File No. 417.00/244
The Minister in Nicaragua ( Jefferson ) to the Secretary of State
Department’s March 6, 4 p.m. Friendly agreements have been made with practically all creditors over $100,000 and many under this amount, when the character and origin of the credit was such as to merit such arrangement. In the other cases commission has served notice and claimant can accept or reject. Procedure similar to that used in bankruptcy cases in the United States has been followed, although much investigation and analysis back of the document of credit and its supporting proofs have been made.
No claimant will receive cash or bonds or both without signing combined receipt and release form marked No. 12 in Lindberg’s report of February 4.1 Following is translation of text:
Receipt. I hereby solemnly declare that on my claim or credit presented to the Commission on Public Documents against the Government of the Republic of Nicaragua there has been received in cash—, in bonds—; I declare moreover that I irrevocably renounce for myself and my successors any claim directly, or indirectly on the validity of this payment or its amount, for whatever difference or right I may have, it is understood that I wish to cede it in favor of the State.
With the delivery of the documents to the High Commission and their indorsement, the indorsements on checks or drafts which refer to the claim number, the use of signature cards, and finally requirement [Page 841] to sign receipt and release form, we believe both Government [of] Nicaragua and creditors are protected.
The commission estimates that 60 per cent of the creditors will accept awards at once, 30 per cent may wait six months or year to secure if Government pays interest and amount, and 10 per cent will perhaps never accept. With reference to judgment of Mixed Claims Commission,1 in the interest of Americans not included in this list who are original claimants or direct heirs thereof, the commission does not touch amounts of award and hopes to pay 15 per cent cash and 85 per cent bonds, excepting all claims under $100 to be paid in cash. It should be noted that many American claimants have had part of their claims entirely disallowed either by friendly agreements or by the commission without consultation with creditor. The bulk of the claims before the commission is recognized debt of the Republic and not unproven claims and the commission has used drastic measures to reduce it to an amount the Republic can handle. Some American claimants hold documents of Nicaraguans as collateral such as in case of Amsinck and Co.
[Here follow the claims of American citizens with the amounts awarded.]
Following are the claims of American citizens rejected:
J. Adler: Duplicated in claim of Stern Foundry & Machinery Co.
W. R. Burt: Is external debt.
New Orleans National Bank: Accommodation paper of New Orleans and Central American Shipbuilding Co. No consideration in contract with Government. Commission holder notes of Beer, manager of company.
Pacific Mail Steamship Co.: Principal and accrued interest on unpaid subvention. Company has not billed Government bonds freight and fares according to contract and also receives other compensatory advantages from the Republic.
Weinberger Bros.: One concession and equity doubtful. Should have been presented to Mixed Claims Commission even if part of notes were not then due.
Jacob Weinberger: Credit includes accrued interest; bona-fide part of document taken up in award to Central American Commercial Co. of which he is manager. Some supporting documents of doubtful origin.
- Not printed.↩
- For institution of Mixed Claims Commission see Foreign Relations, 1911, p. 625.↩