Evening star. [volume] (Washington, D.C.) 1854-1972, 1903-08-18
DISPUTE SETTLED
Compromise Arranged With
the Republic Of Salvador.
A FINAL AGREEMENT
MADE BETWEEN COUNSEL ON
BOTH SIDES.
Negotiations Had Been Carried on
About Three Weeks-An Acute
Situation Relieved.

The dispute as to the award in favor OF
the Salvador Commercial Company ct al
for 1923, 1854, with interest added, against
the republic of Salvador by the tribunal of
arbitration appointed under the Hay-Zal-
divar protocol has been compromised and
settled.
Col. John P. Irish of San Francisco, at
torney for the Salvador Commercial Com
pany ct al, came to Washington about
three weeks ago. Messrs Hopkins & Hop
kins of this city represented the Saliva
dorean government, and frequent confer
erces have taken place ever since the ar
rival of Col. Irish. Today a final agree
ment as to the amount to be paid and the
terms of payment has been formally
signed and subsequently, approved by Senior
Lopez, the minister of Salvador.
Neither Col. Irish nor the Messrs Hop
kins are at liberty to state the terms of
the compromise, but both are of the opin-
ion that it was mutually fair and honor
able.
The Situation Had Become Acute.
The situation had become acute and
threatened serious consequences. The
United States was bound to collect the
award. The people of Ell Salvador. were
very bitter in their feeling against it and
refused to pay. 1t was believed that the
State Department would have shortly taken
steps to forcbly seize the Salvadorean Gus
toms and apply the receipts to the payment
of the award. This would have BEEN in
fact, an act of war, and this course the Sal
vadoreans insisted they would submit to
rather than pay an award which they de-
clared was excessive and unjust.
The task of effectng compromise
seemed, under the circumstances, a hope
less one, but by mutual concessions the
no ,nr,f 11xr bod nnI h,,p
the embarrassment has been terminated.
History of the Case.
The relations between the United States
and the republic of Salvador which for the
past year have been strained in a slight de-
gree, will now, probably, be forthwith re-
stored to their customary state of cordial
ity, though it is not impossible that the peo-
pie of Salvador may continue to harbor
some feeling against the stockholders of
the American corporation known as the
Salvador Commercial Company for some
time to come.
That company secured about seven years
ago the controlling interest in the Triumfo
Company, owners of a concession from the
Salvadorean government for the opening
up of the port of Ell Triumfo, and in conse-
quence of the exclusive right granted in
vested several thousands Of dollars in i'm
provements. Later, SO it is said the gov
eminent becoming dissatisfied with the
manner in which the business of the con-
cessionaires was being conducted, caused
the concern to be thrown into bankruptcy,
necessitating the appointment of a receiver,
who took charge of the property.
The government next closed the port to
commerce, and the American shareholders
appealed to the United States for redress
and relief, claiming about 81 ,OO0CO0 as dam
ages
After prolonged negotiations between the
two governments it was finally agreed in
1901, to submit the case to arbitration and
Sir Henry Strong, chief justice Of Canada;
Don M. Dickinson and Senior Pacas of Sal
vador were named as arbitrator. The tri
bunal shortly afterward met in Washing
ton, and after examining all the evidence
and listening to arguments of counsel for
both parties, awarded the Salvador Com
mercial Company and the other American
claimants the sum of $523, 174.5S with in
terest at per cent.
Protest Against the Decision.
The decision of the majority of the tri-
bunal was rendered somewhat sensational
and dramatic because of the simultaneous
protest and dissenting opinion of the Sal,
vadorean member of the court, who as
serted that the decision was not in accord
ance with the evidence and that 1t went
outside the jurisdiction conferred by the
terms of the Hay-Zaldivar protocol by
which the tribunal was created
Following this several protests were
lodged by Senior Lopez, the minister of
Salvador, who was dispatched here last
year, with the Department of State, with
no result, Secretary Hay adhering to the
decision of the tribunal and maintaining
that this government had no right to revise
that decision.
The amount of the award staggered Sal !
vador, and, the United States was press
Ing for payment in manner which the
central American republic deemed threat
ening, it was thought wise to adopt a more
economical method of settlement conse-
quently the negotiations were commenced
for compromise, which, as above stated,
has resulted satisfactorily.