Minister Russell to
the Secretary of State.
American Legation,
Bogotá, March 22,
1905.
No. 34.]Sir: Referring to my cable of yesterday in
regard to the settlement of the claim of the Cartagena company, I have
the honor to state that the terms of the settlement were the very best
that could be obtained, and the Government of Colombia has acted in a
very fair and equitable manner in regard to this matter. The minister
for foreign affairs when he authorized me to summon Mr. Ford, the
general manager, to Bogotá, assured me that he intended to examine the
question very thoroughly and make a definite offer of settlement. The
negotiations have been conducted at the foreign office between the
minister for foreign affairs, Don Climaco Calderón, Mr. Ford, the
general manager of the companies, and myself. There has been no friction
whatever during the discussions, and I must say that the Colombian
Government has acted throughout with that spirit of fairness which
resulted in an award so just and equitable to this American corporation.
The bonds given are called vales de extranjeros,
and their issue was authorized by law 27, of 1903, for the purpose of
paying claims of foreigners arising from the last revolution, are
redeemable at the custom-houses for the payment of duties to the extent
of 8 per cent of the amount due, and bear interest at the rate of 6 per
cent per annum.
[Page 243]
I inclose for your information copy of a letter to me from Mr. J. T.
Ford, general manager of the companies interested, which gives a
detailed statement of the manner in which this claim was settled. I am
especially pleased to place on record the fact that Mr. Ford, by his
judicious and temperate attitude in the presentation and management of
this matter, has greatly facilitated me in obtaining an amicable and
equitable settlement of the claim in question.
I am, etc.,
[Inclosure.]
Mr. Ford to
Minister Russell.
Dear Sir: In view of the successful
termination of my business in the capital with results that I had
not dared to hope for, when taking into consideration the delicate
diplomatic relations that have lately existed between Colombia and
the United States of America, I wish particularly to place on record
in the name of the companies that I have the honor to represent my
high appreciation of your distinguished ability in dealing with the
case and your courteous treatment of myself throughout the
negotiations so happily concluded for the settlement of a claim of
such magnitude, which, from its peculiar nature, may be described as
bristling with difficulties and which, with careless handling, would
unquestionably have produced disastrous consequences to myself as
the principal actor in the unfortunate incidents of the late
revolution which gave rise to our claims and forced me often to
protect the interests of my companies with a degree of vigorous
warmth that had already earned for me unjustly the reputation of
enmity to Colombia; but still more were the interests of our
companies themselves threatened with serious injury in view of their
connection with the relations between Colombia and the United
States, and further delay might easily have been injurious also to
Colombia. In these circumstances, therefore, I wish to forward to
our companies an official confirmation from you of certain salient
facts in connection with our settlement that will satisfy them as to
the bona fides of the whole transaction from the point of view of
all parties concerned, while it will serve as a matter of record in
the remote event, not to be anticipated, of any hesitation on the
part of future governments in Colombia to faithfully carry out the
redemption of the bonds I have accepted in payment of the claim,
when we could with perfect propriety again appeal to the Government
of the United States for its good offices in protection of the
rights of its citizens which in this instance it has so ably
given.
The facts I allude to are as follows:
- 1.
- The claims of the companies I represent were placed in the
hands of the State Department for collection through the
diplomatic channel after some abortive attempts to arrive at
a full settlement under a previous administration of the
Colombian Government.
- 2.
- On your assuming the duties of American minister at Bogotá
you were encouraged at the possibilities of the new
administration of the President, General Reyes, to suggest,
and, with his consent and that of the State Department at
Washington, to summon me to Bogotá as representative of the
companies with a view to further efforts toward an amicable
settlement instead of forcing an arbitration, both costly
and long drawn out, which, in view of the late results in
Venezuela and the complications arising therefrom, it was in
every way most desirable to avoid in the interests of all
parties concerned.
- 3.
- Our companies in accepting this proposal did not therefore
act independently of the State Department or take the matter
out of your hands, but made use of your good offices to such
an extent that you were personally a witness at every
interview between myself and his excellency the minister of
foreign affairs, Don Clímaco Calderon R. until the final
conclusion of the settlement on the 21st of March, and that
the Government of the United States, to the extent that
these facts may show, has been throughout a party to the
transaction.
- 4.
- That the terms of the settlement are as follows: $475,000
American gold in bonds of the Colombian Government, issued
under law 27 of 1903, bearing interest at the rate of 6 per
cent per annum, and redeemable as cash payment of customs
duties to the extent of 8 per cent of any or all such duties
until finally liquidated.
- 5.
- That the settlement was for a sum en bloc, taking into
consideration the possible depreciation in the value of the
bonds to be received and with no admission whatever either
by yourself or myself of the contentions often advanced by
his excellency the minister of foreign affairs that the
Government of Colombia was not responsible for the damages
due to the acts of revolutionary forces after granting
amnesty, notwithstanding the fact that on the part of the
said minister the sum of the settlement as agreed by him may
have been so divided from the items of the original claim
papers in full.
- 6.
- That, furthermore, in view of such acceptance by me of a
settlement without any payment in cash, it was agreed by the
minister of foreign affairs that orders would be given to
the respective departments that the previous obligations of
the government for the payment of certain sums monthly to
the company for delayed subvention bonds and balance
outstanding for current and past services be faithfully
continued or resumed in accordance with the terms of such
previous agreements.
With due apologies for the length of this letter and hoping that you
will comply with my request by a letter confirmatory of the above
record of simple but important facts,
I have, etc.,
J. T. Ford,
Legal Representative C. T. I. Co., C. M. Rwy.
Co. and Cia. F. de C.
