. . . . . . .
The local press comment favorably upon the attitude of Mr. Norton and
express satisfaction as to the conclusions reached between him and
the Commission, which is a favorable indication that the Government
and people in general feel that this matter is progressing towards a
satisfactory settlement.
[Enclosure—Translation]
Memorandum on the Advisory Commission,
Guayaquil & Quito Railway Co., Published in “El
Comercio”, April 10, 1919
The Ministry of the Interior has given us the following data
relating to the steps taken by the Advisory Commission and Mr.
E. H. Norton, President of the Company.
The Commission was created by Executive Order of the 12th of
March. The President of the Republic in forming the Commission
took into consideration the fact that the questions pending
between the Government and the Railroad Company are among the
most important which concern the public and that therefore it
was essential to name a commission, the personnel of which
because of their ability, integrity and competence could
accomplish a satisfactory result in the interest of justice and
the national welfare.
The Commission was constituted thus: President, The Minister of
Public Works, Dr. Jose Maria Ayora; Members, Messrs. Dr. Jose
Julian Andrade, Dr. Victor Manuel Penaherrera, don Juan F. Game
and Dr. Manuel Benigno Cueva Garcia. At the meetings which the
Commission has held thus far, Dr. Serafin S. Wither, S., General
Auditor of the Railroad, has also been present.
The first session of the Commission was held on March 17, and the
following sessions on March 26 and 28, and on April 2, 5 and 6.
As the Minister of Public Works had advised the President of the
Railroad Company of the formation and object of the Commission
and Mr. Norton had replied that the Company was ready to
contribute with the utmost good will toward an amicable and
equitable adjustment of the differences existing between the
Railroad and the Government, in accordance with which Mr. Norton
would be
[Page 183]
at the
service of the Commission during the three weeks he was to
remain in the country, the Commission invited Mr. Norton to the
session held March 28, with a view to ascertaining the form in
which the Company would be disposed to proceed with these
arrangements.
In effect, Mr. Norton attended the session of March 28 and also
the sessions of April 2, 5, and 6 respectively, in which an
agreement was reached as to a modus
vivendi which is expected to result in a definite
solution when the Government obtains the approval of
Congress.
According to this modus vivendi there have
been reached the following agreements:
The Company recognizes the urgent necessity of improving
the roadbed and rolling stock of the railroad. In
consequence, it will as soon as possible order three
locomotives, 25 freight cars and 300 tons of rails in
order to render better service to the public. As soon as
the locomotives arrive, and sooner if possible, the
mid-weekly passenger train will be re-established
between Duran and Quito.
The Company will proceed immediately to improve the
railroad line in order to procure the best service.
The Company will return to the use of coal as fuel for
its locomotives as soon as it can do this economically.
In the meantime, whether using wood and coal or oil the
Company will use every effort to the end that trains
shall run according to schedule and to avoid all
delays.
The general accounting offices of the Railroad will be
located in Ecuador and all the books and documents will
be available at any time for examination by the Fiscal
Auditor of Ecuador.
The Company accepts the right which the Government has to
inspect and revise all the operations of the Company as
regards their administrative and economic aspects.
The Company has presented for the consideration of the
Commission and approval of the Government the proposed
estimate which it will place in effect during this year
from April 1. Hereafter the Company will send to the
Minister of Public Works up to the 10th of December of
each year the estimate to be followed the succeeding
year. In case no agreement should be reached with regard
to these estimates, the last one approved by the
Government will continue in effect. The estimate for
this year was approved the 7th of this month in
accordance with the project presented by Mr. Norton and
observations of the commission thereon. In this estimate
there has been effected an annual saving of S/.
43,914.24, with respect to the estimate that has been in
effect up to March last. The Commission pointed out that
in conformity with the contract there would be greater
reductions in the estimate, reserving the right of the
Government when this question is definitely settled. In
general, both parties reserve for the same time their
respective rights.
[Page 184]
From the first of January of the present year the Company
will remit to London, to apply on the bonds, the net
earnings of the Railroad in conformity with the
stipulations of the contracts.17
Furthermore, we have been advised that to the observations made
by the Commission that the Company should have legal
representatives to attend to the claims presented by
individuals, Mr. Norton stated that the Company actually has two
representatives in Quito and Huigra who attend to all claims,
which claims he asserted are paid almost in their entirety.
The Commission has not occupied itself for the present in the
reduction of freight and passenger rates because a reduction
takes effect the first of next month in accordance with
agreement reached between the Ministry and the Company.
Very soon there will be presented for the consideration of the
Commission new train regulations in which will be taken into
consideration the provisions of the regulations issued by the
Government in 1909. For the discussion of these regulations the
Manager of the Company has received sufficient authority from
Mr. Norton, who has begun his return voyage to New York.
Mr. Norton in the session in which was approved the modus vivendi expressed through Manager
Dobbie the satisfaction he felt at having found such a spirit of
justice and equity on the part of the Commission, which has
resulted in an easy adjustment of matters submitted for
discussion, adding that the Company sincerely desired a
satisfactory solution of all questions pending between the
Government and the Railroad, in accordance with which Mr. Norton
hoped to have the pleasure of again meeting the Commission after
his return from New York in order to reach a definite
arrangement, and that the Company had the utmost confidence that
an agreement would be reached with this spirit of justice and
equity which he was pleased to recognize on the part of the
Commission.
[Page 185]
On his part, the Minister of Public Works has left record of the
good will with which the Company has contributed towards the
discussion and approval of the modus
vivendi and he has expressed the hope that this same
good will will prevail in the discussions to be had on the
return of Mr. Norton, taking into consideration that the
Government in no case will demand anything not based on justice,
on the rights to which it is entitled under the contracts, and
on the well understood interests of the people.
Furthermore, the Minister is pleased to render a tribute of
gratitude to the constancy, labor and patriotic
disinterestedness of each member of the Commission in the
important questions thus far settled, and asking in the interest
of the public that they continue in their labors initiated to
reach an arrangement with regard to all the points involved
between the Government and the Guayaquil & Quito Railroad
Company.
