Mr. Hunter to Mr.
Hay.
Legation of the United States,
Guatemala and
Honduras,
Guatemala, December 24,
1898.
No. 124.]
Sir: I have the honor to transmit herewith
inclosed copies of two letters received from the minister of public
works relative to the claim of R. H. May against the Government of
Guatemala. One refers to the course pursued by the Government in
recovering possession of the road. The other informs me that May’s
accounts have been audited.
The Government claims that the audited accounts make May a debtor in
place of a creditor to the Northern Railroad, while May claims that his
accounts show a large balance still in his favor.
I addressed a note to W. F. Fuqua, May’s representative here, that May’s
accounts had been audited, and suggested an early examination of them,
with the view to a speedy settlement. See attached copy.
I have, etc.,
[Page 653]
[Inclosure 1.]
Mr. Barrios to
Mr. Hunter.
National
Palace, Office of the Minister of
Fomento,
Guatemala, December 20,
1898.
Mr. Minister: I have the honor of
transcribing to your excellency the following telegraphic dispatch
sent to the President of the Republic by the judge of the first
instance of Zacapa. It reads as follows:
“With reference to the affair of Mr. Robert H. May, and in regard to
the steps which were taken for the peaceable deliverance of the
enterprise of the Northern Railroad, I must inform the President
that Mr. Hay was cited to appear in the court under my charge
through the agency of the office of Jefe Politico, and
notwithstanding the fact of his having being cited twice Mr. Hay did
not obey either summons nor present himself as he was advised, and
in view of that, and having exhausted all conciliatory measures, the
undersigned accompanied the directing engineer and the Jefe Politico
to Gualan, to cause to be delivered the enterprise of the Northern
Railroad to Mr. Martin Roberts, which was effected without the use
of any force whatever, taking on a purely civil character, as is
proved by the investigation which is being followed in the courts
under my charge. I will report by mail more extensively to the
President. Justo Castellon H., judge of the first instance.”
By the preceding dispatch your excellency will see that from the
beginning there was an endeavor to arrange this affair in accordance
with the agreement made between May and the President, employing for
this end the best possible means; but the refusal of said gentleman
to present himself to the civil authorities when the latter summoned
him, besides his acts of contempt of said authorities, acts which
involved a serious charge which the Government looked upon with
benevolence, occasioned the delay which Mr. Hay had desired to
cause, and was already causing, in the negotiations for the delivery
of the railroad, notwithstanding all the considerations and all the
favorable intentions manifested so often by the Executive in behalf
of the aforesaid ex-contractor, Mr. Hay.
I repeat to your excellency the assurances, etc.,
[Inclosure 2.]
Mr. Barrios to
Mr. Hunter.
National
Palace, Office of the Minister of
Fomento,
Guatemala, December 23, 1898.
Mr. Minister: On the 10th instant I
addressed to your excellency a note, in answer to your verbal
inquiry, that the accounts of R. H. May would be rapidly audited,
and, if possible, completed not later than Saturday, December
25.
I have the honor to inform your excellency that the work on these
accounts has this day been concluded, and that all accounts in this
department relative to Mr. Hay’s connection with the Northern
Railroad have been audited. These accounts, as well as all books in
reference to same, are now ready for inspection by Mr. Hay or any
agent he may designate for that purpose.
According to a contract signed the 5th of April of this year, Mr.
Robert H. May on April 16 assumed the conservation and exploitation
of the Northern Railroad for a monthly subvention of $35,000,
besides the entrances and products of its traffic. Abnormal
circumstances, however, unprecedented in the history of this
country, caused delayed payments; but not all, because on the 20th
of September last my Government was only owing to Mr. Hay the sum of
$58,774.62 for subvention up to the 31st of August.
Things being so, Mr. Hay insisted upon an absolute cash payment of
the amount due him, and expressed several times that he was quite
willing to rescind his contract, provided the amount due was paid.
In the presence of your excellency Mr. Hay confirmed this assertion
before the President of the Republic, repeating that he could not
run the road on promises, that he wanted cash, adding that as soon
as the sum due was paid he would rescind the contract. These terms
were admitted and agreed upon, and my Government, wishing to avoid
greater difficulties, obtained the above-stated sum of $58,774.62
and had it paid immediately to Mr. Hay. Even more; it paid to him
$17,000 on account of the subvention due on the first twenty days of
September.
[Page 654]
My Government, having complied with all its engagements, took
possession of its road without violence or intervention of soldiers,
as has been amply proven b documents transmitted to your excellency
heretofore.
Afterwards we proceeded to settle the accounts presented by Mr. Hay
for subvention and payment of extraordinary work. Such liquidation
being partial, gave a balance in his favor of $31,374.33, which has
been at his order and which, with a view of provoking more
difficulties, he refused to receive, alleging that they had to be
paid in silver coin. It has been shown to your excellency by the
certificates of the banks which I have had the honor of sending to
you that in this Republic silver money, as well as the bills of the
various established banks, are equally received and are circulated
without any distinction throughout the country.
My Government has shown the best disposition to please Mr. Hay, and
has accordingly complied with all his pretensions and is still in
the best resolution to settle this annoying affair. An examination
of the books and accounts will show that whether the Government
retains or disposes of the $31,774.33 heretofore at the disposition
of Mr. Hay the latter will be found to appear as a debtor in place
of a creditor of the Northern Railroad.
With assurances, etc.,
[Inclosure 3.]
Mr. Hunter to
Mr. Fuqua.
Legation of the United States,
Guatemala and
Honduras,
Guatemala, December 24,
1898.
Sir: I beg to inform you that the minister
of public works has this day advised me that R. H. May’s accounts
have been audited and that these accounts, as well as all books in
his department relative to same, are now ready for May’s
inspection.
I trust that an early examination of these accounts will be made,
with the view to a speedy settlement.
