Mr. Partridge to Mr.
Gresham.
Legation of
the United States,
Caracas
,
March 10, 1893
.
(Received March 22.)
No. 6.]
Sir: I have the honor to transmit herewith a copy
and translation (inclosure 1) of a contract concluded on the 7th ultimo, and
published in the Gazeta Oficial of that date, between the Government of
Venezuela and Alfred Fromentin, for the construction of a submarine cable
from La Guayra, Venezuela, to some point on the coast of Florida; also, a
copy and translation (inclosure 2) of a supplementary article concluded the
following day and published in the Gazeta Oficial of February 21.
Mr. Fromentin is a Frenchman, and was formerly in charge of the office of the
French Cable Company (Société Française des Télégraphies Sous-Marins) in
this city. It is understood that he left their employ on account of some
disagreement. He is not a man of much means, and it is doubtful if he will
be able to enlist sufficient capital in the undertaking. There is great need
of more direct cable communication between the United States and Venezuela,
and I regret that the present enterprise is not more likely to succeed.
The impression here is that the contract is simply a speculative one, and
that nothing will come of it.
It will be observed that it contemplates the ownership, and, presumably, the
operation of the cable by the Venezuelan Government. Permission to land it
in the United States would require, therefore, a special adaptation of the
condition usually imposed in such cases. The object of the condition
heretofore formulated with reference to private cable companies desiring to
land a cable in the United States from a foreign country has been to prevent
a permanent monopoly of such telegraphic communication. Hence, the principal
condition has been “that neither the company, its successors or assigns, nor
any cable with which it connects, shall receive from any foreign government
exclusive privileges which would prevent the establishment and operation of
a cable of an American company in the jurisdiction of such foreign
government.” (Report No. 964, House of Representatives, Fifty-second
Congress, first session; Senate Ex. Doc. No. 51, Forty-eighth Congress,
second session; Senate Ex. Doc. No. 122, Forty-ninth Congress, second
session; also 22 Stat., 173 and 371.) The ownership by a foreign government
of a cable having one terminal within its own jurisdiction and the other in
the United States would, unless safeguarded by proper conditions,
practically create a monopoly of the cable business between the two
countries, for the pecuniary interests of such foreign government in the
cable would naturally deter it from authorizing the landing of a competing
cable from the United States.
In case, therefore, application is made to the Government of the United
States, as contemplated in article 4 of the present contract, I have the
honor to suggest that, in addition to the conditions usually [Page 721] required, positive assurance should be
given by the Government of Venezuela that it will permit to land, and will
extend equal privileges to any cable which the Government of the United
States may itself desire to lay or may authorize to be laid by private
enterprise, between the two countries.
I have, etc.,
[Inclosure 1 in No.
6.—Translation.]
Ministry of Posts and Telegraphs,
Caracas
,
February 7, 1893.
The minister of posts and telegraphs being sufficiently authorized by the
chief of the executive power and Alfred Fromentin, celebrate the
following contract:
-
Article I. Alfredo Fromentin pledges
himself to construct alone, or associated with others, a
submarine cable from the port of La Guaira to some point on the
coast of Florida, in the United States, at the price of (B.
4,600) four thousand six hundred bolivars for each mile.
-
Art. 2. The Government pledges
itself to pay to Mr. Fromentin, or to whoever represents his
rights, the price of the work, i. e. (B. 5,980,000) live million
nine hundred and eighty thousand bolivares, in the following
manner: A quarter part shall be deposited in one of the banks of
France or London as a guarantee which shall be paid to Mr.
Fromentin when the Government, or its agent, shall have received
the cable; another quarter when the engineer in chief of the
construction has given a certificate that the cable is ready and
in operation, and the other two quarter parts remaining, to wit,
(B. 2,990,000) two million nine hundred and ninety thousand
bolivares shall be paid to Mr. Fromentin, or his
representatives, (6) six months after the work has been received
by the Government, by an order or note bearing (6 per cent) six
per cent interest annually, which will be accepted by the Bank
of Venezuela for payment.
-
Art. 3. As the length of the cable
is calculated to be (1,300) one thousand three hundred miles, in
case it be less Mr. Fromentin shall return the difference of the
sum expressed in the previous clause, and if it be greater, he
shall receive the value of the difference at the rate of (4,600)
four thousand six hundred bolivares the mile.
-
Art. 4. The Government, through the
minister of foreign affairs, will communicate the present act to
the consul of Venezuela in Washington, to the end that he may
obtain the necessary permission to land the cable in that
country.
-
Art. 5. Mr. Fromentin pledges
himself to commence the work within (5) five months and to
present the work completed to the Government within eight, both
dates to count from the time of the deposit of the quarter part,
as is indicated in this contract, and it is further understood
that in case of casualties the Government shall be the judge of
whether the time lost by Mr. Fromentin was his fault as respects
the carrying out of the dates established by this
article.
-
Art. 6. As a guarantee of the work
to be accomplished, of the good quality of the cable, and of its
perfect operation Mr. Fromentin will deposit in the Bank of
Venezuela the sum of (B. 200,000) two hundred thousand
bolivares, which sum is to receive (6 per cent) six per cent
annually, and for which Mr. Fromentin or his representative is
to be reimbursed within one year after the official inauguration
of the work.
-
Art. 7. Every difference or
controversy arising out of this contract shall be decided
definitely by the tribunals of the Republic without the
intervention of any foreign authority.
Made in duplicate, at
Caracas, this 7th of February, one thousand eight
hundred and ninety-three.
[Inclosure 2 in No.
6.—Translation.]
Ministry of Posts and Telegraphs,
Caracas
,
February 21, 1893.
Additional Article.
The minister of posts of the United States of Venezuela, being
sufficiently authorized by the chief of the executive power, and Alfredo
Fromentin, have agreed to [Page 722] the
following clause in addition to the contract celebrated the seventh of
the present month:
Mr. Fromentin alone or associated with others, or the construction
company with whom Mr. Fromentin may treat, must supply the means
necessary for purchasing and laying the cable before the first quarter
part of the guarantee has been deposited in the Bank of France or
London, the Government of Venezuela pledging itself to reimburse the sum
advanced to Fromentin or whoever may represent his rights in the
following manner: Half in gold, one year from the date of advancement;
and the other half by note to be accepted by the Bank of Venezuela,
payable eighteen months from this same date.
In this case the Government pledges itself to pay Fromentin or his legal
representatives 7 per cent interest annually upon the total sum advanced
for the construction of the cable, interest to run from the same dates
expressed above, to be paid in monthly installments.
Made in duplicate, at
Caracas, February 8, 1893.
