later ones. Solomon and Weinberger cannot claim either ignorance or carelessness. (b) Claims are solely from onerous concessions. All concessions of this sort held by these claimants canceled by Mixed Claims Commission. This is one of a series of transaction in which Zelaya, Irias. Solomon, and the Weinbergers participated. The latter two ex ploiting concessionaries. It has required two commissions to arrange these matters: the Mixed Claims Commission on the ice and purchasing agency concessions, and the present commission to squeeze the water out of the claims recognized by the Republic in Zelaya régime. (c) The only property involved, wharf at Bluefields, according to trustworthy official information in hand, already amply paid for to Solomon. Lindberg has personal knowledge of property. (d) No proof offered that Weinberger gave value to Solomon for documents. Presumption is to contrary. (e) The commission is unanimous in its assertion that this claim is one of the weakest, both from view of legality and equity, that has come to its notice. No other claims have so discredited Americans in eyes of just men. (†) Another creditor in Managua, one of the ablest and best posted Nicaraguan creditors holding similar documents with exactly same printed conditions, was so convinced of their fraudulent nature that he did not even present them among his other claims. (g) Claims fully examined by all three members of the commission. Opinion is unanimous against it. Jacob Weinberger. The transaction of the Central American Commercial Co., Jacob Weinberger and Mr. Gutierrez Peña, both the latter having been managers, are so interwoven that the commission included any possible equity in this claim in its award to the company which has been accepted verbally by Peña, leaving the two managers to settle their equities among themselves. The company did make cash loans to Government and also included a lot of documents which were not cash, not forgetting always to take a profit on exchange. American Investment Corp. Although this claim was not rejected in toto, reduction is so great as to produce the same effect. Prescription per law on presentation of customs bonds followed as case was adjudicated by the Government in 1913 and commission has followed rule of not reopening such cases. Absence of reliable proof that value was really given in exchange for these bonds as required by rules of commission. Amount of award only demonstrating enough to secure delivery of documents, if possible, or if refused, to form basis of proper legal proceedings by the Nicaraguan Government to get amount of award. Balance of documents acquired through misuse of position of president-graft from foreigners in their enterprises and control over Government fiscal operations. The commission is in existence but is not accepting new claims. Its work is so dovetailed with the High Commission that not until payments are finished will it cease its functions. Total amount of awards of the commission is as follows: cash $1,426,696.79; bonds $3,800,000; total, $5,226,696.79. Amount of cash available: customs revenues, in the hands of Collector General of Customs $1,092,695.96; funds in the United States as per advices from financial agent $334,000.83; total cash $1,426,696.79. Authorization by Congress for the issue of guaranteed customs bonds in an amount not to exceed $4,000,000. Customs revenues on hand with Collector General of Customs pertaining to last half November and December 1917, $66,992.94. General Chamorro upon learning that payment could not be made at once by the commission showed great disappointment and informed me that he had formed the commission at the request of the Department for the purpose of settling all claims and that he hoped that the Department would insist upon all accepting the awards of the commission, thereby avoiding any unnecessary embarrassment for the Government of the United States as well as for himself. JEFFERSON File No. 417,00/253 The Commissioner on Public Credit (Lindberg) to the Secretary of State MANAGUA, April 2, 1918. INTERIM REPORT NO. 4 SIR: In reply to a recent cable sent to the American Minister I have the honor to transmit to you herewith three copies of the certified awards in connection with six American claims disallowed in toto and one disallowed in part, with the reasons therefor shown in detail.1 The commission has given as much or more study to the rejected claims than to others, not only in accord with the principles enunciated but many other incidents, which it is deemed inadvisable to incorporate in its public records, for reasons which can be understood. The rules of prescription were not detailed in the report of February 4, but the four followed in general were those in reference to Mixed Claims Commission, war claims of 1912, customs bonds, and general prescription of legal rights left dormant or unexercised for a considerable length of time. The commission is in existence but it is not accepting new claims. Its work is so dovetailed with the High Commission that not until payments are finished will it cease its functions. Attention is invited to the fact that the commission, due to shortness of time, to lack of office personnel and appropriations, and that the bulk of investigation and work of analysis has fallen upon and had to be assumed by one member, did not permit of preparing long legal opinions, findings and statements of facts in each individual claim, but every decision made after study and application of rules. The only reason for the probable success of its work is loss of hope on part of creditors and the extraordinary receipt of canal funds. The commission has relied upon and expects the support of the Nica 'Not printed here. See telegram of March 26, 1918, 2 p. m., from the Minister in Nicaragua, ante, p. 843. raguan Government in scaling claims of natives and of the United States Department of State in scaling claims of Americans and the foreigners. The law creating the commission gives it the authority to judge and fix the internal debt, and this fact together with the incidents surrounding its creation not only has inspired confidence in it among foreigners and natives but its awards will have great weight not only in the executive branch of the Government but also in the courts, and the minority creditor who does not come in is bolstering himself up with false hopes for an uncertain future. No tribunal or commission, no matter how strong or powerful, can compel the recalcitrant creditor to accept unless he so desires. Awards have not been officially sent to creditors due to uncertainty as to amount of cash available. Furthermore, the commission has made friendly agreements with creditors which are binding and is loath to reconsider any award except under the most urgent circumstances, amounting to denial of justice. Confident none such can be found. The total amount of awards of the commission are as follows: In cash In bonds Total______ Amount of cash available: Customs revenues in hands of Collector Gen- Funds in United States as per advices from Total cash_ Authorization by Congress for the issue of guar- Customs revenues on hand with Collector General $1, 426, 696. 79 $1,092, 695.96 334, 000. 83 $1, 426, 696. 79 $4, 000, 000. 00 $66, 992. 94 In the amount of bonds awarded is a small amount set aside for contingencies, concerning which you were advised by cable. The following is a copy of a cable, signed by all three members of the High Commission, sent to the Nicaraguan financial agent, to be presented to the State Department: The High Commission unanimously request the State Department to authorize them to begin payment of awards of Commission on Public Credit. The wait is causing discontent, interest is creeping up and agricultural operations are suffering from lack of funds. If budget deficit is delaying matters, why not interpret plan to begin functioning January 1, thus leaving available the balance of customs revenues of November and December, such budget deficit to be expended under rigid examination by High Commission. If any foreign diplomatic claim or others are delaying matters, commission will set aside small reserve enough for contingencies. Mere fact of beginning payments will exert favorable influence on a few strong creditors who have ideas of holding out. CÉSAR LINDBERG JENKS Respectfully submitted, A. F. LINDBERG File No. 417.00/248 The Secretary of State to the Minister in Nicaragua (Jefferson) [Telegram] WASHINGTON, April 3, 1918, 4 p. m. In view of explanation contained in your telegram March 26, 2 p. m., Department disposed to consent to immediate payment of awards, reserving for later consideration cases of claims rejected by commission and awards rejected by claimants, as well as any other matters which may arise out of the fact that the Mixed Claims Commission and Public Credit Commission are regarded as purely local tribunals of Nicaragua. 66 Department cannot understand the statement contained in your cablegram January 21, 11 a. Claimants who have not presented data as to their judgments have been protected and reserve set aside," in view of statement in your March 26, 2 p. m., "Total amount of awards of the commission is as follows: Cash $1,426,696.79," and statement that total available cash is the same figure. The consent of the Department to immediate payment of awards is of course contingent upon accuracy of statement referred to above in regard to setting aside of a reserve fund to protect claimants who have not presented data. If this reserve fund has been set aside, Lindberg is authorized to proceed with the payments. So inform Government of Nicaragua. Claim on account of death of Groce was settled diplomatically by this Government with the Nicaraguan Government and payment should be made to the Legation. According to Department's records Legation advanced $5,625.10 to Mrs. Groce to January 31, 1918. Deduct amount mentioned plus amount advanced since January 31 from proceeds of claim. Remit amount deducted to Department and balance to Mrs. Groce, taking her receipt as required by commission, and discontinue advances to Mrs. Groce. LANSING File No. 417.00/250 The Minister in Nicaragua (Jefferson) to the Secretary of State [Telegram] MANAGUA, April 5, 1918, 11 a. m. Department's April 3, 4 p. m. Statement contained in my telegram of January 29, 11 a. m., refers to judgments of Mixed Claims Commission not parts of Public Credit Commission. Reserve is included in total awards of both cash and bonds as follows: Cash $27,587.31, bonds $92,250, total $119,837.31. Reserve referred to in cablegram of commission to Enriquez is $130,000 in bonds in excess of amount cash and bonds awarded and is included in amount of $400,000. Please confirm statement of Enriquez that the amount held in the United States Treasury is $334,000.83, subject to the order of the High Commission, available for gold payments. In accordance with treaty, Minister of Finance will notify Department to deposit these funds to order of the High Commission. If the above sum in the Treasury is correct, and the Department so desires, I will immediately notify Ham to transfer money held by him to the High Commission and also to inform Government of Nicaragua. JEFFERSON The Secretary of State to the Minister in Nicaragua (Jefferson) [Telegram] WASHINGTON, April 19, 1918, 3 p. m. Your April 5, 11 a. m. The sum of $334,840.83, which is total remainder of $3,000,000 treaty monies, is not in United States Treasury but is in American Security & Trust Co. of Washington, D. C., where it has been since November last. It was deposited in accordance with the treaty provisions to order of Government of Nicaragua and may be withdrawn only upon order of Mr. Enriquez representing Minister of Finance of Nicaragua and approved by Mr. Stabler designated by the Secretary of State. High Commission should send list of amounts to be paid from this sum to Mr. Enriquez who will present order approved by Mr. Stabler to the American Security & Trust Co. to make payments direct on behalf of the Government of Nicaragua. With understanding that all awards of Mixed Claims Commission are provided for in allotment of funds, you may notify Ham to transfer money held by him to High Commission and so inform Government of Nicaragua. LANSING File No. 817.51/1088 The Acting Secretary of State to the Minister in Nicaragua (Jefferson) [Telegram] WASHINGTON, April 20, 1918, 7 p. m. Your January 21, 4 p. m., Department's January 31, 4 p. m. Your February 7, 3 p. m. Nicaraguan Chargé d'Affaires has presented request of his Government to the effect that approval be given for payment of deficit using $66,000 held by Ham, being customs revenues for November and December. Provided this amount has not been in any way included in sum to be applied to Public Credit Commission's and other awards and provided this expenditure for deficit in no way conflicts with financial plan, and High Commission has agreed on use of this money for payment of deficit, Department is disposed to acquiesce in use of this money as desired by Nicaraguan • Government under supervision of High Commission. POLK |