File No. 837.156/263


The Ports Company matter has been settled definitely, all interests accepting proposal of Government. Government pays the Ports Company bonds at par. These include one million, Series A, which were distributed in Cuba and not sold at time of getting the concession, and six million dollars of Series B, sold in England. They will be paid for with Cuban interior five per cent bond, founded on fifty per cent of port tax. President Klapp of Ports Company considers it to be best Cuban bond extant.

There are ten million dollars in stock which was all originally issued as water, part as bonus with bonds and part to friends and supporters of company. The company is allowed to retain its assets. These include half million dollars remaining in treasury from sale of bonds [apparent omission] tax from Cuban Government and valuable real estate which may be worth from four to twelve millions according to time and manner of development. A development company is proposed to take over these assets and President Menocal has personally assured individuals that he will facilitate this work.