File No. 21267/1.

Vice and Deputy Consul General Owen to the Third Assistant Secretary of State.

[Extract.]
No. 321.]

Sir: I have the honor to attach herewith a copy of the Guatemala official newspaper of July 26, 1909, containing the text of Government decree No. 699, and a translation thereof.

Under this statute an American business man, of ordinary prudence, residing in Guatemala, seeking to protect his property by insurance, in the event of its destruction by fire, is held in prison until he can prove innocence.

I have, etc.,

William Owen.
[Inclosure.—Translation.]

Decree No. 699.

Manuel Estrada Cabrera, constitutional President of the Republic of Guatemala—Considering:

That the majority of fires occurring in the country have originated in houses or establishments insured by the respective fire insurance companies, which gives room to believe in the culpability of those interested in the value of the insurance policy;

That the primordial duty of the Government is to emit ordinances which will tend to stop unfortunate accidents, which, like those we treat, frequently leave innocent persons in misery and terminate in serious public evils;

That, although the penal laws now in force clearly define the culpability of the incendiaries and the presumptions natural and legal which are sufficient to condemn the perpetrators of the crime, it is desirable to emit a statute more explicit, yet that will cover the interests of the public and protect them against the frequent attempts that have lately occurred, to the great alarm of the country;

That, on the other hand, it is necessary to protect the interests of the insurance companies so that they may not be defrauded, and that the caution with which incendiaries proceed frequently prevents the authorities from immediately clearing up the criminal facts; that in such cases it is absolutely necessary to apply the natural presumption, to which the law alludes, with all its force;

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Wherefore, using the extraordinary faculties with which the National Assembly has invested me, I decree:

  • Article 1. The burning of insured houses and establishments is presumed to be intentional, and in consequence, the persons interested in receiving the value of the insurance shall be put in prison and shall not leave it until they can prove their innocence.
  • Art. 2. No bail shall be admitted to enable the said persons to remain out of prison until the final verdict shall have been given.
  • Art. 3. The insurance companies are relieved from the obligation of an immediate payment while the case is on trial, but should it be to their interest to show proof that they are ready to verify it, they may deposit the amount of the policy in a bank which the judge of the trial court may name. Said sum to be given to whom it may belong when verdict is rendered, to which the preceding article refers.
  • Art 4. The present decree will commence to have force of law from the date of its promulgation, and it will be referred to the Legislative Assembly at its next session.


Manuel Estrada C.

The secretary of state in the department of interior and justice,

J. M. Reina Andrade.