File No. 924/256.
Protocol of Settlement.
The United States of America and the Republic of Nicaragua through their respective plenipotentiaries, Alvey A. Adee, Acting Secretary of State of the United States of America, and Señor Doctor [Page 464] Pedro Gonzales, Envoy Extraordinary and Minister Plenipotentiary of the Republic of Nicaragua on Special Mission, duly authorized thereto, and Señor Doctor Don Rodolfo Espinosa, Envoy Extraordinary and Minister Plenipotentiary of Nicaragua to the United States, have agreed upon and signed the following protocol or settlement:
Whereas under a certain protocol between the United States of America and the Republic of Nicaragua, signed at Washington on the 25th day of May, 1909, it was agreed that the claim of the George D. Emery Company, an American corporation, against the Republic of Nicaragua, should be submitted to the jurisdiction and adjudication of an arbitration tribunal composed of three arbitrators; and,
Whereas it was provided in Article IX of said protocol that the Government of Nicaragua reserved the right at any time within four months after the signature of said protocol to negotiate with said company for a settlement of all difficulties existing between them, it being understood that if within the said four months such settlement were made, approved by the Government of the United States, and definitely consummated, that then and in that event the arbitration provided for in said protocol should not be carried out; now
Therefore, the respective governments, animated by the spirit of sincere friendship that should exist between the two nations, and actuated by the firmest desire to maintain and continue the good understanding which should exist and increase between them, and to the end of avoiding all possible future differences regarding this matter and of settling existing differences concerning said claim by common accord instead of further proceedings under the said protocol, and in pursuance of the express provision of Article IX of said protocol as above set forth, have now reached an amicable arrangement and settlement of the said claim and have agreed to and do settle the same in the manner and form hereinafter stated:
Article I.
The United States of America for and in behalf of the George D. Emery Company hereby sells, sets over, and assigns to the Republic of Nicaragua forever all the right, title and interest of the George D. Emery Company in, to, and under the following described property and releases the following claims:
- 1.
- A certain timber concession granted to Herbert Clark Emery on July 27, 1894, as well as certain modifications of said concession granted to said Herbert Clark Emery on May 5, 1898 and on August 11, 1900, and by him assigned to the George D. Emery Company, it being understood that all operations under this concession shall cease and determine from and upon the elate of the signing of this agreement, provided that this shall not effect the rights of the George D. Emery Company to remove under the conditions hereinafter set forth in this agreement, all timber which, prior to the date of this agreement, the Emery Company has felled.
- 2.
- The plant and equipment owned by the George D. Emery Company and located within the territory of the Republic of Nicaragua, including the steamers Yulu, Pioneer, the launch Yamni, the schooner Atlantic and all small boats, together with all railroads, tram-roads, [Page 465] and their equipment, all cattle, tools, and working outfit of camps, work expended in the woods, and all other assets within said territory not herein enumerated but belonging to said company, all said equipment and boats to be delivered to the Government of Nicaragua on or before May 18, 1910, said equipment and boats when so delivered to be in as good condition as they are upon the date of the signing of this protocol of settlement, necessary wear and tear excepted, the Emery Company hereby undertaking and agreeing to execute to the Government of Nicaragua bills of sale for all personal property transferred by said Company to said Government under the terms of this protocol, and said Company also agreeing that for a period of eight months, or until said boat shall on or before the expiration of said period of eight months be delivered to the Government of Nicaragua, it will insure the steamer Yulu for the sum of Thirty-five thousand dollars ($35,000) United States Gold, and will assign and deliver the policy to said Government of Nicaragua.
- 3.
- All damages of whatsoever name or nature which the George D. Emery Company has suffered or claim to have suffered by reason of any interference, lawful or unlawful, with its operations by the Government of Nicaragua or any of its officials, or by reason of any interruption, lawful or unlawful, of its work by said government or any of its officials.
Article II.
In consideration of the above premises and for a full, complete and final settlement of all claims of whatsoever name or nature made by the George D. Emery Company against the Government of Nicaragua, and in full and complete payment of all property sold and transferred by this instrument to the Government of Nicaragua by the George D. Emery Company, the Government of Nicaragua promises and agrees:
- 1.
- To pay to the United States of America the sum of Six Hundred Thousand Dollars ($600,000) in gold coin of the United States of America of the present standard of weight and fineness at the office of the Secretary of State, Washington, D. C., in the United States of America, in the following installments and at the following times, namely: Fifty thousand dollars ($50,000) in thirty (30) days, Fifty thousand dollars ($50,000) in ninety (90) days, Fifty thousand dollars ($50,000) in one hundred eighty (180) days, One hundred thousand dollars ($100,000) in one (1) year, One hundred thousand dollars ($100,000) in two (2) years, One hundred thousand dollars ($100,000) in three (3) years. One hundred thousand dollars ($100,000) in four (4) years, and Fifty thousand dollars ($50,000) in five (5) years, after the date of the signing of this protocol, the last four of said installments to bear interest beginning one year from the date of the signing of this protocol at the rate of five per cent (5) per annum, payable annually.
- 2.
- The Government of Nicaragua hereby releases all its claims of whatsoever name or nature which it has against the George D. Emery Company no matter upon what act or acts or omissions said claim for damages may be based, the Government of Nicaragua hereby acknowledging itself fully paid and compensated for all such damages of all kinds and descriptions.
- 3.
- The Government of Nicaragua hereby agrees to dismiss or cause to be dismissed all suits now pending in the courts of Nicaragua on the part of said government against the George D. Emery Company, and to cause all judgments heretofore secured against said Company by said Government to be set aside.
- 4.
- The Government of Nicaragua hereby grants to the said George D. Emery Company the full right and privilege to export from Nicaragua all timbers which the said George D. Emery Company has felled prior to the elate of the signing of this protocol of settlement, it being agreed and understood that all timber exported in accordance with this agreement shall be free from the duty of one dollar ($1.00) per log, provided for in the above-named Emery concession, and further that the said company shall not be required to pay the ten thousand dollars ($10,000) annually due the Government, nor any part thereof, as provided in said concession.
- 5.
- The Government of Nicaragua hereby undertakes that local municipal taxes of all kinds to which the George D. Emery Company may be subjected shall not be different or other than those hitherto imposed upon the company, and that under no circumstances or upon no excuse shall said taxes be increased or be made payable at any other place, nor in any other currency than those levied or provided by said local authorities at the date of the signing of this protocol of settlement.
- 6.
- The Government of Nicaragua undertakes that it will not, prior to May 18, 1910, increase with reference to the Emery Company, the present import duties levied by the Government of Nicaragua upon the articles specified in the Emery concession as entitled to entrance duty free, nor will it change the kind or nature of said duties, nor make them payable at a different place or in a different currency from that which they are now paid by importers generally.
- 7.
- The Government of Nicaragua hereby grants to the George D. Emery Company, its officers and employees, for a period of eight months or until May 18, 1910 ------; (a) free access to all parts of the territory of Nicaragua covered by the concession of the George D. Emery Company; (b) the right to remove from said territory during the period above specified and under the provisions above set forth, all timber which the George D. Emery Company has felled prior to the date of this instrument; (c) the right to the free, undisturbed and unimpeded use of the entire plant and equipment, free of all charges, including the boats S. S. Yulu, steam tug Pioneer and Schooner Atlantic, by this document sold, assigned and transferred to the Government of Nicaragua, for a period of eight months from the elate of this protocol of settlement or until the same shall on or before the expiration of the said period of eight months be delivered to the, Government of Nicaragua by said Company, said plant and equipment to be used only in connection with the winding up of the Company’s business in Nicaragua, as set forth and provided for in this protocol of settlement, Provided that it is expressly understood that for a period of eight months (unless sooner delivered), the Emery Company shall be permitted to use the boats Yulu, Pioneer and Atlantic in connection with its business in British and Spanish Honduras and Colombia, and Provided further that in case the said Emery Company shall use the steamer Pioneer or the schooner Atlantic or both [Page 467] in connection with any other work than that of winding up its business in Nicaragua, the Emery Company shall be liable for all loss or damage occurring during such use, the total value of either or both of said boats, in case of loss or damage, to be estimated at the sum or sums named as the value of such boat or boats in the inventory of the Emery Company.
- 9.1
- The Government of Nicaragua agrees and undertakes that within fifteen days of written notification thereto by the said George D. Emery Company or its representatives, the said Government or its duly authorized representative will receive, accept and take charge of all such parts of the plant and equipment of the said Company as said Company may indicate its readiness to surrender, as provided in this protocol, and that in the event the said Government or its duly authorized representative fails to accept, take charge of, and receive all or any parts of said plant and equipment within fifteen days from the date of notification as above specified, that then and in that event the George D. Emery Company shall be relieved from all responsibility for the further safe and proper keeping and maintenance of said property thus notified to be delivered.
- Paragraph 8 does not appear in original. This paragraph probably inadvertently numbered 9.↩