Office of the Historian

File No. 819.77/165.

Consul General Snyder to the Secretary of State.

American Consulate General,
Panama, April 2, 1913.

Sir: I have the honor to inclose herewith a copy and translation of Law 29 of 1913, authorizing the Executive Power to make the studies necessary to determine what railroads should be constructed in the Republic, etc.

In conformity with the law, the Minister of Public Works has signed a contract with Messrs. R. W. Hebard & Co. of this city, to make the necessary surveys, reports, etc.

I have [etc.]

Alban G. Snyder
.
[Page 1029]
[Inclosure—Translation.]

Law 29 of 1913, on the construction of railroads and authorization to the Executive Power to contract a loan.

The National Assembly of Panama decrees:

  • Article 1. The Executive Power is authorized to carry through the studies necessary to determine the number of miles of railroad that should be constructed in the Republic, the location of these, and, the order in which they should be constructed, taking into account the resources which the country can dispose of, and the greatest benefits for the same.
  • Article 2. The Executive Power will submit the data obtained as a result of the studies mentioned in the previous article to a commission of competent engineers, named by himself, and in view of the report of that commission, will determine the railroads and branches which he may deem it convenient to construct, as well as the preference in the execution of the works.
  • Article 3. The Executive Power is authorized to contract a loan for the amount which may be necessary for the construction of the railroads to which the previous articles refer, under the following conditions:
    a.
    That the interest on the capital may not be greater than 6 per cent, a year.
    b.
    That the amortization fund must be arranged on the best conditions it is possible to secure.
    c.
    That the time for the total amortization shall not be less than fifty years.
    d.
    That in order to guarantee the payment of the capital and interests, the revenue or revenues of the Nation, that may be necessary, may be compromised (guaranteed).
  • Article 4. The negotiations for the loan once concluded, the Executive Power will put up to public bid the execution of the work, under the conditions and specifications arranged by the Government, always taking into account the best interests of the country.
  • Article 5. The Executive Power is authorized, in case he considers it more convenient for the Republic, to contract directly with any person or responsible company the construction of the railroads as treated of in this law, provided that, for the payment to the contractor of the capital and interest, the Government does not acquire compromises more onerous than those contained in Article 3 for the case of a loan.

Given in Panama, February 18, 1913.
The President,
Ciro L. Urriola
.
The Secretary,
Anto. Alberto Valdés
.

National Executive Power,
Panama , February 19, 1913.

Let it be published and executed.

Belisario Porras.

The Secretary of Public Works.

R. F. Acevedo
.