Evening star., 1902-05-08
RESENTED HIS WORDS
Sir Henry Rebuked DR.. Pacas
of Salvador.
so DID Mr.. DICKINSON
STORMY SCENE BEFORE ARBI-
TRATIoN COMMISSION.
By Vote of Two to One Award of Half
Million Given to American
Claimants.
SO DID Mr.. DICKINSON

of Salvador.
Dr. Jose Rosa Pacas, representing the
Salvador republic. arose and said that he
had been offensively treated by his fellow
members of the commission. He seemed
irritated because the majority report of the
commission was against him, and he de-
clared that he had not had proper respect.
Sir Henry Strong. chief justice Of Canada,
who is president of the arbitration commis-
| sion, deprecated the remarks of the member
from Salvador. and, according to persons
who were present in the parlor. told MN IN
language that was unmistakaDle that ne
was laboring under a misapprehenslon.
According to the informant of The Even
ing Star, Sir Henry was perceptibly perturb-
ed over the suggestion that anything other
than justice could have pervaded the dello-
erations Of the commission and that he was
as scathing as was possible under the con-
ditions.
Former Postmaster Don NJ. Dickinson,
the third member of the arbitra ton COM
| mission. followed the Canadian chief justice
and he is said to have been equally caustic
in dealing with the statements of the MEM
Der from Salvador Members of the com
mission who were seen after adjournment
declined to discuss the affair. but admitted
that there had been "a little m!sundtr-
standing"
The award involved the question of in
demnty for losses sustained by American
citizens through the cancellation by Saliva
dor Of a franchise granted in 1894 for the
exploitation of the port Of FL Triunfo, in
the bay of Jiquilisco.
The Award.
The award was in the nature of a de-
cision that is far reaching as affecting the
rights Of Americans who may desire to
make investments in South American coun-
tries. Rather, 1t determines the rights OF
governments to intervene in behalf of their
citizens.
According to the award, the Salvador re-
public must pay to the Salvador CONNER
cial Company the sum Of $3.50. 900. William
L. Penfield solicitor Of the State Depart
and Mr. William Lair Hill of Oakland.
Cal, appeared for the claimants. Salvador
was represented by Mr.. John B. Cotton
and Mr.. William Frye White of this city.
of Salvador and Maj. Walton of this city.
Assistant Secretary of State Hill was
present this afternoon while the reports
were being read. The majority report, rep
resenting- the views of the Canadian chief
justice and Mr.. Dickinson, was read by the
former The report Of DR.. Pacas, repre-
senting Salvador, was read by his inter-
prefer.
fairly well and can make himself under
stood in the language of this country, he
has had associated with him an interpreter
constantly during the sitting; Of the afbi-
tration commission Everything has been
submitted to him through an interpreter
There were a score Of persons, including
the interpreters and amanuenses in the
parIor when DR.. Pacas is said to have
made his complaint. 1t was a trying situ-
alton for everyone. Sir Henry Strong is
commended by everyone who was present
for the mastery way in which he defended
the honor Of the tribunal.
The Claims.
The claims of the United States against
the republic of Salvador was submitted to
Sir Henry Strong, chief justice of Canada,
Mr. Don NJ. Dickinson of Michigan and DR..
Rosa Pacas, arbitrators, under a protocol
signed December 10, 1901, by Idr. John Hay
Secretary of State for the United States,
and Rafael Zaldivar. envoy extraordinary
and minister plenipotentiary Of the repub
lie of Salvador,
The claims submitted for arbitration were
those of citizens of the United States,
stockholders in the Salvador Commercial
Company and in the corporation styled Ell
Triunfo Company, limited. who had ac
quired their stock from citizens of Salvador
or others not citizens of the United States
since the filing of the memorial of the Sal
vador Commercial Company.
On October g. 1894. the government of
Salvador granted for the period of twenty
five years. together with certain other Incl
dental privileges. the exclusive privilege Of
steam navigation Of the port Of FL Triuno.
This concession, October 25, 1894, was as
signed to the Salvador corporation FL
Triuno Company Limited, having capital
stock Of 100000. American gold, consisting
Of shares OF 500 each. Five hundred and
one Of these shares, representing $4,000,
were and are owned by the Salvador Com
mercial Company. corporation organized
under the laws Of California.
The port was opened in 1895, and the
company entered upon the use of its con-
cession. the American company having
controlling interest. Large sums of money
cd ff, Inv ,tC md 10
concession became valuable. the profits In
1898 being 10000, as stated by the Amer
lean company.
The government of Salvador admitted
year. In September 1893. the Americans
alleged, Simon Sol and L. Lopez. citizens
of Salvador. by Illegal action ousted Presi-
dent H. H. Burrell and gained control of
the board Of directors.
The company was then. as claimed. ille-
gally thrown into bankruptcy without the
consent or cooperation of any creditor. and
to render the concession valueless, the pres
ident of Salvador closed the port destroy
ing the assets of the company and making
it impossible to satisfactorily settle with its
creditors.
The government Of Salvador May 13, 1890,
reopened the port and granted an exclusive
concession to Messrs. Aranzo. Arviola and
Gonzales of Salvador, thus disposing of
the properties. The Salvador Commercial
Company claimed that 1.-The ultimate and
controlling fact on which the decision turns
is the presidential decree of February IA,
1899, annulling the concession and closing
the port to importations. the destructive
force Of which extends to this day in its
injurious effects on the company. The act
of the president destroyed the very end for
which the corporation was created. and this
in effect wrought the dissolution of the
corporation by rendering impossible of per-
formance the principal consideration for
which the concession was granted. 1t had
the inevitable effect to render impossible
ing the corporation ultimately and inevita-
bly, nsolyent by destroying It's earning ca
pacity." a. .As
The United States government, through
the solicitor of the Department of State.
Judge William L. Penfield, filed briefs In
the case -