el.¡1U oc

IIt:xur " 'OO J) I:nT, AXD lll::\ DLF.r, l'1..-\ HIi:

v. 'l'TII~ U X ITED STATEX OF

[ A1lgust 2G, 18!lO.)

-FI XDI~.H , for t he COlll llli s~i on :

Thoso {'ases ",ero c() lI ~oli (htct1 :tt th o aq:;nmcJlt, r, lul will 1.(' llis l'0sc¡l o f togcthcl'. JI nppcat·s that .:\fcr-.s rs. Flall11ng:HI 1I1H1 Chl'k . eili7.e lts o( the l ·u it r·d Rt:l.te~, in ¡¡s~o(' i at i o lJ witll )I(,f.;~n;¡. Hojas tllld }l :1l'<'flUO, ('iti z(,ll~ oC \ PC Il C7.IICla , 011 lh e 10th oC J nlll1ar.,', l 8:')!), I'ccei\'ctl :l. CO llct'ss ilJll frú I Il tho Go ," Cl'llIu€'n t. oC tll:tt cO llll tr~', COl' tlle cOlH~t l'u ctio lt oC a railro;tt1 fl'olU Uara l'as to l 'lctnrc , ",i th the pri \'ilege of cx tc lUlilLg it to Gnn l'ClJH S :11111 (l nntil'l', Th o (: 0 \ '01'11 1Il0111 hOtlll tl itsoH tu !,; l1bscriuc for 500 shnl'es oC the éll pit:d s tol·k nf tl le par ,'a ll1 ü o f 100 peso,,; per sham, fllHl to pa,\' h:t1f of tho ~l1b~cr ipti olJ. 2G,OOO pt .... Os. ",hall tilO Illato rials IIccessr.l'." for t he CO lIstrnc­HOll oC thc roall \\' ore laudoll in r cuozueln , I1 ml tlle othe r hn]{ W]¡ OIl the 1'oal1 W;Hi cOlUpletcl1 t,o P e tnl'e.

Tu [\lhli tiOI1 to th is it abo lluu1e a 131111 gl'allt of ahout 8,000 acres, Hpon the cOIHlitioll lllat it "'as to he lIU ­culth'a tcd alJd locatcd wit.}¡iu tlle pro\' iucu oí C':tI':\Cns. 'fIJ o proj ect,on.; wero ftnthorizell to ti x lil e. capital s tock al n tiun l limi t of 84UO,00U for thnt pnrt oC the lino h('t",ooll Caracas fillll P etare, ",ith a rig il t lo iunease t.bis t\UIO Ull t, ¡JI case tlle,r l\ \' nilcd thmuscl\'os of tito pri \' ilege oC extoudillg tLc road furUw r.

:\.11 tite lUateri;dH necessnr,r fol' tho cOllstruction rUld cqni p­Ill cut oC tlle rO:Hl "'ore to be 1'('cein-'11 iu lo the CO tl llt l'J free o f llntJ' Tllu wo rk oC cOllstruct ioll was to ue hegull a ucJ cOlllpleted ",ithiu n ycnr, witl! au :\110\\':\UC8 for 1lIH\yoi llnhle de lny. Directors, clllpl oJós, nlld labore!')) were exemptell

frOUl Ii.li li tary cluty in Lime of pCrlce, cxcept what is tenn ed (( doctrinal cxercises." 'ril e fran chise \Vas mnde exclusive fOI" tilo tUl'llI of thirty -fi \'e (~5) yea rR, ;Lml mauy othe l' matters

of tletuil , uSllally fOllud iu such iustnlUlcuts nnd not necessnr l lo ll otico, wel"c sd out nt grcllt IOllgtb iu tiJe cOll cession. It was providecl, ho\\'o \'C!', in tlle 20th Article that al1 c1 0ubts [tUlI coutl'o\'ersies aris ing lInder, amI c\'crythillg l'elatillg to tito cOIH.:ess ioll, shoul<l bt~ a«1jutlicaf.ccl amI tleterll1iu ed hy tIJe courts oC \' cnczucJa. iu tIlO usual coursc oC judicial IH'OCee(l ­ings, aut.l sl.o ult.l llon:r, or au} llecisioll tiJereou, ue maclc a s uhj cct of iutenwtiollal rcclallHttioll.

Shortl,y a~ter ti lO cxecntion of rhiR contract, lTlannagall and C1al'k ellte re,l jnto;1 sepnrate ngreclI lcllt ",it l! th eir associale::i , Hoj a :-> :tIla ?'[arcauo, "'] 10 "'en ' to (lo )1:\1't oC tlle work, fol' tito pl1l'l'0se of flll'lIis hill;; tl Je req uisitc material f Ol" tll e COII­

stnlCtioll o f t.J 1f) ro¡ul¡ alld ot ll or partics \Yero snhscquent.ly let iu to th is coulrflct fol' t1le )lul'puse of ~upp]}iug tlle fiUfllI ­cial aid aJl(l üllgillcerillg ski ll Ilecessal'} to lllake tlle Cll tOI'­

prise a Sllct:ess. As a l'esl1lt of t11e whole cOlllui natioH, mCIl Olwl nH~torial s wOl'e shippetl ~o YenezlIeh from this COU Jltl''y

amI Euglaml, inehH1ing 1'Olling stock. 1'lle line ",as sl1rrc,red, located ) aud gl'nt.let.l iJl pal't, alld gcu eral1y advauced to sud) a. s tngo of eOlupletioll that ~lr. F lauuagan snJ's onlJ th i rL} tllotls!l Jl{l clolInl's wou1cl1JilYC beell I'equired to put it iu run ­nina ol'cl Ol' as fa l' as P etare. o

A locolllotiye weig]liug eightco ll tons, a firs t-c1ass p:1sseu-ge l' car, a secolJd-clnss paHsullger car, s ix hox cal's, four plat.­Col'm Ci.l I'S, a lWlltl-cill', six llUlH1red aud s ixt y tO ll S of irOll rai ls, dwi llS, fl'ogs, spikes, sw itclJos, ",oro all rCillly in tIte conutr} allcl wnit.illg to UO ll :->ccl whcll tbe Pl'ojcct cnIIlO to au elld ill tll e foll owiug IIlanuer:

The cOlltractOl'S beillg ou titlocl to :l.5,OOO pesos from YelJ­ezuela \\'11011 these materials were b .llclec1 , rCCJuestecl pnym ellt, ;lIlcl \Yere l'ofnse<l ; lHlt as til e cOlltl'act for tl le iron l'ails had ucen JIIaLle Íu Eugla n(l in part OH tIte faitü oí this SUlU beiHg promptly pa iel, t lJe)" \rere without tile means of keepiug

Tu}-: UXl'n:n S -r,\'I'I-:S .\ NU V"~.'l'EZUI-:LAN OV)DIISS ION. +~, 7

thcil' c lIgagellleut, amI com¡eque ntIy cou}(lnot get p08sl's~ iou

uf tll e l':tils, El's irl o!:i this clil1i cult.r til o)' \rore pro\'c utc(l (1'0111 lau c1illg tlic l'ail !:; aud s tlbjcctcd tu hea\'y hills fOI' (lüllIllI'­

r;lHO~ 011 aCCollnt o f tlll: tCIll110rarj' OCCUIJ;1 11C\' o f T.J:t GUHn;l. :::o .' ,

1)\' ins uJ'gents. O\\'ing: to the tl'ouhlel1 CU IHl it ioll of th e tilll os rllld tIte

I'l'o::is UI'e uf milit:lI')' nocussity, 11/) r101' which til O 1Il0l} anrl im­

plclllonts oUlplo)'od 1>)' tIJUI!! in tlle t' oll st rll d io ll o f tlJe ro;ul WCI'(J rl'c<¡lIc lltly impl'es!:icrl ¡lItu tilO sonico of tho :l1'1H)', t,Jw

raill'olu1 ~ llpplics alHl CQl1iplllOUt before lu oll tio llO(l \Yc rO cumpul1etl to li ü al La Otul.JT<l cXl'used to tilO wcatlwr, lIll ti l

t1JO COIlI1itioll of the COlltl';\<'Í.OI'S hcc:1l1l e so dcspc ratc that tho)' propost:d lo t lle Gt)\'01'll1UC1I1 oit hcr tu 1111 )' ollL thoil' ill­

lCJ'cst iJl tilO ontcrpl'ilSe, ol' ld th l!1ll scml th cil' ma te l'ia ls uack to tho Ulli tütl Statc~, nll tl r ouc:l.lIcla. pay tllOlH fo l' tll e l o~.s.

Both or thcse propositi olls \\' ere (lecliuccl , wll cu fillally hcillg in a ll ng:ly ~tl':Lit , :tl1l1 socing 110 ut ll or way of c:..capt:, it is dai Ule l1 thaL thcj' we re fOl'l:cd to ~e ll out :tll t.he il' iu tl 'l'cxt in tiJe elltel')ll'i se am1 maLerials o f U\'cl'y kilHl Lo th ei r \" CIl C:l. neJall :1.~sociatcs , Rojas aud )lnl'(':lllO, :I1H1 to aocopt ¡11 payuwuL uincty thunS< llHl uf t1w UOlttl,s of thé I'ailw:ly 001llp:1.11)' of tl le East fol' :S-l JOOO cach , bC:l.l'i llg illtol'cst al U Jlor eOll t ., al)(l se­cu rctl hy a tirs t Ulol'tgagc 0 11 tile l'o:Hl . tito fl"an chise , aud ;dl iL~ appUl'tcuallts.

As tllc cousignee oC tilO iroll mils d emandct1 pa)'mont, uf \\'l.lat "'as llllO 011 tl IC III, :1.1111 as tll e ca !'i !J conlt! 1I ot he pro­duced , it was a part uf thi !'i II cgotiatiou Lhat thirty-li\'c of t,lIe bouds SllOlllcl 1>e }c ft \\' it1l hilU as scc\l l"ity rOl' this d ebL. T llis le fL lifty -live of t1l0 !Juu(h; J'OIua iuing, lmt acconliug to 1\11'. F IIll1l1agall, who is elHloa\'oriug tu accoullt COl' t1 IC prcs­cut;l tion of ouly forty-s ix as tho bas is of t.l lo prosollt cb,im as mau.ú uy Mr, '''00(11'\1'1', tile ut)¡Cl' !line went iuto t11c pock­ets oí Buj;,s aud Marcil ll o, After tLis pUl'ch:l.!'io, it seollls thnt those gentlel1l on, h," wl!aL is c;l11o¡l a <l ood o í cessio ll, traus íúl'J'cll al! tl lC il' l'igllts iu tho c ll tc l'pl'ise, o rigi nal ancl ac­quil'ed , to the Vellc7.uelau GO\'Cl"lllllCuL, which, it is cla ilUe<l ,

..J.2S FKO;\I TIIF: TI":CO RO OF' PROCEKOI NOS OJ.'

:Ul lll1llcl1 all outstn ndillg s tock s u bscriptions, its OWll ¡ueludet1, nud pl'oceedec1 , a s we Ull tlcl'st:lIH.l, to construct and to opcrate tlle 1'0Htl, Imt 011 thiR poiut til o 1'0col'(1 is l"er} clolHly all(l obselll'o.

Stlbseqncntly, howC\'er, it sol(l the ro ucern t.o 0110 Arthnr Clark , /tu ElIgljshmtlu , for tho S Uln of S80,OOO, to he paiel in bonds to that alllon lll, I'Opl'osoutlllg the publio debt 01 Yen c­zl1cln., and aftcrwards on all alleged failnre b} Clal'k lo exc­

cute his pnrt oi the contmct, by jndicial pl'oeeediugs had the sale fllllllllle <l :\lIcl the strltus '}/IO resto red,

ThiR is, in briof, n. bistol')' Di t Ite case, ll cccssarily IIlcagre aUtl ü U}Jo rfcd , ow ing to the nbsohce .oi pape rs which ha\'c hcell cnlled fol' by tho Comllli~siou 1ll1(1 uot fUl'ni shcd, :\Jld abo for the "':t ul oC }ll'ooCS wlJicu thc clainmuls 1Ia,'0 nol felt h0111111 to fnrni sh in SUppOl't of the case ;\s th cy ha.\'e tunde it 011 tho plcading,o:.;.

l ;'rolll th is pal'tbl aud i UC OIll pIe te s ketch , h owe\"ol', it ,,"ouId appcnr witb re¡,ISO llnIJ)c certl1inty that tlle projedors oC Uds SChCllIC, in ndditioll to tiJ e capital stock whicb th ey "'ere all­thori:.:ctl to iss ll e, put out u()lId~ fol' $DO,OOO in tIl O Hame ol the Railwn'y of th e Ea.s t.

H "'ould appear from th e roply of tLe ~Iiuist cl' of tl JC F omeuto to the note of thc "!\Unistcl' oi FOl'eign Relations, ",ith rc~rect to this trnnsnctioll, IIntler clate of Jnnunl'y, 1865, that t,ll ese vontls were issnecl vy the cOlloern fol' tIte pnymcnt of the s upplies hefore mentioned, allCI fol' the indebteduess wllich nojas n.nd l\lnl'CflllO ha{l illcul'l'Ctl lIndúl' t11e constl'uc­tioll coutract he fore reCorred to, betweell th om aucl Flannagllll filltl Clark . H n\' ing l'cgal'(l to tite fa ct tbut tItese bst-ualllctl partics \Yere to rocci"c nude r thi ::;; cOlltl'act, in pay lU eut (01' the wOl'k (loue and material supplied hy them, a IIlnjoriLy of t iJe 4,000 sharcs of tilO capital stock, bosillos lUOU C) , :lS til O

wOl'k progrosse(l, amI that the ir associates, Uoj as aUtl :\la1'­cnllO, wcro onl} to J'occh-c U44 shnl'cs, it is impos~ihle to he­lim'e that those honds \rero iSSllCd with out th o unthol'itj' amI CO llsent of FJa llllagn ll a ud Clurk, and 1\3 tlley ",ere iss lIcd

for lhc )lnrpose oí l'cillluursil lg tJlcm fo r t llC i r ontlay, I\cco1'<l­in g: lo t lle l\Iiuis tcr, 01' COI' tI lC il' i ll tCl'usl ill tIa' c nterpl'i sc :\ccon1 i llg to ¡¡Ir. Flalluagall , 01' fo r tlt cit· intcl'cst, il! tll e ma te r­ials a ccon1illg t o thc Ill ortgagc, in eithc l' 01' uny C\'Cllt tllerc is 11 0 prcs ulllpti o lJ to ue made in fn,yo r o f til O rail'll es~ 01' tilO boltltJt'rles of tilo trall saction. 011 til e cOlltrnl'y. ti .!.! rl11e ns l[Lid dowl1 by til O Supre mo COUl't ill tho case cif0l1 by tll e Icarn ed C0l1l1scl COI' tilo c1ailUí\uls, is til e othc l' "'ay ; for wll ile thc rc llltioll¡;¡ of lt pal't)' lo \\'nn1s ¡i. eorl'0rntiolt 01' jo iut

stoek compau." ns a Ilircctor 01' omec!', ",i Jl llot prccltuhl bim from cl1tering julo coutracls with it , 01' Crom Hl ll.killg 101\ 118 01' taking its Uúllc1s as co llatcm l seelll'ity, yet s till courts of eql1itr will reruso to loml tl ll!il' :l id to t lit! c nfo rcelllcnt o f 811C}¡ cOlltrncts Ilulcss snrisfied atHrllla ti \' oly tktt tite transac­

tion wn,!:! e lltercI1 iuto iu gooll failb witl l a Yiew to tI lO buucJi t o, ti lO cOlllplln.r a s \\'ell a l; oC its crcthto rs, :tull n ot sole1y ",itl l [1, yiew lo !Jis owu UCllCtit . (Uiclwnlsou ·v. O I'Oell , l iJ3

U. S. , p. 30.) It lJIa)' be that the niuet)' IJo lHls o f a. th ousnlld dollnl's

U. S. cunc nc)' onch , in tlds caSe, a l n pe !' ccut. illtcrcst , re~ presentoll th e actnal y:t1ulJ of tI ... ) t (¡ ill ~ , wlla to\' c r it was , fol' which tlt ey were giYCIl in CXCl lUUgC, alld 11 0 1l1Ore, h ui tb ero

is no cdilcuce oC that Cad , :l1H1 , Ilas illg pres11Inptio ll UpOll , IJUmnn condlJCt in liko cirClllusta ll t' ('R , tl lCrc is n s tro llg prounuili ty tllat. t11e }larties to th is tl'HlIsacli o ll , botlJ Ycuc ~

zuelaus aud North Amcricans , 1lli1 tl e a Yon llh¡' J':d c~tilllate

as lo thc value of t IJ cir possessi o ll s. Ir tlli s is Jl o t tr ll ~, ii is at I ca~t iucreiliblc t ll at a lllillo rit.y o f tllO prospcct iyc s lJal'c­

hold cl'f; s]lOnlcl llln e Corccd thc lIl ajol'ity i uto :tcc~ l It i Ilg C01't11 oir intcrcst tlle lJOlHb oC t ho compan.r without thoir appl'o'\"a l or COUSOllt. aud ,ret no color has beell g iycll to tll is casc, ilHlecd , tIle nllegatioll o í F lalllwga n, Bradlcj", Clal'k .~. eo. is, tlll\ t tll e)" solt1 ont to Hojas allcl :1\Ja1'can o OH tll ose t unllS. a s t he ucst the)" could do.

n is lo 110 not icct1 ll ore , too, th at the pctil iolls il1 t h is case aver tha.l 4ü o f tite uO I,ltls \Vore issnecl to tll e clailllauts ,

JI} llamo, pnyahl e to hcarer , ,,' lt eroas it w011111 appcnl' b y

otll er s tatc lll cuts , m:Hlo in tilo papol's, tlmt th e wlt ole is-811 0 0f !JO lIad bcell tl1l'l1ed ovor to thelll, o riginall)', in p ay­In cnt of tl teir iutcl'cst in tlle mnterials, aud so tite UloJ'tgage recites; blÜ takiug wJ¡at the )Iinistel' o í F omento suys, in connectioll with th e contcxtof the case, ,,"o a re illClillCIl to ti lO belieI tlmt tllirty-fhe of tL e bOllds \rero issned as secllrity fol' t ho paymcnt o f t.1 10 ¡roH l'ail5, 1Im1 tI lo otllor l1illo passed luto t il e !tanas o E Hojas alJtl Marc:luo, in satis Caction ol' theil' claims agaills t t. lt c conccm . In OtllO], \rorels, wllon tIlo en­torprisc "'as nhout goiug to picccs, t,]¡o original projectors and cO l1cessiouaries, ",110 ]¡¡\(lll eyCI' ueen incol'pol'atc,l, uu t ",11 0

were act.illg SilUply as an association o[ individuals, issned uou lls in t11 0 llame oC the Uni]way of tho Enst, sectlre!] uy a first mo¡·tgage, [01' th o pnrposc oI illdemnifying th emsehcs rol' the expense tite)' h:u1 iucn1'l'ed, and lo pa.y what ",as dnc 011 al) ontstnntlillg hill fol' some GGO tong oí l'a ilro¡lCl irou.

Til o cla im oC Flnnllagall , .Bradlcy, Cl!\l'k ¡\' Co., as pl'e­:senled to tIl O old ( 'ommissioll, W:liS rc~tccl, :1l1el 15 llOW rE:Sted, npon the di ~tin ct grO lllld tllat Y cnczneln liad violated the tenus oI t IJe concc::;sion by lwl' faillll'c to pay ll c r 8ubBc l' ip­lion, tLll rl esp ccialJy 11)' th o iutennption of tlle \Y ork cnnsed by he]' military opcrations.

'j1JWI'C wus no claim 0 11 th cil' pal't tha t she \Yas uOllucI to l'orl eelll til eso bO]J(1s wlrich constitnt.c tlle [o111l dn tioll of tlle cla im oC 1\11'. H CllrJ' \Yoocl rutT, to whoru tiloJ appelll' Lo have been solf1 in part, aHtl tran sfcrrccl in part, in trust, 101' tlle uenetit o[ tIJ e ori6';11al holders, th cil' representatives or nsslgns.

Tb ei l' claim i8 fol' the v[lIno of the uuisslletl stock ato P:lI', t hc am Ol1ut o f Y cllcznela's 8n uscriptio u , alld somo otlle r it.CUlS lJol ll ccessn.ry to ll otice, on \\'lli eh ",11010 sum t.hú)' nllo\\' a cl'edit of SnG,OOO on fl "alnatioll oC 90 uOlllls at that fi gure.

n lII11st Lo ilppal'e ll t to oyery oue thnt the c1ailll , lmsed ou the pa!' ":tIll c of s tock 110t Jút issned, and onl)' to be i ~suec1 in accoTclauce ",itlJ tIl C tonns of tho constl'uctioll coutrnct,

whell th e lin e \\'a~ complete!l to P etare, if.; Pllrcly ,·jgiollary. lI D\\' 11lllcll oC thi ~ roacI was lmilt wJ wn th o N odh Ame l'icltll associates partcd compan}" with ¡t, lIuwlwro appears.

rr he cO l1l1sel oC tile ch im:l.1lts, wl lo wns tll No hirJlself it l 1864, gayo ns no illCOrJllatioll npon tlli :i poillt, hui rplOtc an cxt1'llct CroUl Eastwick, an Euglis ll write r 011 th e Loan a f l R G '~ , to sltow thn.t ih el'e was al lont, half II \lI i1 I" ' of tll e mil l'O:Hl lmilt nt tbai time, 011 coyoretl witll g rass amI wcc<ls. Dnt it \\'ould seom {l'o m scottorofl s t:ltemcuts tlnollglJont tit e c.r'j)C~

,fiente, tha t tI lO GoyerJlmout Uself h:ul d Olle SU IIl O work OH

tite l'oad after tito l'ct rocossioll U I' a::;::; ig llltlc llt by Hoj as aud i\Inl'cauo ttud by a recita l in t ho Arthnr Clark l'OUhll ct , n. copy oC which is pro<lnced uy cbim:\uts Illld tiJ ü(l , it is nllt'gell that Vene:-mela hlul SpCJlt ~80,OOO 011 the eutcrp l' isc. T h is contrad is d a.te,l tbe 2Sth oC April , 1SG"" alle! if tilo recita l is truc, aIllI it lila)' be takcll a::; k ue a ~ aga ill ~ t th e p arties w1l0 }1:lYO fil e ll Ule papel' fuI' t ite pnl'p o:";~ o f :-i howillg what CI:uke agl'cell to pny fol' tile ro:ul , t1H' ll it follú,,"s tliat thi!'ol cxpendi tul'c mnst hayo been Inad e lIfte r t he orig in al projec tol's had ccasccl ",ork, al1<1 t1Jat cOllscqncntly with this ahl Cro m tIlo Go\'e rulllent, togetil er with Id] lil e work pl'e­viouslr pnt 011 it, it lIad ou]y hec lI (:o witrn ctúd a hnlf lI1 ile iu fonl' r cal's.

\Vhat the charac:ter o í tll e ",ol'k w<'s, 0 1' the f" ll gin c(ll'~

iug difficnltics iu tilo ",a.y, wo lH\\'c no llH.ln l) ~ oC nSCt'r blill iug (m m til e reconl, l.mt lIlakill~ c"or,r rp:\souaulc a llo ",allCe COI' O"C11 un nsual olJsta c l c~ , fift)' thn nsau<l llollars n. milo onght to oc a prett~' Cail' es timatc, IUIlI t1lat wonhl :l llo ,," twenly- fi ve thonsflllfl Cor th e half mile nctnalh- cOllstrn ctcll Illlt l in run ~

ning a rdcr. H o\\' 111\1ch WtlS ~ra,letl Leyond this poillt, 0 1' to wh:lt s ta.ge oC cOlllpletioll tlle ro:ul-l,etl l¡,ul bue ll .uhnncell, til O record lloes 110t show, except t IJ e testimouy of l'[r. Flau­nngl\ll , be fore reCerred to, t ll at it wonld o nl )' hasc relJnil'cd $30,000 to cO lupletu it . Bnt thcre is e nongll in t he en se to sati sCy ns t hat prooC migh t l'er,r ensily 1111\'0 becn inkclI as to the actual cUlIllitio n oC the phys ical strnd ul'c oC this ro:ul

in tlle !S tlUIl UC l' oC l SiiO, nlHl what its cOllt1i tion wa~ illlS(j,'l ; nud \Ve e:1.11 Ree 110 l'C:l.SOIl ",hy an e:;tim:lte, approx illl:ltel} correct at lcast, migl.t IIOt hll \'c b ecn madc ns to th e \'alno of t ll e locomotiyc, roll iug stock, t\llcI tIlO rai lrond snpplies, wl¡ieh appeal' to have been fnrui shc<l r Ol' its URe, alld which \Yere 8olt1 tu Hoja,,,> a lJ(l l\Inrcauo fOl" tIle Louds in contrO\'crsy,

,Yhatü\' cr JUa} hayo Lelln thc ntluc of thcse t]¡ings it is \'01')" clear th:ü tile s tock, par ticn brly aCter the iSSllC of tho howls, lJIust }1l\\'C beeu valneless, Tlle couutry was in tl

stnte oí ciyil tlllUlll t :LIHl inSlllTe ctioll. 'fh e YOl'}" ¡ron re­qn írcl1 to lny tho ronc1 w:\s forced to l'l!1llaill OH slJipuonrd in t110 harbor of l,fl. G \la)'nt beclltlse the ill s lIrgcnts hmI pos~es ­

s ion oí tIJ o towu amI rcCnsed to nllo\V jt to be lauc1ed, The IaLol'cl's 011 t IJ e rotl.ll were i ll1presscd into t lHJ mil itar)" sel'­"ice, t h oil' pi cks, s llO\'ols, amI wOl'killg implclUonts seized 3,rlll appl'opriated fol' a s imilar 11se, nnd tllOso flucl like ¡lIter ­rnpti ons bl'onght til o cn terprise to a stawhitill. Ou t he top o f all this tIJ e cOlltrnctors fastcn a. 1l1OI'tgflge npon th c CO ll ­

cern to Secure 890,000 in bouds, beariug D peI' ccut. iutercst, on a 1'o:'u1 ",Lidl cel'tai llly had Ilot lUore tha.ll lmlf a milc completed . amI whi ch was tlle posscssor of olle locomotiyc, two passellger ears , o ue first-class alld olle secollll-c1a ~s ca!' , s ix box l\lld four pln.tfol'm C:lI'S, one h ttl lll ca)', a. Jol of rail ­rO:H1 snpplieR oí 110 g l'cat yalne, and DDO tons of fo rly­ponnd rai l, hold hy t IJ e cOllsiguce fo r 11 ( 1)t, alld :111 these ll1aterials Jet to be hauled to Caracas from La G 1l:L,rra. 1f wlwt is callcel the stock, Imt wh ich in fad "'as llo thiug uu t a right to haye til o stock, ",h cn tIt e l'Oad was cOlllp!etol1, was ~'o rtJ¡ nnythiug lIude l' these ci rClIlllstances \Ve fail t.Q pel'­cei,'o ¡t, 'fil ero was :1lI Ilndonhtocl right to hax e Ven ezlleln.'s subscript ioll for tll e 25,000 posos. This was to be paid when th e alJoye-llI clllio ll Cll mtl.toriaIs \\' ere Lroug]¡ t iulo tile COll lltl'y, amI t here call be !lO clonbt whnteyel', that th:tt CO II ­dition ha.d bcen fnlly sati:::; fi cd,

Bnl Ve ll ezucln. wnA s ill1ply lllH1.lJlc to paj'o R c l' till auces, owillg to tite rc \'olntio u, were in a disoruered cOutli tion, ;1m1

projects which had hcc u (Ies ig nc<l itl time of pcacc, aud which conltl 011 1)' be snccessfnlly COlltl llcted nude r pac itic COIHlitious, uatllrally :l ll tl illi.!\' itably fell il ltO tlccny Ilud l'u i" I1IHle l' thc wast ing s tress of c i\'il w:tl', The Ham o st.e ru ne­cessity which fo reed hor to suizo tilo I;tbo rors Itllll implc llIc llts, to thl'oW 11)1 fOl'tificatioll ~ ills tc:u l of lIlakillg l'ailrontl e 111-hallkllleuts, cOlllpelled her to ,'¡olale her cOlltl'act t o pay t lle stock s nbscr iption, 'fllere is nothillg iu the recon l lo show thnt her ,l eroliction iu tlds uehalf wns des ignell to iujurt! t.he

c1llima nt 01' was :lllytlJing c isc thf\n t il o illvolllntal'J :lIld ¡IJevitable CO II SCf}U Cll CC o f Ilu !" ullfortllll :ttc sitnatioll , lt will be I'eme mbe l'e tl t ll at Fl:tllllag.'l ll, lh:ullcy, C' lark & Co, a ban ­dOlled the e ll te rpri ~e ill the Sl1Dlmel' o f 18(jO, It was IIOt nlltil 18G3, thrcc year!; a ftcl'wHnls, tl1at Yeuezuula, t hell itl a Illoro scttlCtl couditiolJ, recci\'od fro lu Hojas filld :'\Ia rca no a tl':U1s fcr oC the entcrpr ise, whicl! tluring t il o illten-al or shol'tly aftcrw:mls nppcnrs to ha ,'o tal;;on 011 its coat o í grnss nH,l wecds, deSél'ibecl uy Bastwick. Th e fj l1est ioll was a.¡;kod at nrgnm cnt why t he sa lc was matle to tl lese pnrtics awi the sug:g:estiolJ rn.th er tll:lll l hc f\ ll s wcr , wns, UCCI H1 S0 tiloy bei llg Il ¡\li\' es alla in a ctivo co-o pern lioll :1.1111 sy lllpathy with tho (lon!rllllle ut ,coll t ri ,'ed lo takc ll(halltnge of thcir foroigu :l::isocintes with the ult erior purpose uf \' cst iug: thu titIo to the ClltOl'priso itl tite Oo\'emllu' ut, Jj ut there is elead )' 011 tll e fact88tl\tc<1 nO WnlTlL llt for such Il s lIgg:cstion, üu t il c con­tra1')' , it is quite elear to \1 )) that l"l.ojas .-uHl Marcn no , nft.or carr)' iug the e lltel'pl' i:-\ (1 COI' t hl'ec years amI lJe illg UIlft.hlc to do nllJthing witlt it, trausfcrrod it t o t ilO Go\'o rulllLlut at n time whcn brightcr prospects sce lUe <1 opcnillg up fo r Ye ne­zuela ullllcr !;he :luspiccs of tIl e }'ed eratioll ,

At t11e samo timo, whilc ,al! this is tru c, we are 1I 0t prcparecl to sa)', othe r things bcillg equa!, that th o claimfi ll ts had 1101 a good nutl va lid clnilu fOI this snl)súriptioll Illo n e)'. Thc cOll t ract was oxpl icit, that Oll tho Itllldiug of suffie ielll mn.te rials in the COl1utry for thc eonst rnctioll oC til e ro:ul l Veneznela wOl1ld pay 0"01' ibe one- Il alf of tho su m sito lIad suuscriued to tl !e

capital stock oC t he concem . Th o otIler haIC "'as to be paiel 011 the cO lllpletioll of the 1'o,-ltl , alul , oC cOllr!-:;e, as lo it we do 110t rccoglli :w the \":tlidity oí t]IO c1n illl . nnt aR to tho 25,000 P OljOS, oll e-h alf oí tho subscrip t ioll, thol'o "'as l1lHlonbtcdl,r a goo(l t iLle in tho.claimallls. But ho\\' was it lo be en forced ?

Tito coucession 01' charto r was g r.'lllt Cfl on t1l0 distinct COD­tlitioll , as d early e xprcssc(l a s la ugnnge COllhl make it, that 1I0thillg relativo to it 01' a ll .r 11ccisioll upou llI atters grow ing out oí it, s houhl oyer be mad e th e subjeút of fUl inten ltl,tionaJ rec1allul.tion; uut OH tlle co ntrt\l' j', 111I d 011Uts an<l couho\,()l'­s ies oC y,ha tc \'el' kiIl cl a ffccti ng tile ag l'eement, 5110111<1 1JO re­fe rrc(l to thc jndic ial t l'ihnnnls oí Yencznclu, und bc tiJere d eterminell iu tllC ol'{lillul'y C011 l'Se oí the law.

rrhe failul'e to pay tlle s tock snbscriptioll , in OU1' opillion) was a e1ear violatiou of til c tenl1S of tile couCCSSiOll, Lnt ii is eqnally cica!' t lmt Yenezncla , eithel' frolo cxpcrience 01' ( 0 1'0-

cast, realized t iJ e impOl'kl.llCe o f refe rriug all qU CfitiollS ",ui ch might m'ise itl the prosccntio ll o f tll e cnte rpl'i sc, to tlle juris­elidion o f hel' Q WIJ t r ibn uals, und cxpl'essly cxcImled thcIU from tlle sphel'c oí intcl'uatiou a I I'ocla lllntions .

~othi llg couId be c]earel' moro cOlllprCh en8iye 01' sp ccific tha u tlle lnllgl.1agc of tilo coucos:-;io u "pon tlJ is poillt, E" cn wben s nc" ql.lestio lls were tl',-1ll8fel'J'ed fol' adjuc1icutiolJ by h or CO \ll'ts, snch waH bol' :tllxioty to :t\'o id al l} possible illtcr­natio nal c ll tallglclUcnt, 11ll1t s il e l'eso1'tctl to til e dOllbtful exped ieut, perhap~, oí proyic1 ing thnt tIJ e dcc if:ii oll 01 het' CO Ul'ts :--; honlll Bot be <1nt\\'1I in ync5t ioll hy Coreigll iuten cu­tiou, \Vbuthcr a d ecisio ll so mnrle iu pal pablo vi olution oí the rights o f the parties conJ(] be allo\\'cd to stancl , OH a c1aiUl o í d enial oC justicc , i8 a qn estioll u ot ll CC08SIl1')' rOl' tho llecis ion of this C:lSC, hnt we 5h o l.1l<1 thillk it more thn.D donbt fnl ; uut the ill !,{Cl'tioll o í snob a proyision ~hows ho \\" solicitons she wns to \\"ith tlraw lhe cOllce::;~ i Ol I , :mll t ilo qucstiolls which might ariso u UIlo]' it fm m eve!'.)' possible cognizall ce amI jn ­l'is tlictioll exccpt húr O WI), Tbis sbe cel'taiulr II :Hl a l'iglJt t.o do, uncl tho cO IH;c!o)sioli:ll'i el:i, if we ma.y adopt th at t erm,

TIl}; UNI'fEJ) S 'I'ATES A:\ I) VEN}:ZIJEI. ,\ '-: (JO~IMI ~s l nx. 4:-1;\

h:ul a H eCJlH11 right lo ll ccline tilO conces5io ll 0 11 s nch te1'l11s. \\'I JC II th (·)" malle thoir CO ll tmct t,)lCY knf'w exactly what thoy \Vor e tloing alld with whom tll ey W(,l'C COl1trilcting. TlJey kilo", that Ye ncz ll ela hrul hoeu ill a cOll!4au t s tnto of mu alHl civil COllllJlO t.iOB , nhuost froll l 11 01' hirl ll , :l1lc1 th e)' kilo\\' that a reCerell ce oí qU CSti OIlS, in whiel! tll e,," were iutoreslctl , tu tile courts oC t1:at cOl1nt1',\', s ittiug in th o mi(lo;;t oC sllch confmdon aud :luarchy , lI1igh t mean pradil':tllya Cailnrc to h:no t1le qnestiolls adj m1icllled a t :tJl , 01' tl lP. ri !'; k of :tn (\(1-

\'e rso II eoisio n , promptell by prej ndiec 01' pal'ti:-;a tlship. 13ut in spitc oi all tllis tlle," a~rot.' ll that thoü' \\'1 1010 ense, wll at­oyer it llIight ho, growiug out (l i th c cOll ecs~i oll , sll onlcl Le tinnll)' di sposctl oC bJ t11 0 tlOlll l'sti c t.rihl1llal f-i o f t h:ü eO l1ut ry.

Hnye tlio)' au.,· s tntltling he Core t,hi s ('OllllUi !':isiou ? A lIla­

jority o f its mcmuors :l.IIs were(l this ql1 CStiOIl in t,hc l1Pgntüe in t1l0 caso oC ]~cal e~, ~n¡'lcs, ftllll (;:nrison , ancl tile." ll ayo lenrn ell nothiug Sill CO whiel1 induco!'; tlH:' llI t o t ilink t h:ü t hey wcre "'l'Oug in t.lmt cOll elnsioll .

" re IHlye un rig lll to Illi\.ke n eon trllet ",hie l! tll e pal'ties themsel"cs tlid not llIak e, :11111 we wOl1ld ho s l11'c ly do ing so, if we lI11 tlc rtook to lllakn t.]wt tl le s nhj l'd uf ;tU iuterll at.ional cbilll , to oc alIjndic:ücll hy this COllllll issioll. iu spite or lheil' 0\\' 11 ,·oluubl'.'· uU tl ertakiug , t\¡f\t it was 1I 0\' or t,o he lll:ule s uch , :lncl sllould Ile ,1 dermiIH'(1 in t1 le ruulli cipal t ri­lll1uals of the cnllutr,r ", itl! respecto to which t ll e cOlltl'OYe l's'y

arase. Hnd tlw dailllf\llts rosortcd to tho conrts oC Vcne­

zuela [01' relid, all\l uee ll reCus('ll iJl a caso clead" show iuO" . o tlwt Olere was a (l enial of jnstice, a. tliffieult ql1cstio n , as be­[ore obsen ed, ,,"ould ha \ 'C becl1 presente(l as to ho'" far a. Commiss ion of tlli s kilH1 cou1<l all'ord redrossJ Wh OlI tlle clailll:luts liad Bol o nl )' suullliUed thclllsel \'cs to the exclu ­si"o jl1risd ictioll o[ :l.IIolher frilm n:d, llll t had al so :1grecd that a lly c1 eeisio ll oC t hat trilmllal sho ul cl uol uo made the bfls is 0 1' occasioll oC HU iJ] tc rnatioll :1l cln.im. In po iut oi b ct no e ll'ort appc:l.rs to ha"e been ma.dc to iu yokc the a id of t1le Ve neznelan COlll'ts, unt til e c]aim:lll ts Illade theil' a p-

peal tlircc:tl.r to tl.lO Exücntive Dupartlllcllt of thc GO"Cmlllout. \Vh:üevel' 1I1ay h¡tnl heell th e pl'llct.icnl outcomc oC It l'esort to the CO Ul'ts fOl' assistanco, howc,'er abortivo snch étn nt­tel1lpt lIJa} lmvc 1'1"0\'0<1 , ",e bIne 110 l'.ight to nssumc the foHy 01' futili t} of such ft course, ;1I the faee oí tilo Holemu

sti plllatiOll oí t he pi\rties, t hat they \\'onk1100k to that qn tn­ter rOl' roliof, :m el 11 0 otho!'. It is to be prcsnmcd that tIl O)'

wouId llot h a ve Inatle snch a stipulation ii tIl O lnws alld conrts o( Vc ucznel:l. "'ero helplcss in nffonling thelll a. relUoel)' i uut whetlwr tI Ie.}' were 01' not, so they mlule tlleir bcd and so tile)' mnst he iu ¡t.

rl' he sc izl11'(! oi thc fa cilities fol' th e construdion oi the wOl'ks, and the appropl'intioll oi tllO samo iOl' milital'y nse, was oue oi the llocessary a lHl \1IHlVoiclnule incidents counected with [1. stl'uggle fol' self-presonation, ",hi cll the law lws o"erywhcl'c rccogllized as tllO sovereign l'ight o f thü Stat.e, No claill1 il~ mOl.de llere rOl' lile use of tile men aucl things so takcn, ancl which :tppeal' to Lnxo boen rcsiorecl wh üll the exigcllcy, nncIer stress oi Wllich tIlO appropriatiou was ll1ado, lIa(l pnssecll\way, unt thc ",ho]e th ool'y of the claim is CAst upou t ilo assulIlptioll t lla t Ve nczucla, by tltis spoliatioLJ aud the failuro to pay hol' sto(:k snhscriptioll, hild cuused /tu ou­tire Cai]ul'ü oi tho uutol'prisc, ttlHl onght to pa)' ull tho dam ­:l g(~ w!I;("! h cns ucd.

Hccl11'1'iug lo t.110 C0 11<:OS8io11, if ii bo saiel , as it ltns 1>oen sai~l be fo l'c, that Ve nc:l.lleln has wnivell h or right to h it \·O

qllcstions nrisiug Hllller it llctcnuiuelllJY he!' own courts, alld l¡as submittcd hCl'sclf to the jllrisdicli ou oi tlJis tribl1ual by tlle tel'lllS oí tlle con\-ontion of lSSG, we cun o nl)" I'CPO:tt thaL thcl'e is DO c \'illence o f Sl1ch :tH illtcntioll ; tllat no illferOll CO 01 this kiucl ea.n be dl':twu fl'OlU tIte geuCl'al Sl1blllission of "nll claims ; '1 tiJat tIlOSO wllero cnlltmctllal in Htei!' unturc neccssnrily come oeio re ns in tIlO textIwl fonu in ",bicll t,he agl'coment has uccu elllbolliecl, :\1111 t llat whc:l \re look to that aud see that jUI'is(lictioll is 110t ouh' 1\0t criven hut ex-. " pressly donicll, we shoultl be urcaking thc contract iustcnd

oí enCo rcillg it, ir we ;tlloptc(l aBy othcr cO lIs tl'nctio ll. 'l 'hc dftilll of "Flanuaga ll , Bnull cy , C]1t1'k lV Co., tl lel'cfol'e, IllIlBt be (1.ollio,1. 'rh e otll or clailU of H cnry \,"oodrufT st:uüls npon a some whnt ¡lill'crl' lll fúoting, IlIIt dilrl ~ I'C llt JII o re by rea~O L1 o f the peculiar CIl\"irO lllll e llt o ut ur whi c li it a ro~c ,

thall tIt e l'rill ciplcs by wliieh it i5 to Ul: d etl'l'miuPll. Tt i8 in (¡\ct tll e Otl lC l' clailll sOlllewhat r ctll1ccd aH el in :l. ditl'c rc ll t

fol'lu. 'l'h e forty-~ ix b o ndf.\ 0 11 whic ll it is fUlIllll c ll \\'e rO iSS ll c(l to

th e til'~ t-nall1 c (l chimauts; :tIHl oxcu pt ¡tS to tl HJ 1l111ll\:ntio ll Cll

IlIll11he l', c itlte l' hl' ld 1Iy :\( 1'. '\r llodndl' in hi s OWIl l'ight" 01" h,r hiR plcdgcf.s iC there are all )", aru \'usted in trust in that gCIl­tlc lll:w fol' t lle hCl1 elit of FI :lIlnll~:l Il , Bra lll ,~y . ('¡ :u 'k .~. Co., :llHl

thcy in tJl cir 0\\" 11 s ta tcmc ntof daim ¡l Jlo \\' tll e wllule nlll11))\' 1' o f

homl:; urigiu:dly i!:is llcll ¡'D; a l: n!llit t.u \" ~' lJ ez nel:l, :-t s ir thuy in some way couLrollCtl , 0 1' l:onlll eOlltrol, tll e u Oll tlh oltlc l':;.

It 8 t' UIU:-( to n ,.;, Ol' ;] lll:ljo rity 0 1' t.h ~ UOHllHis sltlH , that thc¡;(} hOlltl s, cOlH:e tlillg fOI" I he prcscnt tlw rcgnl:ll'i t y of I h e i r

creatiol1 aud issue as thc ohli gn tio llS o f n b \\' fully 001l5ti­

t Li tctl body üorpol'lltú, nlHl tIJat th is corpomtc h Olly W;tS mCl'gQd in tho 50 n j]"éignt . .r of \" ~' n t'7. ut." l n, wi th tll l} legal (,o ll seqnen l:c~

of that mergcr as daimccl , lllU :-;t nen Jrthlc:;s he trcatct1 .. as mis iug r¡ucs t io n,.; l'c lati n ! to th e l}o l1 t.:css ioll, aUl1 lUu st uc di~posed of by th e tl'ilJnnab o f Y CHOZ UCIa . By tho tc nns uf the cOllccssioll thc l'c \\" .\:.. no nntho rit\· oltl'alltcd to 1ll0rtr·:w c . o o the c lltel'pl'i ~e :l S stlcnrit:· fol' tll e bOIHl~ , 1;ut :l(1111i t ting tlJat tllis p:lsscd as a. lI éCC!-iSnry ineitlclIt to til e g l':\n t , wi t hunt whie l! til e ro al1 conh1 not h nyc IIi:-e ll IJIlilt, n Jt , ti till, wla:the r as llH ox pl'csscd 0 1' implicd ]1 0 WOI' ) it. 1ll1lst trace its ol'ig in to thc (·ollces~;ioll.

Ro proeccllillgs for a ro rcdu~nre 01' a !:iaJc "'ollltl ll OCCSRa­rily have h eclI COllndet1 01\ th e 1l10rtgnge wh ich was fa stc ncd

UpOll aH entcl'pri se fjlwl'l i corporate in its cham.ctcr , alHl Ctn­almt ing (li rectIy fro Jll tiJe couecs5io ll .

.As wc cOlJ s trne til e 20 th a.l'ti l·le o í thi !) i ll ~trUlll C nt, it WR Ij

tho intclltiou of Ycneznola tu pre vent any cla.im o f auy kind,

dircctly or remotely COlluected ", ith thc coustl'UCtiOll o f this mad, en)r pnssillg bcyoIHl thc reach aud control of her OWIl ll1unicipal coglliznnce; ami, in this yie \\', it wonl<l be strauge incl('ell ir tIle ohligat ions of t,hc eOllcern, ",ll ieh conlcl oulj' be cn forcCll without snch el provisioH iu the tlomm~tic triuunaIs oC UI O c01l11try, were llot illtend ed to ue iuclnded.

Nuth iug sh ort oC n bill in eqnity :uHl al! [lcconuting couM gi\'l: rclicf iu th} ::; case, :uHl tIte exercise of SlH.:h powel'S i8

quite bCj"oucl nny jUl'isdictiou conferrecl npon the COllllllis­!jIOll.

lll1t passiug tItis fo1' tlle pl'CSCl1t Jet ns examine iu to the urigin of thcsc boud!'; with a Iittlc more llIiuuteucss thnll wc Ilil\'e pl'c\' ionsly give ll tllU su bj cct , HIHI li1'st we wil1 pl'emise a wonl 01' t\\'O ahont thc so-cnllcel stock subscriptiollS.

At~corcliug to tile resolution pa.ssc\l tilrough the Departlllcllt of tIto FOlliento 01 1 tIlO 3íl of Dcecll1her, l SG4J t he snLscribers to tlw stock were as fo11o\\"s :

GoVel'lllllellt, 500 shares; several Yeneznclau citizcns, (;7 s hares; foreign ers, as shares; tlle GOYCl'UlIle11t oí tll e old Pro \'­iu eo of Caraca!:! , 50 sharl3s í <liJd tbe Mnrlicipa] CO llucil of P eture 14 sllures. This wonld lU ake a totnl of 72a s lw,res, nud the r cmniuder appears to IW,,\'é heen clivicled between the mem­Lers of tlle cOllstruction COlllprtll)" before refcl'red to, COIll­

posed or }'lalllHlgan :l1lt1 Clark 3m1 l{ojaH Il.1H] l\Iarcauo, in the (livisioll o f which th e Xorth Am e1'i c<lllS, i11 considt::ratioll oC the hea\"ier work they had agrcccl to perform , were to ro­ceivc 2,196 sharos, wLich. of COllI'Se, cOllstitntecl a Illajol'it)". No Shnl'eR appear to ha"o been actually issned, lmt the COI1 ·

shnctioll conqmlly, which iJl eH'ce t l'epreseutell tIJe COllces­SiOllftrieH, ,,"ere to ¡-cceh e tIJ e proportiol1 to which tJley \rere eutitlcll on tbo cOlllplctioH o f tlle ror\.(l to Pdare, amI as the considoration fol' their outby in its cOllstrnction; in otller worc1s, tIJ e)' \\'ore to bnild the rood aucl takc ¡ts capital stock iu paymout.

'file lo<:n!Uotiye an<l railro:ul snpplics, before l'cfe rrell to , hfWiug ucen shippc(l fmlll tlle U uiled Stlltes, aml tlJt: 11'011

r" ils, which , flt ·lO p Otluds to t1 w yanl , \\'ou ld IUHC )¡eclI jllst (J IIOllgll to huild nin e mil es oC l'Oud, with thc I'cqnircd $;i tli ltgs, ha ying tlrri\"ct! (1'0111 Euglallcl, amI tilo projcd IJl'o llgll t to

11 Imlt, as Iwfurc d cst' ri hL·(I, tllt; prof'i pl' d i\'c IlO lde rs oC tbis stock issncd tilo h Olld :-l in cjl1 (});tion paynhlc lo tl l clm;ehc~,

:\Iltl scclll'cd thclu Jly ¡'L wortgage 011 t il e fran chi!'io oC th e l'oad :uul its propert,y. Xow, if \'"C a S:-;l1ll1 ú wltat has lJl'on so eamestly cOllt cnilL'¡} (or hy i\l r. Woodrnlr, boUI ¡ti his capncity o( cOllusel Hutl claima,nt , :\lul wltat, iu fad, l~onst i tlll,C¡;; ti lO

(oull\lat ion uf !lis célso-t1lat ti lO lbil wny of tho E ast, in ",hose name Ihe !JtIlHIs WCI'I1 issl1cd , \\"lI S :t corpomtc borlJ in

(:tct :HIII ¡JI la\\', it wUllltl follo\\' , a f COtl rse, t.hat th is corpol':l­tioll ,,"ún),l h o ulll ler all nhli ~a ti o ll to pa." tilo honds; tlmt l il e

:;;lIa rcltoldc rs, lo ti a:: exb · lI~ of Ihe il' s tock s l1hscr ipti ons, i rro­

:ipcc~in.: o f sl)\~e i ill J:¡,\\,s \"('g'lIlatillg sudl lIlattel's,O Il uroa tl

principlc¡.,; u f rig ht alld jll:->ticc. \roll ld he botllltI (or t1li s ill­

d ,' Lh~clll l'RS, rt.l lI I t h¡l t IJcs id es , tlle hOllclhnhl, \l's won l<l 1 Jan:: 01 0 /Ilortgugc as ¡'ollatcral ."; "I..' tlri~y (0 1' t heir p rútcclioll,

13nt wll<\t "'011111 be t.li e liahility ill s nch case o f l ;b IlIlH­gan, Bl'lldlcy, Clark :\lJtl ( 'o" \\'1 10, Oll thi i\ U lf'O ry , Illtl s t be CO Il ­

sitlorod 1\8 oot11 lJOudholtlcr'III1I :os IJal'eholdul',a ucl ",ho do Ilo t

a p pcar to 1¡ ,L\'e tl'illt sfelTc\1 t1J e il' s tock lo Hojlts aIHI i\Iart':alJ o?

T he)' \\'o re 1I0t to pay ill mOll o,", hut in ~cn' iccs a lJ d Utate­rials, but th cso malle lh e lllsch'ns, 01' \\"el'o to 1tJ¡\ kc tll c l1l sch 'es nplJareut, iu tlw fiui s he<l iitrndllre oC tho 1'0:111 ami its cr¡uip­

JII outs, and tlltJ sccmi ty a f thc lIlortg:Ig'C r caU} d epcll<led lIPOII

tite oxtent all(l clmnwtt' l' or t lli s \\'ork, Stock. whi ch Wll ~ n

dcht oC tito cOl'pOratioll to tlJe shareho!(lcf , W:I>i to lJO is~ued to tllClll iu pay mcllt COL' II'I. :1t ti lO.}" cl itl in cOlllplc ting tilo road

¡\lItl loug befure t1lis, \\" hcu , so fal' a:s wc can seo, aud t hon onl} :tftCI' lUakillg lile III O:ost IilJcl'HI allowlllI CC p08sil>le n ud or the Cil'Cllllls tauCel:i, VIII} a halí milc had adu:dly hCCll Imilt

aud iro lled, thc!:ie prospect.i\'c =--tock cretliton; o C tli c cOl-pora­

tion cOll\'c r ; \\\'1\" In' 1Il 0 rtf":~IfC ¡"JI its ilSscts to SCCUI'C the • .1, o ,", •

p:\}mcnt to t l l c lll selve~ or a 101 o f lJonds, which, of CUllrsc,

cOllsti tuted a fir~t lieu ou the I'U3.d, and in the ol'de r o f pri t.>r i­

ti es would l¡a,vú to ue satüsliecl first..

440 l'no;\1 T II l-; RECO lt O u F P UOCEl-; PlNGS OJ.'

It is cllliUlCd tbat Venezuela 1I 0t on] ,r mergetl tltis corpo­ratioll , swall owod it as til o whale !'twnllowell J onnu, without th c a iJil ity to cnst it up , b ut t,ha t in the fiCt of doiug so, dcstroycd nJ l tlle onts tlllld iug stock suu:,;cl'ipt ious, hol' own iu­d tHled . Ir sllC did l it wouId be tli ;lir ult to see ",by lh e ooli­gn tion to b uil (l tbe rond , whi eh was in cffect the s tock suu­scrip tious oí the cOllccssiounries, was 1l0 t c3.ucelled iLt the snllJú l ime; nlld ir t llis is 80 we cnnllot pcrceivc w¡ tat eqlli ty is ra ised in fa '·01' o f t Il e ch.imf\llts by tJl is trflll saction, u eci\.lIse while it is tru t.! tbe ca p ita l s tock m Il } be rcgarded as the pri­lIl :u y fllll tl ou t 0 1' ",lli eh tlw obJign tia ns of tl lü corpol'a tion nl"e to Le pnid, alld tbnt ¡lU} dilllillUtiOll oC this fuml by n release o f lhe ti llbscriucr,lIcccssarily opera tes to the prejlHlice o í t ile bOlldholder ; lI e,-ertheleslS, this caunot be the cOlIseq ne llce, whou tLe ~tock sllbscl'iber amI tite iJoudlt oltlcr are o ll e and tho s an Hl p Ol'SOll .

Take Uw caSe oí the plcfl gec o f thc tliirt)"- livc bOllds, plcdged as sccurit.,- fOl" t he p a} lIle ll t o f the 1Il0noy d ue OH tll e cO llsigUlllCllt o í thc ¡ron rails, amI suppose tlwt he h ad to en fo rce tll eru agaiust Hit! cor)Jol"ation, conld Fl rmungan, Dradlcy, Clal'k &- Ca. escape l"espollsi bility, II ~ p ros pecti"e s lla,rch olrlc rs. The ot)¡ (: l' slIuscrilJers cle<l l'h- cOll l<1 ll Ot, ue­Cal1 S~ th(\y wore to pay in Ill One}; lmt nl'e thcse pa l't ies in eq nity to Le h-cnted ns fi U)" less su bsl·riucl's, becnuse their colttrilmtious ha ppen lo be made ¡JI work aud lllatcrials iu­stead ? rrb e corporntio ll if sl1 ch existcd, was mnnifestly

, composetl of the din'erellt parti cs lJcfo ro mell t ioued , including tile G overn ulCu t" as l'i tockho lllers, a lld ir tlle b Olhlhol<lers wouId ha vo lllld tl le rig llt lo pursue t-I IC 111lpni cl s llbscrip t ions a s a íund , out o í wllioll their c1aillls were to be satis tied, it is d ifti Clllt to see UpOIl what principi e n (liscrimiuatiuu ('Q uId

be 1U 1'ul e b et lrocu tll e stockh oldeTs, flucl Que cluss 11eM, and th e o tlle r released, a ud it woul d ce:rtaill]Y be fl ll nggl'f\ \'ati on o r tb is injnsti ce to relie ve t lle lU fl jority, nud ouly Itold n. ,'e ry small minority. In t lle p rcsent case, it so hnppeJl s tltat, if tIl e uondllolder purs ll ctl the s tockh oldCl· to rel'o \' er Lis dcbt,

I.t' \\'011 111 011 1," he dtasi llg hi ~ 0"' 11 s IH\d o,,"; b ut t,IJi:. d o('s Ilo t altor th e Clluiti oli u f ",hiel. \\"c a l'!, sp c:tk iug .

'fh e t' llliUl i¡.; , tlla t Yc uczut' la iU lpa irl·d t1lL' l"ig lJts g rantt -d IIJ1l1 ~1' t,hi s CO ll ctlti:-il0n by d cSt l'lIyillg tll e fll ll<l whk'll W:l :-i lu be l'aiscd by ¡'; III,sniptiolll; to tlw c,lpi ta l st f)(· k j tllaL s llt' ¡JI dl't'd 1'1'1,-.HH'tl :lll t1I Ú snh~c'l' i IH.' I':-i fl' OI 11 t he o hliga li oll to pa.'" til o :-;nhscl'ipti olls , fll1l1 that lh¡·l'ob,' · t1HJ Ilomllt uldcr \\":\s SU l'i ­

ol1sly i lljl1rc tl. \\'c S:l..'" in n 'ply, t11at n.:-i t1 11 ~ l,omll Jt)ldcr ill tlJís cai<;e wa :-; snhstltlLtially ti 1(' S}¡ ;l I"L·!t ultl l' I', ;t1 Hl lIwn ·l l)" d obtor to hilil sclf, tha t \n" ennnut , in t hi ~ dl'c lllJ! :-.. tancc :l loue, p Úl'ce in .: canse {Ol' il Uy serio li S curnplaillL, 'L'llis l'cn.~ullillg

uf l'OIl I'SU ",u nid hnhl goocl whethe r Ult : ('O II Ct' Ss iOllarif'S e r or IItHI t hClIlsc l\' cs iucol'po l'oltCtl 0 1' not , bec:luse :t :-¡ p :utn c l's : 0 1' a :::;:-;o(' i .. ll -:-\, iu t he l'roscc ll tiun 0 1' it juin Lolltt'l'l'l'i* '. (~a cll wOldd lIa r tl hCl' 1l u0\111(1 t u tit e oth t' r il lul to the crctlil ors u f tl Je COlH':Cnl lo paJ \\"hat he It ,Hl agrot',l to eU ll t rilJllÍ o towlInb t he CtHl]lIlOll fnud . In l'o ilJt tJ f fad, :l ftt'l' ;t can-fu i l'l'n (lil l~ o f ¡dI tll l' pilpUI'S iJl til O ('H:-;l' , lI ud g i"iug tilo salLlC úll'ed lo Ihe c0l'ie:-; til ctl as ir tllC'y had IJI' en o rig illals , 0 1' tll e copicl" hall u u e ll anl )' ant.hcutic:ücd , \rO lIol oul.\- ('anuot s(·u all.'" t' , · i .tNI Ctl

thnt thCM' pal"lil's had t hc lIl seJ w':-; il h;orponllt,tl, b ul 011 the contl'<ll"y \H' th ill k lIw t.' \' i,lcuct.· is tllltin 'l,r tl Je o tl lt'l' \ril ,\' .

'l'11C Cacl o f iucorpon"llioll is 1101 :-;o H~ l ll lo !Jo c:-..lahlishe:d 11.'" IJwt,lel' uf rCI;Ortl , uut in pai .... ¡,~ . t.he ,Hlmi:.¡sinlJ u f 11111 nu\"­CrulHCllt in tl lC rcsolutioll oC lIJe ·F\wl tuÜU J¡cf() rc 1H ~ lll io llt ' tl.

Slmrefol o f s tock are t.llCre Ill Cllt io ll Ctl , cou ~liltlt. io ll alld I,y­la,\\'s arc s nid tu hfl.YC uec lI ado ptod , ,llId tllt'lI it is :-;tah.:tl t hat a couJpau'y Wf\S lcgillly ol'gauizcil called til O Ttai lw:ly of t he .Ea:sL UpOIl t llPSÜ autl lilw cx p l · l'f~s i o Il S tI lU arg mue ut

has heull hnilt n)l that, whctll l' r ji co r pur nti u ll de j ll l'('. \\':tti

{unlle(l 01" Hot·, th ul'o W<lS 0 11 0 iu r .. cl l'ceugui zcd lJ,\' t lt c C: O \' ­

enUHc ll t, whieh (l c¡\.!t witl! i t as a n m.:isting ¿Ol/(i ,p'de CO l" pO­rate uocly, 0 11 close l" tix ll1Jli ll at iu ll , II OWCYOI" , of tlwsu ad­missio IH:i, ¡"Hui of thi :-¡ attcmpt to c roat e a corpo ratiu u lJy

estoppul, i i will ue fOI1LltI tlllIt t,lte C:\80 goes no fnl"th cl' tllilU the rccognition o r a compilU)", ca llml lU tbe l'csolutio ll itscH,

"a IJOII\-ma sOI.: icdacl," ", lliclt , (rOHl Iho llf:C'Oll11 t. given of it h ,'- tllt, )lilli ster o í thl' FOIllCllto, ,,"ould ~ecm to he somo kinc1 0f 11 j o illt .~to(,k conCel'l\, lhe Illt 'm !)(' /'s uf whil'lI wün~ un­

kIlOW Il . 111111 lindel' t1 lLl law:-s of Y encz llda wcro n:lIcnsed fl'olU

intliyicluaJ l't ·SIH.IIl : .. dlJilit.y fo l' its (~L'hts , fo l' wl .ieh th e socie l)" w:\s UIOlll' l'I ':,polIsildt ', to tlh! CX.tcuL uf i18 ho ldings.

1)\\1 wlwt. ' \'1! 1' lila." han' h('cn tILo llattu't~ of this so(' icty, it is pcd cctly dcltl' tu li S, IlIH.1 h¡1 8 lH.Jt.! 1I 80 si ncc thu o l'igi wll al'gl1l11l<lIt W;IS IJI:ldt~ i n t ito Il1nttel', th:ü til e daillJ<llll i s cutil'e1y 'HOII~ ill thL' conlelltioll ",hiel! he ba~ wl1gcll witl! so 1I11lc!J \'¡(ro l' alld ¡lc l'tinaei l y that th er p. \\'a~ a Illen!c r (ti' this crea-

o . ' " tnn' in lile t: OH ! I'IIIlH'llt wilh liJe éOllseq nent'C of fa s tcHing UpOIl it ;dl tJw obligatiulIs of the CO IH.:CrIl.

} f l'. \\'oodrnn' \\elll lo r eJlczuula in l SG4 fol' the pnrpohu of pl'o~cc lltillg t1d~ t·laim ill jI"Cl":-\Oll , and whil u LIIt~ re W:Hj 111-f, m ll cd u f tlJ(" co nt r;H' t made ""ilb Arthnr ( 'Ial'k nnd ""hidl W:IS tO IlSHllllllated in lhp :spri llg of lhe same yeal'. Hu \\'a~

notillcrl :t l:.-o t ll :1t wh nt('\-e l' I'ig hts he lI:\d as 1\ ¡'ondhol<1~r 01" ::u; t.il o I'upres('utflti,'c of 111(' h01ll1hold C' J"s, he shonlt.1 proccüd

tu e nforé/..: ngcl ill:-it t ia: road tlwn in t,lIc halHhi uf Clark; that Clal'k , ;1:-; ;t l'OIHli ti o ll uf thc t'OllCt'SSiOIl , L,l(l assllllled aU il s o hligntio ll:-', all 11 be~il1t:'s, (Ir lI ectJssily , IlJUst taku t lle roal1 Sil\¡­

j úd to tlll' mOl'tg.lg'fl whic h \\'ood l'n tr heltl, Tustclu1 of bü:­iug thil'S ruhi cc, 0 1" resortillg lo HUy I " ~a l 8tOp S lo (:nforcc his ClailU , oitiLer a¡.;ai llst Clark 0 1' ulJder tlu.: 1J10rtgngll, he as:.;u11 I('S

at t!w onti'id tbo posi ti oll lhnt Yll IH.:zndll, hy what Wfl nHIJ

ct"l. 1I t}H.l Jl ujas -:\fal'ca llo I'drU('es:':iio u , hall ülJlitel'atell u1" rather IHlJ l'g(·(l tIJe (·t.H'poration, :lntl in doillg so h;¡c1 n S81111W(1 tite Iin­hility of p,lyl llg lIJ e ra ce \"lllllC o f I l i~ LOll lls, with nct l'ucd

inlcl'ust to date, \rhen tlw C;l SIl was lirst Hl'g llCcl , ti lO COlllmis~io ll llOt thc J.l

h,n"ing a H o pportnuil.'" to sLlld,," t.hú pf\pCl":i, \\"as nud,'r lil e imprcssiun lltal this I"ctl"l)cc!-;s iull hall Lee n e l)'edec1 ill the SIlWll.lCr ut 18/;U, shorth aftt..'l"war<ls 01' nbont t be tiUl l! \\"l1 c lI , ,

Fhn u¡tgftu , J~ nldluy, Ulmk amI Co. are sa ia tI) ha \'(' 50h1 onL

lhei r iul .... r t>sl ill t ite t'ul! :l'p rise to .Hojns a ntl )Iarca uo, bnl it

no\\' appeal's t1mt this tlall sflcti o ll (l!d Jlot takc place lllltil tll e lOtl. of D ectJ lllhcl', 18113

Prom July, 18(;0, to t.Ili :-i .late, fltl' l l, tit e: l'O:ul l'clll:\inf'd in the h,lILtl s oí HOJaK ;lIul ::\Ian":, LlJO. UllriJl~ Ud ... pún ud tilO

PUlOIlll'.Is, Ul ul pl' P at.'7., ;IIHI til o F'e d cl'n li 'ib, lllldcl'F'nlcoll,

had (o\l~llt out tllt ~ lI' 11 :ttLI I '~, fl lld , j, ] lIu ' .., lll\lll1t ' I' o t IS(,3 , P ,le/'; liad aht1 ica tctl1 Ilnd t l le F cdCl a lioll \\fl:-. e.., lnLli s hcll.

" ·h.\t \\a:-; tl oue \\ ith the 1'0:111 tllJl iug 11m. Jlc riotl ¡J oe~ 1101

:tp!ll',II', hut it 1'3 moro thall plOhabl C' th at t1H' !jalll e ca m:iC~

that lIltcl'mptúd ito:.; prog H'S<'; iJl tlJe hllglll llill ~ CO lltlllllcd to opl~ utte nllttl pe,Jet' Wi\S .I L'¡:l an·,1. F o r reaSOl1~ \\hH.! h wll)

lle mll \l e app:ll'e ut 11(' f01 0 \\" 0 CO UCl llCll', \\ e lllt:! \C l y llltl c h Ill ­

tcn::-.tcd at Un ") p01nt 111 knu\\ ¡!lg \\ hd hl.? l lile Go\'c rulll c ld,

a~ a p iU t o f lil e pro pe rt y t IlI ll Cd 0 \ e l uy HOjas a ud )la¡ cauo,

I'ccCln·d tlle IOl'omoti\ c 111111 C,lI S, ,lIHll f ')0, 11) \Ihat ('uu­(hllOU , aud :\Iso \\ In 'lll cr f lw IClllaill(¡'.! r o f tIlU r;1l1~ not pul d owll \\"e r l' b¡ltl:-. [crrcd, and iu \\ ¡Ial COllllifi u lI , aud also llo\\"

1l1l1C1t ot lile 1'0:\(1 \\a~ 111 a pal'li:t1 .. l:tge of ('Olllpl l'ltOIl , alld III

w)¡;Ll CO Utl ltiou , :\1ul Ilo\\' lIluch OIJ \\ I¡¡ (,h i lJ E' 1 e \\'as 11 0 \\ o rk

dOll e ,lt all. Til o l c('ord fllrtll sh c:-. L\ ~ no (' \'H lt'lIeo c:\ccpl \\ hat

\I e ha, o all e.lclycItctl Up OIl L1l t'Sl' pomb, aud t11 l' clailllaul: ,\ ha appeaH., to haye ~t:lked IlI s ",h ole l'a ~C UpOIl tll t! Idea, of a. 1l1 01'gel', has lIo t in th:\t ,' Iel\' of 1m:> 1 ighb felt th al lt W:J.\, ncc­t~S5¡¡ry to s upply ally pl'oo f.s IU lUsclf W!tat \\a~ lhe natlllo or

this rcl rocessJOIl ') FOI aug ht l]¡ ¡tL nppe:u:-.) 01' is"nggostctl by th t:: papel s, it \\ as UD IllOre tll :W t lJ e s Ul're ud e r O1':l cOllce:-.s iou

which th c gwutee "'as 1I11n.ble to carr)' out. r.I.'hat it \\"as

fo rced by Ye llczuob ,Ol accoJ!lpl Hil lod hy tnck o r contriYllllCC

uy the aHl uf tilo cO ll cess iol1a ri es, who ",ould 011150 ,lpperu to haro Leen a::'::' l gll ~e:-. oí l "!n llllngrtll, 13radl cj , Cl:u k k Co" thcrc IS not a \\"ord (lf c,·idcnce lB th c ICCOlcl, c llIl e r o í !:tug­

gcstiu ll 01' proof, aut1 lI11 s JlJ ~illllati o ll llIalle 111 :\I'g ulllcut rn 11 st h e treated as 1)11 rel r Ifra.tllltoll S Hojas and 1\f :WC;LIl 0 e \'i-. e d ently eu n1tl uot !"luse tlto f\Hul s t.o complete the reacl , auct

they 11Irued it o\'er to tI¡O OO\'Clll ll1 e ut I1l1de r l e rlll s and CO II­

ditlOllS, aud fO I" :~ considcTiLtlOu, if :luy, uf whiell " 'e know uothing.

It is hl:c¡w SC We han:' 110 Jight 0 11 this point tll:\t \\-0 han~

IJ xpl'(,s~l~d fluxi cty te) be in[ol'li.l f"tl as to tbe cOllditi on llnc1 va hl \.' 0 1' lil e o rigi nal eqnipm4;-Juti\.ll<l s upplies whidl tile Go\'­erulJlCllt rt lcc in :d llJldc!' thi:-i tnl.w-.;f(H', F o!' wh ile \re t·hink tlHÜ t!Ji :-; case \\"ill llave lo go off un a pOl ut oí j Ul'i l':iclicli 0 11 , aud are "e ry cica)' that YOll czllela. (lid 11 0 t lIIake benwlf 1'0-

s polls ihlc for the 1;01111:0; ¡u contro\"cl'sy. h.r tllc tmnsfol' hum Hojas ami 1tfarctlll o. ypl st ill , if thcre was reli ¡\hle data 0 11

wlt it·1t tú bnsc all opini oJl , aS t o tile valll c o{ l IJe things {Ol'

which til c UOllth WO!'e takcH ill l!xchallgc , Hlhl OIl \\·hie l! HIt.:y COll:-;titutt' JI Ji rst lien, we slllHl1tl 1111.\'0 uo h esitalio ll iu say illg t1.wt, tlh)l'e W¡\H <tu eqnit,r, whi ch \\"o ulrl cutitlú lhe c]aiuliIlIt to be paill for nse nud occlIpa ti on lo t}¡e rxtc nt o{ tl le loss s lIfl'pl'ctl be forc thc thi llgs wcrc hansforl'etl to .·\rth ul' C' lark. Al tito sa me t ime it, appears hy rpcitals in tit e cOlltrad with t!J is gL'l ltl CIlJaIl titat tll U GO\'Cl'llllle ltt ilsclf hatl ex.l't~ llt1 úcl

~~O ,OUO 011 tit e ma(l , an tl t1WI'U is e \'i<l ence in thu ('ase that lito irou tail ~ \\'e l't' pl1 itl fo\' iu p:lI'l nt lea5t uy a.H unl er on tlll' 'CU:-:tUIU-ltOllSe fol' t: l1fo:lo rn:-: cxpo rt dut ias tú tlLC IlmOll llt o( ~ I 8,UOO. Thr re ifo: 110 tWitlcll<:e thal Cbrk ever paitl tlle ~80,OOU in public tlt'bt ¡l:-i Ilt' hfHl agrocd , alltl th e Cad t1lat the cO ll cex~iou to him wa!o; c¡ \uccllecl illd icates tlle contral'y, a.ml ir t.his is the caso thc JI t he onl.'" acl\-antngo YCllcznch wonhl a ppcal' lo lt:\n1 :-;\.'c urcIl fl'olll th e re tl'Occssiuu "'as th e pos­SCS:-i iOII rol' a lilllt' o f fl Itrtlr mile of flll lIutinis hetl liuo oC l'ail­I'oad, }.'I'oposcfl to uo nin c miles in leugth. with f\ certllill It lllOUlJt oC cquipro cut and witiJ liJe IIH.: aus oI fllr tlwr CO II ­st l'uctiOLl , 1'0 1' pal't nf wlt iéh s hc paid llCl'selt'. Ir uncle r t.hn8u cirClIlIlst :tlh;(-'S s1l (' put ::-HO,OUO Ol! tit e rOlHl , whi ch acconlillg to oU!' \'i cw was s till stlujot.:t lO tho In ortgagc, il woultl SCel1J tllat t.hi s SUU] ol~ght tn he moro t111Ul a set-off as ¡tgainst what s ito Illighl be hcltl cqnitahly chargerl for use 111111 occu pil tiu lI tlnriug Ule s llllrt illt.t..: I'Ya l 1'il lo waS in posses8io ll , 1)ctwecll t1lt~ 1 !Itll o( Dt>ct'whnr, l sn:-;) ¡lIld tllC :28tl. 0 1' A pril , l Sfi4:, tile datt ' oí t il \.' C' lark clJl1tr:ld , Ul' tlllr illg tile pel'i(Hj s lt e JUay l1fLYO hdtl Lit e 1'0;1,1 aflt'r the (~:l. lI(' cllatiou 0 1' thnt co ntmct.