The sun., 1909-05-26
ARBITRATE WITH NICARAGUA
1 TRIBt NAL TO SETTLE THE
IEXiTIOUS EMERY CLAIM.
PRESIDENT Zclaya Gives In on q Matter
Nhlch Came Near Seyerins Relations
win This Country-Chances Better


which provides for arbitration of the So
called Emery claim. a vexatious matter
which has been pending between the
United States and Nicaragua for about
two years and half. was signed tonight
in the home of Secretary of State Knox.
The case has been the subject Of two
Communications to the Nicaraguan Gov
eminent which practically amounted to
uhjmatums. The State Department is
greatly gratifed over the settlement
The protocol signed tonight provides
for tribunal of five members. two rep
resenting the United States. two Nicar.
aqua and the fifth to be chosen by the
four representatives. If the four mem
hers representing the United States and
Nicaragua are unable TO agree on the
fifth member the King OF England will
name the man.
The protocol was submitted to the
Nicaraguan Government by Secretary of
state Knox in April At that time rela-
uons between the two countries were
strained and the United States had re-
called Mr.. Gregory, the American charge
d'af1ares at Managua.
4 demand was made on the Nicaraguan
Government for the immediate settle
ment of the case. Nicaragua apparently
PLAYED for time and finally sent word
through the Nicaraguan Minister here
that Pedro Gonzalez had been selected
to come to Washington to enter into nego-
tia-ions. After several weeks Mr.. Con zalez
arrived and has been in conference with
Mr. Knox and other officials of the State
Department repeatedly for the last few
DAYS.
President Zelaya of Nicaragua at first
showed no signs of yielding. He declared
that in the original Emery concession
there was specific provision for the arbi-
irat;on Of the case, and he preferred that
the terms of the concession be followed
The Department of State. however. was
.rn,. and finally Zelaya succumbed.
The adjustment Of the Emery claim
will do much toward making more friendly
relations between Nicaragua and the
United States. particularly as Zelaya will
,how in other ways that he realizes what
i:s international obligations are, espe-
,ially concerning the keeping Of the peace
in Central America,
The Emery claim grew out of mahog-
any concession granted in 1898. The con-
ceSsion was to run for a term OF years. in
which the concessionaires were to pay
the Nicara guam Government certain sums
of money and also a tax on logs taken from
the country. The company enjoyed the
privilege of bringing in all necessary
working materials FEE OF duty.
The terms Of the concession provided
that any dispute should be settled by
arbitration by a tribunal of three MEM
ters, one chosen by each side and the third
by these two. arbitrators. The company
rsnounced its right to diplomatic recourse.
In the summer of 1903 the company was
accused By the Government of smuggling
The company, it was alleged. made i'm
proper use of the privilege to bring in
working materials free of duty.
Upon the initiative of the Nicaras suans
an arbitration tribunal was appointed
in accordance with the terms of the con-
Cc--icn 1t worked. over the case and
decided that inasmuch as the company
had paid taxes for three years in advance
the CONCESSION could not be annulled In
JUL lsDj, Zelaya notified the conces-
sionaries that he regarded the concession
as annuhed. and he directed his legal de-
Iartncnt to institute suit for moneys owed
IN tire Government.
The court at Buefelds acted COM
liantly and issued an attachment pro-
ilblIing further expectations. AT this
lrint The United States interviewed. The
STAT" department believed that an in
lr.tce had been done American interests
and On December 15, 1905, the following
not" Wa sent by American Minister Merry
10 tue Nicaraglan Minister of Foreign
tT're;
hay" ,hs honor to iufnm YOU that
ha'" received Instructions from my Govern
r"u' a lake urgent and firm request that
'nnr ENcelonCy's Government viii settle
.h" lm"rH company controversy by an
International arbitration and that until a
gerI>pn has been given thereby your Ex-
,si'rcy's Government will restore to the
."rv company all is property. dlsuissing
Il. I'-a rroIrc'tions in the case and per
'I'tus the company Ia resume its work
.i,'r 'hc concession as If no controversy
Hd u.."n
Nicaragua was alarmed by this en-
/ hattie note and acceded to the demands
i ~" United States. But when the ne
EQUATIONS for the arbitration came there
na> division of opinion, The Emery
c"lgIanv, through the State Department,
Tot rnlv wanted the validity of the con-
ce,,ion arb,ratei but it also had claim
'or dlmagcs
Nicaragua contended that the conces-
n"n bad been, i'll response to America S
'or"srd, restored. and that the clause
" ~" concession providing for arbitra-
n"r '""ilne active again. Nicaragua
'ii 49," would arbitrate the general
ls'-uDu but would not talk about dam
is'S, Tn" State Department here held
nat II" tettlement of all claims, damages
All orh"rwise, was what the arbitration
Wa Tor. and it stuck by this claim.
lhN- tn" matter drfted along through
h"-,d"ui Rooseveit's administration.
wren President Taft took Office and Mr..
th"N bectm" Secretary OF State the
h't1"r was again taken up. More en-
p''lr action was regarded as necessary
90 demands were made upon Nicaragua
lN -'''"ucnt. The State Departm ent
Va IN rp mood 10 tolerate further delay.
~" "nduct ri Ielaya had been very
H'l'a'uc aad drastic action was con-
sb''r"i necessary. At this time Nicar-
d'It showed great military activity