The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1923-04-03
AN AMERICAN
RAILWAY LINK
ASSURED
New York to Fonseca Route to.
Be Completed Through
GuatemaIan Pact.
By ii. X. REYNOLDS.
international News Service.

international News Service
With the approval of the Amer
lean State Department and through
the mediation of Arthur H. Cess
Ter, the United states Minister to
Guatemala, the international Rail
ways of Central America and the
government of Guatemala have set
tied dispute of fifteen years stand
ing and reached an agreement for
the immediate construction of a
missing link in the Pan-American
railroad system, it was learned off,
cially here today.
The new line will afford continu-
Gus connection by rail between New
York city and the Gulf of Fonseca,
bordered by the Cen raj American
republics of Salvador, Honduras, and
Nicaragua IT will shorten the
travelling distance between the Pa
cific coasts of these three countries
and New Orleans and other Atlantic
ports, of the United States by APP.
rroXimately one week, via the
GuatemaIan port of Puerto Barrios.
Credit Divided.
The contract has just been
negotiated at Guatemala City and
presented to the Guatemalan CON
gress for final approval. According
to officials here, the principal credit
goes to Adrian Recinos, who has
just retired as foreign minister of
Guatenlala; Francisco Sanchez La
tour, the Guatemalan minister to
the United States, and Geissler. The
concluding negotiations were con
Quoted by Rafael ID. Ponciana. the
new Guatemalan minister of public
works.
The controversy between the Re
public of Guatemala and the Inter
national Railways resulted from q
concession granted in 1908 to Mi
nor c. Keith of New York, noted
builder of Central American rail-
roads. Keith was to build the line
from the town of Zacapa in Central
Guatemala TO the northern frontier
of Salvador.
Before actual work could Ne
started a dispute arose as 70 the
terms of the contract, and in 1920
President Herrera issued a decree,
declaring the Keith concession had
Iapsed. The railroad company coun-
tered with a demand for heavy dam.
ages. One of the principal points
of issue in the dispute was whether
or not the railroad should run
through the city of Chiquimula.
Keith declared that to run the rail-
road through this city, AZ Demand
ed by the Guatemalan government,
would cost too much money. In the
final contract, which has just been
signed, he agreed to conform 10 the
route desired by the government. and
is to receive the 81 SOC, 900 tAmerscan
money! for the construction work.
Other Attempt Failed.
Before this, however. the Amer
lean ministers to Guatemala, acting
under instructions from the Presi-
dent and the State Department. had
tried to effect an agreement be-
tween the contending parties. Mai.
Gen. George w. Davis, who served
as governor OF the Panama Canal
Zone, Porto Rico, and the Philip
pines, acted as mediator, but with
out result
After General Jose Orellana sue
ceeded Herrera as president of Qua.
temala in 1921, negotiations were
again undertaken, but both the rail-
way company and the Government
came to the conclusion that an
agreement was impossible.
About this time. Arthur H. Cess
Ter arrived in Guatemala City as
the new American minister with in
structions from Secretary of State
Hughes to do whatever he could to
adjust this old dispute.
Geissler has succeeded with the
result that the new agreement has
been hailed both in Central America
and in the United States as another
triumph for American diplomacy.
Senior Don Latour. the Guatemalean
minister in Washington, expressed
the opinion today that the new con.
tract would be accepted shortly by
the Guatemalean Congress.