File No. 838.77/152
The National Railroad Company of Haiti to the Secretary of State
Sir: Through the good offices of your Department proffered for the purpose of rendering such friendly assistance as properly it might in the adjudication of various questions and claims existing between the Government of Haiti and the National Railroad Company of Haiti, several meetings have been held in Washington between the Haitian Minister representing his Government and representatives [Page 384] of the National Railroad Company of Haiti, and at which a representative of the State Department has always been present.
Meantime the management of the National Railroad Company of Haiti is being insistently pressed by officials of the French Government to promptly effect an adjustment of the questions at issue between the Government of Haiti and the railroad company, either by the method attempted or by arbitration, or accept the alternative of foreclosure of the railroad property by the bondholders.
Of the $3,500,000 of bonds of the railroad company outstanding, $2,500,000 were sold in France. Five semi-annual interest payments on these bonds are in default and sometime ago a majority of the French holders of these bonds appealed to their Government to take steps to bring about the payment of the interest in default, and their interests were placed in the hands of the Office National des Valeurs Mobilières, Paris. In July last the Director in Chief of the Office National des Valeurs Mobilières came to this country especially in the interests of these bondholders, and in an extended conference (at which a representative of the railroad company was present) with the then Chief of the Latin-American Bureau, Mr. Wright, who at that time had immediate charge of Haitian affairs, stated that unless a very prompt settlement in respect of the railroad was arrived at, his bureau would institute foreclosure proceedings on behalf of the French holders of the bonds. After having the situation explained, the French official, on the understanding that efforts would be made to reach an early settlement of the questions, agreed to defer taking immediate steps to foreclose the mortgage and so, for the time being, the threatened action was avoided.
The railroad company is now advised by the representative of the Office National des Valeurs Mobilières that as nearly six months have elapsed and no progress toward settlement appears to have been made, his bureau will feel under the necessity of commencing foreclosure proceedings the first of the year should no definite result in respect of the questions at issue be reached by that time.
In view of all the foregoing, the undersigned feels compelled to earnestly request the further assistance of your good offices to the end of arranging for an arbitration of the questions which the company has vainly endeavored to adjust with the Minister of Haiti. The company assumes that your Department already has been informed, but it is proper to tell you that respecting settlement by arbitration of the several differences, the French official stated that in such event they would demand that an arbitrator representing French interests sit with whoever was appointed to represent the interests of the railroad company. In discussing arbitration with the Minister of Haiti, the latter favored such means as calculated to more quickly bring about a settlement of the pending matters, and stated that his Government would, of course, name someone to represent it in such arbitration.
If not contrary to the policy of your Department and otherwise properly you can do so, the undersigned respectfully requests your consideration of the situation and the designation by you or an arbitrator to represent the interests of the undersigned, either singly or as a member of a board of arbitration, before whom all matters [Page 385] at issue between the Haitian Government and the railroad company shall be laid, and whose decision the undersigned hereby undertakes to accept as final and binding.
We are [etc.]