File No. 5748/2–3.

Chargé Wilson to the Secretary of State.

No. 614.]

Sir: Referring to the department’s instruction No. 118, of April 10, 1907, inclosing copy of a letter from A. A. Lisman & Co. inquiring what has become of certain bonds of the Entre Rios Eastern Railway Company, I have the honor to inclose herewith a copy of a note, together with translation of same, which has just been received from the ministry of foreign affairs in regard to the above-mentioned bonds.

I am, etc.,

Charles S. Wilson.
[Page 40]

The Minister for Foreign Affairs to Chargé Wilson.

Mr. Chargé d’affaires: In its note of May 29, last, the legation under your charge requested information concerning certain 6 per cent gold bonds of the Entre Rios Eastern Railway Company, which, according to the indorsement on same, enjoy the guarantee of the Argentine Government, and in reply to your request I have the honor to communicate to your excellency the following information that has been sent from the proper section of the ministry of public works:

“The National Government, by law No. 1551, of October 7, 1884, made Messrs. Javier Arrufó & Co. grantees of the Entre Rios Eastern Railway Company, which runs from Concordia to Gualeguaychú, and this concession was confirmed by the decree of the government of the Province of Entre Rios on August 23, 1872, which province guaranteed 6 per cent annually on the effective cost, fixing the cost per kilometer of this railway at $23,557.50 national gold money by decree of November 12, 1886. However, as the grantees did not fulfill the contract, and by virtue of law No. 2716, of September 5, 1889, by which all concessions whose terms had not been fulfilled by the grantees were canceled, said concession was therefore canceled, because the first section of the above-mentioned line that ought, according to the contract, to have been opened for public service in November, 1889, was not opened, the work having been abandoned shortly after having been begun and the grantees restricting themselves to works of slight importance. August 19, 1907.”

I avail, etc.,

E. S. Zeballos.