Cornell University Law Library THE GIFT OF UmaJj^....X. i^^rt^i-yiM^... jj4(LilL.C.^i!U..) jU^.'^^r. ■ V nn» .. fS™^" University Library JX 238.V43 1910a The counter case ot the United States of 3 1924 017 547 914 The original of tiiis book is in tine Cornell University Library. There are no known copyright restrictions in the United States on the use of the text. http://www.archive.org/details/cu31924017547914 Permanent Court of Arbitration at The Hague UNITEB STATES-VENEZUELAN ARBITRATION PROTOCOI, OF FEBRUARY 13, 1909 The Counter Case OF The United States of America ON BEHALF OF THE Orinoco Steamship Company AGAINST The United States of Venezuela With Appendix WASHINGTON GOVERNMENT PRINTING OFFICE 1910 COUNTER CASE OF THE UNITED STATES ON BEHALF OF THE ORINOCO STEAMSHIP COMPANY AGAINST THE UNITED STATES OF VENEZUELA BEFORE THE PERMANENT COURT OF ARBITRATION AT THE HAGUE. INTRODUCTORY STATEMENT. Changes of Dates. The date originally fixed by the protocol of February 13, 1909, for the meeting of the two arbitrators chosen by the two Govern- ments for the selection of the umpire was changed by the mutual consent of the two Governments to January 5-15, igio." Sub- sequently, at the request of the Government of Venezuela the date for. the meeting of the two arbitrators for the selection of the umpire was still further postponed, and by virtue of notes exchanged between the two Governments January 17, 1910, was fixed for February 15, 1910.* Further at the request of the Gov- ernment of Venezuela the date for the exchange of the counter cases was postponed to June i, 19 10, and pursuant to an agree- ment between the Agents of the United States and of Venezuela, the date for the meeting of the Arbitral Tribunal was fixed for September 20, 19 10, it being also stipulated that the Tribunal is to meet and organize on this date and that the arguments shall proceed immediately upon the organization of the Tribunal and continue without delay until finished. ■= The Scope of Case and Counter Case. Article VII of the Protocol of February 13, 1909, under which the Orinoco Steamship case is submitted to this Honorable Court, reads as follows: "Within eight months from the date of this Protocol, each of the parties shall present to the other and to each of the members opor text of the notes of September 13 and 14, 1909, effecting this change, see United States Case, Appendix, I: 18-20. i For texts of the notes exchanged between the Minister of the United States at Caracas and the Minister for Foreign Affairs of Venezuela January 17, 1910, see United States Counter Case, Appendix, pp. 5 to 7. " For notes in this sense exchanged between the American Minister at Caracas and the Venezuelan Minister for Foreign Affairs of February 24, 19 10, see United States Counter Case, Appendix, pp. 7 to 9. 3 4 COUNTER CASE OP THE UNITED STATES. of the arbitral tribunal, two printed copies of its case, with the documents and evidence on which it relies, together with the testi- mony of its respective witnesses." "Within an additional term of four months, either of the parties may in like manner present a counter case with documents and additional evidence and depositions, in answer to the case, docu- ments, evidence and depositions of the other party." "Within sixty days from the expiration of the time designated for the filing of the counter cases, each Government may, through its Representative, make its arguments before the arbitral tribunal, either orally or in writing, and each shall deliver to the other copies of any arguments thus made in writing, and each party shall have a right to reply in writing, provided such reply be submitted within the sixty days last named." The last paragraph of Article X of the Protocol reads as follows: "The arbitral tribunal shall meet at The Hague twelve months from the date of this Protocol to begin its deliberations and to hear the arguments submitted to it. Within sixty days after the hearings are closed its decisions shall be rendered." It will be observed that these provisions require, first, the pre- sentation on the part of each Government of a "case, with the documents and evidence on which it relies, together with the tes- timony of its respective witnesses." Secondly, they permit the presentation of a "counter case with documents and additional evidence and depositions, in answer to the case, documents, evi- dence and depositions of the other party," and, thirdly, they also entitle each Government to "make its arguments before the Arbitral Tribunal, either orally or in writing." The view of this Government as to the function of the case under the protocol was indicated in the introductory statement to the Case of the United States." As the United States understands these provisions, the function i of the "case" is analogous to that of the declaration or complaint I in municipal law, namely, to set forth the facts and circumstances upon which each Government bases its position. It is accompa- nied by and explanatory of the documents and evidence upon which it relies. The counter case, under this view, consists | mainly of a simple statement of the facts relied on to answer the case and evidence of the other party, and is accompanied, in turn, ; by the documents upon which it is based. It should also, so far as practicable, notice the points of agreement between the two "See United States Case, p. 6. " The statement (the case) will be narrative in form and generally chronological in arrangement, and no effort will be made at this time to argue the law or marshal the facts." COUNTER CASE OP THE UNITED STATES. 5 Governments, indicate any questions which may have been raised by the case of the opposing Government which are not beUeved to be material, and define as clearly as may be the issues of law and fact which are to be argued before the Court. The discussion of these latter questions is reserved for the printed and oral argu- ments, which afford ample opportunity for the citation of authori- ties and the discussion of principles, and for marshalling the facts and drawing the inferences therefrom. Such is the view of the United States. Furthermore, as was pointed out in the introductory state- ment prefixed to the Case of the United States, the United States beHeves that it is necessary to have a thorough under- standing of the merits of the questions presented to the umpire of the Commission of 1903 before it is possible to determine whether or not he decided those questions " upon a basis of absolute equity, without regard to objections of a technical nature, or of the pro- visions of local legislation," or whether, as is contended by the United States, his decision disregarded the limits of the protocol, from which alone he drew his authority, and suffers from numerous and essential errors of law and fact, which require its revision. The United States adheres to the view already expressed. The Venezuelan Case. It appears, however, from an examination of the case of the United States of Venezuela, that in addition to the clear exposi- tion of facts from the Venezuelan viewpoint therein contained, the greater portion of the Venezuelan case consists in argu- ment of the various questions of law and fact believed by the Honorable Agent of Venezuela to be involved in the case to be decided. Moreover, much of this argument is directed against positions attributed to the United States and inter- pretations which the Venezuelan Agent seeks to place upon the instructions of Secretary Root to the American Legation in Venezuela of February 28, 1907,'' positions and interpretations for which, it is hardly necessary to say, the United States is in no wise responsible and which in great part this Government does not accept. "■ For excerpts from these instructions, see United* States Case, pp. 48-53 ; Venezue- lan Case, Documents, pp. 11 7-1 28; for full text of the instructions, see United States Case, Appendix, II: 766-797. AD references to the Venezuelan case, unless otherwise stated, are to the French text. 6 COUNTER CASE OF THE UNITED STATES. On the other hand, certain positions vigorously contended for in the Venezuelan case on behalf of Venezuela and fortified by the citation of authorities have always been accepted by the United States and will not now be disputed by this Government, as will clearly appear at the proper time. Moreover, the Venezuelan case deals separately with the two questions which are submitted to the Tribunal for decision, namely, (a) the question as to the revision of the Barge award, and (b) the question upon the merits. Notwithstanding the temptation held out by the Venezuelan case to embark upon the argument at this stage, the United States beheves that both the provisions of the protocol and the necessities of an orderly presentation of the case require that the United States should follow the line which it has marked out, leaving the discussion of the questions of law and fact, which a con- sideration of the Venezuelan case and counter case shall show to be finally in dispute, for the written and oral arguments provided for by the protocol. MATTERS OP AGREEMENT, (i) The Doctrine of Res Judicata. The United States is in general agreement with the doctrine stated in general terms on page i8 of the Venezuelan case that an " award duly rendered by a court of arbitration has the force of res judicata with respect to the matter decided."" It will be recalled that this was one of the principal propositions which the United States contended for before this Court in the Pious Fund Case, and that this proposition was affirmed by the Tribunal in that case in the following language: "Considering that this rule {res judicata) applies not only to the judgments of tribunals created by the state, but equally to arbitral sentences rendered within the limits of the jurisdiction fixed by the compromis."^ " See Venezuelan Case, p. i8. "Nous avons A€]k dit que la sentence rendue r6gu» liferement par un tribunal d'arbitrage, a, sur la matifere r^solue, la force de la chose jugte." 6 See Recueil des actes et protocoles concernant le Utige du " Fonds Pieux des Cali- f amies" soumis au tribunal d'arbitrage constitui en vertu du Traits conclu A Washington le 22 mai igoz entre les Etat,s-Unis d' Amirique et les Etats-Unis Mexicains, published under the auspices of the Internal^onal Bureau of the Permanent Court of Arbitration at The Hague, 1902, p. 109 : " Consid^rant que cette rfegle ne s' applique pas seulement aux jugements des tribunaux institu^s par I'Etat, mais 4galement aux sentences arbitrales rendues dans les limites de la compHence fix6es par le compromis.'' See also Appendix to the Foreign Relations of the United States for 1902, p. 17. COUNTER CASE OP THE UNITED STATES. 7 It may not be amiss in this connection to requote a line or two from each of the passages from international law writers quoted in the Venezuelan case in support of this well established principle. Pradier-Foder6. "It is true that their decision (the decision of arbitrators) rendered within the limits of the compromis and of the authority which has been conferred upon them binds the con- tending nations for the same reasons and vmder the same condi- tions as treaties."" Bonfils. The parties to an arbitration "must execute the judgment ******* They have pledged one anbther to do so in the compromis concluded and drawn up by them."'' Merignhac. "An award duly rendered within the limits of the compromis decides the question between the parties in a final manner."' Calvo. "Moreover, the decision of an international court within the sphere of its authority, as Mr. Bancroft Davis, in his notes on the treaties of the United States, shows from the constant prac- tice of nations, is conclusive and final.""' Merignhac. "* * * The history of arbitration affords no instance of a refusal to accept an award rendered by the arbitrator within the limits of the powers conferred upon them."" It would thus appear that the passages from international law writers quoted in the Venezuelan case merely state the doctrine laid down by the Tribunal in the Pious Fund case in requiring that an arbitral decision should be pronounced in accordance with the terms of the compromis in order for it to be valid and binding on the parties to the arbitration. The authorities on this point will be set forth at length in the argument of the United States. "See Venezuelan Case, p. 19. "II est certain que leur decision prononcie dans les limites du compromis et du pouvoir qui leur a Ht confSr4, oblige les Etats con- tendants par les mgmes raisons, et aux memes conditions que les trait^s." 6 See Venezuelan Case, p. 20. "lis doivent ex^cuter le jugement ***** lis en ont pris I'un envers I'autre I' engagement dans le compromis par eux conclu et jormi." c See Venezuelan Case, p. 20. " La sentence dUmeiit prononcie dans les limites du compromis, decide la question entre les parties d'une fafon definitive." <* See Venezuelan Case, p. 21. "Bien plus, la decision d'un tribunal international, dans la sphere de son autoriU, ainsi que M. Bancroft Davis, dans ses notes sur les trait^s des Etats-Unis, le fait ressortir de la pratique constante des Etats, est con- cluante et definitive." « See Venezuelan Case, p. 22. "L'histoire de I'arbitrage ne nous offre point d'exemple du refus d'accepter une sentence rendue par I'arbitre dans la mesure des pouvoir s il lui conf^r^s." 8 COUNTER CASE OF THE UNITED STATES. (2) International Awards are Subject to Revision in Certain Cases. The United States finds itself once more in agreement with the statement on page 22 of the Venezuelan Case that "it is true that notwithstanding the fact that arbitral awards have the force of res judicata, international law recognizes soriie causes which war- rant their annulment. ' ' " (3) Mere Error is not a Ground for Revision. The Venezuelan case proceeds to cite Bluntschli,^ Pradier- FoderS,' and Calvo "* to the effect that the mere fact that an arbitral award is erroneous is not in itself sufficient ground for setting it aside. To this well-known proposition the United States also gives its assent. THE CONTENTIONS OF THE UNITED STATES; The United States in this case accordingly requests this Honora- • ble Tribunal to set aside the decision rendered by Dr. Barge not • because the decision is believed to be erroneous, but "on account i of its clear and palpable disregard of the terms of the submission and the numerous and essentiaV errors of law and fact upon which it is founded." ^ It will be the duty of the United States upon the written argu- ment to convince the court that the grounds which it has assigned justify its demand for revision and that the facts of the present case bring it within the scope of the grounds assigned. hA ABRA AND WEIL CASES. On pp. 3.2-39 the Venezuelan Case discusses two instances of the revision of arbitral awards by the Government of the United States, namely, the revision of the La Abra and Weil awards of the United States and Mexican Claims Commission of 1868, and the revision of the awards of the United States and Venezuelan Com- mission sitting under the Convention of 1866. It is not within the purview of the counter case, as understood by the United States, to follow the Venezuelan Agent in his examination of these cases, a See Venezuelan Case, page 22. " II est certain que, malgr^ I'autorit^ de la chose jug6e dont jouissent les arrfets d'arbitrage, le Droit International reconnatt quelques causes qui en entratnent I'annulation.'' * See Venezuelan Case, p. 26. c Ibid., pp. 26-27. <*Ibid., p. 27. ' See United States Case, p. 54. COUNTER CASE OF THE UNITED STATES. 9 but in the interest of historical accuracy in regard to a matter in which the honor of the United States is concerned, it is thought proper to point out the incompleteness of the statement con- tained in the Venezuelan case in discussing the revision of the La Abra award. The Venezuelan case uses the following language: "The Secretary of State expressed the opinion that a revision of the award was necessary and just, and accordingly Congress ordered the Court of Claims to try the case, and if the examina- tion showed' that the award was the result of fraud and swindling on the part of the claimant company, to annul it and to declare the claim of the company unlawful, in which case the President of the American Union was to restore to Mexico all sums that had not yet been distributed." " This is, indeed, a correct statement of the original act of Con- gress of December 28, 1892,* sending the La Abra case before the Court of Claims for revision. And in accordance with the decision of the Court of Claims and the Supreme Court ' and in pursuance of the provisions of the Act of December 28, 1892, $403,030.08, representing the payments by Mexico in the La Abra case which had been received and retained by the United States pending the final decision as to the revision of the award was returned to Mexico,'' and in like manner $287,833.77 was returned on account of the payments already received and retained by the United States Government in the Weil case.* Subsequently, however, « See Venezuelan Case, p. 35 : " Le Secretaire d'Etat se prononfa dans le sens de la necessity et de la justice de la revision de I'arrfit; aussi le Congrfes disposa-t-il que la Cour des reclamations devait prendre connaissance de I'affaire; et si I'examen ^tab- lissait que la sentence ^tait le r^sultat de la fraude et des machinations frauduleuses de la Compagnie reclamante, la Cour annulerait et d^clarerait sans fondement la reclamation de la Compagnie, et le President de I'Union americaine restituerait au Mexique les sommes qui n'auraient pas encore 6t6 distribu6es." 6 27 Stat, at Large, 409; for act making similar provision in the Weil case, see 27 Stat, at Large, 410. c United States vs. hn Abra Silver Mining Company, 1894, 29 Court of Claims, 432; 1897, 32 Court of Claims, 462; on appeal to the Supreme Court, La Abra Silver Min- ing Company vs. the United States, 1899, 175 U. S., 423. See also U. S. vs. Weil, 1894, 29 Court of Claims, 523. (J See notes exchanged between Secretary Hay and the Mexican Ambassador, M. de Azpiroz, March 28, 1900, Foreign Relations of the United States, 1900, pp. 781-782. «See notes exchanged November 10 and 12, 1900, between Secretary Hay and the Mexican Ambassador, Foreign Relations of the United States, 1900, p. 783. lO COUNTER CASE OF THE UNITED STATES. the Congress of the United States appropriated from the Treasury of the United States the amount necessary to repay Mexico for the installments which had already been paid over to the claimant in the La Abra and Weil cases, $412,572.70." MATTERS PERTAINING TO THE MERITS, (i) The Exclusive Franchise. A comparison of pp. 45-56 of the Venezuelan Case with the cor- responding portion of the Case of the United States discloses a complete divergence of view between the two Governments with regard to the nature of the concession held by the claimant com- pany and its predecessors for navigation between Trinidad and Ciudad Bolivar via the Macareo and Pedemales channels of the Orinoco. In substance the issue is as follows : The United States affirms and Venezuela denies that articles 6 and 1 2 of the Grell contract, together with the provisions of the Decree of 1893, conferred upon the concessionaire an exclusive franchise for navi- gation between Trinidad and Ciudad BoUvar via the Macareoj' and Pedemales channels during the Ufe of the Grell contract and its extension by virtue of the resolution of May 10, 1900, subject to the right of the Venezuelan Government to terminate this franchise at an earUer date by finally designating the ports at which merchandise from abroad should be transshipped, and making the requisite installations (Article 12). The propositions of law and fact upon which the United States ■ relies to establish this position, together with the authorities and evidence upon which they are based, will be fully presented to the Tribunal, and the arguments advanced on behalf of Venezuela will be examined and discussed in the •written and oral arguments of the United States. This discussion will not be needlessly antici- See notes exchanged between Secretary Hay and the Mexican Ambassador March 6 and 7, 1902, United States Counter Case, Appendix, pp. 93-95 ; see also the argument of Honorable William L. Penfield before the Permanent Court of Arbitration in the Pious Fund Case, reported in Appendix II, Foreign Relations of the United States, 1902, pp. 798-817. The failure of the Venezuelan case to mention this complete repayment of all sums received from Mexico is doubtless due to the fact that the article of Mr. M^rignhac, to which the Venezuelan Agent refers as the source of his information in regard to this matter, was published before the enactment of the law of December 28, 1892. For a very able summary of a number of the cases in which the United States has voluntarily revised awards in its favor, see the Note of the Venezuelan Minister for Foreign Affairs to the Belgian Charg6 d' Affaires of March 22, 1904, United States Case, Appendix, II, pp. 907-916; English translation, 916-926. COUNTER CASE OF THE UNITED STATES. II pated here. It does, however, seem advisable to call attention to two statements in the Venezuelan case, to which Venezuela appears to attach great importance as bearing upon the exclusive- ness of the company's franchise, statements, however, which the United States not only can not accept as accurate, but which are believed to be entirely irrelevant to the proper understanding and solution of the questions at issue. The first of these is the state- ment that the navigation between Trinidad and Ciudad Bolivar via the Macareo and Pedemales channels of the Orinoco River, which the concessionaire was authorized to carry on by virtue of article 12 of the Grell contract, was not foreign commerce. . This proposition is several times put forward in the Venezuelan case both expressly and impliedly. It is perhaps most clearly stated in the following passage: "The real explanation of this Article XII is as follows: Some of the steamers coming from the United States and Europe end their voyage at Curagao or Trinidad, and when they bring merchandise for Venezuela this merchandise is transshipped there to be conveyed to the Venezuelan ports to which it is consigned. The vessels of the English company which came to the Antilles in question performed this service and of course earned this freight. Now, such service is not foreign commerce."" In the opinion of the United States this service, whether con- sidered in the light of the ordinary meaning of the words "foreign commerce" or in view of the express language of the decree of 1893, is properly designated "foreign commerce." It is confidently submitted, however, that once it is admitted as it is expressly admitted in the foregoing passage from the Vene- zuelan case, that this business was done by virtue of Article XII of the Grell contract, it makes no difference whether it is properly called foreign commerce as far as the question of the exclusiveness of the concession or any other issue before this court is concerned. The specific admission in the Venezuelan case of the fact that the company by virtue of Article XII of the Grell contract was enabled to do the transshipment business between Trinidad and "See Venezuelan Case, p. 52. "La veritable explication de cet article 12 est celle-ci: quelques-uns des vapeurs venant des Etats-Unis et d' Europe terminent leur voyage k Curasao ou Trinidad et, quand ils apportent des marchandises pour le Ven^zu^la, celles-ci sont transbord^es IJi-bas pour fetre dirig6es sur les ports v6n6- zudliens auxquels elles sont destinies; les navires de la Compagnie anglaise qui arri- vaient aux Antilles mentionn^es faisaient ce dernier service et en gagnaient naturel- lement le fret. Or, un tel service n'est pas du commerce ext^rieur." 12 COUNTER CASE OF THE UNITED STATES. Ciudad Bolivar and to "earn this freight" is all important. The views of the Venezuelan agent as to what this trade should be called are unimportant, except for the purpose of endeavoring, if possible, to reach a common terminology, or at least a clear conception of our differences as to terminology so as to under- stand one another and to avoid taking up the time of the court by a discussion of words rather than things. It is for the destruction of this business, whatever it be called, which the company did do under the Grell contract, and which it claims it had the exclusive right to do, that the United States claims, damages. The justice of this contention depends upon the proper construction of the Grell contract, and is in no wise effected by the name given the business done by virtue thereof. The other statement in the Venezuelan case, to which it is deemed appropriate to draw the attention of the court in this con- nection, is as follows: "Since 1882 that has been a law in force in Venezuela which provides that products, merchandise, and goods coming from for- eign colonies and imported through the ports of the Republic opened up to import trade shall pay 30% additional over and above the duties paid in each manifest (Law of June 4, 1881 — Collection of Laws and Decrees of Venezuela, Law 9, No. 2332). This law is reproduced in the Code of Hacienda now in force (Law 19, Article i)."« This is not the understanding of the United States as to the Venezuelan law imposing the 30 % surtax. It is submitted on behalf of the United States that the Law of 1 88 1 was expressly and materially amended in 1883 so as to exempt goods coming from the United States and Europe and transshipped at Trinidad from the 30 % surtax, and that this sur- tax was never imposed on such goods transshipped at Trinidad, except for a short time from 1904 to 1906, after the claimant com- pany had been driven out of business; that the law of 1881 differs materially from the present law; and that at the present time no such surtax on transshipped goods exists. a See Venezuelan Case, p. 53. " Depuis 1882 est en vigueur, au Vto6zu61a, une loi qui dispose que les denr^es, marchandises et effets provenant des colonies 6trangferes, et qui sont introduits par les ports de la R6publique ouverts k 1' importation, paieront un trente pour cent additionnel sur les droits qui sont liquid^s dans chaque manifeste. (Loi du 4 juin 1881, " Recopilaci6n de Leyes y Decretos de Venezuela," Tome ix, no. 2.332). Et cette loi se trouve reproduite dans le Code des finances qui est actuelle- ment en vigueur (Loi xix, art. i)." COUNTER CASE OF THE UNITED STATES. 13 Reference is made in this connection to the various decrees and laws modifying the law of 1881, which are set forth "in the Appendix to the Counter Case of the United States." But even if the 30% surtax had applied to transshipped goods, it would be perfectly immaterial. If the smtax had been imposed, it might and, indeed, it would have reduced the quantity of the business done, but it would have had no tendency to prove that the franchise under which the business was done was not exclusive. Moreover, the Venezuelan case, far from denying, expressly admits, as above noted, that the object of Article XII of the Grell contract was to enable the Orinoco Shipping and Trading Company to carry goods transshipped at Trinidad to Venezuela, and that the company in fact " rendered this service " and " earned this freight." It in no wise affects the merits of this case whether the merchandise admittedly carried, on which the company "earned this freight," did or did not pay the surtax. It is therefore submitted on behalf of the United States that the contentions of the Venezuelan case as regards the proper use of the words "foreign commerce" and as regards the state of the Venezuelan law as to the 30% surtax are incorrect, and, further- more, that even though both of these contentions were correct they would be entirely immaterial as regards the real merits of this case. It will remain for the United States upon the argument to discuss the questions of law and fact which are believed to be involved in the proper construction of the Grell contract and the Decree of 1893. The contention of the United States is that, properly construed, the contract and the decree convey an exclusive franchise for navi- gation between Tr.nidad and Ciudad Bolivar via the Macareo and Pedemales channels of the Orinoco River during the life of the Grell contract and its extension by virtue of the Resolution of May 10, 1900, subject to the right of the Venezuelan Government to terminate this franchise at an earlier date by finally designating the ports at which merchandise from abroad should be trans- shipped and making the requisite installations. (2) The Settlement of May 10, igoo. One other question going to the merits of the case presented by the United States is discussed in the Venezuelan Case, and it "See United States Counter Case, Appendix, pp. 19-48, 14 COUNTER CASE OP THE UNITED STATES. appears that as to this question the two Governments are squarely at issue as to the facts. Reference is made to the agreement of settlement of May id), 1900, between the Venezuelan Executive, acting through the Minister of the Interior, and Richard Morgan Olcott, Managing Director of the Orinoco Shipping and Trading Company. As will be observed from the discussion of this matter in the Venezuelan case (pp. 81-83), Venezuela takes issue with the contention of the United States," that the contract signed by Dr. Quintero, Acting Minister of the Interior, and Mr. Olcott on May 10 and the decree prolonging the concession for six years, signed at the same time and place by Dr. Quintero, were part and parcel of one complete transaction of settlement, whereby the prolongation of the con- cession was granted as the principal consideration for the relin- quishment of over half a million dollars worth of claims, as pro- vided by the contract. The evidence upon this point will be marshalled and discussed at the appropriate time in the arguments of the United States. VENEZUELA'S TECHNICAL DEFENCES. The question of the assignment. The Venezuelan Case states that the first plaidoyer is devoted to showing that the decision rendered by the umpire of the Mixed Commission of 1903 was valid, while the second plaidoyer goes to show that the decision was just.* Of the fifty-two pages devoted to the second plaidoyer about foiirteen pages are devoted to the consideration of the two questions going to the merits which have just been considered, namely, the question of the exclusive fran- chise and the question as to the agreement of settlement of May 10, 1900, perhaps five more pages to introductory remarks and to stating the conclusions of the learned Agent of Venezuela. The remaining thirty -three pages of this plaidoyer, which is said to be devoted to showing the justice of the Barge decision is, it is most respectfully submitted, almost entirely occupied with setting forth reasons why the case should not be examined on its merits. And this notwithstanding that Venezuela has twice solemnly agreed that this claim should be submitted to an international tribunal for de- cision ' ' upon a basis of absolute equity without regard to objections a See United States Case, p. 26-27. 6 See Venezuelan Case, p. 40: "La validitd est mise en Evidence par la prdsente plaidoirie. La justice sera la matifere de la dissertation suivante." COUNTER CASE OF THE UNITED STATES. 1 5 of a technical nature or of the provisions of local legislation . ' ' The case presented by the United States was, in brief, this: That Amer- ican citizens invested over $700,000.00 on the faith of concessions granted by the Government of Venezuela, that these concessions were arbitrarily revoked by the Venezuelan Government, and the business of the American citizens in question, represented before this court by the Orinoco Steamship Company, was destroyed, whereby they lost not only their investment, but their legitimate expecta- tions of profit. It is submitted that in order to defend this case on the merits, it would be necessary to deny and disprove some of these allegations. For example it might be contended that American citizens did not invest their money as claimed, or that the concessions were not granted by the Venezuelan Government as claimed, or if granted were not revoked, or that, if "they were revoked, the revocation was rightful, or that, if wrongful, it did not result in the damages claimed. The attention of the Court is most respectfully drawn to the suggestion of the United States that except in the portions of the Venezuelan case above referred to, which deal with the questions of the exclusive concession and of the May 10 agreement, Venezuela has not attempted to meet the real merits of the case as stated by the United States. ' As an illustration of the technical line of defense adopted by Venezuela, let us take the matter of the 100,000 bolivars due under the Quintero-Olcott contract of May 10, 1900. Here is a simple case of an account stated, a settlement reached, and an agree- ment among other things to pay the Orinoco Shipping and Trad- ing Company one hundred thousand bolivars. The United States claims in this case the payment of this 100,000 bolivars to the Claimant Company, the assignee of the Orinoco Shipping and Trading Company. It is not contended on behalf of Venezuela that the contract to pay this money was not made as alleged. It is not contended that this contract has ever been fulfilled by the payment of the money. Venezuela does not even raise the query suggested by Dr. Barge at the close of his opinion as um- pire of the Mixed Commission of 1903 whether "on the day this claim was filed, this indebtedness was proved compellable. "« Venezuela interposes the technical objection that according to the local legislation of Venezuela the assignment of this claim from the Orinoco Shipping and Trading Company to the Orinoco Steamship Compan5f has no legal existence, so far as the Venezuelan a See United States Case, Appendix, I: 698. 1 6 COUNTER CASE OP THE UNITED STATES. Government is concerned, because of the lack of notification to the Venezuelan Government, according to the technical provi- sions of local law. To this there is the added suggestion that the suit brought by Venezuela against the Orinoco Shipping and Trading Company "a short time before the Venezuelan-American Mixed Commission commenced the examination of the Case of the Orinoco Steamship Company,"'' proves that the Venezuelan Gov- ernment had no actual notice of the transfer from the Orinoco Ship- ping and Trading Company to the Orinoco Steamship Company, a statement which overlooks among other things the fact that the memorial in the case of the Orinoco Steamship Company was filed on June i6, 1903, before the American-Venezuelan Mixed Com- mission sitting in the city of Caracas, while the complaint in the suit of the Government against the Orinoco Shipping and Trading Com- pany in the High Federal Court was dated June 26, filed on July 7, and served on July 10,* 1903. And again there is the statement that the transfer prejudiced the Government of Venezuela because it had claims against the Orinoco Shipping and Trading Company, the transferor. This statement is allowed to remain a mere allegation. In its counter case the United States merely desires to submit that pages 56-75 of the Venezuela Case are in the main simply a fourfold reiteration in various forms, as regards the concession, the vessels, the real estate, and the claims of the Orinoco Shipping and Trading Company, of the same technical objection based on an alleged technical failure of notice, of a transfer which the United States contends, and which it will upon the argument endeavor to show from the evidence before the Court wag well known in fact to the Venezuelan Government and was in no wise prejudicial to the Government of Venezuela. Dr. Grisanti, the Venezuelan Commissioner before the Mixed Commission of 1903, presented in detail these same objections as going to the jurisdiction of the Commission. He said: "In view therefore, of the substantial irregularities of the deed of assign- ment and transfer, the Government of Venezuela has a perfect right to consider "The Orinoco Shipping and Trading Company ^ "See Venezuelan Case, pp. 74-75: "C autre part, le Gouvernement v6n6zu61ien ignorait cette cession ; et la preuve en est que, peu de temps avant que la Commis- sion mixte vdn^zuelo-am^ricaine assum4t I'examen de la ' Orinoco Steamship Com- pany,' le Gouvernement avait assign^ la 'Orinoco Shipping and Trading Com-' pany' en resolution des contrats Grell et Oleachea pour n'avoir jamais ^t^ ac- complis." 6See United States Counter Case, Appendix pp. 81 and 83-84. COUNTER CASE OF THE UNITED STATES. 17 Limited " as the sole owner of the claims analyzed, and whereas said Company is of British nationality, this Venezuelan-American Mixed Commission has no jurisdiction to entertain the claim mentioned."" He makes it perfectly clear that he does not regard these objec- tions as going to the merits of the claims by adding: " The incom- petency of this Commission has been perfectly established. I shall now analyze the claims in themselves." Then he proceeds to discuss the question of the exclusive concession and the May 10 agreement. The Calvo clause. Venezuela adduces, as an additional reason why the Court should not look at the merits of the case. Article 14 of the Grell contract, which reads as follows : Disputes and controversies which may arise with regard to the interpretation or execution of this contract shall be resolved by the tribunals of the Republic in accordance with the laws of the nation, and shall not in any case be considered as a motive for international reclamations.* It is submitted on behalf of the United States that this clause has no just appUcation to the circumstances of this case, and if it were applicable, it could not override in advance the solemn provisions of two protocols subsequently entered into, whereby the examination and decision of this case upon a basis of absolute equity without regard to objections of a technical nature or the provisions of local legislation has been confided to an interna- tional tribunal. The Jurisdiction of the Commission of 1903. Venezuela closes her case before this Tribunal as she opened her case before the Mixed Commission of 1903 with a denial of the jurisdiction of the Commission of 1903 because of the assign- ment of the international claim by the Orinoco Shipping and Trad- ing Company, a British Corporation, to the Orinoco Steamship Company, an American Corporation, and seeks to uphold this position by adducing the time honored and unquestioned principle of international law that an international reclamation must be clothed with the nationality of the plaintiff country both at the time of its origin and at the time of its presentation, whereas the present claim arose on behalf of an English company and was transferred to American ownership. olbid., I: 678. 6See United States Case, Appendix, I; 131. 41942 — 10 2 1 8 COUNTER CASE OF THE UNITED STATES. It is sufficient at this time to point out that the United States in presenting this case to the Commission of 1 903 did not question the soundness of this general principle. The position of the United States before the Commission of 1903, a position which was sustained by Commissioner Bainbridge and by Dr. Barge, the umpire, and which will be fully explained to this Honorable Tri- bunal in the course of the argument of the United States, was that the two governments had expressly and intentionally con- tracted themselves out of the ordinary rule of international law by using the peculiar language of the protocol of 1903: "All claims owned by citizens of the United States of America against the Republic of Venezuela. ' ' (Spanish: " Todas las reclamaciones poseidas ® por ciudadanos de los Estados Unidos de America contra la Repfiblica de Venezuela ") . It may be noted in passing that the purpose of the words "owned by citizens of the United States," etc., was well under- stood at the time ; so much was this so that it was referred to as a matter of course by Mr. Ralston, the umpire of the Italian- Vene- zuelan Commission of 1903, in an opinion handed down long before that in the Orinoco Steamship Case. Mr. Ralston, whose standing as an eminent lawyer and a wise and upright umpire is attested by the Venezuelan Agent, * in the course of his opinion in orientales ll occidentals de la Repliblica, podrdn ser trasbordados para seguir d dichos puertos en La Guaira 6 Puerto Cabello; y podrdn serlo tambien en Carlipano cuando las mercaderias vengan destihadas a puertos habilitados del oriente de la Repliblica con excepcion de Ciudad Bolivar. Las mercaderias cuyo trasbordo se efectlie en Cartipano, La Guaira 6 Puerto Cabello podrdn ser reconocidas y liquidados sus derechos en las respectivas Aduanas de los expresados puertos, para continuar despu^s de cabotaje a su destino. § 1°. En este Ultimo caso se hara de los derechos de mer- caderias, frutos 6 efectos qsi importados una rebaja de cinco centimes de bolivar, sobre cada kilogramo del peso que tengan las mercaderias contenidas en la factura como indemnizaci6n de los gastos extraordinarios hechos en ellos, y deberdn quedar los efectos reconocidos depositados en las Aduanas respectivas, hasta su reembarque de cabotaje para el lugar d que vienen des- tinados. El reembarque debera efectuarse dentro del termino de diez dias, pasado el cual, sin haberse verificado, pagard el intro- ductor por almacenaje tres por ciento mensual sobre el valor declarado que tengan los efectos en la factura. § 2°. Los Administradores de Aduana no hardn la rebaja A que se refiere el pardgrafo anterior, cuando en los sobordos y facturas consulares correspondientes no se encuentre expresado el puerto oriental li occidental para donde vienen destinadas las mercaderias. Art. 3". Los buques que reciban de trasbordo en La Guaira, Puerto Cabello 6 Cartipano, frutos, mercaderias y efectos para conducirlos ^ otros puertos orientales li occidentales de la Repli- blica, como lo permite la ley, cuando sean nacionales no podrdn conducir a la vez mercaderias de cabotaje, pues dichos buques deben considerarse, en el puerto en que descarguen, como proce- dentes del exjero [extranjero]. Art. 4". Los Capitanes 6 sobre-cargos de los buques que reciban mercancias de trasbordo en los puertos de La Guaira, Puerto Cabello 6 Cartipano, presentardn en la Aduana adonde conduzcan estas mercancias, los sobordos, facturas y conocimientos correspon- dientes d, ellas, los cuales les serdn entregados por el Administrador de la Aduana, en cuyo puerto se haya efectuado el trasbordo, despues que este empleado haya confrontado y visado los sobordos 44 APPENDIX. con las notas que debe presentar d la Aduana el empleado que presencie el trasbordo de las mercanclas. Art. 5° Los Administradores de las Aduanas Maritimas en cuyos puertos se efecttien estos trasbordos, participardn en cada caso al Ministerio de Hacienda y d la Aduana A donde vayan dirigidas las mercancias, el nombre del buque en que ^stas hayan venido del extranjero, el del que las conduce al puerto de su des- tino, el nlimero de bultos que constituyen la carga trasbordada y el envio de los documentos que se refieren d ella. Art. 6°. La falta de cualquiera de los documentos con que deben venir acompanadas las mercancias extranjeras que se importan en la Repliblica seglin la ley de Rdgimen de Aduanas, impedird el trasbordo d que se refieren los articulos anteriores; y el Adminis- trador de la Aduana en cuyo puerto habria debido verificarse esta operacidn detendrd las mercancias hasta que la falta sea subsanada con arreglo d la misma ley de Regimen de Aduanas, despuds de lo cual las reconocerd y liquidard como si hubieran venido destinadas para dicho puerto. Art. 7°. Las mercancias que se importen de las Antillas con destino al trdnsito para Colombia se liquidardn tambien con el recargo de treinta por ciento adicional establecido por esta ley, en previsi6n de que por alguna circunstancia de las expresadas en la de trdnsito, tengan que pagar en Venezuela los derechos que causen d su entrada. Art. 8°. Los frutos y demds producciones nacionales, continua- rdn exportdndose como hasta ahora para el extranjero, por todos los puertos habilitados al efecto. Tambidn podrdn trasbordarse en los de La Guaira, Puerto Cabello y Carupano, d voluntad de sus duenos, siempre que al efectuarse el trasbordo se acredite aut^n- ticamente que estdn ya satisfechos los derechos de trdnsito; liquidados por la respectiva Aduana Terrestre. [Translation.] Code of Hacienda, i8gg. Law XIX. — Supplementary provisions. Regarding importation and exportation of merchandise. Art. I. Produce, merchandise, and effects coming from foreign colonies and imported through the ports of the Republic open to importation shall pay 30% additional. Those which, coming from European or United States ports and destined for Venezuela, are transshipped in said colonies to other vessels which are to bring them., shall pay 30% additional over the duties specified in VENEZUELAN LAWS AND DECREES. 45 each manifest in accordance with the tariff in force. This latter provision shall take effect when the National Executive deems fit. Art. 2. Produce, merchandise, and effects embarked in Europe or the United States of North America and bound for eastern or western ports of the Republic may be transshipped to continue to said ports in Ea Guaira or Puerto Cabello. They may also be transshipped at Carupano when the goods are bound for open ports of the eastern part of the Republic, with the exception of Ciudad Bolivar. Goods transshipped at Carupano, Ea Guaira, or Puerto Cabello may be .examined and cleared in the respective custom houses of the said ports, to continue thence coastwise to their destination. § I . In this latter case there shall be made from the duties on the merchandise, produce, or effects thus imported a rebate of 5 cen- times per bolivar for every kilogram of weight of the goods com- prised in the invoice, as a compensation for the extra expenses incurred in connection with them, and the goods examined shall be deposited in the respective custom houses until reembarked to proceed coastwise to the place to which they are bound. The reembarkation m.ust take place within ten days, after which, if it has not taken place, the importer shall pay as warehouse dues 3% per month of the declared value of the goods in the invoice. §2. Collectors of customs shall not grant the rebate referred to in the foregoing paragraph when the eastern or western port to which the goods are bound is not stated in the respective manifests and consular invoices. Art. 3. Vessels which receive produce, merchandise, and effects at Ea Guaira, Puerto Cabello, or Carupano by way of transship- ment in order to convey them to other eastern or western ports of the RepubUc, as permitted by law when they are national vessels, shall not be allowed to carry goods coastwise at the same time, for such vessels must be regarded, in the port where they discharge their cargo, as coming from abroad. Art. 4. The captains or supercargos of vessels which receive goods by way of transshipment in the ports of Ea Guaira, Puerto Cabello, or Carupano shall present, at the custom house to which they take the goods, the manifests, invoices, and bills of lading pertaining thereto, which shall be delivered to them by the collector of customs in whose port the transshipment has been made, after said official has compared and.visa-ed the manifests with the notes which must be presented to the custom house by the official who is present at the transshipment of the goods. 41942—10 5 46 APPENDIX. Art. 5 . The collectors of maritime customs in whose ports these transshipments are made shall in each case make known to the Ministry of Finance and the custom house to which the goods are addressed, the name of the vessel on which the goods have come from abroad, the name of the vessel conveying thern to their port of destination, the number of packages composing the transshipped cargo, and the transmission of the documents relating to the latter. Art. 6. The lack of any of the documents which should accom- pany foreign goods imported into the Republic according to the Customs Law shall prevent the transshipment referred to in the foregoing articles ; and the collector of customs in whose .port the transshipment should have taken place shall detain the goods until the lacking documents are supplied in accordance with said cus- toms law, after which he shall examine and collect on the goods as if they had been bound for said port. Art. 7. Goods imported from the West Indies and bound in transit for Colombia shall also have the duties collected on them, the additional 30% provided by this law being added, as a pre- cautionary measure in case, owing to any of the circumstances mentioned in the law on transit trade, they should have to pay in Venezuela the duties due on them at their entrance. Art. 8. National fruits and other produce shall continue to be exported abroad as hitherto through the ports open for the ptu-pose. They may also be transshipped in the ports of La Guaira, Puerto Cabello, and Carupano, at the pleasure of their owners, provided it is authentically proved, upon their transshipment, that the transit duties are already paid as levied by the proper land custom house. Executive Resoi^ution op May 23, 1904, Making Operative THE 30% Additionai. Duty Provided for in the Code op Hacienda op 1899. Resolucidn de 2j de. mayo de 1904, por la cual se ordena poner en vigencia lo estatuido en el articulo j°- de la Ley XIX del Cddigo de Hacienda. Estados Unidos de Venezuela, Ministerio de Hacienda y Cr^dito PtJBuco, Direccion de Aduanas, Caracas, 23 de mayo de 1904. — 93° y 46° Resuelto: El ciudadano Presidente Provisional de la Reptiblica ha tenido a bien resolver: que desde el vencimiento de los plazos ultramarinos que senala la Ley XVI del C6digo de Hacienda, VENEZUEIyAN LAWS AND DECREES. 47 contados desde esta fecha, se cumpla en todas sus partes la Ley XIX del Cddigo de Hacienda cuyo artlculo i ° dispone lo siguiente : " Los frutos, mercaderias y efectos procedentes de Colonias extran- jeras que se introduzcan por los puertos de la Reptiblica, habili- tados para la importacidn, pagardn un 30% adicional. Los que viniendo de los puertos de Europa, 6 de los Estados Unidos de Norte America para Venezuela sean trasbordados en las mismas Colonias d otros buques que los hayan de traer, pagaran un 30% adicional sobre los derechos que se liquiden en cada manifiesto, conforme al Arancel vigente. Esta tiltima disposicion comenzard £ regir cuando lo juzgue conveniente el Ejecutivo Nacional." En consecuencia, los Administradores de las Aduanas Maritimas de la Reptiblica dardn estricto cumplimiento d la expresada Ley XIX del C6digo de Hacienda. Comuniquese y publiquese. Por el Ejecutivo Nacional, J. C. De Castro. [Translation.] Resolution of May 23, 1904, ordering the putting into effect of the provisions of Article I of Law XIX of the Code of Hacienda. United States of Venezuela. Ministry op Finance and Public Credit, Customs Bureau, Caracas, May 23, 1904 (95 and 46th). Resolved: The Provisional President of the Republic has seen fit to resolve that, as soon as the ultramarine periods designated in Law XVI of the Code of Hacienda expire, counting from this date, there be carried out in all its parts Law XIX of the Treas- ury Code, Article I of which provides as follows: " Produce, merchandise, and effects coming from foreign colonies and imported through the ports of the RepubHc open to impor- tation shall pay 30% additional. Those coming from European or United States ports to Venezuela and which are transshipped in said colonies to other vessels which are to bring them shall pay 30% additional over the duties specified in each manifest in accordance with the tariff in force. This latter provision shall take effect when the National Executive deems it proper." Consequently, the collectors of maritime customs of the Republic shall strictly carry out the said law XIX of the Treasury Code. Let it be communicated and pubUshed. By the National Executive : J. C. De Castro. 48 appendix. Resolution op January 12, 1906, Repealing the Additional 30 PER CENT Duty Provided for in the Executive Res- olution OP May 23, 1904. ESTADOS UnIDOS DE VENEZUELA, MiNisTERio DE Hacienda, DiRECCION DE AdUANAS, Caracas, 12 de enero de igo6. — 95° y 47". Resuelto: Dispone el ciudadano General Cipriano Castro, Pre- sidente de los Estados Unidos de Venezuela y Restaurador de Venezuela, que desde esta fecha quede derogada la Resolucidn de 23 de mayo de 1 904, que disponia el cobro del 30 % adicional d las mercancias trasbordadas en las Antillas, quedando s61o vigente la parte del articulo 1 °, Ley XIX del Codigo de Hacienda, en cuanto d los frutos, mercaderias y efectos procedentes de Colonias ex- tranjeras. Comuniquese y publiquese. Por el Ejecutivo Nacional, J. C. De Castro. [Translation.] United States of Venezuela, Ministry op Hacienda, Direction op Custom Houses, Caracas, 12th of January igo6. gs y 47. Resolved: General Cipriano Castro, President of the United States of Venezuela and Restorer of Venezuela, orders that from this date the Resolution of the 23d of May, 1904, be revoked, which placed an additional tax of 30 per cent on merchandise trans- shipped from the Antilles, remaining in force only that part of the Article i , Law XIX of the Code of Hacienda, with regard to produce, merchandise and effects brought from foreign Colonies. Let it be communicated and published. For the National Executive. J. C. DE Castro. venezuelan i.aws and decrees. 49 transfer of credits in venezuelan law. Provisions of the Civil Code op 1896 Concerning the Trans- fer OP Credits and other Rights." Codigo Civil, i8g6. LiBRO TerceRO. — De las maneras de adquirir y de transmitir la propiedad y demds derechos. TiTuivO VI. — De la venta. Secci6n 7«. — De la cesidn de criditos u oiros derechos. Art. 495. La cesidn de un cr^dito, de un derecho 6 de una accidn es perfecta, y el derecho cedido se trasmite al cesionario, desde que hay convenio sobre el credito 6 derecho cedido y el precio, aupque no se haya hecho tradicion. La tradicidn se hace con la entrega del titulo que justifica el crMito 6 derecho cedido. Art. 1.496. El cesionario no tiene derecho contra terceros sino despues que la cesi6n ha sido notificada al deudor, 6 que este la ha aceptado. Art. 1.497. El deudor queda validamente libre, si paga al cedente antes que este 6 el cesionario le haya notifica,do la cesion. Se except^ian los documentos que llevan la aceptacidn explicita 6 implicita del deudor. Art. 1.498. La cesidn de un credito comprende los accesorios de ese credito, tales como las fianzas privilegios 6 hipotecas. Art. 1.499. Bl que cede un credito li otro derecho responde de la existencia del credito al tiempo de la cesion, ^'no ser que haya sido cedido conio dudoso 6 sin garantla. Art. 1.500. El cedente no responde de la solvencia del deudor, sino cuando lo ha prometido expresamente y s61o hasta concu- rrencia del precio que se le ha dado por el credito cedido. Art. 1. 50 1. Cuando el cedente ha garantizado la solvencia del deudor y nada se ha convenido sobre la duracidn de esta responsabi- lidad, se presume haberla limitado d un ano, d, contar desde la ^poca de la cesidn del credito, si el plazo de este estaba ya vencido. Si el credito es pagadero en un termino que aun no estd vencido, el alio corre desde el vencimiento. Si el credito es de una renta perpetua, la responsabilidad de solvencia se extingue por el lapso de diez anos, i. partir de la fecha de la cesidn. "The same provisions are found in sections iso3-i5ioof the C6digo Civil of 1904. — Agent's note. 50 APPENDIX. Art. 1 .502. El que vende una herencia sin especificar los objetos de que se compone, no estd. obligado d garantir sino su calidad de heredero. Si se habla aprovechado ya de los frutos de alg^in fundo, 6 cobrado alglin credito perteneciente d la herencia, 6 vendido algunos efectos de la sucesidn, estd obligado d reembolsarlos al comprador, si no se los ha reservado expresamente en la venta. El comprador por su parte debe reembolsar al vendedor lo que este ha pagado por las deudas y cargas de la sucesi6n y abo- narle lo que se le deba por esta sucesi6n, cuando no haya estipu- lacidn en contrario. Civil Code, 18 g6. Book III. — Methods of acquiring and transferring property and other rights. Title Yl.—Sale. Section 7. — Concerning the transfer of credits or other rights. Art. 1495. The assignment of a credit, of a right, or of an action, is perfect, and the right assigned is transmitted to the assignee from the moment when an agreement exists on the credit or right transferred and the price, although deUvery has not been made. The delivery is performed by the delivery of the instrument which evidences the credit or the right transferred. Art. 1496. The assignee has no right as against third parties except after notice of the assignment has been given the debtor or that the latter has accepted.it. Art. 1497. The debtor is validly released if he pays the assignor before the latter or the assignee shall have notified him of the transfer. Documents which bear the explicit or implied acceptance of the debtor are excepted. Art. 1498. The assignment of a credit includes the accessories of that credit such as the bonds privileges or mortgages. Art. 1499. The person who assigns a credit or other right is responsible for the existence of the credit at the time of the assign- ment unless it has been assigned as doubtful or without guarantee. Art. 1500. The assignor does not respond for the solvency of the debtor except when he has expressly so promised, and only to the amount of the price which has been paid him for the credit assigned. VENEZUELAN LAWS AND DECREES. 5 1 Art. 1 501. When the assignor has guaranteed the solvency of the debtor and nothing has been agreed upon the duration of this responsibihty it is presumed that it has been hmited to i year counting from the time of the transfer of the credit, if the term of this latter had aheady expired. If the credit is payable within a term which has not expired the year shall run from its expiration. If the credit is one of a perpetual revenue, the responsibility for solvency is extinguished by the lapse of lo years^from the date of the transfer. Art. 1502. He who sells an inheritance without specifying the objects of which it is composed is not obliged to guarantee any- thing except his qualification as heir. If he shall aheady have availed himself of the proceeds of any fund, or collected a credit belonging to the inheritance, or sold other effects of the estate, he is obliged to reimburse the vendee if he has not expressly reserved them from the sale. The vendee on his part must reimburse the vendor what the former has paid for the debts and charges of the estate and to pay him what is owed him by the estate when there is no stipulation to the contrary. MISCELLANEOUS. DOCUMENTS RELATING TO THE LIQUIDATION OF THE COMPANfA DE VAPORES DEL ORINOCO. DOCUMBNTOS CONTENTIVOS DE LA LIQUID ACION DE LA CoMPANfA DE Vapores del Orinoco, Ordenada en el Acta de la AsAMBLEA General Extraordinaria de i8 de Marzo de 1908. Acta de la Asamblea General Extraordinaria de 18 de marzo de igo8. En Ciudad Bolivar, d los diez y ocho dias del mes de marzo de mil novecientos ocho, i, las nueve de la manana, previa convoca- toria del Presidente de la Compania de Vapores del Orinoco fechada el cuatro de los mismos mes y aflo y publicada en los diarios El Ltichador y El Liberal, se remiieron en la oficina de la mencionada Compania los seiiores accionistas que d, continuacidn se expresan : Robert Henderson, Presidente de la referida Sociedad, con ciento cincuenta acciones 150 Jesse Henderson, Vice-presidente Tesorero, con ciento cincuento acciones. ... 150 General Jos^ Antonio Barroeta, B., Vocal de la Junta Directiva, con cien acciones '. 100 Virgilio Casalta, Vocal de la Junta Directiva, con cien acciones 100 Tomds Machado Nunez, Secretario de la misma, con cien acciones 100 Doctor Clodomiro Contreras, en representaci6n del Seiior General Cipriano Castro, con un mil acciones i , 000 Guillermo Montes, por si, con quinientas acciones 500 Tomds Alcald, por si, con cien acciones 100 Pedro Jos6 Alcald, por si, con cien acciones 100 Henrique G. Bond, por si, con cien acciones 100 y Jos^ Antonio Mdrquez, por si, con cien acciones 100 Resultando once accionistas con 2, 500 dos mil quinientas acciones, seglin se comprobd con las solicitudes de admision, los certificados de dep6sito, y la lista de accionistas present es, con el objeto de celebrar la Asamblea General Extraor- dinaria de accionistas d que se refiere la convocatoria antedicha. El senor Presidente declaro constitulda la Asamblea y abierta la sesidn; y ordeno al Secretario dar lectura d la mencionada con- vocatoria. Concluida esta, se did cuenta: ****** * 52 MISCELLANEOUS. 53 5. Se did lectura a la petici6n que con fecha dos de los corrientes dirijieron d la Junta Directiva, los senores Doctor Clodomiro Contreras, en representacion del senor General Cipriano Castro, Guillermo Montes, Pedro Jos6 Alcala, Henrique G. Bond, Tomds Alcala y Jose Antonio Mdrquez, quienes en conjunto representan un mil novecientas acciones, pidiendo de acuerdo con el Artlculo 268 del Codigo del Comercio, la convocacion de un Asamblea extraordinaria que considere y resuelva los siguientes puntos: 1. Disolucidn de la Sociedad. 2. Liquidacion de la misma y fijacidn de la manera de hacer esta, y, 3. Determinar el ntimero de liquidadores, hacer el nombramiento de dstos y senalarles poderes y facultades. El Presidente dispuso que se diese lectura tambi^n 6. los Artlculos 2 70, 290 y 3 1 1 del C6digo de Comercio y al Articulo 1 5 de los Estatutos Sociales y puso en consideracion la referida solicitud. Acto continuo, los peticionarios presentaron una propo- sici6n debidamente apoyada, cuyo tenor es el siguiente: La Asamblea General Extraordinaria de la Compania de Vapores del Orinoco: Considerando: 1 . Que la convocatoria de esta Asamblea fue pedida y ordenada de acuerdo con el Articulo 268 del Codigo de Comercio; y 2. Que los tenedores de mds de las tres cuartas partes del total de las acciones, 6 sus representantes, han determinado que se disuelva la Sociedad y se proceda a su liquidacion de acuerdo con los Artfculos 270, 290 y 311 del Codigo de Comercio, y 15 de los Estatutos Sociales; Resuehe: Declarase disuelta la Sociedad. Procedase d su liqui- dacidn por dos liquidadores nombrados por esta Asamblea, los cuales podran obrar conjunta 6 separadamente en la Adminis- tracion y representacion general, con facultades de continuar el negocio mientras se efectiie la liquidacidn, y debiendo obrar de consume para la realizacion del activo sea por venta 6 traspaso, para transigir en cualquier asunto de la empresa 6 para someterse al fallo de compromisarios. Tambien se les faculta para consti- tuir apoderados. La cuenta general de su gestion, debidamente comprobada e informada por los actuales comisarios, la rendirdn ante una Asamblea General Extraordinaria, convocada por ellos mismos, 6 d peticion de los interesados conforme d la ley y Estatu- tos, y seglin los mismos Codigo de Comercio y Estatutos se pro- cederd en la deliberacion y fenecimiento de esas cuentas. Discutida, cerrado el debate y votada, fue aprobada por unani- midad. Se procedio' d la eleccion de los dos liquidadores, y al efecto fueron nombrados escrutadores los senores Henrique G. Bone y 54 APPENDIX. Jose Antonio Marquez, quienes procedieron d cumplir su encargo. Recogida la votacidn para uno de dos dichos liquidadores, did el siguiente resultado: El senor Robert Henderson obtuvo dos rail tres cientos cincuenta votos (2,350) representados por diez de los accionistas presentes, y el senor Jesse Henderson obtuvo ciento cincuenta votos representados por un accionista (150). Se procedid d la votacidn para el otro liquidador y recogida esta resultd que: El senor Doctor Clodomiro Contreras obtuvo un mil quinientos votos (1,500), representados por diez accionistas y el senor Jesse Henderson obtuvo un mil votos (1,000), representa- dos por un accionista. El Presidente declard electos liquidadores de la Compania, d los senores Robert Henderson y Doctor Clodomiro Contreras, y estos manifestaron que aceptaban el cargo de liquidadores, para que han sido nombrados por la Asamblea de Accionistas. No habiendo otro asunto de que tratar, el Presidente ordend la lectura de la presente acta, y puesta en consideracidn fu^ aprobada y la firman todos los concurrentes ; y termind la sesidn. — Enmendado : representantes. — Entrelineas : representados por diez de los accionistas presentes. — Vale. — Testado — los — no vale. Robert Henderson, El Presidente. Jesse Henderson. El Vicepresidente-Tesorero. C. Contreras. J. A. Barroeta-Briceno. ViRGiuo Casalta. G. Montes. P. J. AhCAhL H. G. Bond. ' T. Alcai^a. J. Antonio Marquez. T. Machado NtJNEz, El Secretario. [Translation.] Documents comprising the liquidation of the CompaSia de Vapores del Orinoco, ordered in the Minutes op the Extraordinary General Session of March 18, 1908. Minutes of the extraordinary general meeting of March 18, 1908. In Ciudad Bolivar, on March 18, 1908, at 9 o'clock a. m., pur- suant to a call of the president of the Compania de Vapores del Orinoco, dated the 4th of the same month and year and pubUshed MISCBlvI^ANEOUS. 55 in "£Z Luchador" and "El Liberal," the following named stock- holders met in the office of the said company: Shares. Robert Henderson, President of the company, with one liundred and fifty shares 150 Jesse Henderson, Vice-president and Treasurer, with one hundred and fifty shares 150 General Jos6 Antonio Barroeta B., member of the board of directors, with one hundred shares ' 100 Virgilio Casalta, member of the board of directors, with one hundred shares. . 100 Tomds Machado Nliiiez, Secretary of the company, with one hundred shares . . 100 Doctor Clodomiro Contreras, representing General Cipriano Castro, with one thousand shares 1 , 000 Guillermo Montes, for himself, with five hundred shares 500 Tomds Alcald, for himself, with one hundred shares 100 Pedro Jos6 Alcald, for himself, with one hundred shares 100 Henrique G. Bond, for himself, with one hundred shares 100 Jos6 Antonio Mdrquez, for himself, with one hundred shares 100 Making a total of 1 1 shareholders, with 2, 500 two thousand five hundred shares as was verified by the applica- tions for admission, the certificates of deposit, and the list of shareholders present, the purpose being to hold the extraordinary general meeting of stockholders referred to in the above-mentioned call. The president declared the meeting open, and ordered the secretary to fead the aforementioned call. This being done there was recited: 5. The petition presented on the 2d instant to the board of directors by Messrs. Dr. Clodomiro Contreras representing General Cipriano Castro; Guillermo Montes, Pedro Jos^ AlcaM, Henrique G. Bond, Tomds Alcald, and Jose Antonio Mdrquez, was read. These gentlemen represent altogether one thousand nine, hundred shares. In their petition they requested, in accordance with article 268 of the code of commerce, the issue of a call for an extraordinary meeting to consider and decide on the following points: 1. Dissolution of the company. 2. Tiquidation of the same and determination of the manner of liquidating it. 3. Determination of the number of liquidators, appointment of the latter, and conferring upon them of powers and rights. The president ordered read also articles 270, 290, and 311 of the code of commerce and article 15 of the by laws of the com- pany, and placed the aforementioned request under consideration. 56 APPENDIX. The petitioners immediately presented a duly seconded resolution of the following tenor : The extraordinary general meeting of the Compania de Vapores del Orinoco, Considering: 1. That the call for this meeting was asked for and ordered in accordance with article 268 of the code of commerce; and 2. That the holders of over three quarters of all the shares, or their representatives, have decided that the company shall be dis- solved and that its liquidation shall be proceeded with in accord- ance with article 270, 290, 311 of the code of commerce, and article 1 5 of the by-laws of the company ; Resolves: The company is hereby declared dissolved. Let its liquidation be proceeded with by liquidators appointed by this meeting, who shall be permitted to act jointly or separately in the administra- tion and general representation (of the company) , with powers to continue the business while the liquidation is going on, they to act jointly in realizing on the assets (of the company) either by sale or transfer, in making compromises in any affair of the com- pany, or in submitting to the decision of arbitrators. They are also authorized to employ attorneys in fact. The general account of their work, duly verified and reported upon by the present commissioners, shall be rendered by them to an extraordinary general meeting, convened by themselves, or at the petition of the interested parties in accordance with the law and by-laws, and the deliberations on and winding up of these accounts shall be in accordance with the afforesaid code of commerce and by laws. This m.otion being discussed, the debates closed, and the vote taken, it was unanimously approved. The election of the two liquidators was then proceeded with, and for this purpose Messrs. Henrique'G. Bond and Jos^ Antonio Mdrquez were appointed judges of election, and proceeded to fulfil' their duty. A vote being taken for one of the Uquidators, the result was as follows: Mr. Robert Henderson received 2350 votes represented by 10 of the stockholders present, and Mr. Jesse Hen- derson received 150 votes represented by one stockholder. A vote was then taken for the other Uquidator and resulted as fol- lows: Dr. Clodomiro Contreras received 1500 votes, represented by 10 stockholders, and Mr. Jesse Henderson received 1000 votes, represented by one stockholder. The president declared Messrs. Robert Henderson and Dr. Clo- domiro Contreras to be elected liquidators of the company, and MISCEIyl^ANEOUS. 57 they declared their acceptance of the office as Hquidators to which they had been appointed by the meeting of stockholders. There being no other matter to attend to, the president ordered the reading of the present mifiutes, and being taken under consid- eration, they were approved and are signed by all the persons present. The meeting was then adjourned. (Corrections, interlineations, Sac.) Robert Henderson, President. Jesse Henderson, Vice-President. C. CONTRERAS. J. A. BaRROETA BrICENO. ViRGiuo Casalta. G. Montes. p. J. ALCAI.A. H. G. Bond. T. ALCAI.A. J. Antonio Marquez. T. Machado Nunez, Secretary. Convocatoria. Compania de Vapores del Orinoco en Liquidacion. Sociedad Andnima. Capital: B. 3.000,000. No habiendo podido efectuarse el tres de julio proximo pasado la Asamblea General extraordinaria convocada al efecto, para los fines que luego se expresan, por no ser posible para el dia referido veneer dificultades ocurridas, se convoca nuevamente d los senores Accionistas para Uevar d efecto la reunidn, el dia veinte de los corrientes d las diez a. m. en el local de la Agencia de la Compania Andnima de Navegacidn Fluvial y Costanera de Venezuela. El objeto de la reunion es: Primero: Tomar en consideraci6n el Informe de los Comisarios sobre las cuentas de la liquidaci6n de la Cdmpania y termino de esta. Segundo: Recibir las cuentas de la Liquidacidn que conforme al articulo 313 del C6digo de Comercio presentan los liquidadores ; y Tercero : Resolver sobre el finiquito de las mencionadas cuentas y ordenar la participaci6n que debe hacerse al Tribunal de Comer- cio, informando lo que sea del caso, respecto del termino definitivo de la liquidacion. Ciudad Bolivar: 14 de agosto de 1908. Roberto Henderson, R. DEtGADO Chalbaud,"^ Liquidadores. o-C. Contreras resigned and was replaced by R. Delgado Chalbaud. See pp. 64, 67 infra. — Agent's note. 58 APPENDIX. [Translation.] Call. Compania de Vapores del Orinoco in liquadation. Corporation. Capital 3,000,000 bolivars. It having been impossible for the extraordinary general meeting called for July 3 last for the purposes stated below to take place for the reason that difficulties which arose on said date could not be overcome, the stockholders are hereby called upon anew to hold the meeting on the 20th instant at 10 a. m. in the office of the agency of the CoOT/jania Anonima de Navegacion Fluvial y Costa- nera de Venezuela. The purpose of the meeting is : 1. To take into consideration the report of the commissioners regarding the accounts of the liquidation of the company and the termination of the liquidation. 2 . To receive the accounts of the liquidation which are presented by the liquidators in accordance with article 313 of the code of commerce. 3. To resolve on the final settlement of said accounts and to order the necessary communication made to the court of accounts, giving the proper information regarding the final termination of the liquidation. Ciudad Bolivar, August 14, 1908. Roberto Henderson, R. DeIvGAdo Chai^baud, Liquidators. Acta de la sesidn de la Asamblea General extraor dinar ia de veinte de agosto. En Ciudad Bolivar, a veinte de agosto de mil novecientos nueve, i, las diez de la manana, previa Convocatoria de los Liquidadores, fechada el catorce de los mismos mes y ano y publicada en el diario El Eco del Orinoco, se reimieron en Asamblea General extraordi- naria de la Compania de Vapores del Orinoco en Liquidaci6n, y en la Oficina de la Compania Andnima de Navegacidn Fluvial y Cos- tanera de Venezvsla los sefiores Robert Henderson, Presidente de la referida Compania en I^iquidacidn y uno de sus Liquidadores, tenedor de diez acciones; el senor General Romdn Delgado Chal- baud, Liquidador de la misma Sociedad; el senor General Manuel Corao, tenedor de quinientas acciones ; el senor Otto Winckelmann, tenedor de quinientas acciones; el senor Doctor Brigido Natera, MISCEIvLANEOUS. 59 tenedor de cuatrocientas noventa acciones; el senor Doctor Luis Alcald Sucre, tenedor de cuatrocientas ochenta y ocho acciones; el senor Jos€ Aquatella, como Apoderado del senor Adrian Blanco, representando doce acciones. Comprobdndose el nlimero de acciones con los respectivos Certificados de depdsito, que fueron puestos de manifiesto, y tambien por los depositarios los titulos mismos de las acciones, y resultaron dos mil acciones. El senor Presidente declard abierta la sesion por haber el quorum legal y reglamentario, y previa designaci6n que se hizo por los Accionistas concurrentes, de Secretario ad-hoc en el senor Eleuterio Gdmez R., por enfermedad del titular senor Tomds Machado Nlinez, orden6 la lectura de la Convocatoria ; concluida esta, dispuso que se diera lectura sucesiva por el Secretario al Informe representado por los Comisarios seriores C. Urbano Taylor y E. Boulissiere sobre la cuenta general de la Administracion de los Liquidadores durante el tiempo de la Liquidacion de la Compafiia y el de los mismos Eiquidadores senores Robert Henderson y General R. Delgado Chalbaud, sobre esa Administracion; lectura que fue seguida de la del Balance final, poniendo d la disposicion de los senores Accio- nistas todos los Librosycuentas. Terminada la lectura y puestos en consideraci6n de la Asamblea dichos Informes y documentos, fue votada y resulto aprobada por mil novecientas noventa acciones, absteniendose de votar el Liquidador senor Henderson, la siguiente proposicion hecha con apoyo por el seiior General Manuel Corao : " La Asemblea General extroardinaria de la Campania de Vapores del Orinoco en liquidacion, visto el Informe favorable de los Comisarios acerca de las operaciones que han constituido la Administracion de la Compafiia desde que se acordo su disoluci6n hasta llegar al fin de la Liquidacidn; y examinados el Informe y cuentas de esa gestion presentados por los dos dnicos Liquidadores que han administrado, senores Robert Henderson y General Roman Delgado Chalbaud, Resuelve: primero: aprobar come aprueba en todas sus partes los citados Informes, gestion y cuentas de la Administracidn mencionada, que ha corrido ^ cargo de los Liquida- dores seiiores Robert Henderson y General Roman Delgado Chal- baud; segundo: declarar terminada la Liquidacion, y de consi- guiente, concluidos los poderes de los referidos Liquidadores ; y ter- cero : expedir d, estos por la presente resolucion, el correspondiente finiquito definitivo de esa Administracion. Para los efectos legales, copia del Acta de la presente reunion deberd, hacerse anotar en el Registro de Comercio de esta Ciudad." En seguida los senores Robert Henderson y General Romdn Del- gado Chalbaud, pidieron que se dejara en el Acta de este dia la 6o APPENDIX. siguiente constancia, d lo cual, d propuesta.del Doctor AlcaM Sucre, con apoyo, accedieron por unanimidad todos los Accionistas presentes : " Los Liquidadores hacen constar que por no haber ocurrido el Tenedor de las Acciones marcadas con los nlimeros de tino d mil, al recibo de la cuota d S. correspondiente por la final distribucidn de lo realizado por la Liquidacidn, y tampoco haber podido hacer de esa suma consignacidn legal por la vacante de los Tribunales, dicha suma montante d setenta y siete mil novecientos catorce bolivares con cinco centimos, y ya rebajada la de veinte y dos mil ochenta y cinco bolivares con noventa y cinco centimos que el mismo Accionista debia d la Compania, ha sido depositada segfin documento de fecha primero de agosto liltimo, i. la orden del interesado, en poder de la Compania Anonima de Navegacion Flu- ■vial y Costanera de Venezuela domiciliada en-esta ciudad." Y comprendiendo la proposicidn primeramente aprobada todos los puntos materia de la Convocatoria y no habiendo otro de que tratar, el Presidente declar6 terminada la sesidn. Leida la presente Acta y estando conformes todos los concurren- tes firman. Roberto Henderson, Presidente. R. Dei^gado ChaIvBaud. M. Corao. B. Natera. Luis Alcala Sucre. Otto Winckei^mann. J. Aquatella. E. Gomez R. El Secretario. [Translation.] Minutes of the proceedings of the extraordinary general meeting of August 20. In Ciudad Bolivar, on August 20, 1909, at 10 a. m., upon a call of the liquidators dated the 14th of the same month and year and pubUshed in El Eco del Orinoco, there convened in an extraordinary general meeting of the Compania de Vapores del Orinoco in liqui- dation, in the office of the Compania Anonima de Navegacion Fluvial y Costanera de Venezuela, Messrs. Robert Henderson, president of the said company in liquidation and one of its hquidators, holder of 10 shares; General Romdn Delgado Chalbaud, Uquidator of said- company; General Manuel Corao, holder of 500 shares; Mr. Otto Winckelmann, holder of 500 shares; Dr. Brigido Natera, holder of 490 shares; Dr. Lui^ Alcald Sucre, holder of 488 shares; Mr. MISCEI^LANEOUS. 6 1 Jose Aquatella, as proxy of Mr. Adrian Blanco, representing 12 shares. The number of shares being verified by the respective certificates of deposit, which were exhibited, and the shares them- selves being verified by the trustees, there were found to be 2000 shares. The president declared the meeting to be opened there being a quorum according to the law and the regulations, and Mr. Eleuterio Gomez R. having been designated by the shareholders present to act as secretary pro tem owing to the illness of the regular secretary Tomas Machado Miinez, he ordered the call read. This being done, he ordered the clerk to read the report of commissioners C. Urbano Taylor and E. Boulissiere regarding the general account of the administration of the liquidators during the time the com- pany was in Hquidation, and the report of the Uquidators them- selves, .Messrs. Robert Henderson and General R. Delgado Chal- baud, on said administration. This reading was followed by that of the final balance, all the books and accounts being placed at the disposal of the stockholders. This reading being concluded and said reports and documents being taken ilnder consideration by the meeting, a vote was taken and the following motion, made by General Manuel Corao, and seconded, was voted on and approved by 1990 shares, the liquidator Mr. Henderson refraining from voting : " The extraordinary general meeting of the Compania de Vapores del Orinoco in liquidation in view of the favorable report of the commissioners regarding the operations connected with the administration of the company from the time its dissolution was decided upon until the end of the liquidation ; and the report and accounts of this administration, presented by the only two liqui- dators who have performed the administration, viz., Mr. Robert Henderson and General Romdn Delgado Chalbaud, being exam- ined, resolves: ist: to approve, as it does, in all their parts the said reports, operations, and accounts of the administration in charge of the liquidators, Messrs. Robert Henderson and General Romdn Delgado Chalbaud; 2nd: To declare the liquidation to be concluded and the powers of the said liquidators to be consequently terminated; and 3rd: To issue to the latter, by means of this resolution, the proper final discharge from said administration. For the purposes of the law, a copy of the minutes of the present meeting shall be entered in the register of commerce of this city." Thereupon Messrs; Robert Henderson and General Romdn Delgado Chalbaud requested that the following note be entered ' in the record of the proceedings of this day, which request, being 41942 — 10 6 62 APPENDIX. made in the form of a motion by Dr. AlcaM Sucre, seconded, was agreed to unanimously by all the stockholders present: "The Uquidators hereby note that, for the reason that the holder of the shares numbered from i to looo did not come to receive the quota due him in the final distribution of the assets realized in the Uquidation, and because it was also impossible to make any lawful distribution of this sum owing to the vacation of the courts, said sum, amounting to 77,914.05 bolivars, after deduct- ing the sum of 22,085.95 bohvars which said shareholder owed the company, has been deposited, according to a document dated August I last, to the order of the interested party, in the possession of the Compania An6nima de Navegacidn Fluvial y Costanera de Venezuela, domiciled in this city." And as the motion first approved comprises all the points con- tained in the call, and as there was no other subjects to attend to, the president declared the meeting closed. The present minutes being read and agreed to by all the members present, they signed them. Robert Henderson, President. R. Dei^gado Chalbaud; M. Corao; B. Natera; Luis Ai^cala Sucre ; Otto Winckei^mann; J. Aquateli^a. E. Gomez R., Secretary. Compania de Vapores del Orinoco en liquidacion. Senores Accionistas: Terminada como estd la Liquidaci6n de la Compania de Vapores del Orinoco venimos d presentar i. esta Asamblea las cuentas de nuestra Administraci6n conforme lo dispone el Articulo 313 (nlimero 8) del C6digo de Comercio y al efecto consignamos el siguiente inf orme : Como aparece en el Libro de Actas respective, la Asamblea General Extraordinaria de 18 de Marzo, nombr6 liquidadores de la Compania al suscrito Robert Henderson y al Doctor Clodomiro Contreras, quienes aceptaron el nombramiento, ddndoseles poder suficiente para obrar conjunta 6 separadamente en la Administra- ci6n y representaci6n general y facultdndolos para continuar el negocio durante se efectuaba la I,iquidaci6n debiendo obrar de consuno para la realizacidn del activo, para transigir en cualquier asunto de la Empresa 6 para someterse al fallo de compromisarios. MISCEIvI^ANEOUS. 63 Dispuso ademds aquella Asamblea, que la cuenta general de la Liquidaci6n debidamente comprobada y informada por los Comi- sarios designados, fuese rendida por los I/iquidadores ante una Asamblea General extraordinaria convocada por ellos mismos 6 d petici6n de los interesados conforme d la Ley y Estatutos, y que, segun los mismos C6digo de Comercio y Estatutos, se proceda en la deliberaci6n y fenecimiento de dicha cuenta. Domiciliado como estd el sefior Doctor Contreras en Caracas, se ausent6 para aquella capital el 20 de aquel mes, sin haber inter- venido en la Liquidacion, quedando los asuntos de esta d cargo del sefior Henderson, quien por tener que ausentarse tambi^n, confirio poder para representarlo, al sefior Jesse Henderson el dia 19 de los mismos. De acuerdo con la autorizacion de la Asamblea General men- cionada, continud el negocio de la navegacidn y era de esperarse que al terminar la Iviquidaci6n podria repartirse una regular prorrata entre los Accionistas, pero desgraciadamente, por moti- ves bastante conocidos de los senores Accionistas, el Vapor Delta apenas podia cobrir parte de sus gastos desde el mes de Abril de aquel ano, porque no pudiendo efectuarse el trasbordo en Trini- dad, el expresado buque hubo de limitarse 6. Uevar alglin ganado para aquella Isla, sin poder traer carga alguna; y cuando el 21 de Diciembre se hicieron los preparativos convenientes para des- pachar como se despach6 dicho Vapor para el puerto de Cristdbal Coldn, se le quebr6 el eje de la rueda propulsora al llegar d Ba- rrancas y fue indispensable entonces enviar los vapores Apure y Alianza para tomar la carga que conducia y Uevarla d Trinidad para lo cual se obtuvo un permiso especial del Gobierno Nacional y luego fue remolcado el Delta, traido d este puerto y conducido despues d Trinidad, donde entro al Dique d recibir las repara- ciones indispensables mientras llegaban el nuevo eje y sus acceso- rios para la rueda que fueron pedidos d Nueva York. Bse siniestro, naturalmente, caus6 crecidos gastos que excedie- ron d los proventos que habia dado el buque, como lo comprueban los libros de la contabilidad y la cuenta particular del mismo. Entretanto, los buques que hicieron la navegacion del Alto Orinoco, Apure y Nutrias y otros puertos riberenos, bien poco produjeron por la falta de carga primero y -luego por la bajada de los rios. Regres6 el sefior Robert Henderson, via Caracas y Trinidad en 29 de Marzo de afio corriente, despues de haber conferenciado 64 APPENDIX. con los Accionistas residentes en aquella capital sobre el modo de terminar la Liquidacidn. El senor Doctor Contreras remitid su renuncia^ del puesto de Liquidador en 14 de Marzo pr6ximo pasado y con tal motivo iu6 convocada una Asamblea General, d solicitud del Liquidador senor Henderson en 6 de Abril por el ciudadano Juez de Comercio de este Estado y efectuada la reuni6n de la Asamblea el 27 de los mismos, fue aceptada la renuncia del Doctor Contreras y nom- brado para sustituirlo el seiior General R. Delgado Chalbaud » quien aceptd el nombramiento y entr6 en ejercicio de sus funciones el dla cuatro de Mayo retropr6ximo. Habiendo solicitado compradores para la Empresa, d fin de poner t^rmino d su Liquidacidn, solo obtuvimos los suscritos, oferta que hizo el senor Guillermo Montes de trescientos mil boli- vares (B. 300.000) por todos los buques y demds propiedades y existencias de la Compania, inclusos los derechos que d esta corres- pondian por el Contrato de Navegacion que le traspas6 el General M. Corao, al constituirse aquella. Y considerando los suscritos que los gastos generales y los de la Liquidacidn irian aumentdndose con el tiempo y que no se nos hacian otras proposiciones, el senor General Delgado Chalbaud se traslado d Caracas, tanto para consultar con los principales interesados residentes alM sobre la conveniencia de aceptar la oferta hecha por el senor Guillermo Montes, como para obtener de Gobierna Nacional, la aprobacidn necesaria para el traspaso del Contrato de Navegacidn y la exen- ci6n de derechos de registro para algunos documentos y habiendo regresado en fin de Mayo, favorablemente despachado por el Ejecutivo, efectuamos el cuatro de Junio con el benepldcito de la mayoria de los Accionistas que representaban dos mil Acciones, la indicada venta, que consta por documento registrado en la Oficina Subalterna de Registro de este Distrito procediendo luegp d clausurar las respectivas cuentas en los Libros de la Liquidacidn. El Informe que os presentan los senores Comisarios os pondrd en conocimiento del resultado definitivo de la Liquidaci6n, asi como de la exactitud y legal comprobacidn de las cuentas y por &tas y por el respectivo Libro de balances mensuales, verdis que no obstante las dificultades que durante la Liquidaci6n se han presentado para la tiavegacidn de los vapores, el resultado habrla sido satisfactorio, puesto que en definitiva acusan un producto de cuatrocientos dos mil sesenta bolivares veinte c^ntimos (B. "See note supra, p. 57. — Agent's note MISCELLANEOUS. 65 402.060,20) dado per los vapores Apure, Manzanares, Alianza, Arauca, Socorro, y Boyacd, contra ciento trece mil seiscientos sesentinueve bolivares con siete cdntimos (Bs. 113.669, 07) saldo adverso de los vapores Delta, Masparro, Orinoco, Forzosa, La Verdad, Heroe, Pontdn Vencedor y la Lancha Avila los que como puede verse en los libros, debido d causas inevitables tuvieron un aumento de gastos considerables por reparaciones y cuido. Y por lo que hace d los Gastos Generates, estos han tenido que ser en el tiempo de la Liquidacidn, mucho may ores que en los anos anteriores, puesto que es han agregado a los ordinaries, los gastos judiciales por Registro de Comercio, publicaciones de estos actos y convocatorias de la Asamblea General, gastos de viajes y hono- rarios requeridos para dar fin a dicho estado de Liquidacidn, extraordinarios estos que exceden de treinta mil bolivares. lya enfermedad y fallecimiento del apreciable senor Tomds AlcaM, quien desde la constitucion de la Compania desempenaba de manera satisfactoria y correcta los puestos de Tenedor de Libros y Cajero, nos ha obligado i. retardar involuntariamente la presen- tacidn de las cuentas de la liquidacidn y fue debido d ello y d, la natural espera de cuentas cuyo cobro y explicacion dependian de otras oficinas, que no pudimos hacerla en la reunidn de la Asamblea convocada para el dia 3 de julio proximo pasado, pues, no habiendo podido esclarecerse para entonces el estado completo de las referi- das cuentas y de algunas otras, para hacer los cobros y pagos a que hubiere lugar y la distribucion de los fondos existentes en caja, entre los accionistas y cerrar definitivamente los libros, no le fue posible tampoco a los senores Comisarios presentar el Informe que les corresponde dar, de acuerdo con la Ley y con lo establecido por la Asamblea General reunida el 18 de Marzo de 1908. Efectuado el examen de los libros por los senores Comisarios y encontradas correctas »y sin observacion alguna las cuentas de la Liquidacion, fue hecha entre los senores Accionistas la distribu- cion de los fondos existentes en la Caja, provenientes de la venta de las propiedades y existencias de la Empresa, que eran trescien- tos mil bolivares (B. 300.000), y comio anteriormente se habian distribuldo quinientos treinta y tres mil, setecientos cuarenta y dos bolivares, con dieciseis centimes (B. 533.742,16), formados por el Fondo de Reserva, la existencia en Caja de 31 de diciembre de 1908 y el producto las ventas de los vapores Manzanares y Forzosa, resulta que los senores Accionistas han recibido de la Liquidacion la cantidad de ochocientos treinta y tres mil, setecien- 66 APPENDIX. tos cuarenta y dos bolivares, con dieciseis c^ntimos en cancela- cidn de sus respectivos titulos 6 acciones 6 sean B 277,91 por accion, que equivalen al 27,79 por ciento. Dejamos asl cumplido nuestro encargo, presentandoos nuestras demostraciones de gratitud por la confianza con que fuimos dis- tinguidos, prometi&donos que la Asamblea de Accionistas que- dard satisfecha de nuestros servicios y prestard. A nuestros actos y cuentas, su debida aprobacidn, declarando, desde luego, con- cluidas y finiquitadas dichas cuentas y definitivamente terminada la Liquidaci6n de la Compania de Vapores del Orinoco. CiUDAD Bolivar: 20 de agosts de ipog. (Firmado.) Roberto Henderson. R. Delgado Chalbaud. [Translation.] Compania de Vapores del Orinoco in liquidation. Messrs. Shareholders: The liquidation of the Compania de Vapores del Orinoco being concluded, we hereby present to the meeting the accounts or our administration in accordance with article 313 (No. 8) of the code of commerce, and for this purpose we have prepared the following report : As appears in the proper minute book the extraordinary general meeting of March 18 elected as liquidators of the company the undersigned Robert Henderson and Dr. Clodomiro Contrera, who accepted the appointment, they being given sufficient power to act jointly or separately in the administration and general repre- sentation, (of the company) and being authorized to continue the business while the liquidation was going on, as well as to act jointly in realizing on the assets (of the company) , making compromises in any matter relating to the company, or in submitting to the award of arbitrators. The meeting further ordered that the gen- eral account of the liquidation, duly verified and reported on by the designated commissioners, should be rendered by the liquida- tors before an extraordinary general meeting called by them- selves or at the petition of the interested parties in accordance with the law and by-laws, and that said account be deliberated upon and wound up. according to the said code of commerce and by laws. Dr. Contreras being domiciled at Caracas, left for that city on the 2oth of said month, without participating in the said llquida- MISCELLANEOUS. 67 tion, the business of the latter remaining in charge of Mr. Hender- son, who, being obHged to leave also, gave a power of attorney to Mr. Jesse Henderson on the 19th of the same month to represent him. In accordance with the authorization of the aforementioned general meeting, the navigation business continued and it was to be hoped that at the conclusion of the liquidation it would be possible to distribute a regular pro rata among the stockholders, but unfortunately, for reasons well know to the stockholders, the Steamer Delta was scarcely able to cover part of its expenses after the month of April of that year, for it being impossible to make transshipment at Trinidad, the said vessel had to confine itself to carrying some live stock to that island, without being able to bring any cargo; and when on December 21 the necessary preparations were made to send said steamer (as it was sent) to the port of Cristobal Colon, the axle of its propeller wheel was broken on arriving at Barrancas, and it was necessary then to send the steamer Apure and Alianza to take the cargo which it was carrying and convey it to Trinidad, for which purpose a special permit was obtained from the national government, and then the Delta was taken in tow, brought to this port, and con- ducted afterwards to Trinidad, where it entered the dock to receive the necessary repairs pending the arival of the new axle and its accessories for the wheel, which had been ordered at New York. This accident naturally involved heavy expenses which exceeded the proceeds that had been yielded by the vessel, as is proved by the account book (of the company) and by the accotmt kept by the vessel itself. Meanwhile the vessels which navigated on the upper Orinoco, Apure, and Nutrias, and other river ports, earned very little owing in the first place to a lack of cargo and in the second place to the lowness of the rivers. Mr. Robert Henderson returned via Caracas and Trinidad on March 29 of the present year, after conferring with the stockhold- ers residing at the capital regarding the mode of concluding the liquidation. Dr. Contreras handed in his resignation of his position of liqui- dator on March 14 last, and for this reason a general meeting was called, at the request of liquidator Henderson on April 6 by the commercial judge of this state, and the meeting being 68 APPENDIX. held on the 20th of said month, Dr. Contreras's resignation was accepted and General R. Delgado Chalbaud was elected to suc- ceed him. The latter accepted the election and assumed the exercise of his duties on May 4 last. Having solicited purchasers for the enterprise, in order to conclude its liquidation, the only offer which we the undersigned received was that made by Mr. Guillermo Montes, of 300,000 bolivars for all the vessels and other property of the company, including the rights belonging to the latter under the navigation contract trans- ferred to it by General M. Corao when the company was organ- ized. We, the undersigned considering the fact that the gen- eral expenses and those of liquidation would go on increasing with time and that no other propositions were being made to us. General Delgado Chalbaud went to Caracas to consult with the principal interested parties residing there regarding the advisa- bility of accepting the offer made by Mr. Guillermo Montes and in order to obtain from the national government the necessary approval for the transfer of the navigation contract and the ex mp- tion from registration fees of certain documents, and he having returned at the end of May, after receiving a favorable answer from the Executive, we made the sale in question on June 4, with the consent of a majority of the stockholders representing three thousand shares. This sale is evidenced by a deed recorded in the branch recording office of this district. We then proceeded to close the various accounts in the liquidation book. The report presented to you by the commissioners will make known to you the final result of the liquidation, as well as the ex- actness and legal verification of the accounts, and from the latter as well as from the proper book of monthly balances you will see that, notwithstanding the difficulties which arose in the way of navigation by the steamers during the liquidation, the result would have (sic) been satisfactory, for the balances show the sum of 402,060.20 bolivars yielded by the steamers Apure, Manzanares, Alianza, Arauca, Socorro and Boyaca, as against 113,669.07 bolivars on the adverse side of the account from the steamers Delta, Masparro, Orinoco, Forzosa, La Verdad, Heroe, Ponton Vencedor, and the launch Avila, which, as may be seen in the books, had con- siderably increased expenses for repairs and care owing to unavoid- able causes. As regards the general expenses, they were necessarily much greater during the time of the liquidation than in previous years, for to the ordinary expenditures were added the judicial MISCELLANEOUS. 69 expenses for commercial registration, publication of these acts, and calls for general meetings, travelling expenses, and fees re- quired in order to terminate the liquidation, these extraordinary- expenses exceeding 30,000 bolivars. The illness and death of the estimable Mr. Tomds Alcald,, who had satisfactorily and correctly filled the position of bookkeeper and cashier since the organization of the company, compelled us involuntarily to delay the presentation of the accounts of the liquidation, and it was due to this fact and to the customary delay while waiting for accounts, the collection and explanation of which depended on other offices, that we were unable to present these accounts at the meeting called for July 3rd last, for, it having been impossible up to that time to clear up all circumstances relating to said accounts and some others, to make the collections and pay- ments necessary and the distribution of the funds in bank among the stockholders, and to close the books finally, it was also impos- sible for the commissioners to present their report, which they are required to present according to the law and the resolutions of the general meeting held March 18, 1908. The examination of the books having been made by the commis- sioners, and the accounts of the liquidation having been found correct and calling for no observation, the funds in bank were dis- tributed among the stockholders, they coming from the sale of the property of the company and amounting to 300,000 bolivars, and as there had previously been distributed 533,742.16 bolivars com- posed of the reserve fund, the amount in bank on December 31, 1908, and the proceeds of the sales of the steamers Manzanares and Forzosa, it is seen that the stockholders received from the liquida- tion the sum of 833,742.16 bolivars in cancellation of their respec- tive shares, or 277.91 bolivars per share, equivalent to 27.79 per cent. We have thus performed our mission, and express to you our gratitude for the confidence which you have reposed in us, hoping that the meeting of stockholders will be satisfied with our services and lend its approval to our acts and accounts by immediately declaring the accounts concluded and settled and the Hquidation of the Compania de Vapores del Orinoco finally concluded. CiUDAD Bolivar, August 20, 1909. (Signed.) Robert Henderson. R. Delgado Chalbaud. 70 APPENDIX. CiUDAD BoivfvAR, 20 de agosto de igog. Senores Accionistas de la Compania de Vapor es del Orinoco. Una vez mas tenemos la satisfaccion de dirigimos d Ustedes en nuestro cardcter de Comisarios esa Compania, cargo con que nos honro su Ultima Asamblea General de 1908, conforme d lo que establecen el C6digo de Comercio y los Estatutos de esa Institu- cidn, para rendiros el siguiente informe: Hemes tenido d nuestra disposici6n los libros de la Contabilidad de esa Compania, asi como tambien los comprobantes respectivos, y despues de revisar unos y otros, con la escrupulosa acuciosidad de costumbre en nosotros, nos es grato hacer constar que todo lo hemos hallado conforme y, en consecuencia, no encontramos ninguna observacion que hacer. Poco satisfactorio ha sido el resultado de la Liquidacidn; mds, deben tenerse en cuenta las dificultades que se opusieron d la marcha regular del negocio con la prohibici6n del trasbordo en Trinidad durante muchos meses; la rotura del eje del vapor Delta, cuya reposici6n por otro nuevo acarred gSstos de mayor cuantia; los considerables gastos de reparacidn y cuido de los vapores Mas- parro, Orinoco, Forzosa, La Verdad, Heroe, Ponton Vencedor y Lancha Avild, cuyas cuentas todas arrojaron saldos adversos; y por liltimo el aumento de los Gastos Generales ordinarios con los extraordinarios de Registro de Comercio, asuntos judiciales, viajes, honorarios y publicaciones, todo indispensable para llevar d. tdr- mino la Liquidacion. Las cuentas acreedoras de la Liquidacion han quedado salda- das; y en virtud de todos las propiedades de la Compania por la soma B. 300,000 al seiior Guillermo Montes, ha quedado defini- tivamente terminada la misma despuds de haberse distribuldo entre los Accionistas el producto de esta venta, que sumado con la cantitad de B. 533,742.16 proveniente de la existencia en Caja para 31 de diciembre de 1907, el Fondo de Reserva y el producto de la venta de los vapores Manzanares y Forzosa, distribuida previamente, resulta que los senores Accionistas han recibido de la Liquidacion la cantidad de B. 833,742.16 por cancelacion de sus titulos, 6 sea la equivalencia de un 27.7914 por ciento del capital. Terminamos manifestando que consideramos de estricta justi- cia que la Asamblea General de Accionistas en su pr6xima reunidn de su aprobaci6n a las cuentas rendidas por los senores Liquida- MISCELLANEOUS. 71 dores, en conformidad con el articulo 12 de los Estatutos de la Compania. Sen ores Accionistas. (Firmado.) C. Urbano Taylor. B. BouLissii;RE. [Translation.] CiuDAD Bolivar, August 20, igog. Messrs. Stockholders of the Compania de Vapores del Orinoco: Once more we have the pleasure of addressing you in our capac- ity as commissioners of said company, with which office you hon- ored us at your last general meeting in 1908, in accordance with the provisions of the code of commerce and the by-laws of the company, and we have to make to you the following report: We have had at our disposal the account books of the company, as well as the respective vouchers, and after revising both with the scrupulous care customary with us, we are pleased to state that we have found everything correct, and we consequently have no obser- vation to make. The result of the Uquidation has been unsatisfactory, but the difficulties must be taken into account which obstructed the regular course of business, consisting of the prohibition of transshipment at Trinidad for many months; the breaking of the axle of the steamer Delta, the replacing of which by a new one caused consid- erable expense; the heavy expenses for the repair and care of the steamers Masparro, Orinoco, Forzosa, La Verdad, Heroe, Ponton Vencedor, and Lancha Avila, which all showed deficits in their accounts; and finally the increase in ordinary general expenses by the extraordinary expenses of commercial registration, judi- cial proceedings, traveling, fees, and pubUcations, all of which was necessary in order to carry out the Uquidation. The accounts against the liquidation have been settled; and by virtue of the sale of all the property of the company for the sum of 300,000 boUvars to Mr. Guillermo Montes, it (the liquidation) was finally terminated, after the proceeds of this sale were distributed among the stockholders. These proceeds amounted to a total of 533,742.16 boUvars, composed of the amount in bank on Dec. 31, 1907; the reserve fund, and the proceeds of the sale of the steamers Manzanares and Forzosa, distributed previously. As a result the stockholders have received from the liquidation the sum of 533, 742.16 bolivars in cancellation of their titles, or 27.7914 per cent of the principal. 72 , APPENDIX. We will conclude by stating that we consider that it will be strictly just for the general meeting of stockholders at its next meeting to give its approval to the accounts rendered by the liqui- dators, in accordance with art. 12 of the by-laws of the company, (Signed.) C. Urbano Taylor. E. BOUWSSIERE. AdMINISTRACION DE LOS INTERESES DEL GENERAL CiPRIANO Castro. Sur 4, No. 56. Caracas: 28 julio de igog. Senor General R. Delgado Chalbaud. Ciudad Bolivar. MuY Senor mio y Amigo: En carta 5 el presente me autoriza el senor General Cipriano Castro, para que reciba la parte que le corresponde en la Liquidacion que se hizo de la Enipresa de Navegacion del Orinoco, en la cual tenia el la tercera parte. De esa parte puede usted deducir el saldo de veintidos mil y pico de bolivares que se deblan del Vale otorgado por el senor Docotr Arnaldo Morales a nombre del General Castro; y el resto puede usted entregarlo d la Agenda del Banco de Venezuela en esa ciudad, y remitir d la Oficina General de este Instituto, el recibo que debo yo firmarle y dar or den al senor M. Castillo Coronel para que me entregue cancelado el referido Vale. Soy de usted atto. s. s. e amigo, Adolfo HerrEra. [Translation.] Administration op the Interests op General Cipriano Castro. South 4, No. _^6, Caracas, July 28, igog. General R. Delgado Chalbaud, Ciudad Bolivar. Dear Sir and Friend: In a letter of the 5th instant I am authorized by General Cipriano Castro to receive the part due him from the liquidation of the Empresa de Navegacion del Orinoco, in which he had a third part. From this part you may deduct the balance of 22,000 odd bolivars which were owing on the note given by Dr. Arnaldo Morales in the name of General Castro, and you may turn the remainder over to the agency of the bank of Venezuela in that city, and transmit to the general office of this institution the receipt which I must sign for you, and give orders to Mr. M. Castillo Coronel to deliver the said note to me cancelled. I am, very respectfully, &c. Adolfo Herrera. MISCELI.ANEOUS. 73 Compania "Navegacidn Fluvial y Costanera de Venezuela." '^ Capital: Bs. 3.000.000. For Bs. 77.914,05. Hemes recibido de los senores Roberto Henderson y R. Delgado Chalbaud, lyiquidadores de la Compania de Vapores del Orinoco en Liquidacidn, la suma de setenta y siete mil novecientos catorce bolivares, con cinco centimos, para tenerla en deposito d, la dis- posicion del senor Adolfo Herrera, como Administrador de los Intereses del senor General Cipriano Castro, por liltima cuota que le corresponde en el tdrmino de la Liquidaci6n de la expresada Compania, como tenedor que es de un mil Acciones numeradas de I al 1,000, previa deduccidn que se le hizo de veintidos mil ochenticinco bolivares con noventicinco centimos (B. 22.085,95) por monto de un vale que debia y que por orden del seiior Herrera se le descontaron de los cien mil bolivares (100.000,00) que le correspondian. Dicha expresada suma de Bs. 77.914,05 bolivares queda A la disposicion del seiior Adolfo Herrera, para serle entregada tan pronto como el presente las mil (i.ooo) Acciones de las cuales dice ser Representante, segfin carta de fecha 28 de julio del corriente ano, que se acompana al presente recibo. CiUDAD Bouvar: I de Agosto de igog. Por la Compafiiia An6nima de Navegacidn Fluvial y Costanera de Venezuela. R. Delgado Chalbaud, El Presidente. Recibido, conforme. E. Gomez R., El Tesorero. [Translation.] Compania "Navegacidn Fluvial y Costanera de Venezuela." Capital: 3,000,000 bolivars. For 77,914.05 bolivars. We have received from Messrs. Robert Henderson and R. Delgado Chalbaud, liquidators of the Compania de Vapores del Orinoco in Hquidation, the sum of 77,914.05 bolivars to be held on deposit at the order of Mr. Adolfo Carrera, administrator of the interests of General Cipriano Castro, being the last quota due him, " other vouchers are omitted.— Agent's note. 74 APPENDIX. in the final liquidation of said company, as holder of looo shares numbered from i to lOoo, after the deduction which has been made of 22.085.95 bolivars, the amount of a note which he owed and which was discounted by order of Mr. Herrera from the 100,000 bolivars due him. The aforesaid amount of 77,914.05 bolivars remains at the dis- posal of Mr. Adolf o Herrera to be delivered to him as soon as he presents the thousand shares of which he claims to be the represen- tative, according to a letter dated July 28 last, which accompanies the present receipt. CiUDAD B0L.IVAR, August, I, igog. For the Compania Andnima de Navegacidn Fluvial y Costanera de Venezuela. R. Delgado Chai^baud, President. B. Gomez R., Treasurer. Duly received. suit brought by the venezuelan government against the orinoco and shipping company in the high federal court of caracas. Correspondence between the Agent of the United States AND THE United States Minister at Caracas. Mr. Morris to Mr. Russell. Gran Hotei/, July II, igo3. W. W. RussELi., Esquire, etc., etc., etc., Chargi d' Affaires ad interim. United States Legation, Caracas. Sir: Mr. Richard Morgan Olcott, the President of the Orinoco Steamship Company and his counsel, Mr. McKenney, have just called upon me and presented for my inspection a certified copy of a declaration of action entered yesterday against the Company in question in the high federal court. As this Company is one of the claimants before the Mixed Commission now sitting in Caracas, I consider it my duty to advise you of the action taken at the session of the Commission yesterday morning in relation to the Claim. The Agent for Venezuela requested an extension of time in which to put in his answer to this claim, which was due today, stating as the grounds for his request that he desired his answer to conform to a proceed- MISCELtANEOUS. 75 ing which had been instituted before the high federal court by the Government of Venezuela against the Orinoco Steamship Company, and also that the records in the case were very volu- minous and he desired to perfect his work. He subsequently stated, however, that his answer was practically completed. I, as Agent of the United States, objected to an extension of time on the grounds that no proceedings before a local court should be taken into consideration by the Commission. The Commission granted an extension of time to Venezuela until next Tijesday for the reason that the records were so voluminous as to properly constitute grounds for tl^e request. But the Commissioner on the part of the United States expressly sustained the objection of the Agent of the United States that the proceeding in a local court was of no concern to the Commission. I report the above to you for such action as you may deem advisable. Respectfully yours, Robert C. Morris, Agent of the United States. Mr. Morris to Mr. Russell. OFFICE OP THE AGENT OF THE UNITED STATES Before the United States and Venezuelan Claims Commission, CARACAS, VENEZUELA. .Robert C. Morris, Agent. Grand Hotel, August J, 190J. Honorable W. W. RussELL, etc., etc., etc., Chargi d' Affaires, United States Legation, Caracas. Sir: I am in receipt of your letter of August 2d asking me for information regarding the time of presentation of the claim of the Orinoco Steamship Company to the United States and Vene- • zuelan Mixed Commission, and the present status of the claim. In reply thereto I beg to advise you that the claim of this com- pany is now pending before the Mixed Commission as it was pre- sented by me on June i6th and filed by the Secretaries on that date. On the 14th of July Venezuela made "answer to this claim 76 APPENDIX. and on the 25th of the same month I made replication to the claim on behalf of the United States. Venezuela had two days' time from the 28th of July in which to give notice of an intention to make rejoinder. No such notice has been given and I assume that there will be no rejoinder and that the pleadings before .the Commission are completed. The matter, therefore, awaits the Commissioners' decision. Very truly yours, (signed) Robert C. Morris, Agent of the United States. Answer of Richard Morgan Olcott in the suit of the Government of Venezuela against the Orinoco Shipping and Trading Company before the High Federal Court, at Caracas. (Stamp) Ciudadano Presidente del Tribunal de i* Instancia de la Corte Federal de los Estados Unidos de Venezuela. Richard Morgan Olcott, ciudadano americano, actualmente en esta capital, en nombre i representaci6n de The Orinoco Steamship Company, sucesor de The Orinoco Shipping and Trading Company, Limited. El 17 de Febrero del aiio actual se firmd en Washington un protocolo entre el Secretario de Estado de los Estados Unidos de America y el Plenipotenciario de la Repfiblica de Venezuela para someter d arbitraje todas las reclamaciones pendientes de ciuda- danos de los Estados Unidos de America contra la Repliblica de Venezuela. Por el articulo 1° se con vino en que: Todas las reclamaciones poseldas por ciudadanos de los Estados Unidos de America contra la Repliblica de Venezuela, que no hay an sido arregladas por la via diplomdtica 6 por arbitraje entre los dos gobiernos, y que hubieren sido presentadas por el Departa- mento de Estado de los Estados Unidos 6 por su Legacidn en Caracas, d la Comisi6n abajo mencionada, serdn examinadas y decididas por una Comisidn Mixta, que celebrara sus sesiones en Caracas, y que se compondrd, de dos miembros, uno de los cuales serd nombrado por el Presidente de los Estados Unidos i el otro por el Presidente de Venezuela. Desde luego, y por el solo hecho de firmar este protocolo, hicieron uso ambos gobiernos de la autoridad superior de que estdn investi- dos por la constitucion y leyes de ambas repliblicas, asumieron el derecho y tomaron sobre si la responsabilidad de emplear el medio conciliatorio del arbitraje para resolver diferencias que, fundadas MISCELLANEOUS. 77 en reclamaciones no adn ventiladas y satisfechas, podrian turbar las buenas relaciones de amistad que ligan d, los Bstados Unidos de America con la Reptiblica de Venezuela. Crearon, al efecto, un tribunal en que estuviesen representadas ambas partes, con voz y voto igual en las deliberaciones comunes, con agentes que repre- sentasen los derechos e intereses de las mismas, y un tercero para dirimir las diferencias que pudiesen ocurrirjt Se habia seguido en 6stQ el ejemplo de otras naciones que solicitaban de Venezuela el ajuste de las reclamaciones de sus ciudadanos y stibditos pendientes largo tiempo hacia de la consideracion del gobierno venezolano. Ante las Comisiones Mixtas creadas a tal fin, hubo de cesar la gesti6n ordinaria de los particulares ante la jurisdicci6n comtin, para someterse a la competencia de Cortes de Arbitramento, generalmente reconocidas como los mds altos, imparciales y justos tribunales del Universo en orden d la administracidn de justicia; motivo por el cual obtienen la preferencia sobre cualesquiera otros entre las naciones mds adelantadas y poderosas del globo. Para asegurar la rectitud de sus decisiones, lo primero que ban de hacer ambos comisionados y el tercero en discordia, es prestar solemne juramento de examinar con cuidado y decidir imparcial- mente, con arreglo a la justicia y d las estipulaciones del protocolo, todas las reclamaciones que se les sometieren; y, segiin el caso, investigardn y decidirdn tales reclamaciones con arreglo tinica- mente a las pruebas 6 informes suministrados por los respectivos gobiernos, 6 en su nombre, en apoyo 6 en refutaciSn de cualquiera . reclamacion, y de oir los argumentos orales 6 escritos que hiciere el agente de cada gobierno sobre cada reclamacidn. Ahora bien cudles i son las dnicas reclamaciones excluidas de la jurisdiccion de la Comisi6n? Solamente las arregladas por la via diplomdtica 6 por arbitraje entre los dos paises. iCuales son las comprendidas en las atribuciones de la Comisi6n? Todas las de los ciudadanos de los Estados Unidos de America presentadas por el Departamento de Estado de los Estados Unidos 6 por su legaci6n en Caracas d la mencionada Comisi6n. Desde que se firm6 el protocolo, adquiria cada ciudadano americano el derecho de ocurrir d la Comisi6n con su respectivo expediente, sin que ninguno de los gobiernos contratantes pudiese oponer otra excepci6n que la de las reclamaciones arregladas por la via diplomdtica 6 por arbitraje entre ambos gobiernos. De suerte que, al no haberse excluido ninguna otra especie de reclama- ciones, por una clausula especial, hay que convenir en la renuncia de todo derecho previamente adquirido por cualquiera de los 41942—10 7 78 APPENDIX. contratantes, no puesto d salvo expresamente en el protocolo. La Comision qued6 por tanto abierta d todas las reclamaciones no excluidas, entendiendose que los gobiernos contratantes no creyeron conveniente reservarse ningdn derecho sobre todas las otras. La opinion contraria de uno solo de los contratantes no puede alterar la importancia y solidez de esta interpretacion, y desde que la Comisionje da entrada d una reclamaci6n y oye d. los agentes de ambas partes, ha resuelto de piano su competencia para conocer de ella. Mi reclamacidn fue presentada d la Comisi6n por el agente del Gobierno de los Estados Unidos en Caracas, el i6 del mes de junio ultimo; y el 14 del mes corriente, contest6 el Procurador General de Venezuela su alegato al informe del agente. El dla 10 de este mismo mes de julio, es decir, en el interregno que hay entre el 16 de junio, dia de la presentaci6n de mi reclamo d la Comision y el dia 14 del presente mes, que fu^ cuando se pre- sent6 la contestacidn d la demanda, soy, d mi turno demandado por del Senor Fiscal de la Nacidn Venezolana, ante la Corte Federal (jurisdiccion renunciada por esta Reptiblica al firmar el protocolo) , por el mismo motivo, por la misma causa en que fundd mi reclamo ante la Comisidn Mixta de que se trata; es decir, por la misma materia: rescisidn de dos contratos y otros respectos. Se ha intentado, por tanto, contra mi, una accidn ex post facto. Se ha hecho lo que estaba prohibido. i Por que espero tanto el gobierno para demandarme, cuando yo estoy tratando, a6n por la via diplomdtica, desde octubre de 1899, hasta enero de 1903? Lo que quiere decir, que el gobierno de Venezuela no ha sido extrafio d estos pasos mios, que los conoce desde la 6poca referida, y no es por tanto, justificable, que no haya intentado contra mi antes, el procedimiento d que ahora quiere someterme extem- pordneamente. Todo esto consta de un folleto de 144 pdginas, que contiene la " Correspondencia Diplomdtica con que se acom- pafia la reclamacidn de la Compania de Navigacidn del Orinoco contra la RepAblica de Venezuela, &a." Pendiente ante la Comisidn Mixta la controversia de que se trata y para cuya contestaciyn se me cit6 el dia diez de este mes, vengo d oponer, como efectivamente opongo, las excepciones de litis pendencia € incompetencia de tribunal, fundadas en el artlculo 99 del Cddigo Civil de procedimiento, artlculo que, copiado, palabra por palabra, es del tenor siguiente : Cuando una misma causa haya sido promovido ante dos autoridades judiciales igualmente competentes, 6 cuando una con- MISCELLANEOUS. 79 troversia tenga conexi6n con una causa ya pendiente ante otra autondad judicial, la decisidn compete d la que haya preventido. La citaci6n determinard. la prevenci6n. El Procurador General de la Nacidn fue citado para coniparecer ante la Comisi6n Mixta y contestar la demanda alii propuesta por ini, el dia i6 de junio tiltimo, y presentd su contestaci6n por escrito el dia catorce del corriente mes de julio, por haber pedido antes una prdrroga de diez dias que se le concedio. Para el caso en que el Tribunal de Prim era Instancia de la Corte Federal decida que si es competente, anticipo desde ahora el recurso de apelaci6n para ante el Supremo Tribunal Federal, en la forma legal. Es de justicia. Dejo asi contestada la de- manda propuesta por el Senor Fiscal de la Nadon contra The Orinoco Shipping and Trading Company, Limited, en Caracas, d veintitr^s de juUo del ano del Senor mil novecientos tres. entre lineas — paso a contestar la demanda que con tal caractef ha pro- puesto -i dicha Compania el Senor Fiscal de la Naci6n — vale — entre lineas — de Estado — vale — contratantes — enmendado — vale — con- tratantes — enmendado — vale — 1 6 — enmendado — vale — 1 6 — enmendado — vale — Venezolana — enmendado — vale — de — enmen- dado — vale. Otrosi — Sabido es ademas que los tratados pdblicos tienen fuerza legislativa y no pueden ser derogados por las disposiciones de los cddigos. [Translation.] (Stamp.) Citizen President of the Primary Court of Claims of the Federal Court of the United States of Venezuela. I, Richard Morgan Olcott, American citizen, at present in this capital, in the name and in representation of The Orinoco Steam- ship Company, successor to The Orinoco Shipping and Trading Company, Limited, proceed to reply to the action which, in his character as such, the Prosecuting Attorney of the Nation has filed against said Company. On February lyth of the present year, a protocol was signed at Washington between the Secretary of State of the United States of America and the Plenipotentiary of the RepubUc of Venezuela, for the submission to arbitration of all pending claims of citizens of the United States against the Repubhc of Venezuela. By Article i it was agreed that: All claims owned by citizens of the United States of America against the Republic of Venezuela which have not been settled 8o APPENDIX. by diplomatic agreement or by arbitration between the two Gov- ernments, and which shall have been presented to the Commission hereinafter named by the Department of State of the United States or its Legation at Caracas, shall be examined and decided by a mixed commission, which shall sit at Caracas, and which shall consist of two members, one of whom is to be appointed by the President of the United States and the other by the President of Venezuela. From that moment, and by the single act of signing this protocol, both Governments made use of the superior authority with which they are invested by the constitution and laws of both Republics, assumed the right and took upon themselves the responsibility of employing the conciliatory means of arbitration to settle differences which, founded upon claims not yet ventilated and satisfied, might disturb the good and friendly relations that bind the United States of America with the Republic of Venezuela. They created for that purpose a tribunal in which both parties should be repre- sented, with equal voice and vote in the common deliberations, with agents who should defend their rights and interests, and an umpire to decide the disagreements that might arise. They fol- lowed in this the example of other nations that had sought of Venezuela the adjustment of claims of their citizens or subjects long pending before the consideration of the Venezuelan Govern- ment. Before the Mixed Commission created for that end, the ordinary processes of the parties before the common jurisdiction, were to cease, in order that they might be submitted to the com- petency of Courts of Arbitration, generally recognized as the most high, impartial and just tribunals in the Universe with regard to the administration of justice; for which reason they obtain the preference over all others among the most advanced and powerful nations of the world. To insure the rectitude of their decisions, the first thing that both commissioners and the umpire are required to do, is to take a solemn oath carefully to examine and impartially to decide, in accordance with justice and with the stipulations of the protocol, all the claims that may be submitted to them ; and, as the case may be, they shall investigate and decide these claims solely in accord- ance with the proofs or briefs furnished by the respective Gov- ernments, or in their name, in support or in refutation of any claims and shall hear the oral or written arguments that the agent of each Government may make in each claim. MISCELI.ANEOUS. 8 1 Now, what are the only claims excluded from the jurisdiction of the Commission? Those only that have been arranged by diplomatic agreement or by arbitration between the two countries. What are the claims comprehended within the faculties of the Commission ? All those of citizens of the United States of Amer- ica, that have been presented to the before-mentioned Commission by the Department of State of the United States or by its Legation at Caracas. At the moment the protocol was signed, every American citizen acquired the right to resort to the Commission with his respective case ("expediente"), without either of the contracting Govern- ments being able to oppose any other exception than that of claims already arranged by diplomatic agreement or by arbitration between both Governments. So that, no other species of claim having been excluded by a special clause, it is necessary to agree to the renouncement of any right previously acquired by either of the contracting parties, not expressly reserved in the protocol. The Commission was consequently left open to all claims not excluded, it being understood that the contracting Governments did not deem it expedient to reserve to themselves any right in regard to all others. The contrary opinion of one only of the con- tracting parties cannot alter the importance and soundness of this interpretation, and once the Commission admits the presentation of a claim and hears the agents of both parties, it has clearly determined its competency to try the same. My claim was presented to the Commission by the agent of the Government of the United States at Caracas, on the i6th of June last; and on the 14th of the present month the Attorney General of Venezuela replied with his allegation to the brief of the agent. On the loth day of this same month of July, that is to say, during the interim between June i6th, the date of the presen- tation of my claim to the Commission, and the 14th day of the present month, on which the answer to the action was presented, I was in my turn sued by the Prosecuting Attorney on the part of the Venezuelan Nation, before the Federal Court (a jurisdiction renounced by this Republic on signing the protocol) , for the same reason on which I based my claim before the Mixed Commission referred to; that is to say, for the same matter: the rescission of two contracts and other matters. Therefore, there has been entered against me an ex post facto action. That which was for- 82 APPENDIX. bidden, has been done. Why did the Government wait so long to sue me, when I have been moving in the matter, even by the; diplomatic channel, from October 1899 to January 1903? Which means to say, that the Government of Venezuela has not been unaware of these steps on my part, that it has known of them since the period mentioned, and therefore it is not justifiable that it should not before have begun against me the action to which it now seeks suddenly to subject me. All this appears from a pam- phlet of 144 pages, which contains the " Diplomatic Correspondence which accompanies the claim of the Orinoco Steamship Company against the Republic of Venezuela, &c." As there is already pending before the Mixed Commission the controversy herein treated of and to answer which I was cited on the tenth of this month, I appear before the Court to oppose, as effectively I do oppose, the exceptions of lite pendente and incom- petency of tribunal, founded on article 99 of the Code of Civil Procedure, which article, copied word for word, is of the following tenor: "When an action has been brought before two equally compe- tent judicial authorities, or when a controversy is connected with an action already pending before another judicial authority, the decision corresponds to the authority which has acted first in the matter. "The citation shall determine the question of priority." The Attorney General of the Nation was cited to appear before the Mixed Commission and answer the action there lodged by me, on the 1 6th day of June last, and presented his answer in writing on the 14th day of the present month of July, having asked for an extension of ten days which was granted him. In the event that the Primary Court of Claims of the Federal Court should decide that it is competent, I herewith anticipate the recourse to appeal before the Supreme Federal Court, in legal form. Justice is sought. I have thus answered the action brought by the Prosecuting Attorney on the part of the Nation against The Orinoco Shipping and Trading Company, Limited, at Caracas, July twenty-third of the year of our Lord one thousand nine hundred three. Additional argument ("Otrosi") — It is further known that public treaties have legislative force, and cannot be derogated by the provisions of the codes. MISCEI.LANEOUS 83 Affidavit of W. T. S. Doyle, Special Representative of the Department of State of the United States for the Collection of evidence in the Venezuelan Cases with regard to suit brought by the Venezuelan Government against the Orinoco Shipping and Trading Company before the High Federal Court at Caracas. In the Matter of the Arbitration before the Permanent Court at The Hague: The United States of America on behalf of the Orinoco Steam- ship Company versus The United States of Venezuela. United States of America ) District of Columbia. ) Before me, William McNeir, a Notary Public in and for the Dis- trict of Columbia, personally appeared W. T. S. Doyle, who being by me first duly sworn, upon oath deposed and said: That from the month of April to the month of September, 1909, he was engaged in the City of Caracas, United States of Venezuela, as the Special Representative of the Department of State in mak- ing an investigation of the official records and documents of the Government of Venezuela relating to the affairs of the Orinoco Steamship Company and its predecessors in interest; that besides other records he made a careful examination of the papers on file before the High Federal Court of Venezuela relating to the suit instituted by the Government of Venezuela against the Orinoco Shipping and Trading Company, Dimited, during the year 1903, and that he at that time made careful notes of the contents of this record, which notes he still preserves and which he has every rea- son to believe are correct; that these notes show that the record consisted of three piezas, or collections of documents numbered i , 2, and 3, and consisting, respectively of 133 folios, 28 folios, and 98 fohos, and that a note thereon shows it to be the second record filed in the month of July, 1903; that in the first of these collec- tions, from folios i to 6 appears the complaint of the Venezuelan Government against the Orinoco Shipping and Trading Company, Limited, dated June 26, 1903; that at the end thereof appears 9, note showing that said complaint was filed July 7, 1903; that on the over side of the sixth folio appears a note showing that said complaint was on July 8, 1903, referred to the Chamber of First Instance and received there on that same date ; that on foUo seven 84 APPENDIX. appear various notes showing that on July 8, 1903, this complaint was referred to the President of the Chamber of First Instance and entered on the docket on the same date, and that on the same folio appears a note showing that the complaint in this case was ordered on July 9, 1903, to be served on Mr. Richard Morgan Olcott, and that on the same date it was delivered to the marshal for service; that under date of July 10, 1903, appears a receipt signed by Rich- ard Morgan Olcott for a certified copy of the complaint, and a cer- tificate of service on the same date signed by said marshal ; And further affiant sayeth not. Subscribed and sworn to before me this eighteenth day of May, 1910. WlI^UAM McNEIR Notary Public in and for the District of Columbia. TRADE STATISTICS BETWEEN TRINIDAD AND VENEZUELA. TOTAI. IMPORTS INTO TRINIDAD PROM VENEZUEI/A. British Colonial Reports — An- nual series. Year. ' Trans- shipment. Other goods. Total. No. Page. i8i 7 1894 £431,010 181 7 1895 395.788 272 38 1896 £5.034 £519, 008 524, 042 272 38 1897 279, 144 183.553 462, 697 272 38 1898. 348, 173 226, 440 574. 613 (Thfefo llowing St itistics inclu de Tobago as ] and Tobago jart of the coloni •■■) fol "Trinidad 303 36 1899 311.380 219,771 531. 151 338 33 1900 652.751 382 18 1901-2 600, 410 407 19 1902-3 489, 406 442 28 1903-4 433. 787 469 23 1904-5 538, 986 504 23 1905-6 658,587 545 20 1906-7 <^ 497, 179 417,614 914.793 587 7 1907-8 47S, 054 43^, 329 909. 383 621 7 1908-9 ^57, 639 266, 264 4^3. 903 «■ Figures in italics were not obtained from the British Colonial Reports, but from "Trade Statistics. Council Paper No. 87 of 1909. Trinidad and Tobago. Annual Report of the Collector of Customs for 1908-9,'' published by the British Government. .^n_ T9_— Tl. MISCEIvLANBOUS TOTAL EXPORTS FROM TRINIDAD TO VENEZUELA. 85 British Colonial Reports — An- nual series. No. 272 (The Page. 8 8 41 Year. 1894 1895 1896 1897 1898 Products of Trinidad. £485 289 480 Transship- ment. £116, 630 185,442 174.389 Other goods. £92, 612 69, 029 80, 550 Total. £189,556. 189, 636 209, 727 254, 760 255.419 following statistics include the island of Tobago, which is made part of the colony of "Trinidad and Tobago.") 303 39 338 33 382 8 407 19 442 28 469 23 504 23 54 s 20 587 7 621 7 1899 1900 I90I-2 1902-3 1903-4 1904-5 1905-6 1906-7 1907-8 1908-9 555 "5. 254 35S 4.S93 3,628 2, OTJ 3. 107 982 3,052 233,002 216, 376 278,325 113,775 46, 826 9. 290 185,423 237, 31S 315, 04S 99, St6 84, 443 67,424 64, 301 179, 767 149, 974. 71, 937 73,142 57, 146 56, 227 54, 526 318,000 289, 054 342, 984 298, 435 200, 428 83, 304 261, 672 315,446 374,327 154, 830 ^Figures in italics were not obtained from the British Colonial Reports, but from "Trade Statistics. Council Paper No. 87 of 1909. Trinidad and Tobago. Annual Report of the Collector of Customs for 1908-9," published by the British Govern- ment. Pp. 7, 12-13- 86 APPENDIX. TOTAL IMPORTS INTO CIUDAD BOLIVAR. British Diplo- matic and Consu- lar Reports (Annual series) Year From Trinidad From other Countries Total No. Page 2315 33 1884 £198, 991 £271,458 £470, 446 2315 33 1889 140, 296 136, 440 276, 736 2315 33 1891 148, 626 131. 134 279, 760 2315 33 1893 162, 158 54, 769 216,927 1602 14 1894 268, 13s 2315 33 1895 178,776 50, 696 229,472 1933 ■ 14 1896 262, 218 " 44, 772 306, 990 2315 33 1897 171,986 71,859 243, 845 2315 33 1898 209,351 24,449 233, 800 2388 3 1899 No detailed report, but estimated 240,000 2633 7 1900 6 259, 166 « 3, 633 262, 799 2772 6 1901 * 254, 234 "in, 861 266, 095 No reports for year s 1902-3 3394 5 «i904 e 78, 441 3558 6 1905 6188,959 ''15,956 204, 915 3757 5 1906 6 220, 542 S 21, 547 242, 089 3965 5 1907 6257,421 / 18, 418 275- 839 4218 5 1908 671,752 ? 66, 813 138,565 441 1 7 1909 ft 210, 893 - gi /.&/ ^ T British Colonial Reports — Annual. No. 338 {i90o)\p.\io. 1 ? "TRANSIT TRADE. \ '\ ^ "11. Our transit trade, that is to say as much of it as is indi- ' cated by official records, is at present about a quarter of the total trade of the colony. It consists almost entirely of Venezuelan trade, and three quarters of our Venezuelan trade is transit trade. Not only are goods transshipped at Port of Spain in transit be- tween Venezuela and Europe or the United States, but often also between one port of Venezuela and another. The Gulf of Paria, in which not only Port of Spain but four out of the five small ports of entry of Trinidad are situated, is a vast natural harbor into which one of the mouths of the Orinoco flows; and all com- munication between Caracas and that great water highway Hes through it. The imposition by Venezuela about ten years ago of an additional duty of 30% on imports from Trinidad crippled the trade with the mainland which was rapidly developing, but, thanks to our natural advantages of position, it has by no means killed it. Open boats are constantly coming and going between the Republic and the colony, and the large stores of Port of Spain depend for much of their retail custom on buyers from the Vene- zuelan capital. The valley of the Orinoco is generally recognized as of great potential wealth, and that river has navigable tribu- taries connecting it on the one hand with the upper waters of the Amazon and on the other approaching within fifty miles of the capital of Colombia. Already there is one shipping and trading company, which has its headquarters at Port of Spain, engaged in navigating the river Orinoco. Without attempting to prophesy what fortune the proximity of that great waterway may bring to Trinidad in the future, we may at least say that the possibiH- ties of the colony are not limited to its agricultural resources ; and the recent discoveries of coal in the colony may prove to have a special value in this connection. Moreover when we come to con- sider the mineral wealth of Trinidad, we must bear in mind that geographically and geologically Trinidad is only a fragment broken off from the vast continent of South America." British Colonial Reports — Annual. No. 469 {1904-5) p. 5-6. "TRADE. "10. The trade of the colony during the year 1904-5 exhibits a steady increase, in spite of some adverse features, such as the abnormally small exports of asphalt and the depression in the trade with the neighbormg Repubhc of Venezuela, caused by the closing of the Orinoco ports to traffic during a portion of the year, and the reimposition of the duty of 30% on all goods imported into Vene- zuela from the West Indian Islands. ******* 92 APPENDIX. Exports. ******* "19. The transshipment trade in goods for Venezuela, which, during 1903-4, had fallen to £165,792, increased during 1904-5 to £248,336 owing to the reopening of certain Orinoco ports to traffic." British Colonial Reports — Anmuil. No. 621 (igoS-g) p. 5. " TRADE, AGRICULTURE AND INDUSTRIES. " 14. A large decrease of £436,979 also appears under the head- ing of transit trade (excluding bullion and specie) , which dropped from £685,822 in 1907-8 to £248,843 in 1908-9. This is to be accounted for by the restrictions placed on trade between Port of Spain and Bolivar during a portion of the year, by which the latter port, distant from the Port of Spain between 300 and 400 miles, was practically closed to the colony. Shallow draught steamers convey goods at regular rates across the Gulf and up the Orinoco from Port of Spain to Bolivar and vice versa undef ordinary circumstances, and any interference with the shipment of goods between the two ports is reflected in the trade statistics." NOTES EXCHANGED REGARDING LA ABRA AND WEIL CASES. The Secretary of State to the Mexican Ambassador. No. 223.] Department of State, Washington, March 6, 1902. His excellency Senor Don Manuel de Azpiroz, Etc., etc., etc. Excellency: I have the honor to inform you that the "Act making appropriations to supply urgent deficiencies in the appro- priation for the fiscal year ended June thirtieth, nineteen hundred and two, and for prior years, and for other purposes", approved February 14, 1902, contains the following item: " For repaying to the Government of Mexico money erroneously claimed by and paid to the United States on account of the awards adjudged to have been fraudulently made, in the La Abra and Weil claims, four hundred and twelve thousand five hundred and seventy-two dollars and seventy cents." In the discharge of the duty which thus devolves upon me, it gives me pleasure to enclose herewith two Treasury warrants, payr able to yoiu- order, one for three hundred and thirty-seven thou- sand five hundred and seventy-two dollars and seventy cents (1337,572.70) and the other for seventy-five thousand dollars ($75,000). MISCELLANEOUS. 93 To enable me to meet a Treasury requirement, I shall be obliged if you will sign and retiu-n the enclosed receipts at once. Accept, Excellency, etc., etc., etc., T^ , John Hay. Enclosures : Treasury Warrant No. 3556 for $337,572.70. Treasury Warrant No. 3557 for $75,000. Receipts for above, in triplicate, to be signed. The Mexican Ambassador to the Secretary of State. Embajada de Mexico, Nlimero 255.] Washington, Marzo 7 de 1902. ExcfiLENTisiMO SEnor: Anoche tuve la honra de recibir con la nota de usted, nijtmero 223 fechada ayer, dos libramientos A cargo del Tesoro de los Estados Unidos, por las cantidades de trescientos treinta y siete mil quinientos setenta y dos pesos se- tenta centavos y de setenta y cinco mil pesos, respectivamente, que f orman en j unto la suma de cuatrocientos doce mil quinientos setenta y dos pesos setenta centavos, pagadera i. mi orden, por saldo de la total suma que el Gobierno de Mexico entregd al Gobierno de los Estados Unidos en cuenta de las reclamaciones de La Abra y Weil, que fueron declaradas fraudulentas ; saldo cuya devolucidn fu^ autorizada por decreto del Congreso de los Estados Unidos apro- bado en 14 de Pebrero