[Enclosure]
Resolutions Adopted by the Directors of the
Guayaquil & Quito Railway Co., September 8,
1919
Whereas there is now due the 1st
mortgage bondholders of The Guayaquil and Quito Railway Company
seven (7) years’ interest, amounting to $3,783,025, and ten and
one-half years’ Sinking Fund, amounting to $1,105,675, besides a
balance of interest and sinking fund due the Prior Lien 6s.
Whereas the Government of Ecuador was
making payments before the war more than sufficient to cover the
annual requirements.
Whereas the financial disturbances due
to the war were given as the explanation for the cessation of
remittances.
Whereas the war is over and business is
being resumed on a large and profitable basis by the people of
Ecuador.
Whereas the bonded indebtedness of
Ecuador per capita is referred to by the
Government as very small compared to that of other South
American nations.
Whereas all the nations that have been
involved in the great war are making tremendous sacrifices to
meet the obligations incurred; and burdensome taxes are being
assumed by individuals and corporations in order to maintain the
credit of their countries,
Therefore, be it resolved that the
Government of Ecuador be asked, through the Directors
representing her on the Board of Directors of the Railway,
whether she is not willing to reorganize her finances on such a
basis as will enable her to meet the obligation provided
[Page 199]
in the contract with
the Railway Company, calling especial attention to the fact that
the amount required is only 10% of her present revenues and a
lower amount than that of most nations and to the fact that a
tax of 1 Sucre per capita would furnish
the sum necessary to meet the annual charges under the contract.
Also that it is unfair to those who have furnished the money for
this enterprise that they should be deprived of any return on
their investment.
Resolved that a copy of this Resolution
be sent to the President of Ecuador and the Secretary of State,
Washington, and that the Government Directors be requested to
enter into communication with their Government at once to
ascertain what she is willing to do in order to remedy this
unsatisfactory situation.
