817.516/190: Telegram

The Secretary of State to the Chargé in Nicaragua (Hanna)

141. By a letter dated October fourth Mr. Bailie of J. and W. Seligman advises the Department71 that he, Mr. Loree, and the [Page 656] other American directors and officers of the National Bank and of the Pacific Railway of Nicaragua will present their resignations to the respective Boards at the meeting on October ninth. The resignations will take effect at the pleasure of the Boards but not later than December 31. The J. G. White Management Corporation will at the same time give notice to the Government of Nicaragua that it desires to cease to act as manager of the railroad properties. The letter adds that Brown Brothers and Seligman are advising the Corporation of Foreign Bondholders that they intend to take immediate steps to withdraw as “bankers” under the Financial Plans.72

  1. Not printed.
  2. For the financial plans of 1917 and 1920, see Department of State, Latin American Series No. 6: The United States and Nicaragua, a Survey of the Relations from 1909 to 1932 (Washington, Government Printing Office, 1932), pp. 33–39; also Compilacion de Contratos Celebrados con los Banqueros de New York, con el Ethelburga Syndicate de Londres y con el Banco Nacional de Nicaragua Inc., Leyes Relativos a los Mismos Contratos, 1911–1928, Arreglada por Cesar Arana (Managua, Tipografia y Encuadernacion Nacionales [1928]), 3 vols. For the plan of 1917, see Foreign Relations, 1917, pp. 11381141.