The Washington times., 1902-07-23
Solicitor W ". L Penffii Id to
Represent United States
Government.
HISTORY OF THE PIOUS FUND
MI. Penheld Sails for Europe on Cam
pania August I6 = Interest Among
Powers-First Case to Be Arbitrated
Under Conference Agreement.

William L. Penfeld. the Solicitor of
the State Department. has been selected
to represent the United States Govern
ment as counsel before the arbitration
| tribunal which is to meet at The Hague
on September 3 TO settle the controversy
between the United States and Mexico
over what is known as the "Pious Fund
of the CALIFORNIA;" Mr.. Penfeld will
sail from New York on the Campania on
August 10.
The four arbitrators, whose names
were announced Monday, are all mem
bers of the permanent tribunal of ar
bitration which was provided for by
The Hague conference. They are to Sc
lect a fifth arbitrator or umpire, who
will have the deciding vote.
The Powers Interested.
This case is regarded with a great
deal of interest by all the powers be-
cause it is the first to come before the
permanent tribunal, and will, in
measure, serve as a test of the efficiency
and necessity of such a body.
Under the treaty providing for set
tling the Pious fund claim, no citizen #
Mexico or the United States was select
ed as an arbitrator. This agreement
was the direct outcome OF the refusal
CT the Salvador arbitrator to agree to
the award made recently by the Salvador
arbitration commission in favor of the
United States.
Case Carefully Prepared.
The case of this Government has been
prepared with great care by Solicitor
Penfield and James H. Ralston. who will
be the agent of the United States before
The Hague tribunal. Two questions
are to be submitted to the court. They
are:
l. Is this claim, as a consequence of
former decision. within the governing
principle of res judicata?
2. II not. is this claim just?
The court is also to render such fur
ther Judgment or award as may meet
all the circumstances Of the case.
Story of Controversy.
The Pious fund originated in dona-
tions given by charitable persons OF
Spain to the Society of Jesus. The
donations began in 1891 and continued
through the first third OF the next cen
tury. The society was given 10000
acres of land in Lower California, and
what is now the State OF California. for
the establishment of missions. especially
intended to eyangelize the Indians OF
the two Californias.
After 1867. when Spain expelled the
Jesuits from Mexico, including the pres
eut State of California. the property was
sold for $40 coo, GOO The Spanish gov
ernment took over the administration
Of this fund. however. and continued TO
administer it for the benefit of the Cath
ollie missions.
Fund Confscated.
Mexico. on obtaining independence. un-
dertook to administer the fund and did
so until 1912. when IT confiscated the
entire property to its own uses. but
charged itself for a sum and price aseer-
ts:ped by its income. capitalized on the
basis of 6 per cent per annum. The pro-
oeeds of this fund were paid over TO the
two bishops of the two CALIFORNIA;.
The Mexican war resulted in divi-
sion OF the church and it was not until
twenty years after, on July 4. 1868, that
treaty was made providing for the
formation OF a commission of claims 10
which the bishop of the present State OF
California presented a claim, in behalf
of his diocese for an equitable share
OF the annual interest due from the re-
public of Mexico and with which il had
charged itself before the Mexican war
The commission awarded the California
church more than 100000, which Mexico
paid.
Since February l. 1863. there has been
10 distribution of interest, and this
Government seeks through The Hague
tribunal to secure the share alleged to
be due to the diocese of California
Iexico opposes the claim principally on
the ground that the Catholic Church in
California did not inherit the rights and
shares OF the Mexican church.