Office of the Historian

Mr. Hardy to Mr. Hay.

American Legation,
Madrid, June 7, 1904.
No. 233.]

Sir: Referring to my previous correspondence in the matter of the International Ocean Telegraph Company, I have the honor to report that on March 25 I wrote the minister of state that, having no explanation of the delay, I should feel obliged to ask for such on behalf of my Government, to obviate which I begged him to use his good offices with the minister of hacienda.

On May 20, having no answer, I made the following verbal representations to the minister: That it was now nearly six years since the debt was contracted; that nearly three years had elapsed since all the formalities exacted had been complied with; that such explanations of nonpayment as had been offered, while they might apply to a brief delay, were wholly inadequate to explain one of three years; that it must be remembered that the account was not a disputed claim but an admitted debt, and that whereas I had no hesitation in enforcing to the best of my ability the views of my Government in cases where differences of opinion existed, it was most unpleasant and embarrassing to be obliged to call his attention repeatedly to the non-discharge of an acknowledged obligation; that having, out of considerations of courtesy to himself, refrained from directly pressing the subject upon the attention of his colleague of the treasury, I felt he should urge upon the latter the necessity of a reply to the frequent inquiries addressed through the foreign office; and that, finally, I desired a settlement before my departure for the United States on leave.

The minister admitted the reasonableness of all I had said. He further said there was to be a council that evening and that he would bring the matter before the ministry at that time, promising to do all in his power to effect a settlement before I left Madrid.

On June 2 I received the note, of which a copy is inclosed, to the effect that by royal order of May 25 the amount due had been ordered paid at the rate of the official exchange of the day of issue of the order and on the basis of 5 pesetas to the dollar. * * *

I inclose herewith a copy of a letter from the Credit Lyonnais, together with first of exchange payable to “International Ocean Telegraph Company.” * * *

I have, etc.,

Arthur S. Hardy.
[Inclosure.—Translation.]

Señor San Pedro to Mr. Hardy.

Ministry of State,
Madrid, May 31, 1904.

Excellency: In reply to the polite note of the legation relative to the sum of $10,334.99, gold, owing to the International Ocean Telegraph Company, for official telegrams transmitted during the months of July, September, and October, 1898, in the island of Cuba, I have the honor to inform your excellency that [Page 809] the minister of hacienda, in a royal order of the 25th instant, has given the necessary instructions to the director of the public debt to the end that the above-named sum, or its equivalent in pesetas, charged to the surplus funds of the special account of the suppressed section of ultramar in that department, be paid to your excellency at the rate of the official exchange of the 25th of the current month at the equivalent of 5 pesetas for each dollar.

I avail myself of this opportunity to reiterate, etc.,

F. R. San Pedro.
[Inclosure 2.]

Mr. Midland to Mr. Hardy.

Madrid, June 7, 1904.
Credit Lyonnais.]

Sir: In virtue of your verbal order of this morning and exchange having gone lower, we have taken advantage of this opportunity to execute your order we were holding.

In consequence, we beg to remit you herewith first and second of exchange on New York for $10,003.46, order International Ocean Telegraph Company, making at the rate of 7.17 pesetas 71,724.85, with which we debit you in account.

We remain, etc.,

W. Michaud,
Submanager.