File No. 819.77/208.
[Inclosure—Translation—Extract.]
Message No. 1, dated 2nd September 1914, addressed
by President Porras to the Deputies.
Honorable Deputies: In view of its urgent
character, I today submit to your patriotic consideration a project
of law reforming that of 1913, No. 29, with regard to the
construction of railways and the authorization of the Executive to
contract a loan; and I hope that, given the importance and
usefulness of what is proposed, you will give it the most prompt and
favorable attention.
The project in question, which in reality will do nothing more than
correct a simple error of the pen or the printer which had passed
unnoticed, is, notwithstanding, of exceptional importance. To
approve it or not approve, and even to do it, depends, Honorable
Deputies, on the promptness with which the Assembly acts, which is
the desire of all patriotic Panamans.
The previous Legislature, in Law 29, Art. 3, while authorizing the
President to negotiate a loan for the sum necessary to construct and
equip the railways referred to in former articles, gave the
following conditions:
- That the interest on the capital be not greater than 6 per
cent per annum;
- That the fund of amortization be arranged under the best
conditions possible to secure;
- That the term for total amortization be not less than fifty years;
- And that, to guarantee the payment of the capital and the
interest, the revenues of the Nation may be hypothecated to
the necessary extent.
As regards the period of time specified, an error in editing was
undoubtedly made and passed unnoticed. “Not less than 50 years “was
written instead of “Not greater than 50 years.” And that error has
turned out to be entirely prejudicial in the negotiations.
The Executive Power has had an option from the National City Bank of
New York, to supply the sum necessary to construct the railways of
Chiriquí and Los Santos under the most favorable conditions that can
be secured. To wit: 5 per cent annual interest, instead of 6 per
cent, and an initial discount of 3 per cent, instead of 10 per cent,
and 15 per cent, proposed by other banks. But the National City
Bank, stipulates that the period for amortization in totality be not
greater than 50 years, but allowing it to be twenty, fifteen or
thirty years.
As the law already mentioned established that the period should not
be less than 50 years, the necessity will be
seen of converting into law the project which I am presenting to
you, reforming the other law in order to maintain the spirit in
which it was passed by the National Assembly.
* * * The betterment of the rudimentary ways of communications of the
country, tending always to the development of its richest lands, has
been the field of my greatest effort from the first moment when I
ascended to the Presidency. The railways of Chiriquí and Los Santos,
for our pride and for the benefit of the fatherland, must be the
first to be constructed and encouraged. The matter is now in your
hands.
Secretary of Commerce,
R. F. Acevedo.
[Inclosure 2—Translation.]
Law 1 of 1914, September 4, 1914, in which Law No.
29 of 1913 is reformed.
The National Assembly of Panama decrees:
Article 1. Article 3 of Law 29 of 1913 is modified as follows: The
Executive Power is authorized to contract the loans which may be
necessary for the construction and equipping of the railroads to
which the previous articles refer, under the following conditions:
- 1.
- That the interest on the capital be not greater than 6 per
cent per annum.
- 2.
- That the fund of amortization be arranged under the best
conditions possible to secure.
- 3.
- That the term for total amortization be not greater than
fifty years.
- 4.
- That, to guarantee the payment of the capital and
interest, the revenues of the Nation may be hypothecated to
the necessary extent.
Given in Panama on the fourth day of September 1914.
The President,
Ramon M. Values
.
The
Secretary,
J. M. Fernandez.
Let it be published executed:
Belisario Porras,
President of Panama
.
R. F. Acevedo,
Secretary of Promotion
.
