) Letters, accounts and other documents. These records, as well as the furniture of the Com- mission, will be left with Commission Dr. Carlos Cuadra Pasos, who will deliver them to the official designated by the Executive. The various cases with the documents pertaining thereto are filed in the order in which judg- ments were rendered. Up to the present time the office force has been busy with the regular work of the Com- mission and has had little opportunity for placing the archives in definite order. The Commission recommends that in order to facilitate the work of the Government in the future, such employees of the Commission as may be necessary be retained until January 31st, lll :,. in order to label properly the bundles of papers and in order to prepare a complete index of all cases. 80 XII. CONCLUSION. In fulfilling the task entrusted to it, the Commission has tried to act with the strictest impartiality, deciding each case according to the evidence presented and according to the rules of law and of equity. We are pleased to state that in our efforts to this end we have constantly received the support of the Government of Nicaragua. We desire to express to your Excellency and to the of- ficials of the Government, our sincere thanks for the encouragement and co-operation given to us, and for the proofs of friendship and kindness which we have always received from your Excellency and all other of- ficials, even in the darkest days which Nicaragua has seen in the last few years. We hope that this beautiful country may soon emerge from its difficulties and enter upon the enjoyment of the happiness and prosperity to which its resources entitle it. With great respect, we have the honor to be, Mr. Presi- dent, your faithful servants, OTTO SCHOENRICH, CARLOS CUADRA PASOS, ARTHUR R. THOMPSON. The following appendices are attached : Appendix I. Laws referring to the Mixed Claims Com- mission and Rules of Procedure of the Commission. Appendix II. List of Judgments rendered by the Nicaraguan Mixed Claims Commission, showing pay- ments made. Appendix III. Accounts of payments made by the Nic- araguan Mixed Claims Commission. EXHIBIT No. 2 ENGLISH TRANSLATION LETTER OF ACKNOWLEDGMENT ADDRESSED BY SR. DON ADOLFO DIAZ, PRESIDENT OF NICARAGUA TO OTTO SCHOENRICH, PRESIDENT OF THE NICARAGUAN MIXED CLAIMS COMMISSION. 83 (Translation) Private Correspondence of the President of the Republic. Managua, Nicaragua, C. A. MANAGUA, November rj.'id, 11H i. MR. OTTO SCIIOK. XKK-H. City. VERY DEAR SIR AND FRIEND : Upon your departure from this country, where you are so kindly remembered, because of your dedication of all your faculties to the service of Nicaragua, 1 desire to give you, in writing, my enthusiastic testimony nf what the work of the Mixed Claims Commission, of which you are the worthy President, has signified for the welfare of the Republic. The Government over which I preside included in its program the formation of a tribunal, mixed because of the nationality of the judges who were to constitute it, in order that, with a guarantee of impartiality for all. we might be permitted to cancel onerous concessions granted to foreigners by former governments, and to decide numerous claims arising from such cancellations and from the damages caused by our civil wars, to na; and foreigners. Today this most important point of its program has been carried out to the entire satisfaction of the Government, the happy conclusion of the same being due, in a great measure, to the competence and hon- ^ability of the judges who constituted the tribunal. The justice and equity with which the Mixed mission proceeded in all its resolutions is generally recog- nized, and it should be a matter of special satisfaction io you that, among so many claimants, not one has com- plained to the Government against the judgment which decided his claim. I further desire to thank you for other services y< >u have rendered to my Government, which has found you 84 ready to assist with your learning and good judgment, counselling the administration whenever requested for the decision of important matters. In these you have worked side by side with us, disinterestedly and as if you were a Nicaraguan. With special pleasure I also take advantage of this op- portunity to manifest to you the general good will which is felt towards you, personally, in Nicaragua, and the sentiments of my friendship, together with my wishes for your happy return to your country, where you will surely find the personal prosperity which you deserve. With high esteem, I am, Your very obedient servarit and friend, ADOI^FO DIAZ.