File No. 838.51/443.
Admiral Caperton to the Secretary of the Navy.
Commencing middle of August, Electric Light Co. is being paid by me $7,500 per month, contract price for light Port au Prince and Cape Haitien; P. C. S. Railroad has been paid $5,000 and later $2,500 more in order to maintain it in operation, a military necessity. Haitian Government owes both companies several months arrears. President Staude states that if amount now due railroad as balance of guaranty of interest, about $17,000, is not paid before December 1, the road will be forced into bankruptcy. Haitian Government acknowledges this debt but is unable to pay. Owing to peculiarity of contract under which Government guarantees annual interest at 6 per cent on bonds of road to amount of $688,000,1 hesitate to recommend further payment by American authorities. Instead, I recommend that loan to Haitian Government of $1,500,000 which State Department has mentioned in its despatch to Legation, of which the Haitian Government has been informed be made immediately available after signing modus vivendi, in order that the Government may settle many revealed [sic] claims of which railroad is one. The $100,000 promised upon ratification in State Department’s September 15, 5 p.m.,18 should be cabled at once. American prestige involved in this matter.