The times. [volume] (Washington [D.C.]) 1897-1901, 1900-09-12
PLEDGES MADE BY SPAIN.
Legal Opinion on This Country. Liza
billy for Them

bfIity for Them.
Attorney General Griggs yesterday SUBJ
mitted to Secretary Root an opinion as
to what obligations, il any. exist against
this Government. the military government
OF the Philippines. or any of the provinces
of the Philippines. oi account of quar-
terly Inventions guaranteed by Spain to
the Manila Railway Company. The opin-
ion was requested several weeks ago as
it had been discovered that when the
above railway was built the concessionaire
was guaranteed by spain an interest of
per cent per annum on the capital spent
in constructing the road. The question
asked was as TO whether the United States
was liable for the guarantee made by
Spain.
1T is apparent that this contract" says
the Attorney General was recognized as
one of utility to the Government OF Spain
and one of benefit to the provinces in tho
Island of Luzon, through which the road
was to pass. Ultimately. as appears from
the royal decree of 1855. those provinces
were to bear two thirds OF the expense of
the guarantee. This was a con-
tract between the Spanish Government and
the railroad company. The promises were
made by the one to the other. | am Of
opinion that an identical contract between
the United States and the company was not
created by the notifications of the Treaty
of Paris, and does not exist.
1T seems to be the consensus of opinion
among authorities on international law
that upon the separation of part of a
country from the sovereignty over Il, debts
created for the benefit of the departing
portion of the country go with 1t as charges
upon its Government. AS already sug-
gested. however. all the promises Of every
contract entered into by the former Gov
eminent OF q province wrested from 1t by
victory in var. do not transfer themselves
20 the new Government In defiance of the
natural proposition that a man cannot be
bound by a strangers promises.
But benefits may be received by
province as well in pursuance OF a personal
contract of the sovereign partly for his own
benefit and otherwise. They are none the
less benefits received and retained by the
province, and if the burden of a contract
itself does not go with them the burden of
an obligation to do equity toward the con-
tractor. who has supplied them, does go
with them. The concessions here
in question are executory contracts, not
concerning the public domain owned by
Spain. but containing many personal obli-
cations of Spain and Of other parties.
Spain is regarded by the law of nations
as having a personality of her own distinct
from that of the power which has succeeded
her in control of the coded territory and
l am not aware of any authority for saying
that such personal obligations, either on
the part of the Government of Spain or
the other contracting parties. become bind
ing as contractuaI obligations upon a Gov
eminent which made no such promises or
upon the individual toward a Government
TO which he made no such promises"
The Attorney General then goes en- to
say that these concessions were for the
general benefit OF Spain as well as for
her colonial subjects. To regard them as
for local benefit exclusively would, he
says. be to ignore obvious facts. On the
other hand, to charge the ceded provinces
with contracts or debts for imperial OBJ
jects. such as those concerning the rela-
tions between the central government and
the locality cannot be justified by the
mere fact that the contract concerns also
local objects. To agree in a treaty to
be bound by actual. known contracts. and
10 assent to law about contracts in gem
eral are two different things.
Gould nations" ne asks, commit them
selves to anything more embarrassing and
unsafe than legal obligation to carry out
specifically any premises whatsoever that
may be made by llhers in any contracts
for imperial and local objects? 1t seems
to me not. | am Unable to regard these
contracts of concessions with their mani
fold personal stipulations, other than
what they purport to be.
THE property in question has been fur
nished and is being maintained. and must
continue to be maintained, for the bene-
fit of the ward. whose funds are now freed
from the guardians control
From these considerations. it seems to
me to follow" concludes the Attorney
General, that, although the contract as
such has departed with Spain, there is
general equitable obligation upon the
provinces to make some fair arrange
ment with the company as to the two
third benefit, and that they cannot justly
take advantage of the disappearance of
Spain to retain what she procured for
them on the credit of their funds, and
deny all liability of the price. Whether.
based exclusively upon the reception of
the benefit of the railroad the United
States has incurred any liability affecting
one-third Of any such portion CT the orig
inal Indebtedness. it is unnecessary to
consider, since, if so. it will be for Con-
gress to deal with it
In reply to the question that if such
obligations do exist what action can legally
be taken in recognition and settlement
thereof by the executive department OF the
United States or the military government
of the Philippines, the Attorney General
expresses the opinion that the President
has authority to settle a pre-existing &C
crued Indebtedness of this kind il he has
good reason to believe that the settlement
cannot wisely and justly be left to await /
action by the future Government. He also /
says that in his opinion the President has /
II he thinks it necessary, to ap- /
ply the local revenues OF the provinces /
through which this road extends to the I
discharge OF their equitable liability. aad .
what he can do the military government