The United States vs. The Republic of Hayti

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The United States vs. The Republic of Hayti in the matter of the claim of A.H. Lazare : record
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In the matter of the claim of A.H. Lazare
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United States
American and Haitian International Claims Commission
Haiti
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Claims vs. Haiti -- United States   ( lcsh )
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Title from PDF t.p. (LLMC Digital, viewed on Nov. 22, 2010)
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At head of title: The American and Haytien Claims Commission.

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Tlih American and Haytieii Claims Commission.





THE UNITED STATES

vs.

THE REPUBLIC OF HAYTI.





In the Matter of the Claim of A. H. Lazare.





RECORD.







WASHINGTON, D. C.
GIBSON BROS., PRINTERS AND BOOKBINDERS.
1885.


- I












TABLE OF CONTENTS.

PAGE.
T he P rotocol ............ ......... ................ ... .. ....... ..... ............ iii
The Arbitrator and Counsel............................................. ............... 1
Statement on behalf of claim ant.................................................... 2
Testimony of John Joseph Andain.................................................. 22
Do....... .David Francis Burke............................. .................... 27
Do........Adolph Henri Lazare.......................................... 38, 89, 109
Do........Adolph Eustace Verdereau........................................ 61)
Do........ Adrienne Lazare ..... ................. .................... 74
Do ........ Mathilde Lazare ................... ................... 81
Order. ...... ..................... ... ................... 87
Exhibit A.- The contract.............. ....... ............................... 38, 1*, 15*
Report of Committee on Finance relative to Bank.........................12*, 26*
Message of the Assembly....................... ..................13*, 27*
Exhibit B.-Modifications of contract......................................38, 29*, 32*
Do.... .- Agreement as to keys of Bank...............................38, 36*, 38*
Do....D.- By-laws of the Bank................... ...................... 38, 40*, 65*
Do....E.--Notice of formation of Bank.................................49, 90*, 91*
Do....F.- Protest of Lazare..... .... ............ .................55, 92*, 93*
Do....G.-Letter of Rameau to Mrs. Lazare...... .......................... 95*
Annex BB.-Letter of Rameau to Mr. Lazare....................... 63, 96*, 97*
Do....D.-Notice of postponement of opening of Bank...............64, 98*
Do....E.-Delay granted Lazare.......................................... 64, 99*, 100*
Do....El.--Letter of Lazare as to delay..................................64, 101*
Do....E2-Letter of HIaytien Government as to delay............ 61, 102*, 103*
Do....F.-Letter of Haytien Government relating to deposit..65, 104*, 105*
Do....G.-Letter of Lazare in reply..................................65,105*, 106*
Do....H.-Letter of Haytien Government as to deposit......... 65,107*, 108*
Exhibit IH.-Letter of Haytien Minister in Paris.............................. 94, 109*
Do....I.-Revocation of Lazare's consulship .......................96, 111*, 112*
Do....K.- Letter of Preston to Lazare............... .. ........ ...........98,112*
Do....L.--Letter of Preston to Lazare........................ .... .......... 98,114*
Do.... M.-Letter of Preston to Lazare......................................98, 115*
Do....N.-Letter of Rameau as to palace...........................98,117*, 118*
Do....O.- Resolution as to loan .........................................99, 118*, 120*
Do....P.- Decree as to loan............. ..............................100, 121*, 122*
Do....Q.-Letter as to White. Hartman loan......................100, 123*, 124*
Do.....R.-Article as to White, Hartman loan............. .......100,125*, 126*
Do....S.-Agreement as to Silvie loan........ ......................101, 126*, 127*
Do....T.-Agreement as to appropriation of revenues..........102, 128*, 129*
Do....U.-Guarantee of White, Hartman loan ............................. 102, 129*








PAGE.
Exhibit V.-Further guarantees of loans .............. ......................105, 130*
Do....W.-Message of Assembly as to the Bank........................106,131*
Do....X.-Article establishing the Bank....................................106,132*
Do....Y.-Statement of finances of Hayti................................106, 133*
Do....Z.-Letter to Lazare and report of Committee............106, 135*, 142*
Exhibit At.- Telegram as to refugees................................... .....108, 142*
Do....A2.-Report of U. S. Minister as to refugees....................108,142*
Do.- A3.-Extract from Civil Code....................... .... ............108,143*
Do....A4.-Case of Bazerque vs. Otard..............................108,143*, 145*
Do.....A3.-Extracts from Civil Code......................................108, 147*
Do.... A'.--Extracts from Civil Code........................................109,148*
Do....A.--Extracts from Civil Code.......... .......................109,148*, 149*
Do....A8.-Letter of Preston to Lazare as to palace........................ 149*
Do....A'.-Letter of Haytien Government to Lazare concerning palace. 151*
Do....A 0.-Letter of Preston to Rameau relative to Lazare ..............151*
Do....A1 1.-Letter of Haytien Government concerning debt to France. 153*
SECOND PART.
Opening argument of M r. Ashton ..................................... ................ 1
Argument in reply of Mr. de Chambrun ............................... 61
D o........ .......... ...... ...... ................. ......................... 83
Argument in reply of Mr. Boutwell............................. ........... ........ 123
Closing argument of Mr. Thomson................... ................... 143

THIRD PART.
Letter transmitting award to Haytien Minister................................ 1**
Award.................. .. ..... ..................................... ........ ... ... ...... 1






IIAYTI: PELLETIEl, AND LAZARIE CLAIMS.





PROTOCOL OF AN AGREEMENT

BETWEEN

THE SECRETARY OF STATE OF THE UNITED STATES
AND THE ENVOY EXTRAORDINARY AND MIN-
ISTER PLENIPOTENTIARY OF THE
REPUBLIC OF IHAYTI.

FOR SUBMISSION TO AN ARBITRATOR OF THE CLAIMS OF ANTO-
NIO PELLETIER AND A. H. LAZARE, AGAINST HAYTI.



Signed M-ay 24, 1884.


Protocol of an Agreement for
the submission to an arbitra-
tor of the claims known as
the Pelletier and Lazare
claims against IIayti.


Whereas, the Government of
the United States of America
has presented to the Govern-
ment of Hayti, the claims of
Antonio Pelletier and A. H. La-
zare for indemnity for acts
against person and property al-
leged to have been done by Hay-
tien authorities; and

Whereas, the Government of
Hayti has persistently denied
its liability in the premises ; and
Whereas, the Honorable Wil-
liam Strong, formerly one of
the Justices of the Supreme


Protoco le des Conventions
faites en mue de soumettre t
un arbitre les reclamations
connues sous le nom des rd-
clamations Pelletier et La-
zare contre 11aiti.

Attend que le Gouverne-
ment des Etats-Unis d'Am6rique
a pr6sent6 au Gouvernement
d'Haiti les r6eclamations d'Anto-
nio Pelletier et d'A. H. Lazare,
afin d'obtenir des indemnit6s
pour actes contre la personnel
et la propri6t6 qui auraient (itA
commis par des autorit6s hai-
tiennes ; et
. Attend quele Gouvernement
d'Haiti a constamment ni6 sa res-
ponsabilit6 dans la matiere; et
Attendu que l'honorable Wil-
liam Strong, autrefois juge h la
Cour Supreme des Etats-Unis








Court of the United States of
America, inspires both the con-
tracting parties with full con-
fidence in his learning, ability
and impartiality: therefore
The undersigned Frederick
T. Frelinghuysen, Secretary of
State of the United States, and
Stephen Preston, Envoy Extra-
ordinary and Minister Pleni-
potentiary of the Republic of
Hayti, duly empowered thereto
by their respective Govern-
ments, have agreed upon the
stipulations contained in the
following articles.

ARTICLE I.

"The said claims of Antonio
Pelletier and A. H. Lazare
against the Republic of Hayti
shall be referred to the said
Honorable William Strong, as
sole Arbitrator thereof, in con-
formity with the conditions
hereinafter laid down.

ARTICLE II.

The following facts as to
these two claims are admitted
by the Government of Hayti.


AS TO ANTONIO PELLETIER:

That Pelletier was master of.
the bark William," which ves-
sel entered Fort Libert6 about
the date claimed (31st of March
1861); that the master and crew
were arrested and tried on a
charge of piracy and attempt
at slave trading; that Pelletier,
the master, was sentenced to
be shot and the mate and other


d'Am6rique, inspire aux deux
p art i e s contractantes entire
confiance dans sa science, son
habilet6 et son impartiality: En
consequence,
Les soussign6s, Frederick T.
Frelinghuysen, Secretaire d'Etat
des Etats-Unis, et Stephen Pres-
ton, Envoy6 extraordinaire et
Ministre plenipotentiaire de la
R6publique d'Haiti, ayant recu
les pouvoirs necessaires de lours
Gouvernements respectifs, out
arrUt6 les Conventions continues
dans les articles suivants:


ARTICLE I.

Les dites r6clamations d'An-
tonio Pelletier et d'A. H. Lazare
centre la R6publique d'Haiti
seront r6f6r6es a l'honorable
William Strong, don't il vient
d'ctre parld, comme soul arbitre
en la matiere, sous les conditions
ci-apris exprimnes.

ARTICLE II.

Les faits suivants sont admis
par le Gouvernement d'Haiti en
ce qui regarded ces deux r6clama-
tions.

QUANT A ANTONIO PELLETIER.

Que Pelletier 6tait Capitaine
de la barque William," lequel
navire entra dans le port de
Fort Libert6 h peu pris a la date
6nonc6e (le 31 Mars, 1861) ; que
le Capitaine et l'6quipage furent
arrct6s et jug6s comme accuses
de piraterie ct de tentative de
traite des noirs; que Pelletier,
le capitaine, fut condamn6 a otre








members of the crew to various
terms of imprisonment ; that
the Supreme Court of Hayti
reversed the judgment as to
Pelletier, and sent the case to
the Court at Cape Haytien,
where he was retried, and sen-
tenced to five years' imprison-
ment ; and that the vessel, with
her tackle, was sold, and the
proceeds divided between the
Haytien Government and the
party who, claiming to have
suffered by her acts, proceeded
against the vessel in a Haytien
tribunal.



AS TO A. I. LAZARE:

That Lazare entered into a
written contract with the Hay-
tien Government, September
23, 1874, for the establishment
of a National Bank at Port au-
Prince, with branches, the
capital being fixed first at $3,-
000,000, and afterwards reduced
to l..:,Ii inI of which capital
the Government was to furnish
one-third part and Lazare two-
thirds; that the Bank was to be
opened in one year from the
date of the contract, and an ex-
tension of forty-five days on
this time was granted on La-
zare's request; and that on the
day when the Bank was to be
opened the Haytien Govern-
ment, alleging that Lazare had
not fulfilled his part of the en-
gagement, declared, in accord-
ance with the stipulations of
Article 24 of the agreement,
the contract null and void, and
forfeited on his, Lazare's, part.


fusill6, et que le second et les
autres gens de l'6quipage furent
condamnn6s a diverse peines
d'emprisonnement ; que la Cour
Supreme d'Haiti (Tribunal de
Cassation) mit a neant le juge-
ment centre Pelletier, et renvoya
l'affaire a la cour de Cap Haitien
ou Pelletier fut jug6 de nouveau,
et condamnd h cinq ans d'em-
prisonnement, et. que le navire,
avec ses agrbs, fut vendu, et les
products divis6s entire le Gou-
vernement haitien et les per-
sonnes qui, pr6tendant avoir 6t[
les victmes de ses actes, avaient
proc6d6 centre le vaisseau de-
vant un Tribunal haitien.

QUANT A A. H. LAZARE.

Que Lazare fit un contract
dcrit avec le Gouvernement hai-
tien le 23 Septembre 1874, a
l'effet d'6tablir une Banque Na-
tionale au Port-au-Prince, avec
des succursales, -le capital
6tant fix6 d'abord a :1, 11,- 1
et ult6rieurement reduit a 81,
500,000; le Gouvernement de-
vait enfournir un tiers et Lazare
deux tiers; que la Banque de-
vait Stre ouverte dans un an, A
partir de la date du contrat,-
qu'une prolongation do qua-
rante-cinq jours fut accordie a
la demand de Lazare, et que le
jour ou la Banque devait etre
ouverte, le Gouvernement hai-
tien all6guant que Lazare n'avait
pas 6x6cut6 les obligations qui
rdsultaient de son contract, d6-
clara, aux terms des stipula-
tions de l'article 24 de la Con-
vention, le contract nul et non
avenue, et Lazare de son cote
d6chu de ses droits.








ARTICLE III.

The said Arbitrator shall re-
ceive and examine all papers
and evidence relating to said
claims, which may be presented
to him on behalf of either Gov-
ernment.
If, in presence of such papers
and evidence so laid before him,
the said Arbitrator shall request
further evidence, whether docu-
mentary or by testimony given
under oath before him or before
any person duly commissioned
to that end, the two Govern-
ments, or either of them, en-
gage to procure and furnish
such further evidence by all
means within their power, and
all pertinent papers on file with
either Government shall be ac-
cessible to the said Arbitrator.

Both Governments may be
represented before said Arbi-
trator by Counsel, who may
submit briefs, and may also be
heard orally if so desired by the
Arbitrator.



ARTICLE IV.

Before entering upon the dis-
charge of his duties, the said Ar-
bitrator shall subscribe to the
following declaration:
I do solemnly declare that I
will decide impartially the claims
of Antonio Pelletier and A. H.
Lazare preferred on behalf of
the Government of the United
States against the Government
of the Republic of Hayti; and


ARTICLE III.

Le dit arbitre recevra et pren-
dra en consideration tous les do-
cuments et preuves relatifs aux
dites r6clamations qui pourront
lui ctre pr6sent6s au noni de l'un
des deux Gouvernements.
Si, en presence de ces dits
documents et preuves ainsi sou-
mis, le dit arbitre demand quo
des preuves additionnelles 6cri-
tes au testimonials, soient pro-
duites devant lui ou devant toute
personnel dulment nommine a cet
effet, les deux Gouvernements on
l'un d'eux s'engagent k procurer
et a fournir par tous les moyens
en leur pouvoir ces preuves ad-
ditionnelles; et tous les docu-
ments pertinents dans les ar-
chives de Fun des deux Gou-
vernements seront accessible
au dit arbitre.
Les deux Gouvernements au-
ront le droit de se -faire repr6-
senter devant le dit arbitre par
des Conseils qui pourront pre-
senter des m6moires (" briefs ")
et qui pourront 6tre aussi en-
tendus oralement, si 1'arbitre le
desire.

ARTICLE IV.

Avant d'entrer dans l'exercice
de ses functions, le dit arbitre
signera la declaration suivante:

Je d6clare solennellement
.que je decidcrai avec impartia-
lit6 les reclamations d'Antonio
Pelletier et d'A. H. Lazare prd-
sent6es au nom du Gouverne-
ment des Etats-Unis contre le
Gouvernement de la R6publique








that all the questions laid be-
fore me by either Government
in reference to said claims shall
be decided by me according to
the rules of International Law
existing at the time- of the
transactions complained of."



ARTICLE V.

The said Arbitrator shall ren-
der his decision, separately, in
each of the aforesaid cases, with-
in one year from the date of this
agreement.

ARTICLE VI.

The High Contracting parties
will pay equally the expenses of
the Arbitration hereby provided;
and they agree to accept the de-
cision of said Arbitrator, in each
of said cases, as final and bind-
ing, and to give to such de-
cision full effect and force, in
good faith, and without un-
necessary delay or any reserva-
tion or evasion whatsoever.


In witness whereof, the under-
signed have hereunto set their
hands and seals this twenty-
eighth day of May, 1884.


d'Haiti; et que toutes les ques-
tions qui me seront r6f6r6s par
l'un des deux Gouverneinents
au sujet des dites r6clamations
seront d6cid6es par moi d'apres
les principles du droit interna-
tional en vigueur h l'6poque des
6vinements qui font le sujet des
r6clamations."

ARTICLE V.

Le dit arbitre devra rendre sa
decision separ6ment dans cha-
cune des affaires susdites, dans
un an a partir de la date de cette
Convention.

ARTICLE VI.

Les Hautes parties contrac-
tantes payeront en parts 6gales
les d6penses de 1'arbitrage qui
est ici convenu; et elles s'en-
gagent a accepter la decision du
dit arbitre dans chacun des dits
cas come finale et obligatoire,
et a donner ai cette decision
plein effet et vigueur de bonne
foi, sans d61ais qui ne seraient
pas justifiables et sans reserve
et sans evasion quelle qu'elle
soit.
En foi de quoi, les soussign6s
ont sign la pr6sente et y out
appos6 leurs sceaux le vingt-
huititme jour de mai, 1884.


FREDK. T. FRELINGHUYSEN.
STEPHEN PRESTON.


[SEAL.]
[SEAL.]











THE

*mcrican aSs 9apticn Qlaims commission.



THE UNITED STATES
vs.

THE REPUBLIC OF HAYTI.


IN THE MATTER OF THE CLAIM
OF
A. H. LAZARE
AGAINST
THE REPUBLIC OF HAYTI.


DEPARTMENT OF STATE,
WASHINGTON, January 15, 1885.
In pursuance of the announcement of the ARBITRATOR, the
case of A. H. LAZARE against the Republic of Hayti was called
up this morning for trial.
Present:
The Arbitrator, lion. WILLIAM STRONG;
Mr. ,AMES THOMSON, of tile firm of FORSTER & THOMSON,
Counsel for the claimant, and
The Marquis DE CHAMNRTTN aid the Hon. GEORGE S. Bour-
WELL, Counsel for the Republic of Hayti.
Mr. THO.SON then read the opening statement in this case,
which is as follows:
1-L








IN ARBITRATION.

Before Hon. WILLIAM STRONG, Arbitrator.

THE UNITED STATES )
vs. Claim of A. H. Lazare.
REPUBLIC OF HAYTI. .
STATEMENT.

Mr. Lazare, a citizen of the United States, was, in June,
1874, president of the West India Steamship Company, whose
steamers plied between New York and Port-au-Prince in
Hayti, and other ports in the West Indies.
At the same time he was managing director of the Indiana
and Illinois Central Railway Company. He had large personal
interest in these companies, and his time and attention were
absorbed in their management.
While thus occupied, Mr. Preston, the Haytien Minister,
suggested to him that he undertake the placing of a loan for
the Haytien Government. Mr. Preston suggested to Mr.
Lazare that he should go to Hayti and treat personally with
the officers of the Haytien Government upon the subject.
Shortly afterward, and in the month of June, 1874, Mr.
Lazare found that he might make a visit to Hayti advantage-
ously to his steamship company, and he determined to go there
with the double object of attending to the business of his said
company and of the negotiation in respect of the suggested
loan.
lie left New York in the last-named month in one of the
steamers of his company, bearing letters of introduction from
Mr. Preston to the Haytien officials.
Upon his arrival lie was received with much consideration
by the President and Vice President of the Republic. The
President was Michel Domingue. The Vice-Prbsident was Sep-
timus Rameau. The latter was a nephew of Domingue. He
appeared to absorb all the powers of the Government, and
was fully empowered to act for it in all matters. The Presi-








dent conferred upon him the most absolute authority, and the
chambers recognized him as paramount.
He is the person who dealt with Mr. Lazare in behalf of the
Haytien Government throughout the whole of the transac-
tions which constitute the grounds of complaint and claim
herein.
Mr. Lazare was a stranger at the time to Hayti and its
officials, except so far as a slight knowledge had been derived
from the steamship connection.
He had no previous knowledge whatever of Ramean, his
character, or his methods.
And before we proceed further, and that the Arbitrator may
be intelligent throughout the perusal of the narrative in re-
spect of the element of character on the part of the Vice-
President, with which Mr. Lazare had to deal, and which affects
the case throughout, we quote from official documents a descrip-
tion of Rameau.

Keeps faith with none, except so far as it may serve his
own selfish purposes."
Foreign Relations of U. S., 1876, p. 323.
But Rameau, in spite of his apparent intelligence, was a
wicked, prejudiced, avaricious,conceited, revengeful, thoroughly
dishonest man. He was, I imagine, never known to keep his
word or pay an honest debt or to forgive even an imagined
-light or offence. He was by nature a tyrant, and was almost
without a redeeming trait in his character. And yet, he had
gained such perfect control over his uncle Domingne that the
latter became a complete nullity in the conduct of affairs, and
left everything to Rameau, who, in his unlimited control of
affairs, showed forth alike his evil nature and disposition and
his capacity for mischief and wickedness."
lbid, page 329.
At the head of the Ministry was Domnine'ine's nephew,
Septimus Rameau, who considered that the whites had no
rights which the blacks were bound to respect.' His own
friends had foretold an age of peace and enlightenment when
Septimus came inlo power, but of all the narrow-minded ne-








groes with vast pretensions to superiority, none equalled this
man. As a rule, the abler a negro is the more wicked and
corrupt he appears. But we could never discover this much-
vaunted ability, though the wickedness and corruption were
manifest to all."
St. John's "Hayti," page 120.

Thus fell the very worst Government that even Hayti had
ever seen. Cruel and dishonest, it had not a redeeming quality.
Domingne, brutal and ignorant, was entirely dominated by his
nephew, Septimus Rameau, whose conduct has been only ex-
cused by his friends on the ground of insanity. There was too
much method in his madness for that plea to be accepted.
His hatred of foreigners may be partly accounted for by his
being a member of the Vaudoux; it is even asserted that he
was a Papaloi or priest of the sect."
Ibid, page 124.

This is the character with whom Mr. Lazare had his deal-
ings, and the result transpired as might have been expected.
During his interviews and communications with Ramean,
Mr. Lazare made himself acquainted to a great extent with the
resources and internal affairs of the Republic, and ascertained
among other things that its population of nearly a million
were without banking facilities; that little or no attention had
been given to the subject of finance or currency, and that the
banking system between Hayti and foreign countries was cum-
brous in its method and expensive to the planters.
He gave attention to the working out in his own mind of a
system of finance suitable for the Haytiens, to be connected
with the establishment of a national bank to be conducted
under proper safeguards, with power to issue currency and to
carry on a general exchange banking business with London,
Paris, New York, and other commercial and money centres.
At the request of Ramcau he discussed with him his sug-
gestions for the organization and maintenance of such a bank.
Negotiations ensued between them having for its object by
Rameau the inducement of Mr. Lazare to give up the presi-
dency of his steamship company, and the management of his








railroad, and move his family to Hayti and personally under-
take the establishment and management of the bank, the plan
of which had formed the subject of their discussions.
Their negotiations resulted in an agreement that Mr. Lazare,
in consideration of important concessions, which were then
satisfactory him, undertook to give up all his other engage-
nients and act in the establishment of the bank, and, having no
reason to believe that Rameau would not act in good faith
throughout the matter, he set about the same.
The agreement was reduced to writing and was laid by
Ramean before the legislative chambers and the same was or-
dained by the latter and given the effect of statute law.
The agreementt as engrossed was interchangeably executed
with much of form and ceremony before the Government no-
tary and was duly certified by the American Minister.
The prominent features of the contract were:
1. The grant by the Haytien Government to Mr. Lazare
for thirty years of the exclusive right to establish a bank to
be called The National Bank of Hayti."
2. The capital of the bank to be three millions of dollars to
be divided into shares or obligations or both.
Of this the Governmvnt agreed to subscribe to the bank as
a shareholder one million dollars, the full amount of which it
engaged to pay at the offices, and to deposit in the vaults of
the principal bank on the completion of the organization being
duly certified.
In consequence of the due making of said deposit, Mr.
Lazare on his personal guaranty took the charge of and re-
sponsibility for the balance of the shares or obligations to be
issued by him for his account and that of his co-associates,"
and engaged on his part to pay at the offices of the principal
bank, to be deposited in its vaults, the sum of two million
dollars, to make the total amount of the metallic funds, which
was fixed at three millions of dollars.
3. During the period of concession the Government not to








grant to any other persons or company any privilege for the
establishment of similar institutions.
4. The bank to have the right to put in circulation notes to
the amount of three times the metal in its vaults, such notes
to be legal currency in Hayti.
5. The counsel of administration of the bank to he com-
posed of the directors of the bank and an officer of the Govern-
ment appointed for that purpose.
6. In addition to the ordinary business of a bank of circn-
lation, the transactions of the bank to extend to loans on de-
posit of merchandise and the issuing of bills of exchange, and
might embrace manufacturing and commercial enterprises,
public works and especially advances on the security of pledges
or on mortgages, in conformity with the statutes, (of the bank
to be adopted.)
7. The Government not to issue any paper money during
the existence of the contract, the paper of the bank alone to be
legal currency in the Republic.
8. The bank on its part formally engaging to supply on de-
mand of the Government the annual budget voted by the'leg-
islative chambers, the reimbursement to be secured upon the
total amount (" montant ") of the custom receipts (as shall be
agreed on) to be applied upon the payment of the same. That
the custom duties may be collected by the bank and its branches
in all the ports of the Republic, should the Government recog-
nize the occasion.
9. The Government to pay for constructing the bank build-
ing and warehouse a sum limited to $200,000, to be considered
an advance on account of disbursement for first expenses ; the
amount to be put to the credit of the Republic, to be reim-
bursed in proper time and place with interest, as agreed. The
building and warehouse to go to the Government at the end of
the thirty years.
10. A subsidy to be paid by the Government to the bank
during the first three years of its existence, out of the customs
receipts, of $50,000 every half year,- viz., $300,000 in all.








11. There was accorded to Mr. Lazare twelve months within
which to start the principle bank; that is to say, that in seven
months the entire materials necessary for the construction of
the said bank and of the warehouse should be delivered in Port-
au-Prince, and that four months thereafter the buildings above
mentioned should be finished, and that at the expiration of the
last month the completed establishment should be in full opera-
tion.
The non-fulfilment of this last condition in the prescribed
twelve months (even though these works should have been be-
gun) shall have the effect of nullifying the contract, and the
Government to be free to act as it shall please.
This first contract was dated September 2d, L874. It was
duly approved by the Haytien Legislature, the negotiation in
respect of it having occupied over two months.
Mr. Lazare thereupon went to New York and closed his con-
nection (very much to his disadvantage) with the West India
Steamship Company and the Indiana and Illinois Central Rail-
road Company, and devoted all his time and energies to the
affairs of the bank.
He there made the arrangements for the construction of the
bank building and the warehouses, including the shipment of
the material; selected the designs, and ordered the engraving
of the currency ; prepared prospectus collating the resources
of Hayti as affecting the bank and the banking business to be
carried on. Much time and labor was necessarily spent in re-
gard to the plans and estimates for the bank, and in consult-
ing and dealing with architects and material men in regard
thereto.
As quickly as circumstances allowed he went to Europe in
regard to the financial relations of the bank, leaving an agent
representing him in New York for perfecting the arrange-
ments there upon which he had been working.
He sailed for England in the month of November, 1874.
When lie reached London and Paris he devoted himself to
financial consultations, negotiations, and arrangements, as








well as all the other necessary preparations for operating the
hank.
When in consultation with prominent bankers he was
strongly advised that the proposed sum of $3,000,000 for
capital would be largely in excess of any immediate or early
necessity, and upon their advice he returned to IIayti to sug-
gest that such reduction be made by mutual consent.
He also, in view of the fact that his labor and outlay in and
about his preparations were much greater than he had antici-
pated, determined to press upon the Government a claim that
further concession be made to him by amendment of the con-
tract.
He arrived in Port-au-Prince in the month of April and at
onec put himself into communication with Ramoau. The latter
appeared to be still solicitous for the establishment of the
bank.
He received the suggestions of Mr. Lazare, and after dis-
cussion running through many days lie agreed to modifications
of the agreement and the same were reduced to writing and
interchangeably executed and delivered with the same form
and ceremony as in case of the original contract.
The modifications were made and dated May 11, 1875, and
were as follows:
1. The bank should nt be called on to advance to the Gov-
ernment more than what would aggregate at any one time a
million dollars.
2. The capital of the bank to be reduced to $1,500,000 in-
stead of $3,000,000. The Government to pay in $500,000,
.Mr. Lazare $1,000,000. The residue of the $3,000,000 to be
called in subsequently according to the wants of the establish-
ment.
3. The Government guaranteeing ten per cent. per annum
dividend to shareholders for a period of five years.
4. The $300,000 subvention granted by the Government in
the original contract to the bank to go instead to Mr. Lazare
in consideration of his payment of the preliminary expenses.








Also the .S,-!Ilii which the Government pay for the build-
ing and furniture to be abandoned to Mr. Lazare. Thus mak-
ing the bonus to 3fr. Lazare 8500,000.
This encouragement is stated in the modifications to be
"considered due in good faith to Mr. Lazare, considering that
the expenses which he is obliged to make greatly exceed the
amount at first estimated by him." It also served to measure
the value of [fr. Lazare's concession as far as the Republic of
I ayti is concerned.
When Mr. Lazare was then in Hayti the national bank pro-
vided for in the agreement as modified was duly organized-by
mutual arrangement of himself and the Government. The
instrument of organization, being called the statutes of the
bank, was signed in behalf of the Government by Ramean,
Heurtelot and Execellent, and by Mr. Lazare for himself.
By the terms thereof the $500,000 of bonus was to remain
with Mr. Lazare as his own property, and not to fellow the
banlk, the latter accepting all the obligations of the contract as
modified, and including the obligation to turn over the build-
ing to the Government at the end of thirty years.
Upon May 22, 1875, the organization of the bank was duly
certified by the Government at the head of the Government
newspaper Le Moniteur."
In the announcement was contained the statement that the
local directors will be named later.
Thereupon Mr. Lazare left Hayti again and proceeded to
London and Paris to perfect his arrangements.
Up to tile month of May, 1875, the then existing Govern-
ment of Hayti had held control without any appearance of
threatened outbreak, such as had successively removed every
Government in that country from the time it had been under
French control. The proposed bank would under a continua-
tion of such circumstances have been greatly for the advan-
tage of those in power. It would have simplified and unified.
the currency, and set in operation machinery for a smooth








working of the financial affairs of the country and the Gov-
ernment.
The foreign merchants alone, who up to this time had done
all that was done of banking, would have opposed it. In time
of peace and quiet their opposition was of comparatively little
consequence, and it was very desirable for the Government to
improve and reform the financial condition, which is described
by Minister Bassett as follows:

President Domingue on his accession to power found the
finances exhausted, the French debt, that standing burden to
Hayti, in arrears, the army unpaid, the country staggering
under interior debts and floundering generally in financial em-
barrassment."
U. S. Foreign Relations, 1875, p. 684.

After the execution of the agreement of modification, and
after the announcement of the organization of the bank, mat-
ters materially changed with the then existing Haytien Gov-
ernment, and affected its relations with Mr. Lazare and the
bank, and also with everything American.
During the month of May, Domingue and, Ramean began
to suspect certain individuals of disaffection to their rule.
The persons suspected were Pierre, Brice, and Boisrond Canal.
The last named was the most important of the three, as is
evidenced by the fact that subsequently he became the sue-
cessor of Domingue as president of Hayti.
Short and characteristic work was made by Ramean of
Pierre and Brice. A force was sent to arrest each of them.
They each knew what that meant with Domingue and his
Vice-President, viz., an immediate and cruel death. They re-
sisted, but were killed in their resistance.
A third force was sent to arrest Boisrond Canal, who lived a
a few miles outside of Port-au-Prince. He, for the same rea-
sons, made resistance, and was able to make his way to the
residence of the United States Minister, and having obtained
entrance without previous permission from the Minister, he de-








manded asylum there. This was equivalent to a demand that
the Minister should not thrust him out of his house into the
hands of the Haytien soldiers, who were awaiting him outside
of the house, and who would, according to Haytien custom in
such cases, have butchered him then and there.
Ordinary feelings of humanity, as well as compliance with
a custom which had grown up among the official foreign rep-
resentatives there, induced Mr. Bassett, the American Minister,
to accord to him the protection demanded.
Thereupon the Government made demand for the expulsion
and exclusion of the fugitive from Mr. Bassett's house.
This demand was made upon Mr. Bassett in Hayti, as well
as upon the State Department in Washington, through Mr.
Preston, the Haytien Minister.
Rameau well understood that Mr. Bassett, after having
allowed asylum to Canal when he first obtained entrance, could
not changed his course of conduct and expel him or deliver
him to the Haytien officials without orders from Washington.
The principal communication upon the subject, therefore,
was between Mr. Preston and Mr. Fish in Washington.
The Haytiens were very solicitous in respect of the answer
to be received from the State Department, and until that was
received Rameau deemed it politic to counsel moderation and
restrain any undue exhibition of feeling toward the United
States and American citizens and interests.
Prior to June 4, 1875, (For. Roel. 1875, p. 701,) Mr. Pres-
ton had received his answer. The United States Government
did not approve the original conduct of Mr. Bassett in allow-
ing asylum to the fugitive, but refused to direct his surrender,
except upon assurance that he be allowed to leave the country
without molestation.
The indignation and malice of Rameau against America and
Americans then broke bounds, and from that time the opening
of the bank was in his mind never to be allowed, and faith was
to be broken by the Haytien Government with Mr. Lazare.








This determination upon his part was also helped out by the
threatening state of affairs among the Haytiens themselves.
Ever since they have established a government of their own
they have in one respect been among the nations a burlesque
upon sovereignty.
No person has been allowed by them to die in his bed at the
head of the nation.
Revolutions have succeeded revolutions, and administrations
after administrations have successively succumbed to armed
force on the part of insurrectionists, the alleged patriot insur-
rectionist of one day becoming the alleged fugitive tyrant of
the next.
Even Boisrond Canal, who succeeded Domingue, has since
given place to Salomon, the present President. Domingue
deposed Saget, Saget deposed Salnave, Salnave deposed Gef-
frard, Geffrard deposed Soulouque, and so on back to the
French domination.
These revolutions have been conducted with violence and
cruelty as regards the Haytiens themselves, and with as much
disregard to the persons and property of foreigners as might
be tolerated by the governments to which they" owed alle-
giance, and to whom they naturally looked for protection.
Rameau early in June, 1875, saw the signs of disaffection
toward the Government increasing among the people, and he
became quite solicitous in regard to the tenure of his adminis-
tration.
For the first time he began to look for the favor of the
Port-au-Prince merchants who had opposed the establishment
of the bank, and whose interests were best subserved by the
continuance of instability in the finances. These merchants
had held the Government to great disadvantage when the
latter was in need of money by exacting extortionate rates for
the temporary use of it, reaching in frequent instances from
ten to fifteen per cent. a month.
The conciliation of these merchants was an additional reason








with Rameau for determining to break faith with Mr. Lazare
in respect of the opening of the bank.
Another reason which assisted in determining him was the
unsatisfactory condition of the Haytien national indebtedness,
and he made up his mind that even if no other and personal
reason had set in, the bank project would have to succumb to
a successful composure of that difficulty.
When Mr. Lazare was in Paris and London in June and
July, 1875, lie found indications of the changed intentions of
Rameau.
The Haytien agents in Paris for negotiating the 'required
Haytien loan showed hostility to the bank establishment, and
acted against Mr. Lazare's preparations. The Haytien Min-
ister also showed hostility. Bankers having correspondents in
Hayti informed Mr. Lazare that he was being duped. and that
the bank would never be opened or allowed by the Govern-
ment to be opened. They informed him that the shipment of
specie to Hayti at that time would be idle as well as danger-
ous, and, as far as expense was concerned, ruinous. It was
also apparent that if it were shipped from Europe to Hayti
that was not the natural course of trade and finance, and that
it would have to be shipped back again to make it the basis
for bills of exchange on London, Paris, New York, and other
money centres. Also it was apparent that specie was more
secure in Europe or the United States as a basis for financial
transactions than in Hayti, where revolutions were always in
order and where the sure destiny of every administration was
to be deposed with bloodshed and pillage.
Mr. Lazare in Paris met with a practical and absolute
breach of his contract on the part of R]ameau.
Article 14 of the agreement provided for the pledge of the
customs to the bank to secure the amount of the annual budget
which the bank contracted to advance to the Government.
When Mr. Lazare was in Paris lie found that three grants
of the same duties had already been made by the Haytien
Government to their creditors.








He found :

Firsf. The double French debt had the customs as security.
Second. For the first loan made through Messrs. Marcuard,
Andre & Co., of Paris, the IIaytien Government had appro-
priated all the general revenues of the Republic, and especially
the export duties on coffee, with the provision that they should
not be reduced below the price fixed ; and
Third. The Government had appropriated as security upon
the now loan negotiated through Sievers & Co. and the credit
general forty-five per cent. of the proceeds of the customs.
Vide, pp. 40, 41, Parliamentary Inquiry, 3d div., No.
1, p. 45, and various other letters.
These constituted a flagrant breach of the contract with Mr.
Lazare, and the difficulty remained unrcmoved up to the time
of the declaration by Rameau of the abrogation of the con-
tract on October 15th, 1875.
This breach was even aggravated, as afterwards ascertained
by Mr. Lazare, by a system adopted by the Haytion Govern-
ment of borrowing at ruinous rates from the resident mer-
chants upon certificates receivable for customs duties.
Mr. Lazare made his arrangements for the transmission of
funds from Europe to IIayti in amount sufficient to enable
him to supply his proportion of capital to the bank in case
Rameau should continue to act in good faith with him in re-
gard thereto.
lie brought over to Hayti with him his family and his
family servants. He also secured while in Europe, and at
considerable expense, the services of a gentleman prominent
as a practical banker to work out the detailed operations of
the bank, and brought him with him, together with competent
assistants. He arrived with his family and business retinue
about the first of August, 1875.
Upon his arrival lie found the unpleasant condition of af-
fairs between the Governments of Hayti and of the United
States still existing.








Boisrond Canal was still in asylum at the house of the Amer-
ican Minister, and diplomatic correspondence of a pointed
character was still in progress between the Governments both
in Port-au-Prince and Washington. Rameau was also uneasy
in respect of his position and that of his uncle. An insubor-
dinate spirit was cropping out all through the country.
Rameau had prohibited the newspapers from publishing the
names of the local directors of the bank, and never after al-
lowed them to do so, nor to publish any advertisement in the
interest of the bank.
Mr. Lazare's first visit to Rameau forced upon him the un-
pleasant conviction of the latter's intended bad faith. His
tone was entirely changed.
The bank having been organized in May previous, and it be-
ing competent that under the contract the Government share
of the capital, 8500,000 in metallic funds, should be deposited
therein at once, Mr. Lazare demanded of Ramean that he
should deposit the same, he deeming that such deposit might
serve to a certain extent as an evidence of good faith so as to
justify him in making the corresponding deposit of $1,000,000
in case the difficulty in respect of the double pledge of the
customs duties should be removed or adjusted.
His answer was evasive and unsatisfactory.
Ramean in a characteristic manner determined not only to
break off the contract in regard to the bank, but to bring his
cunning to bear in the manner of it, so as to avoid if possible
the demand which would be made for reparation; in fact, to
go through a sham and a form of complying with the terms
of the agreement, and to endeavor to charge the fault upon
AMr. Lazare.
Towards this end he devised and undertook to carry out a
shallow scheme, befitting by his character and methods.
Hle extended the time named in the contract within which
the bank building was to be completed and everything to be
ready for operation until October 15th, 1875. The representa-
tives of the Haytien Government appear to labor under the








impression that this delay was at the special instance and re-
quest of Mr. Lazare, but we fail to find where this appears,
although the IHaytien Government admit it in the Pro-
tocol.
After the completion of the bank building there were two
keys procured which could open the door and procure en-
trance. One of these was kept by Mr. Lazare, and the other
by the Government.
About September 1st, 1875, the Government obtained from
Mr. Lazare the key which he kept, thus obtaining absolute
possession of the bank, to the exclusion of Mr. Lazare.
Upon the 15th October, without notice to Mr. Lazare,
Rameau appointed a commission, including several of his
newly conciliated friends, the merchants, to certify that on
that day the Government put into the bank building the sum
of five hundred thousand dollars. This was done by him with
the intention of having the bank arrangement broken up by a
declaration that the contract for the same with Mr. Lazare
would thereafter be held by the Government to be null and
void.
On the said 15th October, 1875, some boxes in which soap
had originally been packed were taken into the bank building,
but Mr. Lazare having had no notice to attend, and having no
key for access, the proceeding was entirely ex part.
Mr. Lazare knew nothing about what was going on in the
premises until the official statement was made that the IHaytien
Government abrogated the contract.
The manner of the movement shows that it was not intended
or at all contemplated to be a business transaction.
Although notice to attend was not sent to Mr. Lazare, such
notice was sent to ten selected witnesses. Some of these were
native HIaytiens, and others were Ramean's new friends, the
merchants, who were the enemies of the bank movement.
These ten were called in to act as witnesses to the fact of
the deposit by the Government of the 8500,000 in metallic
funds which by the contract was to be deposited by it as a








condition precedent of the deposit to be made by Mr. La-
zare.
These witnesses, upon request of Ramcau, signed a paper in
which they state that after taking note of the contract and
the modifications brought to same, we have proceeded to the
verification of which mention has been made hereabove, and
have found that the capital to be furnished by the Govern-
ment for the opening of the National Bank of ilayti has duly
been deposited, amounting to the sum of five hundred thou-
sand dollars, and which have been deposited in the vaults of
the National Bank.
We have then taken note that Mr. A. H. Lazare had
neither previously nor during the running of the fifteenth day
of October made any deposit of funds, .notwithstanding the
delay which had been granted him for the execution of the con-
tract by the Government of Hayti."
This statement was called for by Rameau for the purpose
of working a fraud upon'Mr. Lazare, and was in itself, as was
everything else begotten of Rameau, a fraud.
The contract called for the deposit of metallic funds. This
was fully recognized and understood by the Haytien officials,
and yet the commissioners do not certify that $500,000 was
deposited in metallic funds.
The reason why they did not so certify was because there
was no deposit of $500,000 in metallic funds, and they were
unwilling to certify for Rameau that there was.
The boxes put into the bank building did not contain more
than ..,:;:,,:., of metallic funds, viz, 8215,000 of silver and
$20,500 of gold. Any form or ceremony by Ramean of )put-
ting in more than that was a sham. If anything meore was
put in it consisted of I 0 U's or other papers or tickets hav-
ing within them no substance or sincerity.
Even the 8235,000 was a sham, because it was not put there
to stay under any circumstances. It did nor belong to the
Government. Collateral statements show that the Govern-
wuent had on hand at that time no real funds of any kind, and
2-L








whatever of coin was then put in belonged to Rarneau or Do-
mingue and was only put in to help out the fraud.
The reliance of the Haytien Government for money at that
time was upon its loans in France. They supplied themselves
thus at runious rates as they best could. The rates were of
little consequence compared with obtaining the money.
In September, 1874, it obtained a loan of ten million francs,
(or $1,875,000,) and cancelled the same four months after-
wards by paying for it fourteen and a half millions of francs,
thus incurring a loss of about a million dollars. This fourteen
and a half millions was obtained through a new loan negoti-
ated for sixty-eight million francs, (or $12,000,000.)
This last loan was arranged through Messrs. Sievers & Co.,
a house doing business in Port-au-Prince. This house had
been speculating heavily in coffee, and had incurred great
losses and was then in precarious condition. The proposal by
this house for raising the loan was an effort for rehabilitation.
It was unsuccessful as such, as the house failed in the autumn
ensuing. Le Moniteur, the official journal, announced the con-
tract with Sievers & Co., on 1Iarch 13, 1875. The Cr6dit
Gendral Franqais of Paris undertook its management there.
Notwithstanding all efforts, the putting out of the loan proved
a failure, and instead of sixty millions of francs expected to be
raised, only 21,842,235 francs could be placed, and on the 10th
day of August, 1875, the Haytien Government had used up all
of it except 397,082 francs ($79,420.48) which it had then to
its credit at the Credit G6neral Franqais, while it still remained
pressed by creditors at home for a much larger amount, and
was substantially without any other resources.
The ownership, or, at least, the asserted ownership in Ra-
meau of the '2:;:.,>i.n,, which was put into the bank bui, ling,
was made manifest when the revolution was in operation which
overturned the Domingue administration. Ramean then un-
dertook to ship the money away as his own, and the popu-
lace stole the money, each one making off with what he could
secure.








The fact is that in order to carry out the formula of fraud
upon Mr. Lazare, Ramean went from Port-au-Prince to the
north part of Hayti to raise as much money as possible with
which to go through the form of deposit, and was unable to
raise more than the sum of $235,500 above mentioned. In
this errand he occupied a good portion of the time between
September 1st and October 15th, which it is suggested was
accorded as a delay to Mr. Lazare.
The failure of the Government to deposit the whole $500,000
in metallic funds takes from it the ability to raise even the
technical question against Jfr. Lazare, but notwithstanding
that they declared to Mr. Lazare the contract to be at an end,
and thus violated the same directly and finally.
Nothing more remained for Mr. Lazare to do in the matter,
but to seek his reparation.
Before he had opportunity of presenting the matter to his
Government the relations of Hayti and the United States be-
gan to assume a more friendly aspect. The Government of
Domingue began to feel more reassured in. its position, and
not so reliant upon the merchants, and the extradition of
Boisrond Canal became in the mind of Ramean a more advis-
able policy than his butchery, and by arrangement with the
United States Government Canal was embarked for Kingston.
This change of relations began to draw Rameau into reflec-
tion upon his treatment of Mr. Lazare, and he began to feel
his inability to justify hib conduct to Mr. Lazare's Govern-
ment.
He thereupon opened negotiations with Mr. Lazare for a
composure of the grievance, and after considerable discus-
sionl agreed to a solatium which, if carried out, Mr. Lazare
decided to accept, rather than appeal to his Government.
Rameau agreed to pay Mr. Lazare $117,500, fixed and
agreed upon by them as the amount of disbursements made
and incurred by the latter in his preparations for the estab-
lishment of the bank. He also agreed to give to Mr. Lazare
a contract for the erection of a national palace at Port-au-








Prince at a gross cost of $350,000, which would have offered
a profit of $100,000. Hie also agreed to commission Mr. La-
zare to take the initiatory steps toward the arrangements for
the purchase of two iron-clad steamers for the Haytien navy.
He also agreed to make Mr. Lazare the consul for Hayti in
the city of New York, a position supposed to be worth about
$6,000 a year.
He also agreed to pay Mr. Lazare the agreed price ($20,000)
of an equestrian statue of Domingue which he had obtained
Mr. Lazare to order when he was in London, and which is
now in Mr. Lazare's possession.
And in addition to the above matters he agreed to give Mr.
Lazare two special orders for :>i.i, each.
These concessions were agreed upon in reparation of the
wrong done Mr. Lazare in order that an appeal might he pre-
vented from Mr. Lazare to his own Government next time.
They operate as a confession of the validity of iJr. Lazare's
claim, and a bar to any denial thereof.
If they had been honestly carried out by the Haytien Gov-
ernment Mr. Lazare would have accepted them in satisfaction.
It is believed that Ramcau intended to carry them out.
Mr. Lazare and others authorized by him pressed upon Ra-
meau the carrying out of the terms. He, however, postponed
and procrastinated, never, however, after that denying the
Haytien Government's responsibility for redress.
The terms, however, were never carried out beyond the de-
livery of the two orders for $5,000 each and the appointment
of Mr. Lazare as consul in Now York, and the'allowance to
him of the enjoyment of that position for six days, during
which lie made disbursements about the office for which he
has never been reimbursed.
And here comes in another element which has been inci-
dent to dealings with Hayti as a sovereign power.
As above shown, at short intervals, those temporarily at the
head of the Government have been deposed to make room for
the heads 6f a new revolutionary party.







The cruelty and wanton destruction of life among themselves
which has always accompanied these changes, have been toler-
ated by the other governments of the world, but they have
never been recognized as satisfactory reasons for affecting the
treatment of citizens and subjects of such other governments,
nor for injuries to their interest by breach of faith.
In the present case Mr. Lazare is asked to suffer by reason
of one of these characteristic revolutions. On the 17th day of
April, 1876, after Rameau had procrastinated the carrying out
of his promise to Mr. Lazare to make reparation for the injury
he had done him, an uprising took place, having for its object
one of the usual violent changes of administration. As usual
it was accompanied by bloodshed and brutal violence and de-
struction of life.
Dominguo succeeded in embarking on board a French man-
of-war, and escaped to St. Thomas. Rameau was murdered
while walking arm in arm with the French and Spanish Min-
isters, who were escorting him under their protection to the
French legation.
Boisrond Canal was made the successor of Domingue as
President.
He was the same person to whom the American Minister
gave asylum in 1875, and for whose expulsion from the Minis-
ter's house, which would have resulted in summary butchery,
Rameau and his Minister in Washington were clamoring.
One of the frst acts of the Ilaytien Government after the
expulsion of Domingue and murder of Rameau, was to repu-
diate the arrangement made for reparation to iMr. Lazare.
The same Minister who had just been demanding the with-
drawal of asylum from Boisrond Canal, which would beyond
doubt have led to his immediate murder, notified Mr. Lazare
in behalf of the new Government, that the latter repudiated
all obligations of Hayti to him, made by the former adminis-
tration.
This conduct left Mr. Lazare no recourse except to lay his
treatment before his own Government. He did 'so and the








same was made the subject of prompt communication by the
State Department.
After much procrastination and attempted avoidance by the
Haytien Government, the reclamation upon the demand of the
United States has been made the subject of the arbitration now
pending.
Claim is made in behalf of Mr. Lazare for $500,000 and in-
terest from October 15th, 1875.
SAMUEL F. PHILLIPS,
Counsel for United States.
FOSTER & THOMPSON,
Counsel for Claimant A. II. Lazare.

The ARBITRATOR. On page three of your statement there
are extracts describing Rameau; was that part of the corres-
pondence between the two Governments ?
Mr. TnHOMsoN. The first passage is contained in a letter from
the American Minister in Hayti to the Secretary of State, not
relating especially to this claim. There are other extracts
from a work published by St. John, on Hayti; he was for a
long time Minister in Hayti.

JOHN JOSEPH AUDAIN,

a witness on behalf of the claimant, being duly sworn, testified
as follows:
Examined by Mr. THnoMsoN:
Question. Where do you reside ?
Answer. At Port-au-Prince.
Q. How long have you resided there ?
A. Fifty-two years.
Q. Are you a native of Hayti ?
A. I am.
Q. What official positions have you borne in Hayti ?
A. I was three times deputy, once constituent, once sena-
tor and was Treasurer-General of the Republic, as well as







Minister of Finance; at present I am Consul-General and
Charge d'Affaires of Liberia.
Q. You are also the editor of a newspaper ?
A. Yes, sir; for the last twenty-five years.
Q. What is the name of the paper ?
A. Sometimes it is called Le Peuple," and sometimes Le
Commerce; I am compelled to change the character of my
newspaper when things get rather hot; then I take the name
of Le Commerce," so as not to mix too much with the poli-
tics of the country; nevertheless, I have been exiled three
times for publishing that paper.
Q. Have you always taken an active interest in the public
affairs of Hayti ?
A. Always.
Q. Were you acquainted with President Domingue during
his incumbency ?
A. I helped him with my newspaper.
Q. Then you are well acquainted with him ?
A. Yes, sir.
Q. Were you also well acquainted with the Vice-President ?
A. I knew him, but not so well as Domingue.
Q. The Vice-President was his nephew, wasn't he ?
A. Yes, sir.
Q. What relations did Rameau bear to the Government
and people of Hayti and to his uncle, the President ?
A. He was more the President of Hayti than Domingue
was himself ; he was not Vice-President of the republic, but
he was only Vice-President of the Council of Secretaries of
State.
Q. What do you say in regard to his public dominion over
the affairs of Hayti ?
A. I say he was more the President than Domingue him-
self ; lie was more intelligent and could hold the position bet-
ter than his -uncle, who was very poor in mind.
Q. What position was conceded him by the legislative
chambers ?







A. Domingue asked the two chambers to recognize him as
Vice-President of Hayti by introducing into the constitution
of the country an article to that effect; the lower chamber
voted for it; at that time I was senator; Domingne came to
my house, begging me to have the majority of the senate,
which was in my hands at that time, to approve what the
lower chamber had done, but I refused, and the following day
the law voted for by the lower chamber for the introduction
of that amendment into the constitution was defeated by the
Senate ; Septimus Rameau remained Vice-President of the
Council, but not of the republic of Hayti.
Q. How far did that refusal on the part of the Senate affect
his dominion over affairs ?
A. It affected it very little.
Q. He was the ruling spirit of the whole Government ?
A. He was.
Q. Do you remember Mr. Lazare when he was in Hayti ?
A. I do.
Q. Do you remember any directions given by Raineau to
you regarding the publication of the statutes of his bank.
A. Well, Lazare came to'me, as printer,.and begged me to
print the statutes of the bank; but Rameau sent me word by
one of his relatives not to print the statutes ; so I did not print
them.
Mr. THoMsoN. If your Honor please, the statutes of the
bank are the by-laws.
Q. Was this when Lazare was there in the summer of 1875 ?
A. Yes, sir.
Q. Were you one of those gentlemen who were selected by
Rameau to attend at the bank building on the 15th of Octo-
ber, 1875 ?
A. I was one of them, selected by the Minister of Finance
Excellent.
Q. And you continued in the building ?
A. I did.
Q. Was Lazare there ?







A. No.
Q. Was Mr. Ramean there any part of the day ?
A. IHe was there in tile morning.
Q. Had certain papers been prepared for the signatures of
tihe gentlemen present ?
A. The paper was made at the bank itself.
K Mr. BOUTWELL. Why should not this witness state what ac.-
tually took place without being led ?
WITNESS. We went there in the morning abont ten o'clock,
and remained there until five o'clock, and there was pre-
sented to us $235,500; $215,000 were in silver and $20,500
in gold, whi(h gold I counted myself. The rest was counted,
I believe, by some other of the members of the commis-
sion. At five o'clock the whole amount was not deposited ;
that is, $500,000, but some bonds' to the order of the Gov-
ernment were deposited by Tweedy Peters & Company,
Sievers & Company, Ocutts, and others, which constituted
I 0 U's. This made the whole sum amount to 8500,000.
Q When you speak of bonds just describe what kind of
paper you mean ?
A. They were promises to pay to the order of the Govern-
ment, within fifteen days, the amount of so-and-so, $15,000 or
$20,000 or $100,000.
Q. Thece people were merchants there ?
A. Yes, sir.
Q. Sievers & Company were the people who were negoti-
ating the loan ?
A. Yes, sir.
Q. They failed, did they not, in the autumn ?
A. Yes, sir; some time after.
Q. What do you know about the pledge of the customs du-
ties for obligations of the Government in Hayti ?
A. I know that the duties were given to Mr. Lazare.
Q. I mean others than Mr. Lazare ?
A. Of course the Government was compelled to give the
same part of the customs revenues for the new French loan,







which was made with Mr. Mareuard & Company by the min-
ister of Hayti in Paris.
The ARBITRATOR. Are you speaking of your own knowledge ?
WITNESS. I am, sir.
Mr. TnosisoN. What do you know of the issue by the Gov-
ernment to merchants of certificates in anticipation of the im-
portatien or exportation of goods, payable in customs duties ?
A. Well, the Government, when it wants moneys, always
goes to merclfants and asks them for money, and then it gives
the export duties or import duties in compensation for the
moneys taken from the merchants.
Q. Was this the case during the pendancy of Lezare's con-
tract ?
A. Oh, it was done under Domingue, under Canal, under
Salomon, and under every government.
Q. To what sums did this amount up ?
A. According to the wants of the Government; sometimes
four or five or six hundred thousand dollars; sometimes a mil-
lion; whenever they want money they send for it.
Q. In September, 1875, what was the condition of the finan-
cial affairs of the Government, as far as you know ?.
A. As now, always embarrassed.
Cross-examined by Mr. DE CHAMBRUN:
Q. Please look at this paper and tell me whether you know
the seal and the signature ?
The WITNESS. [Examining the paper, which was afterwards
marked by the Arbitrator.] It is the seal of a notary in Port-
au-Prince.
Q. Describe to the Arbitrator what paper I handed you.
A. This is a contract between the Government of Hayti and
Mr. Lazare.
Q. Do you know the notary or his signature ?
A. I know him, because he is married to my wife's cousin.
Q. Do you recognize the signature as correct ?
A. I do, sir; he is my private notary, too.







Q. You recognize this paper as a correct copy so far as the
extrinsic evidence goes ?
A. I think it is a correct copy, but to know whether it is
absolutely I would have to read it; but I know the paper is
lawful and legal.

DAVID FRANCIS BURKE,

a witness called on behalf of the claimant, being duly sworn,
testified as follows:
Examined by Mr. THOMsON:
Question. Where do you live ?
Answer. At Port-au-Prince, Hayti.
Q. How long have you lived there ?
A. Twenty-eight years.
Q. You are a native of Jamaica ?
A. A native of Kingston, Jamaica.
Q. Have you been in active affairs in Hayti ?
A. I have been engaged in commerce there.
Q. But you have never held official position ?
A. No, never.
Q. Were you well acquainted with Domingue ?
A. Yes, sir; very well acquainted.
Q. On intimate terms with him ?
A. On very intimate terms.
Q. Also with Rameau ?
A. Yes, sir.
Q. State the relations which Rameau bore to the Govern-
ment and also to his uncle.
A. Rameau was the Vice-President of the Council of the Sec-
retaries of State, and he was de facto President, for you could
get nothing done by the President without addressing yourself
directly to Mr. Rameau, and through him everything was done.
Q. Are you acquainted with Mr. Lazare ?
A. The very day he arrived I made his acquaintance
through Mr. Basset, the American Minister.







Q. That is where Mr. Lazare resided ?
A. Yes, sir.
Q. You are acquainted generally with the fact of Mr.
Lazare negotiating with respect to a bank ?
A. Yes, sir; I have been with Mr. Lazare on several occa-
sions to Mr. Rameau on this subject.
Q. In what capacity ?
A. At first I got a letter from the Vice-President, in which
he asked me to look for the gentleman who came out to build
the bank, and any advances I might make would be paid on
the arrival of Mr. Lazare; I had everything arranged, and
had the superintendence of the building in the absence of
Mr. Heuvelman ; Mr. Ramean named me to look after his
interest in case of having anything to do in connection with
the bank; at the same time, being very friendly with Lazare,
I had several communications from him, and acted for the
whole three.
Q. What were the relations between Huvelman and Lazare?
A. He was to build the bank under Mr. Lazare's arrange-
ment with the Government.
Q. Heuvelman came out from Now York ?
A. Yes, sir, afterwards.
Q. With the view of erecting the bank building ?
A. Which he did.
Q. Then you are the mutual friend of the three parties ?
A. Yes, sir.
Q. You were acquainted with everybody and knew their
relations ?
A. Yes, sir.
Q. Will you be kind enough to state what took place when
you were present in Mr. Ramean's chamber in the summer of
1875, during the absence of Lazare-I mean his last absence
-from Hayti ?
A. Mr. Lazare, when he first came out, was on very friendly
terms with Ramean ; in fact, the President's carriage was
often sent for him when they wanted him ; after the last trip










of Lazare to Europe, Rameau became quite cool and did not
want to receive him and do things as he usually did.
Q. I refer now to a time when Lazare was still absent ; that
is, before he arrived in August.
A. I went to see Ramcau on business; when I went in I
saw sitting beside him on a sofa the Minister, Mr. Fort, and
Mr. Medoux, also one of his Ministers; they were in conver-
sation; when I got in I sat on a chair at the side of the door;
Mr. Mcdoux asked Mr. Ramean whether lie had heard from
Mr. Lazare ; he said no, and lie didn't care to hear from him;
the other then questioned him about the bank : he said lie had
no intention of continuing the affairs of Lazare with the bank;
he intended to do it himself, for he had all the means of car-
rying it out himself.
Q. Be good enough to state whether at that time a change
was made in the method of Rameau's dealing with you in con-
nection with building the bank ?
A. Yes, sir; formerly I used to go there and r, ceive money
weekly to pay the expenses of the laborers, and I always gave
a receipt, signing for Lazare; I went a few days after with
a receipt for $2,000, in the same form, in dupligite, and lie
refused to accept it; lie told me I must go back and change
it, and make the receipt out in my own name, which I did,
and he paid it; after that he would accept no receipts except
those made in my name.
Q. State what you know in regard to any agreement of
reparation to Mr. Lazare on the part of Ramean subsequently
to October 15, 1875.
A. When this difficulty arose between Mr. Lazare and Mr.
Ramcau and the Government of Hayti, Mr. Basset, the Min-
ister, wanted Lazire to make a protest against it, and advised
it; but Rameau sent for me, and asked me to speak to Lazare
and ask him to see whether they could not come to some ami-
cable settlement; I went there with Monsanto; we saw Ra-
mean and spoke over the matter with him ; Rameau consented
to give to Mr. Lazare $117,000; he would give also to him








$20,000 for the statue of Domingue, an equestrian statue,
which I believe is still there; he also said he would give
$10,000 for other expenses to Lazare, and would appoint him
as Consul-General here, and that he would also give him two
ironclads to build; also the palace for $350,000 and some
other things, and told us that Lazare would make much more
out of that than in the bank; I advised Lazare, rather than
have any difficulty with the two Governments, to accept it,
and Lazare did so, so much so that between Basset and myself,
who were very friendly, there came a coolness, because he
thought I advised Lazare that way, and he wanted him to go
the other way.
Q. What do' you mean when you say that he was giving
Lazare a palace for $350,000 ?
A. I mean the building of the palace ; the contract to build
it and to furnish two vessels of war.
Q. State what you know in regard to what was done on the
part of Lazare towards carrying out this promise of repara-
tion; that is, as to dunning Mr. Rameau for it.
A. After Lazare consented he left there and came on here;
the next thing a heard was that it was revoked by the over-
throw of the Government; the consulship was revoked.
Q. Did Lazare leave immediately ?
A. He remained some time with a view to having the ar-
rangement carried out ; nothing was carried out, but Rameau
told him to go and it would be sent after him.
Q. Did you go to Rameau to obtain the carrying out of this
contract for Lazare ?
A. I did; repeatedly.
Q. What did Rameau say ?
A. He always said lie would carry it out; I think lie would
have carried it out if he had not been killed.
Q. At the time we are speaking of, what had become the
feelings of Rameau toward the United States ?
A. They were fearful.
Q. What had they been at an earlier period ?







A. They had been very friendly, but when Canal entered
into the house of Basset and t:>ok protection there he wished
Basset to force Canal out ; he then got into a regular turmoil
with Basset, and on one occasion they even came to damning
each other, but Raimieau afterwards went down stairs and bid
Basset good-bye.
Q. You were with Ramean ?
A. 0 yes, sir ; after Mr. Lazare's affair, I was charged with
other affairs.
Q. After Canal embarked for Kingston and the trouble was
over, state what occurred.
A. Then things had become more friendly between them,
but Basset always felt the annoyance lie had experienced from
Rameau.
Q. Do you know thAt Rameau appointed Lazare to the con-
sulship ?
A Yes. sir.
Q. Do you know how long that lasted ?
A. I do not think it could have lasted more than ten or
fifteen days ; he hardly arrived here before I got news that lie
was revoked, because Lazare only left a few days,before the
revolution.
The ARBITRATOR. The revocation, then, came under the suc-
ceeding Government ?
WITNESS. Yes, sir.
Mr. Tuo~IPsoN. When this revolution took place what be-
came of Domingue ?
A. He was being conducted by the French and Spanish
ministers along with Rameau; Rameau was killed in the streets
and Domingue was embarked for Kingston.
Q. Were you in Port-au-Prince when Rameau was killed ?
A. Yes, sir; when he was walking arm in arm with the
French and Spanish Ministers.
Q. What became of the $235,000 that were in the bank
building ?
A. In the morning Rameau sent for me and told me that








he had a small schooner that had arrived from Curacoa, and
that lie intended to remove that money, and that I munnt go
and tell Havelman to come with carts and men to meet him at
the bank, and for me also to be there; I told Havelman and
he went after his carts and horses to be there ; but, knowing
as I did, that if he touched that money, the whole affair would
be finished, I didn't go to the bank, but at eleven o'clock I
heard guns being fired about the streets, and the people divided
the money among themselves; they broke into the bank and
removed :dll the money ; they broke open everything and de-
stroyed everything.
Q. Who was the President who succeeded Domingue ?
A. Canal.
Q. When the appointment of Consul was given Lazare do
vou know also that two orders for .$',',I were given to him ?
A. Five thousand dollars.
Q. What became of those orders ?
A. They were not at first sold.
Q. You disposed of them ?
A. Yes, sir; but the whole affair did not realize more than
8900.
Q. Was that on account of the condition and credit of the
Government ?
A. Yes, sir.
lMr. DE CIAMBRUN. Were those orders ever paid ?
WITNESS. Never; I do not believe they have been paid now;
they were put in the Caisse des Mortissements; they remained
there, for they are not paid ; they only pay the interest on the
bonds of that institution, and they do not even pay that regu-
larly; they are behind about 18 months ; these orders are in
the same condition.
SMr. THoso.N. All that was realizable was realized ?
A. Yes, si'r.
Q. You were in the habit of visiting Ramean with Basset ?
A. Yes, sir; very frequently.
Q. You know the relations between them ?







A. Very often Basset wanted to go there, but if I was not
with him he would not go ; he knew I was very friendly with
Ramneau, and he thought that on most occasions Rameau
would favor me with anything.
Q. Do you know what Rameau's disposition was towards
Basset and the United States ?
A. It was very bad at the latter end, so much so that I
heard Basset grow furious, and they actually abused each
other.
Q. That was very undiplomatic.
A. Quite ; but Ramneau kept his temper and walked down
to the door and bowed Mr. Basset out of the office very coolly.
Q. What do you know about the system of the Haytien
Government discounting certificates payable out of the customs
duties ?
A. Well, I do not know that they discount; but they have
a way of borrowing money from the different merchants and
of giving in return a certificate for d6ities payable when the
crop arrives. It may be six months or a year afterwards, ac-
cording to what arrangement they enter into.
The ARBITRATOR. You refer to the export duties ?
WITNESS. Yes, sir; the export duties.
Mr. THOMSON. To what extent are they outstanding ?
A. I cannot tell exactly ; they run up to hundreds of 'thou-
sands of dollars; it is impossible for one merchant to attend to
the whole affair; it is done among five or six.
Q. Do you know anything about the amount that was put
into the bank ?
A. Nothing, except by hearsay ; I did not go there.
Q. 1 do not ask you what the general repute is, but was
there a general repute as to the amount ?
A. Oh, yes, sir.
Q. Were you ever told by Mr. Monsanto as to what was put
in ?
A. I never was.
Q. At the time that Mr. Lazare was in Europe, in the sum-
3-L







mer of 1875, you say that Mr. Rameau changed his methods
of dealing by requiring vouchers to be made in your own name
instead of the name of Lazare; did he also make arrange-
ments with you at that time in regard to doing some work
about the bank by yourself ?
A. He promised me at the time that I should be paid when
the work was completed and my account was made out.
Q. I ask you with reference to his making special arrange-
ments with you about doing some levelling around the bank ?
A. Yes, sir; I had about fifty or sixty men employed daily,
so as to level all round the bank.
Q. That was the time he made that special arrangement
with you to do it yourself, without reference to Lazare ?
A. Yes, sir.
Q. Do you know when Sievers & Company failed ?
A. I cannot tell you exactly ; it was just before that draft
was made.
Q. Was it after the affair of the 15th of October ?
A. Yes, sir.
The ARBITRATOR. With reference to this promise agreed
upon, giving $117,000 and something more, how long a time
after that was it when the revolution took place and Domingue
and Rameau fled ?
WITNESS. Mr. Lazare remained there, I suppose, something
like a couple of months.
Q. Mr. Lazare left before the revolution ?
A. Yes, sir ; just a few days before.
Q. Do you know what Lazare was doing during that two
months in relation to that affair with Rameau ?
A. He was up and down there three or four times a day ;
I was with him, and lie was endeavoring to carry out the ar-
rangement.
Q. Do you know when Mrs. Lazare and family left ?
A. They left before Mr. Lazare ; lie remained so as to get
this thing settled with -Rameau.







Q. That was the time when Mrs. Lizare and family were
shipwrecked ?
A. Yes, sir.
Cross-examined by Mr. DE CHAMBRUN:
Q. What became of the bank building ?
A. It is still there.
Q. Is it completed ?
A. It was completed before the fixtures inside were destroyed
.on the day of the revolution.
Q. Who paid for the building?
A. That I cannot tell you-who paid for the building.
Q. Didn't you have anything to do with the construction
of the building ?
A. I had.
Q. Who paid you ?
A. Mr. Rameau paid me from time to time ; I gave receipts
in the name of Lazare for work done around the bank in ques-
tion.
Q. Do you know whether Lazare filed any protest after the
abrogation of the contract ?
A. Where.
Q: With the Government of Hayti or with the United
States Minister ?
A. No, sir.
Q. You do not know?
A. No, sir.
Q. Have you ever talked with Mr. Lazare on that subject?
A. No, sir; because I do not believe lie did ; he did not file
any to my knowledge.
The ARBITRATOR. If you have nothing further I will ad-
journ this case until Monday next, with the understanding that
it shall proceed then from day to day until its completion.
Mr. THOMsoN. It would greatly accommodate me if you will
make it Wednesday, as I am obliged to go to Albany on Mon-






36

day. If the case is adjourned to Wednesday, I will be better
prepared to proceed with it as your Honor suggests.
The ARBITRATOR. With this understanding, I am willing to
adjourn the case until Wednesday next, the 21st instant,.at ten
o'clock A. M.

Subsequently, upon application of the Counsel for the
claimant and the concurrence of the Counsel for the respond-
ent, the Arbitrator postponed the case of Lazare until Wednes-
day, the 28th inst., at 10 o'clock A. M.










THE AMERICAN AND HAYTIEN CLAIMS
COMMISSION.


THE UNITED STATES
vs.
THE REPUBLIC OF HAYTI.


In the Matter of the Claim of Adolphe H. Lazare
against the Republic of Hayti.


DEPARTMENT OF STATE,
WASHINGTON, D. C., January 28th, 1885.
Pursuant to adjournment, the Commission met at 10 o'clock
A. M.
Present:
The Arbitrator, Honorable WILLIAM STRONG;
Messrs. THOMSON and J. HUBLEY AsHTON, Counsel for the
claimant; and
Messrs. DE CHAMBRUN and BOUTWELL, Counsel for the Re-
public of Hayti.

The ARBITRATOR. It occurs to me, Mr. Thomson, that the
first thing to be shown is the contract. I merely make this
suggestion, for I do not wish to direct the order of your proof.
Mr. THOMsoN. Your Honor is right, and we will do that.
(A written contract was then introduced by the Counsel for
the claimant.)
Mr. BOUTWELL. We do not object to the introduction of this
paper, provided we are permitted to make objections upon an
examination of it.
Mr. DE CHAMBRUN. Of course all these papers are subject
to objections, which may be presented hereafter.








The ARBITRATOR. I do not propose to rule upon the paper
now.
Mr. BOUTWELL. Some of these papers are in French, and of
course translations will have to be made.
The AnRBITRATOR. The translations will have to be made
and accepted, subject to objections which may be raised here-
after.
Mr. THOMsoN. If your Honor please, we first offer in evi-
dence the contract between this claimant and the Republic of
Hayti, together with the translation.
(These papers are hereto appended and marked Exhibit
A.")
Mr. Taoensox. We now offer in evidence the modification
of this contract, together with a translation.
(Those papers are appended hereto, and marked Exhibit
B.")
Mr. THoMsoN. We now offer further modification, merely
relating to the manner in which the keys of the bank were to
be kept.
(These papers are hereto appended, and marked Exhibit
C.")
Mr. THOMsoN. I also offer what are called the by-laws of
the bank, or charter, of which there is an English copy.
(These papers are hereto appended, and marked Exhibit
D.")

ADOLPHE HENRI LAZARE,

the claimant, being first duly sworn, testified as follows:
Examined by Mr. THOMSON :
Question. How long have you been a citizen of the United
States ?
Answer. About 16 or 18 years.
Q. What was your residence in June, 1874
A. New York.
Q. What was your business at that time ?







A. I was in the railroad and steamship business.
Q. State what railroad business you were engaged in ?
A. I was connected with the Indiana and Illinois Central
R.R.
Q. In what way
A. I was largely interested in the securities of the company,
was a director, and one of the executive committee.
Q. To what extent did you have the management of the
affairs of the company ?
A. I had the management of the negotiation of the securi-
ties and attended to matters of the road ; seeing about the
construction of the railroad, etc., and I was at one time man-
aging director.
Q. Immediately before you left for Hayti in that year were
you managing director ?
A. Yes, sir.
Q. Was any salary or pay attached to the office ?
A. Yes, sir ; $6,000 a year.
Q. Give the particulars in regard to the steamship busi-
ness?
A. I was connected with the steamship line as president of
the company.
Q. Of what company ?
A. The New York and West India Steamship Company.
Q. What is the route occupied by that company ?
A. The steamers make trips between New York and Hayti.
Q. How many steamers belonged to the company ?
A. We had about three steamers.
Q. And you were president of the company ?
A. Yes, sir ; I was president.
Q. Was any salary or pay attached to that office ?
A. I had a salary.
Q. How much was it
A. The salary was about $4,000, I think.
Q. Do you remember of going in the summer of 1874 to
Rayti ?








A. Yes, sir.
Q. Tell us upon whose suggestion, and how you came to go.
A. Mr. Preston, the IIaytien Minister in Washington, who
was living in New York, came to see me and told me the Gov-
ernment of Hayti required a loan, and he wanted me to see
whether I could obtain tha loan for the Government of Ilayti.
He advised me to go to IIayti and see the Government in per-
son, and at the same time to look into matters in regard to my
steamship line. To that effect he gave me a letter of intro-
duction, and recommended me to the Government of Hayti,
with letters to Rameau, in which he told them-
Mr. BOUTWELL. Are those letters in existence ?
Mr. TnoMsoN. They were delivered. They were not letters
that he would retain.
Mr. BOUTWELL. Have yon any copies of them ?
Mr. THompsoN. No, sir; there are some letters written by
Mr. Preston, but that was at a little later stage. They are
printed in the investigation made by the Haytien Government
Mr. BOUTWELL. Very well; I do not object.
iMr. THOMSON. Mr. Lazare, allow me to interrupt you, and I
wish you to excuse me for going back again to the subject we
had passed in relation to the Indiana & Illinois Central Rail-
way Company. Explain what that company was, where its
railway was situated, and who your associates were in the com-
pany.
A. The road was running from Indianapolis to Decatur, Ill.
Q. Who were your associates ?
A. Mr. Geo. M. Pullman, of the Pullman Palace Car Co.;
Sydney Dillon, Henry B. Hammond, Mr. Bates, president of
the Bank of Commerce in Boston; about eight or nine alto-
gether.
Q. When did you go to Hayti ?
A. About the 1st of July, 1874.
Q. In one of your company's steamers ?
A. Yes, sir; I took one of our steamers and went to Port-
au-Prince.








Q. What was your object in going to Hayti ?
A. My object was relating to looking after the subsidy of
our steamship line.
The ARBImRATOR. Ask him what he did, and not what was
his object.
Mr. THOMsON. May I suggest to your Honor that it might
be satisfactory to go more into detail in respect not only of
facts, but of motives ?
The ARBITRATOR. We generally judge of motives from
acts.
The WITNESS. It was in relation to the steamship line, and
at the suggestion of Mr. Preston, I went for that loan which
the Government wanted to obtain.
Q. State what occurred and whom you saw when you ar-
rived there.
A. I sent my letters to the Government. The Government was
Mr. Rameau. I gave him my letters of introduction, and lie sent
for me.
Q. Why do you state that the Government was Mr. Ra-
mean ?
A. I mean that everything concerning the Government was
done by him. Nothing could be done except through Mr.
Raminan. Hie was everything. If you went to the Minister of
Finance lie would send you to Rameau. All my transactions
were with Raminau. IIe had power and authority, especially for
this matter; I mean the bank.
Q. I ask you not in regard to any special authority in re-
spect to this bank, but in regard to his general authority, his
functions, and his powers.
Mr. BOUTWELL. Must not that be proved by some other evi-
dence than Lazare ? There must be better evidence.
The ARBI'RAToR. I do not at present see the necessity of
this evidence. It is admitted that the Government made a con-
tract ; it is in the Protocol, and was in reference to the bank.
What more is needed ?
Mr. THOMsoN. There will be a long series of facts brought








out in evidence, facts occurring after the making of this con-
tract, and bearing upon the conduct of tile Haytien Govern-
ment in respect to the contract, where Rameau figures all the
time as the impersonation of the Haytien Government.
The ARBITRATOR. Can you prove his power by the mere fact
that he acted ?
Mr. TnHOMsoN. I think his authority is a consequence from
the facts. How far the evidence proves that authority was
given to him is another matter. But it appears to me that it
is important to show that Rameau reputed himself as the
General Government. Rameau acted for all branches of the
Government.
The ARBITRATOR. He acted in making this contract. But
it would seem from the admission in the Protocol that lie had
power to act in making the contract. But it does not seem to
me, by the testimony of tlhe witness who made the contract,
that lie had power to release the Government, or that he had
power to bind the Government in any other way than to make
that contract.
Mr. THOMsoN. Well, your Honor, it is an ulterior question.
It may come up later. Perhaps I :im anticipating the order
of proof.
The ARBITRATOR. That a contract was made by the Govern-
ment, and made through Rameau, is a coriceded fact.
Mr. TuoMsox. What was Ramean's official position ?
A. Hle was Vice-President of the Council.
Q. Who was President of HIayti at the time
A. Domingue.
Q. What was the relationship between Domingue and
Rameau
Mr. BOUTWELL. Do you mean official or personal ?
Mr. THOMsoN. I mean personal. You called on Domingue
and Rameanu, did you not?
A. Yes, sir.
Q. State how they received you, and what was done and
said.








A. I gave my letter of introduction, and he was very
friendly. In talking to me about the loan he said that he
would like to have a bank with a capital of $10,000,000. I
observed to him that that was too large a capital, and that
llayti was a new country ; that it would be much better to
have a smaller capital. I proposed a capital of one million
dollars, but lie would not listen to that; he wanted then to
have a capital of $3,000,000, and we entered together into this
contract.
Q. When you speak of him you refer to Ramean
A. Yes, sir.
Q. Was Domingue present at any of the interviews between
you and Ramean ?
A. Sometimes he was there, and sometimes not.
Q. How long were you occupied in negotiations with
RaTncan ?
The ARBrrRATOR. Mr. Thomson, you have a contract here;
about that there is no doubt. Are antecedent negotiations of
any consequence whatever ? It is not to your advantage to
show what took place previous to the contract. We have the
contract, and can start from there.
Mr. THo.soN. I will take your Honor's suggestion.
Thile ARBITrA'OR. I do not want to interfere with your line
of evidence, but I am accustomed to get at the real core of a
case as soon as possible.
Mr. THOMsoN. This contract was executed in duplicate, was
it, you having one and the Government of IIayti the other ?
A. I really don't remember.
Mr. DE CHAMBRUN. We admit that it is a copy-that the
contract was made in the French form. The original is
deposited with the notary under the laws of Hayti, and the
notary delivers certified copies to parties entitled to them.
Thle ARBITRAroR. They all have the force of originals.
Mr. ASHTON. Under the civil law system my experience is
that the notarial record is really the original, and people get
copies of the notarial record certified.








Mr. DE CHAMBRUN. Every party to a contract is entitled to
a copy to be delivered by the notary, which is called an expe-
dition.
Mr. THOMSON. If your Honor please, Mr. Lazare has just
informed me that, on reflection, lie remembers that he had not
begun to draw salary from the steamship company. It was
only agreed that he should receive a salary. I only mention
this because I do not want any statement to go'down in the
record that is not accurate. This contract was approved by the
Haytien Legislature ?
A. Yes, sir.
The ARBITRATOR. I did not notice that it was.
Mr. THOMsoN. It is certified.
Mr. DE CHAMBRUN. Well, it is admitted.
The ARBITRATOR. I think that the Protocol admits that it is
a binding contract.
Q. After this contract was made where did you go and what
did you do ?
A. Mr. Ramcau, before the contract was made, advised me
to give up my position in the railroad company and in the
steamship company, and attend to the whole- matter of that
banking business, and to come down with my family and man-
age the bank. After I was through with Rameau, in the end
of November or December, I came back to New York.
Q. What did you do in New York ?
A. I attended to the materials for the bank building. I
made contracts for the warehouse which I had to construct
under this contract, and made arrangements with an agent to
attend to the matter in my absence. When I had all my ar-
rangements complete in New York I left for Europe in De-
cember, 1874.
Mr. ASHrTON. If your Honor please, this bank building
figures more conspicuously in the case than would at first ap-
pear. There is a little duplicity in the papers about the bank.
At one time the word bank signifies corporation, and at
other times it signifies the building.







The WITNEss. I made arrangements with Mr. Heuvelman.
Q. He constructed the bank.
A. Yes, sir.
Q. How soon was the work of putting up the bank com-
menced ?
A. Right off.
Q. And it was completed within what period ?
A. Before the specified time.
Q. Before or after a year ?
A. Before a year.
Q. Who was the architect of the bank with whom you made
the arrangement ?
A. Edward Kendall, of New York.
Mr. ASHTON. Do you mean a year from the date of the con-
tract ?
A. Yes, sir.
Mr. THOMsoN. Did you make the arrangement in regard to
having the currency engraved ?
A. Yes, sir; I made an arrangement with the American
Bank Note Company.
Q. Before you sailed for Europe ?
A. Yes, sir; and he came to see me afterwards in London;
I mean the president of the American Bank Note Company.
Q. So that you set that in motion before you went away-
I mean the erection of the bank building ?
A. Yes, sir; and the warehouse too.
Q. When did you sail for England ?
A. In December; I don't remember exactly.
The ARBITRATOR. In December, 1874 ?
A. Yes, sir.
Q: You went to London ?
A. Yes, sir.
Q. What did you do there ?
A. When I came to London I went to see my friends, cer-
tain bankers there, and told them my object in coming to Lon-
don; I made an arrangement with the house of Robert Ben-








son & Co., at that time one of the first houses in London, with
very high standing.
Q. For what ?
A. For the capital of my bank.
Q. Do you mean for the double amount as it is stated in the
original contract before the modification was made ?
A. Yes, sir; for $2,000,000.
Q. That was on the basis of $3,000,000 for the entire capi-
tal of the company ?
A. Yes, sir.
Q. State why you came back again to Hayti ?
A. After negotiating with Mr. Robert Bonso:i & Co. and
some of their friends who examined the papers and the con-
cession, he thought the capital was too large for IIayti, and
that it should be reduced. lie asked me to return to Hayti and
get a modification of the contract in relation to the capital of
the company. We went to their lawyers, taking all the papers
there, and before leaving I left them about fifteen hundred
pounds, 1 think, for the expenses which they might have in-
curred while I was absent in regard to the bank; it was un-
derstood that everything should be done. I then went down
to IIayti. I came there about the first or second of Mlay.
Q. Did you prepare a prospectus setting out your bank
plan ?
A. Yes, sir; everything.
Q. Where did you prepare that?
A. In London.
Q. Is that the paper there-that printed document ? (Point-
ing to paper.)
A. That printed document was prepared in Now York be-
fore I left. That is a copy of the contract translated -into
English, together with certain statistics which are attached.
Mr. THuosoN. I do not offer this paper in evidence to show
the correctness of the statistics, but to show the history of that
transaction.
Q. When did you arrive at Port-au-Prince on your return?







A. In the beginning of May, 1875.
Q. Whom did you see there ?
A. Mr. Rameau and the President.
Q. State what took place between you and Rameau at that
time.
A. I told Mr. Rameau the object of my return to Port-au-
Prince; that my friends in London thought that the capital
was too large and that it should be reduced, and several other
modifications should be made in the contract. He consented
to it. We discussed the matter, and the concession was modi-
fied. This is the modification. I explained to him that my
expenses were larger than I anticipated, and he made me a
concession of $200,000.*
Mr. DE CIIAMnRUN. Was this approved by the Chambers ?
A.'I do not know; [ went away.
Mr. THuoMsoN. There is no certificate on it to that effect.
Mr. DE CHAMBRUN. I do not raise any point, however, in
connection with that. It is admitted to have been regularly
done.
The ARBITRATOR. I think that is contemplated in the lan-
guage of the Protocol. The language of the Protocol is this:
"That Lazare entered into a written contract with the Haytien
Government September 23d, 1874, for the establishment of a
national bank at Port-au-Prince, with branches, the capital
being fixed first at $3,000,000, and afterwards reduced to
S1,500,000. of which capital the Government was to furnish
one-third and Lazare two-thirds."
Mr. DE CHAMBRUN. If your Honor please, my only object in
making the inquiry was to know whether it had been approved
by the Chambers.
Q. What was done at that time ?
A. We talked over the modifications and by-laws of the
bank, tilhe names of the directors, and so on; and the modifi-
cation was made up and the by-laws the same way.
Q. Are those the statutes of the bank agreed upon at that
time ?








A. Yes, sir.
Mr. ASHTON. It is really a charter.
The ARBITRATOR. If I understand the case, I do not see
that this amounts to anything one way or the other ; perhaps
you may have a different opinion.
Q. State as to who acted in behalf of the Government of
Hayti after that, as representing the Government in connection
with the bank in addition to Rameau.
A. General Monsanto; he was appointed by the Govern-
ment as director and agent for the Government.
Q. Can you tell when the organization of the bank was an-
nounced by the Government, if it was announced ?
A. It is in this paper. I do not remember dates. I will
look. It is the 22d of May. He announced the formation of
the company in an official paper called the Moniteur; (pre-
senting paper to counsel.)
Q. Tell me what this paper is.
A. That is owned by the Government, and nothing can go
into it except what the Government approves.
Q. It is an official Government paper ?
A. Yes, sir.
The ARBITRATOR. This is the formal announcement of the
organization of the bank with a capital of $3,000,000 ?
Mr. THOMsoN. The modification did not reduce the capital;
it reduced the amount to be originally called in.
The ARBITRATOR. That was after the modification.
Mr. THOMpsoN. It reduced only the amount to be called in,
leaving the nominal capital to be called in as the necessities
required.
The ARBITRATOR. The statement in the Protocol is this:
"The capital being fixed first at $3,000,000, and afterwards
reduced to 81,500,000." If that means capital called in, that
is another thing.
Mr. TnoMsoN. It is explained in the modification.
The ARBITRATOR. It is not a very important matter, proba-
bly.







Q. After those matters transpired, where did you go ?
A. I returned to London.
Mr. THOMsox. We offer this announcement in evidence.
(The paper is appended hereto, and marked Exhibit E.")
Q. When did you leave for Europe ?
A. I left for Europe in the early part of May.
Q. When you got to London what did you do ?
A. When I returned to London I want to see Robert Ben-
son & Co. A panic at that time raged in London and Europe
generally, and the house of B3nson & C.). failed. Everybody
was surprised. It was one of the best houses in England.
The AanIrRA'roR. They failed before you returned ?
A. I just found it out when I came back. I lost a great
deal of money by that transaction, and after that I was obliged
to begin further negotiations. I made some further negotia-
tions after some time with the houses of Kerford & Co., of
Liverpool, and with Sears & Co., of Lonoon, and with the
. azlowood Brothers, of London. I met these gentlemen, and
I submitted my concessions and modifications and everything.
After some discussion with them they agreed to furnish me
with a capital for my bank; that is, the money which I re-
quired. After the negotiations were finished I engaged a sec-
retnry in London, and a manager for the company.
Q. Whom did you engage as manager for the company ?
A. Francis Fessor, of London ; lie was manager of the
Mercantile International Bank. (limited,) in London.
Q. And you made arrangements with him to co:ne out to
IIayti ?
A. Yes, sir ; as permanent manager of the bank.
Q. With whom did you make arrangements to act as secre-
tary of the bank ?
A. With Mr. Verderean. He was a young man, but he was
a capitalist, and lie agreed to furnish me some money for my
bank.
Q. Hle came out with you
A. Yes, sir; Mr.Verderean is here. After negotiations were
4-L








completed in Liverpool I went to Paris with Mr. Verdereau to
make purchases of the installation of the bank; I mean the
books, paper, drafts, etc. They were obliged to be made in
French, so I ordered them in Paris; and I shipped to Hayti at
the same time all the furniture needed, and took my servants with
me and went back to London. While in Paris we learned that
the Government pledged the customs duties, after my contract
was made, for a loan of 80,000,000 of francs, and gave those
same customs duties, pledged to my bank, as a pledge for the
payment of the new loan.
The ARBITRATOR. The bank engaged itself to supply the
budget of the Government annually ?
Mr. TuoMtsoN. The Government gave these customs duties
to secure the bank. All this was on the 1st of September,
1874 ?
A. When I came to Paris in 1875 1 found out that the Gov-
ernment had given the duties, which were pledged to this
bank, again to the loan in Hayti for 80,000,000 of francs.
Q. They were negotiating that loan in Paris ?
A. Yes, sir.
The ARBITRATOR. Pledging the customs ?
A. Yes, sir.
Mr. THOMsoN. What effect had that upon your friends ?
A. My friends in London heard of it, and they were very
much surprised, and they lost a little faith in the Government.
They advised me and Verdereau to leave at once for Hayti and
demand of'the Government to fix that matter. They were to
place $500,000 in the bank, as was agreed in the contract.
Of course they had agreed to pay their money in as soon as the
bank was organized. When I came there everything was
changed, and Mr. Rameau received me coolly.
Q. What took place in Port-au-Prince ?
A. I went to see Rameau with Secretary Verdereau, and
explained to him the difficulty I had out there, the difficulty
which he put me in in pledging those duties, and not to have
put in his $500,000 in the bank, as was agreed. I told him








he should have put in that money. Hoe answered me very
coolly, saying, I will see to it when 1 have time." I went
there repeatedly, but a little while afterwards I was informed
that Rameau changed his mind and didn't want to let me
open the bank. He sai lie was opposed to it.
The ARBITRATOR. Did you learn that from Ramea ?
A. Mr. Monsanto came to me and told me so; he told me
he was very sorry, and lie said that Rameau told him that, and
told him a few days afterwards that he wanted to have the keys
of the bank, of which I had one.
Mr. AsHiros. Of the bank building ?
A. Yes, sir.
Mr. THOMSxN. Was the bank building finished at that time ?
A. Ycs, sir. I had put in all tihe furniture which I had
bought in Paris ; all the paper and stationery, everything ready
for the opening of the bank.
Q. Did you surrender your key ?
A. Yes, sir. I surrendered it ; but I said that I didn't want
to sui render it, that I would talk to Ramean again. I went
back to Rtmeati the same day, and told him that he should
put in that money, and arrange something in regard to the
customs duties, and that we could cable to Europe and require
the transmission of the funds to be put in. I told him that no
money would be seat out there in specie until he had put his
money in and fixed that customs matter up.
The ARBITRATOR. You told him so ?
A. A Government agent came the next day and said: "' Yon
had better not have any trouble; young had better give me the
ky." It ws sac'i a c matry that I didn't want to have any
fuss, and I surrendered the key.
Q. What time was that ?
A. That was about the end of August ; about a day before
the first of September.
Q. What was the political condition of Hayti at that time ?
A. At that time Mr. Boisrond Canal was in the consulate of
the American Minister. Mr. Ramean was not very well dis-









posed to Americans at that time. He wanted them to sur-
render Canal, and the United States Government refused to
surrender him. This Canal afterwards became the President.
Q. Was any statement made to you by Rameau, or by the
Government agent, in regard to the position assumed by mer-
chants at that time ?
A. Rameau told me that, and Monsanto told me that.
Q. Told you what ?
A. That the merchants were opposed to the bank. They
didn't want to have any bank there, because they were doing
a kind of banking business themselves, selling drafts to the
Government, &c. They didn't 'want to have anyone there
who did a regular banking business. They were opposed very
much to the bank, and renewed pressure was brought to bear
on Rameau whenever he needed money.
Q. How did it affect the merchants ?
A. The Government had to entrust itself entirely to the
merchants.
Q. What for?
A. To get money or anything it needed.
Q. At that time Rameau was afraid the merchants would
join the opposition and overthrow him. Do you mean armed
opposition ?
A. There is always some opposition there down in that
island. They were afraid the merchants would help those op-
posed to the Government, and therefore they did not want to
oppose the merchants. If the Government needed two, three,
or four hundred thousand dollars it would go to the merchants
and the merchants would give money to the Government by
it pledging duties.
Mr. DE CHAMBRUN. We object to this.
Mr. TnHOIsoN. I will ask you to continue your statements of
fact, whether it was a custom existing then ?
The ARBITRATOR. How does he know ?
The WITNESS. I saw it myself.
The ARBITRATOR. You say he would go to the merchants ?









A. Yes, sir.
The ARBITRATOR. And pledge the customs?
A. Yes, sir.
The ARBITRATOR. Then I think it is evidence.
The WITNESS. Of course; you could see the vouchers going
around the streets, where they gave promises to the bearer of
the paper to pay the duties.
The ARBITRATOR. Did you see such paper at that time ?
A. Certainly. I know one house that had $800,000 worth
of paper of that kind. They gave it to every one.
Q. Do you know yourself in regard to the financial condi-
tion of the Haytien Government at that time ?
The ARBITRATOR. What has that to do in this case ?
Mr. THOMsON. To show that these people were all the time
hard up for money and embarrassed.
The ARBITRATOR. I hardly think you had better press that.
I do not see that that has any bearing on the case. The ques-
tion, after all, is whether the contract was made in good faith,
and whether it was entered into on the part of the Haytien
Government and was cancelled without cause. It is not a ques-
tion of policy.
Q. What was the condition of the relations of Hayti and
the money centres of Europe, say London, Paris, &c.; I mean
whether the exchange was in favor of the Government of
Hayti, and what was the rate of difference ?
The ARBITRATOR. I do not see the bearing of that question.
Mr. THoMsoN. It has a collateral bearing, to wit, that the
shipment of gold from London to Hayti would have been a
transaction that would have been a waste, worse than a waste,
because of the condition of exchange between Hayti and Lon-
don. Gold in London was worth a premium in Hayti, and
bringing it from London to Hayti would be bringing it up hill
to the extent of quite a percentage, and the only use would be
to send it back again.
Mr. BOUTWELL. We must object to that question for the









reason stated. I think that was not the contract, that the
money should be delivered in London.
Mr. THOMsoN. But it concerns the good faith of the Hay-
tien Government.
The ARBrIRATOR. I do not see it. It is a mere question of
contract and breach of contract. Whether it was advisable
that the contract should be carried out or not, is a matter of
no importance. The question is, what did the parties to the
contract do ?
Mr. AsuTON. It might be very important as throwing
light on what the contract means. The contract speaks of
metallic money. This matter, which seems collateral, might
have a bearing on that provision of the contract in which the
term metallic occurs. Whether that means the actual
dollar or specie put in the place, and then to be sent off to
some other place or not, must be determined. The rate of
exchange might have a bearing on that part of the arrange-
ment.
The ARBITRATOR. At present I do not see that it has any
bearing. I will allow the question to be put. If it is unim-
portant it will have no weight. I do not propose to treat the
matter with the strictness I would if I m.:intainel a rigid ad-
herence to the admission of evidence. The evidence is already
before me to be considered hereafter, and I will give it the
weight which it deserves.
The WITNESS. The business generally was done in drafts
at that time. People would buy drafts.
The ARBITRATOR. We know all over the world that drafts
on London are worth more than cash itself. Still the question
remains, what was the contract ? It might have been very im-
portant for the credit of the bank that American money should
have been there rather than there should have been credit. It
might have been considered of great importance as a matter
of form. It would not do always to start a bank with a de-
posit elsewhere. I will consider it, and if I think it ought to
have weight I will give it weight. I do not nican on either









side to be very strict in ruling in or out evidence, for the rea-
son that I am sitting here as a juror as well as judge. I will
endeavor to give to everything before me the weight I think
it ought to have.
Mr. THOMSON. Did either Rameau or Monsanto tell you how
much metallic funds were put into the bank building on Oc-
tober 15th, 1875 ?
A. I learned it from Monsato the 15th of October, and
later Mr. Rameau told me himself. Before that time I did not
have any conversation with him.
Q. What did Monsanto tell you ?
A. On the 15th of October Monsanto come to me at my
house and told me that they had appointed a commission to
the bank, composed of friends of the Government, and they
made out a kind of certificate to the effect that they had de-
posited $500,000, when really $235,500 were there, and that
they stored the money in the bank vaults; that they had no
more and could not raise any more. Monsanto told me this
the same day, and I told him I would protest against it at
once.
Q. What occurred between you and Rameau after Mon-
santo told you this ?
A. On the 15th of October, when Monsanto told me that
in the presence of Mr. Preston, a brother of the Haytien Min-
ister here, Mr. Preston helped me to make out a protest, and
he said: Give that to me, and I will show it to one of the
first lawyers here." I handed it to him, and he brought it
back corrected a day or two afterwards. In the meantime I
received from the Government a paper saying that as you
have not deposited your money in the bank, and as we have
deposited our money, the contract is void." I made out the
protest and sent it to the Government at once. That was on
the 18th of October. This is one of the copies that was made
at the time.
(This paper is hereto annexed and marked Exhibit F.")









Mr. THOMSON. Go on and state what occurred between you
and Rameau after that.
A. This letter I sent about the 18th.
Q. I understand that he sent that to the Secretary of Fi-
nance.
A. 1 sent this to Ramean. My transactions were with Ra-
meau. I never had anything to do with anybody else.
Q. Was Rameau the Minister of Finance ?
A. No, sir; the Minister of Finance was a man named Ex-
cellente. Some time before the end of October, Mr. Monsanto,
the Government agent; General Lulin, and Mr. Burke, came
to see me at my house, and said that they had been sent for
by Mr. Rameau, and that Rameau would like to make repara-
tion for what he had done. Monsanto said he sent him there
to find out in what manner I would be satisfied. I told them I
would not be satisfied with less than my concession, which was
worth a g-od deal of money; it was by their fault that the ar-
rangement was not carried out, and I wanted $500,000 for this
concession. lie went back to Ramean and reported what I have
said, and lhe sent again Mr. Monsanto, who told ire that I should
come there the next day at 11 o'clock ; the next day I went
there.
The ARBITRATOR. To Ramean's
A. Yes, sir; and, after talking awhile, he said: You ask
$500,000. I cannot pay it. I am sorry for what happened I
would like to have opened the bank with you, but I could not
do it. Pressure was brought to bear, so Ohat I was obliged
to break this contract." The merchants were against it, and
there was fear that a revolution would break out, and he
was afraid the merchants would help the enemies of the
Government. After talking awhile, lie said: You ask
$500,000, and we can't pay that." Then we sat down and
made our figures. Finally he came down and said: La-
zare, I will tell you what I will do. I will give you
$117,000, and you must not ask more. I will give you
$20,000 for the equestrian statue of President Domingue,








which I had in my hand, through the Minister, Mr. Pres-
ton. There were some other matters, and he said $1.00,000
would set them off, and then he said, I will give you the ap-
pointment as consul-general in New York, which is a very good
post, and I will give you the national palace to build and to
furnish. We will fix the price at $300,000, and there you can
make $100,000 ;" and he said, I will give you an order for the
purchase of two vessels for the Government. After talking
awhile, I accepted that. I said: "RIameau, when will this be
carried out ? Of course I have my family here, I and would
like to know." IHe said : It will not be long, but have a lit-
tle patience. I cannot fix it to-day. I will fix it very soon."
Things went on, and I went to see him every day or so. I did
not live far from him. I saw him repeatedly. The President
was very much pleased that we were friends again, and he him-
self said to me : Mr. Lazarc, I am very glad that that matter
is fixed up with you. I am sorry that we must lose you." I
went there repeatedly ; I don't know for what length of time.
His reply always was, I cannot do it to-day ; to-morrow,
maybe, I think I can do it." After about two months I was
tired of this business, and he said, The next day will fix some-
thing up." I said I needed money. lie said, I will fix it up.
It was about two months when lihe began to write me about the
palace. He said that the President has decided to let you
build the palace, and the payments you can fix yourself. Of
course, we cannot pay up all at once. This was two months,
perhaps, after I ran after him. In about two more weeks he
said, I will give you the consul. I told him that Mrs. Lazare
was sick, and that I wanted to go away. Ile had fooled me
right along. The President came to see my wife and requested
that she should leave with the family, and that I should remain
there with my eldest son until the matter was all fixed. After
that Mrs. Lazare left, and was shipwrecked, and I remained
there with my son. They kept always promising. About the
14th of March I went again, and he said, I will fix you up;
I will pay you, but I have not much money. There is trouble









in the finances, and so on, but I will send you something, and
afterwards I will send you the balance in New York. I waited
again, but nothing came. Finally he said to me I must go
at once to New York and see about these two war vessels, and
that he would send on, just as soon as he could, the money. I
left, and on the steamer Mr. Monsanto came to me and brought
me two vouchers, saying: He said he could not send you any
more money; he needs all the money, but he sends you two
special vouchers each for $1,000." They were worthless.

The ARBITRATOR. When did you leave ?
A. I left the 30th of March, 1876. He kept me there all
that time.
Mr. THOMSON. Did he appoint you consul-general?
A. Yes, sir, and arranged for the palace.
Q. Then he told you to go up and attend to your consulate ?
A. Yes, sir; and I left and went to New York, and fixed
up the consulate and spent money on it. A few days after-
ward I was informed by Mr. Preston that a revolution had
broken out and some of those people were killed and some sent
to Kingston, Jamaica, and that the contract between me and
the Government would not be recognized. The next day I re-
ceived a letter, saying you are suspended and another person
appointed. They did not even pay me the expenses of the
consulate. Then I sent my son down when Mr. Canal was
President there. He could not do anything. He came back
and I went down myself with my son, and stayed there I don't
know how many months, but I could not do anything.
The ARBITRATOR. That was then a new government ?
A. Yes, sir; I could not do anything with those people.
Afterwards I made out papers and sent them to Mr. Bassett,
who was the Minister at that time.
Q. What did you realize out of those two orders ?
A. They were worth about $900.
Q. You say Rameau was killed ?
A. Yes, sir.







59

Q. You got no pay as consul ?
A. Nothing; they did not even pay the rent.
Q. Did you pay the rent?
A. Yes, sir.
Q. Where is that statue ?
A. I have it in New York. It is a full-sized equestrian
statue.

At this point the Commission adjourned until to-morrow,
Thursday, 29th instant, at 10 o'clock A. M.













THE AMERICAN AND HAYTIEN CLAIMS
COMMISSION.


THE UNITED STATES
VS.
THE REPUBLIC OF HAYTI. -


In the Matter of the Claim of Adolphe H. Lazare
against the Republic of Hayti.


DEPARTMENT OF STATE,
January 29, 1885.
Pursuant to adjournment, the Commission met at ton o'clock
A. M.
Present:
Hon. WILLIAM STRONG, Arbitrator;
The SOLICITOR-GENERAL and Messrs. THOMsoN and ASHTON,
Counsel on behalf of the claimant;
Messrs. DE CHAMBRUN and BOUTWELL, Counsel on behalf of
the Republic of Hayti.
Testimony of the claimant, A. IH. LAZARE, continued.
Examined by Mr. THOMSON :
Question. When you got back to Hayti, in August, 1875,
did you take any measures for publishing any advertisement
in respect to the announcement of the directorship of the
bank, or any matters connected with the bank; and, if so, what
did you do ?
Answer. In the latter part of August I made out a statute,
containing the names of the directors, for the sale of four
thousand shares of stock which Rameau wanted me to sell to
the people of Hayti, and to have it published in the official paper,
the Mloniteur." I gave it to Rameau and he refused to put
it in. It never appeared. I went to him a few days afterwards
61








and inquired why it did not appear, but he gave me no satisfac-
tion. Isent to Mr. Audain, and he told me that he had received
formal orders from Ramneau not to print my statute, or the by-
laws of the bank, which are required for circulation.
The ARBITRATOR. What authority had you alone to make
out a statute for the bank ?
WITNESS. It was made out with Mr. Rameau.
The ARBITRATOR. This statute of which you speak?
WITNFSS. Yes, sir. The by laws of the bank. It was pre-
pared in England by the people who furnished the capital, and
at the same time it was submitted to the Government down
there. It was modified and fixed up in this shape.
The ARBITRATOR. Then it was not the statute unless it was
agreed to by the Government ?
WITNESS. Yes, sir; it was agreed to by the Government.
Mr. THOMsoN. If your Honor please, I think the witness mis-
understands.
Q. When you speak of advertising the statute, do you refer
to advertising those by-laws of the bank put in evidence yester-
day ?
A. Yes, sir ; the by-laws of the bank.
The ARBITRATOR. I understand him to speak of a new statute.
WITNESS O no, sir.
The ARBITRATOR. Then you mean the old statute which you
got up before you left.
WITNESS. Yes, sir.
Mr. THOMsoN. You mentioned four thousand shares ; state
what there was about that four thousand shares.
WITNESS. Mr. Rameau said he would like to reserve four
thousand shares for the people of HLiyti ; that he wanted the
people of IIayti to have the benefit of that institution. When
I went to Europe I reserved these four thousand shares. I said
I wanted to make arrangement for the whole capital iii case
the people in Hayti would not take it, but, to ple.ise Rameau,
I prepared the advertisement for the sale of the four thousand
shares, but he refused to insert it.








The ARBITRATOR. Those four thousand shares were a part
of the million.
WITNESS. Yes, sir.
Mr. THOMsoN. But you made your arrangement in case the
people did not want the shares.
WITNESS. Yes, sir.
Mr. ASHTroN. How many shares were there altogether.
WITNESS. Sixty thousand shares-three million dollars at
first.
Cross-examination by Mr. DE CHAMBRUN:
Mr. DE CHAMBRUN. Before we proceed to examine Mr. Lazare,
I would like him to take the French copy of the contract which
lie has offered in evidence, the contract between him and the
Government of Hayti, and read that copy, in order that I may
compare it with my own, because I see in the diplomatic cor-
respondence that there are charges that the copies do not agree.
The copy I hold was identified by Mr. Audain the other day.
(Mr. LAZARE thereupon read the copy of the contract in
French, which his Counsel had introduced in evidence, and it
was agreed by all parties that there was no substantial differ-
ence between the two copies.)
The ABRITRATOR. Now there is a translation to be examined.
Mr. DE CHAMBRUN. The translation presented here is full of
inaccuracies, and I think that the Secretary should order
another to be made by the authorized translator.

Mr. DE CIIAMBRUN. I find here in a note addressed by Mr.
Preston to the Department of State of the United States copies
of certain papers, or what purport to be copies of certain
papers. I would like to read these papers and see whether you
remember them. They are in French, and I will translate
them into English. I will first read this letter marked En-
closure B B and dated Nov. 30, 1874.
(This exhibit is hereto annexed and marked Annex B B.")
Mr. DE CHAMBRUN. Do you remember, Mr. Lazare, having
received such a letter as that ?








A. I may have received a letter like this. 1 remember some-
thing of it, but it has been 10 years since then.
Mr., THOMSON. You have no doubt you did, have you ?
A. I have no doubt I did.
Mr. DE CHAMBRUN. I will now read an extract from the
"Moniteur," the official gazette of the Republic of Hayti, dated
Saturday, August 28th, 1875, No. 35.
(E.shibit hereto appended and marked Annex D.")
Mr. DE CHAMBRUN. Do you remember any such statement
published in the Moniteur ?"
A. They published nearly everything in the Moniteur."
Q. I ask you whether you remember this article ?
A. I remember something like that. Naturally I doi't
remember it exactly.
The ARBITRATOR. Of course it would not be expected that
you should remember any more than the substance.
Mr. DE CHAMBRUN. I will now read a paper signed by Mr.
Excellent, dated August 27th, 1875.
(Exhibit hereto appended and marked Annex E.")
Mr. DE CHAMBRUN. Do you remember that paper ?
A. I remember something like that.
Q. I will now read a paper dated Port-au-Prince, September
11th, 1875, which purports to be a copy of a letter from you
to Mr. Excellent.
(Exhibit hereto appended and marked Annex E'.")
Q. Do you remember having written that letter ?
A. 0 yes, sir ; something like that.
Mr. DE CHAMBRUN. I will now read a paper dated Port-au-
Prince, September 14th, 1875, being a copy of a letter from
Mr. Excellent to yourself.
(Exhibit hereto appended and marked Annex E2.")
Q. Do you remember having received that letter ?
A. 0 yes, sir ; something of that kind.
Mr. THoMsoN. Is there any answer to that letter ?
Mr. DE CHAMBRUN. There is none here. I now call your








attention to a letter dated Port-au-Prince, October 14th, being
a copy of a letter from Mr. Excellent to yourself.
(Exhibit hereto appended and marked "Annex F.")
Q. Do you remember having, received that paper ?
A. 0 yes, sir.
Mr. DE CHAMBRUN. I will now read copy of a letter by your-
self, dated Port-an-Prince.
(Exhibit hereto appended and marked Annex G.")
Q. Do you remember having written such a letter as that ?
A. Yes, sir.
Mr. DE CHAMBRUN. Here is a letter from General Excellent
to yourself, dated Port-au-Prince, October 14th, 1875.
(Exhibit hereto appended and marked Annex H.")
Q. Do you remember having received that letter ?
A. Yes, sir.
Mr. DE CHAMBRUN. If your Honor please, this is a report
made by the commission that was appointed by the Government
of IIayti to pay into the vaults the sum of $500,000. These
papers are a part of the case, and they will appear in evidence
in different ways. (To the witness:) Will you be kind enough
to take your copy of the contract and point out in that contract
the provision to which you referred yesterday in relation to
the pledging to your bank when organized of the customs duties
of Ilayti.
A. It is article 14.
Q. Is it the only one, or is there another provision in that
contract on which you rely ?
A. There are two articles-article 14 and article 15.
Q. Was there any other understanding about that matter
between you and the Government, except as mentioned here ?
A. Nothing except my conversation with Rameau when we
made it.
Q. May I call your attention to article 17 of the contract,
which read as follows:

"Article 17. The Banque Nationale d'Haiti and its branches
5-L








in all the open ports of the Republic will have power to collect
customs duties if the Government should deem it advisable."

Now please state whether the Government of Hayti has
not paid for all expenses incurred in building the establishment
called the bank ?
A. Yes, sir; they have paid.
Q. The bank-notes of which you spoke, or the printing of
the bank-notes, how about that ?
A. The Government has paid that.
Q. Have you been out of pocket for any of those advances,
or has everything been repaid ?
A. Nothing, except what was agreed upon, sir. The Gov-
ernment agreed to pay the expenses of the bank, or rather the
bank building and the warehouse, and that was paid.
Q. And the printing of the bank-notes was also paid for ?
A. There is a little balance due yet, but it is nearly all paid.
The whole thing is not paid yet. There is a balance left, which
they hadn't paid under President Canal.
Q. Is it due to you or due to other parties ?
A. I am responsible for it if it be not paid. Of course I
have given the contract.
Q. How much does all that amount to ?
A. It may amount to $10,000 or $15,000; I don't know
exactly.
Q. Are you sure that that has not been paid ?
A. They have given some bonds which are in the caisse
d'amortissements, on which they have not paid the interest for
some time. That is, under President Canal.
Q. Were those payments in bonds, and were they not ac-
cepted by the parties ?
A. What could they do ? They didn't get the money, and
they took the bonds.
Q. Please state how much metallic currency you had on the
15th of October within your control for the opening of the
bank on your part.








A. I had made my arrangements previously to have all my
capital which 1 required ; that is, the money required in case
the Government acted in good faith and deposited their money
and arranged that matter about the customs.
Q. I ask you simply this: Did you have actually in your pos-
session or under your control metallic currency on the 15th of
October, 1875 ?
A. I might have had it under my control if the Government
should have acted in good faith.
Q. I ask you whether you had actually the metalic currency
under your control in IIayti ?
A. I didn't have it in my pocket; I had something there.
The ARBirRATOR. What he means is that lie had the power
to draw for that amount, but admits that lie hadn't the coin
there.
Mr. DE CHIAMBRUN. What arrangement had you made in
London or Liverpool concerning this matter ?
A. I made arrangements to obtain the money which I
needed for the capital of the bank.
Q. Was it an absolute agreement on their part to advance
you money on customs certificates or other bonds furnished by
the Government of Hayti ?
A. There was nothing spoken of customs bonds at that
time. Nothing was talked about it. I didn't know they had
customs bonds at that time. I made arrangements to furnish
the required amount of money.
Q. That is, if the Government of Hayti had paid ?
A. That came afterwards. They agreed to furnish me
capital, but when they found out what was done with the cus-
toms duties, and firing that the Gvernment would not act in
good faith, they sent us down to find out whether the Govern-
menrt would act in good faith.
Q. They agreed to accept your drafts ?
A. Yes, sir; certainly.
Q. And there was to be a deposit by way of drafts instead
of a deposit of metallic currency ?








A. No, sir; nothing of the kind.
The ARBITRATOR. You don't say that. But. of course, if the
drafts were not drawn in sufficient time the metallic currency
could not have been there.
The WITNESS. I could have gone to Kingston and St. Thomas
and negotiated the drafts and got the metallic funds.
Q. Had you any agreement in writing with these bankers?
A. I had an agreement in writing and verbal.
Q. Have you those agreements ?
A. I have some.
Q. Have you some in writing ?
A. Yes, sir.
Q. What security were those bankers to have ?
A. They were to take shares of the bank.
Q. They were then to be suberibers to the stock ?
A. They were to take the shares.
Mr. DE CHAMBRUN. Look at this Moniteur. You will find
there certain letters, or what purport to be copies of certain
letters. Did you see them at the time?
A. I think so.
(Copy of Moniteur was here shown witness.)
Q. When you heard in Paris of the new loan, what steps, if
any, did you take to protect what you claimed to be your rights
under the contract ?
A. I wrote to Rameau about it right off.
Q. What did he answer ?
A. He gave me no answer at all.
Q. Can you produce the letters you wrote him ?
A. My papers, unfortunately, were stolen in Port-au-Prince.
I had all my bank matters there, and one day I went out and
the trunk in which those papers were was stolen. I suppose
that Mr. Rameau sent for them and took them away.
The ARBITRATOR. That is mere suspicion ?
A. Yes, sir ; but they were taken.









ADOLPHE EUSTACE VERDEREAU,

a witness on behalf of the claimant, after being first duly
sworn, testified as follows :
Examined by Mr. THOMsoN:
Question. Where do you reside ?
Answer. At present in Paris.
Q. But you are sojourning in New York
A. Yes, sir.
Q. Are you an American citizen ?
A. I am, sir.
Q. What is your business in Paris ?
A. I am at present connected with the Equitable Life As-
surance Society of the United States.
Q. That is Mr. Hyde's company ?
A. Yes, sir.
Q. Did you become an American citizen by naturalization
A. I am an American citizen de facto. My father was an
American citizen. I was brought up in Worcester, Massachu-
setts, and afterwards at Cambridge.
Q. Where were you residing in June, 1875 ?
A. At Brussels, Belgium.
Q. Were you acquainted with Mr. Martin Lazare ?
A. Yes, sir; he was a distinguished gentlemen there.
Q. And with Mr. Lazare's family ?
A. Yes, sir.
Q. When did you first see him-I mean Mr. Lazare, the
claimant ?
A. At the Alexandria Hotel, London.
Q. State any facts that occurred in London bearing upon
this matter of Mr. Lazare and his national bank.
A. Mr. Lazare called my attention a few days after my ar-
rival in London to his contract with, and concession from, the
Haytien Government. After reading it very carefully I came
to the conclusion that it was a very valuable grant, and upon








his proposing to me to act as his secretary I accepted. It was
also agreed that he was to allow me 500 sh;ires of the bank
stock, for which I was to pay him in cash after the allotment
was made, provided the Government carried out its part of the
contract. I afterwards met Mr. Kerford, of the honse of
Kerford & Co., of Liverpool ; Mr. Sears, of the firm of Sears
& Co., of London, and Mr. Ilazlewood, of the firm of Hazle-
wood Brothers, of L )ndon. Those gentlemen also had under.
standings with Mr. Lazare in reference to participating in the
capitalstock of the bank.
Q. What was their position ?
A. I understood Mr. Crawford to have been a commission
merchant, and that he also had steamers running down to those
ports.
Q. They were people of recognized reputation and standing ?
A. 0 yes, sir; lHazlewood Brothers were bankers in Lon-
don. Mr. Lazare had also previous negotiations with the
house of Benson & Co.
Q. But you know nothing about that personally ?
A. No, sir; it was a house of first-clais standing, and it was
a matter of surprise to the whole community when they failed.
Their position was something like that of the house of Duncan,
Sherman & Co., in this country.
Q. Were you in communication with those gentlemen and
Mr. Lazare in regard to their furnishing funds ?
A. I understood from the conversation that took place be-
tween these gentlemen, and at some of which I was present,
that they were to furnish the necessary amount of capital,
taking as security shares of stock for the carrying out of his
part of the contract.
Q. Was anything said about a reservation of four thousand
shares ?
A. I remember reading that in the contract.
Q. You do not remember whether they talked about it ?
A. No, sir.
Q. You then became secretary of the bank ?








A. Yes, sir.
Q. And you went over to Paris with Mr. Lazare ?
A. I accompanied. him to Paris.
Q. What did you do together ?
A. We bought all the material necessary for the bank build-
ing-the stationery, printed matter, &c., which it was necessary
to have done in Paris on account of the language of the coun-
try being French.
Q. When you were in Paris was there anything in regard to
the customs duties that came to your notice ?
A. I remember the fact of a gentleman mentioning the sub-
ject, a large gentlemen. I do not know his name. He said
that they heard in Paris that those duties had been pledged to
the new French loan of eighty million francs.
Q. Did you go back to London with Mr. Lazare ?
A. Yes, sir.
Q. Was anything said there about this matter ?
A. It seems that these parties had heard in the meantime
of this news that had been scattered, that the customs had been
pledged, and they understood that it had been already pledged
to the bank. They called Mr. Lazare's attention to the change,
and like all capitalists, being a little shy, they requested us both
to go down there and have a decided understanding with the
Government.
Q. In regard to the good faith of the Government ?
A. Yes, sir.
Q. Then you went out with Mr. Lazare ?
A. Yes, sir ; we sailed from South Hampton. It was at the
end of July.
Q. Was Mr. Lazare's family on board ?
A. As I remember, Mr. Lazare, Mrs. Lazare, Miss Lazare,
and a young man were on board.
Q. What did you do when you got to Hayti !
A. When we arrived at Hayti Mr. Lazare and I called upon
Rameau. He introduced me as his secretary. Mr. Lazare tried
to impress upon Rameau the change which should be made.








Mr. BOUTWEEL. If this witness was present let him state
what was -aid.
A. He told Mr. Ramean that he had heard -this in Paris,
and that the people with whom he was interested found there
was a difference in the condition of things, and that he had
come out there to make satisfactory arrangements in order to
satisfy these parties in England, and have the matter cle.irly
understood. ,
Mr. To.MsoN. That is in regard to a satisfactory under-
standing ?
A. Yes, sir; as I understood, Mr. Rameau seemed to be
worried.
Q. What did Ramean say ?
A. Ho said, I will attend to this bye and bye, at the proper
time. I cannot attend to it just at present.
Q. What did Lazare say to R unean, if anything, in regard
to wishing him to pay his capital into the bank ?
A. I don't recollect anything in regard to that. Mr. Lazare
and Ra:mean had a little whispering conversation which I did
not hear.
Q. State as well as you can what you did there?
A. This is all I can remember. I cannot tell any -more.
Q. Did you know General Monsanto ?
A. Yes, sir.
Q. Did lie say anything with reference to a changed condi-
tion of feeling there about Ramean ?
A. IHe did state to me that he didn't think the Government
would aliow Mr. Lazare to carry out his scheme. I mean this
bank scheme.
Q. After the 15th of October did Monsanto say anything
to you about the alleged deposit by the Government in the
bank vault of any particular anmonnt, or did you have any con-
versation with him on the subject ?
A. I did not have any direct conversation with Monsanto
wilh regard to that, nor with Ramean.
Q. Did Monsanto say anything to you after the 15th of








October in regard to the Government making reparation to
Lazare ?
A. iHe told me this the d&ry before I left Port-au-Prince.
'lie said, You need not be in any hurry." I said I was thor-
oughly disgusted with the whole business. Hle said, Don't
you know that Lazare is going to got some reparation and you
may come into this thing; you are interested in it."
Mr. DE CHAMBRUN. I object to this part of the testimony as
to what transpired after the 15th of October.
The ARBITRATOR. It may possibly have some bearing on one
aspect of the case.
Cross-examined by Mr. DE CHAMBRUN:
Q. What arrangements were made between Mr. Lazare and
those bankers in London ?
A. Simply that they were to take the amount of shares that
Lazare would allot to them as credited, and so an arrangement
was made with those bankers that at any time a certain amount,
say one million in coin, should be shipped by them to Hayti.
Q. After opening the bank ?
A. No, sir.
Mr. THOMsoN. When you say shipped by them in coin "
do you draw a distinction between the drawing of drafts and
thie actual transmission of metallic currency ?
A. I do draw the distinction, and I mean in the former. I
mean the transmission of money in the ordinary way of
exchange.
The ARBITRATOR. Do I understand you correctly as intend-
ing to convey the idea that they undertook to take the stock
of the bank and to pay for it, thus furnishing the money ?
The WITNESS. Yes, sir.
Mr. B,,UrWELL. Do you mean to be furnished at the time
named for the opening of the bank, so that the funds of the
bank should be in specie there at Hayti at the tiine ?
A. That I have not said.









ADRIENNE HENRI LAZARE,


a witness on behalf of the claimant, after being duly sworn,
testified as follows :
Examined by Mr. TnoMsoN :
Question. How old are you ?
Answer. 28 years of age.
Q. Are you the son of the claimant, Adolphe II. Lazare?
A. I am, sir.
Q. Where do you reside now ?
A. At Port-au-Prince, Hayti.
Q. Arc you connected with the American legation ?
A. I am clerk of the United States legation at Port-au-
Prince.
Q. Were you in Ilayti during the years 1874 and 1875 ? If
so, state.
A. I was in 1875. I came there in the beginning of Septem-
ber, having been engaged to go there.
Q. Where did you go from ?
A. I have been for five years in the Importers' and Traders'
National Bank in New York city. I was engaged to go there
as assistant cashier.
Q. You went there for the purpose of acting as assistant
cashier of this bank ?
A. I resigned the position which I held in the bank in New
York to accept the position of assistant cashier in the bank in
Hayti.
Q. When did you arrive there ?
A. In the beginning of September.
Q. Did you find your father and the rest of his family there ?
A. I did, sir.
Q. What did'you find in regard to the condition of the bank
enterprise that you were to take part in ?
Q. Well, I saw that my father was in constant communica-
tion with General Monsanto.








Q. Who was General Monsanto ?
A. lie was the agent of the Government in regard to the
bank. He was the director appointed by the IIaytion Govern-
ment.
Q. Did you become acquainted with Monsanto ?
A. I met him a few hours after my arrival.
Q. Did you have any conversation with him relative to
matters of the bank ?
A. I heard him say repeatedly that he was afraid the
Government would not allow Mr. Lazare, my father, to open
that bank.
Q. That was about the 1st of September ?
A. That w.is about the 21 or 3d of September.
Q. Did lie state anything more in regard to the matter,
giving reasons, or making further statements ?
A. lie did mention that my father would not likely open the
bank. I asked him why he said that, and he replied that the
Government was opposed to the opening of the bank. I
remember that on several occasions lie mentioned several mer-
chants' names there, the names of firms that had large influence
with the Government and who were opposed to my father
opening the bank.
iMrl. DE CiHAMBtBN. We object to this testimony. It is mere
gossip. It is the mere opinion of the agent.
The ARBITRATOR. I do not think it is a matter of much
importance. You have shown that there was an apparent
reluctance on the part of the Government to go on with this
project of establishing the bank, and it is not necessary to give
thie reasons for that reluctance. Besides, these conversations
have nothing in themselves to do with the contract and the
obligation of the parties under it.
Q. On or after the 15th of October, did Monsanto say to
you, or any one in your presence, anything about the alleged
deposit by the Government ?
A. lie did, sir.
Mr. DE CHAMBRUN. We do not make any point on that. It








is admitted that there were $235,000 in specie and the balance
was in bonds and drafts.
The ARBITRATOR. Well, that is admitted then.
Mr. THOMSON. They were mere promises to pay.
Q. As to matters transpiring in Port-au-Prince after the
15th of October, in relation to the Government desiring to
make reparation to your father for what had occurred, state
what you know on this point, and limit it to what you heard
from those connected with the Government.
Mr. DE CHAMBRUJN. I object to this form of question. It
assumes that the Government meant to make reparation to
Mr. Lazare. Mr. Lazare may have been very friendly to the
Republic of Hayti subsequent to this time, without the Gov-
ernment putting itself under any obligation to make any repa-
ration.
The ARBITRATOR. If he heard from anybody connected with
the Government who had apparent authority to speak in re-
gard to a settlement with his father, he c.An state what he
heard.
Mr. THOMSON. I adopt the language of the Arbitrator.
The WrrITNEs. I did. Towards the end of October, I can-
not recollect the precise date, but know it was between the
20th and 25th of October, three gentlemen called to see my
father.
The ARBITRATOR. Who were they ?
A. General Monsanto, General Lubin, and Mr. Burke.
They called on my father, and in my presence, and in the
presence of my mother and my brother, (who was a young man
then,) stated that General Rameau felt very sorry at what had
occurred between them, and that he was willing to make
amends for what had occurred, and asked him what lie would
take in reparation for the wrong that he considered had been
done. My father told him all the trouble and expenses he
had been put to, and explained to them what had occurred on
the 15th of October. He said he considered that that was a
shame that was perpetrated upon him, and listened to nothing








but the acceptance of the sum of $500,000, and that that only
would satisfy him. The gentlemen said they had no power to
negotiate, but simply came to ask what he would take.
The ARBITRATOR. Is that all the conversation ?
A. That is all, as near as I can recollect.
Mr. THOMSON. Is there any more ?
A. Then, General Monsanto came back in the afternoon alone
and told my father that Mr. Rameau wished to see him the
next day in the morning at 11 or 12 o'clock. I went with him
the next day.
Q. What took place when you arrived there ?
A. Rameau was much excited when we arrived, and said to
my father: You have protested against the action of the
Government. What do you intend to do about it ?" My
father replied that he would appeal to his Government if the
Haytien Government denied him the justice which he asked.
Mr. THOMsoN. Well, go on.
A. Ramean said: I sent you yesterday the Government's
agent, General Lubin, and Mr. Burke, and you have seen fit
to ask ."ii;:,,,io; I cannot give you that. I won't give you
that amount." My father still insisted for the $500,000. Ra-
mean finally said: Let's get down to figures. I cannot give
you what you ask. But this I will do. I will give you a reason-
able amount for all expenses that you have incurred." My
father said : Name it; and he named $100,000. My father
said he would not take that amount. Then Rameau said: "I
will tell you what I will do. I will give you $117,000; put
that down as expenses. Then I will allow you $10,000 special.
Then the Government has ordered of you a statue; I will
give you $20,000 for that. Besides this, I will give you the
construction and furnishing of the palace, and I will allow you
to make profit out of that." My father said, What profit
will you allow me ?" He said, It is for a very large sum,
8350,000, and you certainly ought to be able to make $80,000
or $90,000 out of that." Then," he said, I will make you
consul-general at Now York. At present there is only a con-








sul there. It is a good position, and you will have many orders
to execute, and I think by accepting these terms you will
make more out of it than if you had opened the bank." After
a long time, my father finally consented to accept it.
Q. Was all this detailed proposition on the part of Rameau
the result of long-continued discussion, or was it done in a
very summary way ?
A. The principal thing was the amount to be given him-
the sum to be awarded in cash. That was where the bicker-
ing took place.
Q. Then the amount was a kind of compromise ?
A. It was a compromise amount.
Q. It was what we would call splitting the difference ?"
A. My father was holding out for $200,000, and it came
down to $150,000. Rameau said, Put it down to $117,030
and a fraction."
Q. Well, did you ever see Rvnoean after that in reward to
the collection of these amounts ?
A. Repeatedly. I was sent to him by my father. I recol-
t lect my father, upon accepting tlmse terms, asko'l General
t Ramean, When am I to g3t those things ?" Hle replied,
Mr. Lazare, you will not have long to wait, and you can send
your son to me." My father sent me there repeatedly. I
r think the first time must have been about a in mth after the
t arrangement had been entered into between Ramneau and my'
father.
c Q. What did Ramean say ; did he pay you ?
A. No, sir; le did not. The first time he said, 0, you
have come for money to day ? I said, Yes, sir ; I have."
He said, Well, we are not quite ready; come next week."
b I went there at the time fixed. IHe said, Your father ought
not to be impatient; everything is all right ; come back again
next week." I went again, and le put mi off on some other
excuse. I remember his telling me that we cannot always do
as we would like to do; tell him not to be impatient; every-
thing will be all right." I asked him, as I always did, When








shall I return ? and he always put me off a week or ten days.
I always went back when he told me to come, until one day I
had been so many times I thought it best that my father should
go with me. So we did go together a few days afterwards.
When we got there we found General Monsanto and the
President together. My father said, My son has been
coming here as often as .you ask him to come; that is,
repeatedly for weeks. I think it is about time for you to exe-
cute the terms of the arrangement you have entered into with
me; and he told my father to have a little patience, to wait ;
that in February the receipts would be large from the crops,
and that then he would be able to execute his arrangement,
and the President told my father-
Q. Were you present ?
A. Yes, sir; and I ought to say here that the President and
Rameau lived in two wings of the same building. I often
went to see Rameau while at Domingue's. I had free access
arid was known, and could go right up to him. I had no
trouble in reaching him.
Q. You were going to repeat what the President said;
go on.
A. Flo told my father not to be anxious; that the Govern-
ment was embarrassed for want of funds, but that the arrange-
ments made with my father would be carried out entirely.
Q. In regard to the letter of your father, which was spoken
of here yesterday, that is, the protest, did you take that to
General Rameau ?
A. I carried that myself to General Ranleau, and handed it
to him.
Q. You did not go to New York with your mother early
in 1876 ?
A. They went before me. She was sick.
Q. The last statement you were making was in regard to
your intercourse with Rameou in IHayti. When did you leave
Hayti ?
A. I left towards the end of March, 1876.








Q. Did you remain there after your father left ?
A. I went on with my father.
Q. Your mother and family went before ?
A. Yes, sir; about the beginning of February.
Q. When you got to New York, were you sent back to
Hayti by your father ?
A. I was sent back at once. My father was appointed con-
sul-general, and three or four days after his appointment it
was revoked, and he had received notice that no attention
would be given to any of the contracts that he was commis-
sioned to execute or carry out, and I was sent by my father to
Hayti. I left by the very same steamer, if I recollect aright,
that he and I came on.
Q. What were you sent there for ?
A. To see the provisional Government with reference to the
arrangement that had been made by the preceding Government
with my father for paying him, and I could receive no satis-
faction at all.
Q. Whom did you see ?
A. I saw General Boisrond Canal, General L. Tannis, and
I saw Mr. Hannibal Price, who was the Provisional Minister
of Finance, Commerce, and Foreign Relations.
Q. What was Canal ?
A. He had the Department of the Interior, if I recollect,
of the provisional Government.
The ARBITRATOR. The Domingue Government had been
overthrown ?
A. Yes, sir.
Q. And that happened before you got back ?
A. It happened in the beginning of April or the end of
March.
Mr. TnOMtsoN. I presume your Honor will assume that as a
matter of history ?
The ARBITRATOR. Yes, sir; I suppose I will.
Mr. THomsoN. They gave you no satisfaction, you say ?







A. None whatever.
Q. And you went back to New York ?
A. Yes, sir.
Q. Did you afterwards go back again to Hayti with your
father ?
A. I did, sir.
Q. For the same purpose ?
A. Yes, sir.
Q. And with the same result ?
A. Yes, sir; that is, with no result at all.
Cross-examined by Mr. DE CHAMBRUN :
Q. When you returned to Hayti the last time, did you see
the former members of the Government at Jamaica ?
A. INo, sir; my father came back to New York.
Q. You refer to the last trip to Hayti. When was that ?
A. In the fall or summer of 1876.
Q. At that time the Domingue Government was over-
thrown ?
A. Yes, sir.
Q. What had become of the members of the Dominguan
Government ?
A. They were in exile.
Q. Where ?
A. Well, they generally go to Jamaica or St. Thomas.
Q. Did you see any of them, or did your father, to your
knowledge, see any of them ?
A. Not to my knowledge.
Q. Were you informed that he saw any of them ?
A. I was not with him all the time.


MIATHILDE LAZARE,

a witness on behalf of the claimant, being first duly sworn, tes-
tified as follows:
6-L







Examined by Mr. TnousoN :
Question. Were you in Europe the same time as your hus-
band, in the spring of 1875 ?
Answer. Yes, sir.
Q. And you came to Hayti with him and brought your
family ?
A. Yes, sir, and my sons.
Q. That is your household ?
A. Yes, sir, and Mr. Verdereau.
Q. When you got there you became acquainted with the
President and the Vice-President of the Council, Mr. Rameau ?
A. Yes, sir; I know them all very well.
Q. Do you know Monsanto?
A. He came to our house every day.
Q. Do you remember any statement that Monsanto made to
you, after your arrival in Hayti, with regard to the intentions
of the Government as to allowing Mr. Lazare to proceed with
his bank arrangements?
A. Oh, yes! He always told me that Mr. Lazare would
never open the bank. He told me that there was a very bad
feeling against the bank; that the merchants were opposed
to it.
Q. Did his statement refer to Mr. Rameau's not allowing
Mr. Lazare to open the bank ?
A. Oh, yes, sir !
Q. Do you remember Monsanto going to your house about
October 15 and making a statement ?
A. Very well. He came from the bank. He said that a
trick was played; that they did not fulfil their contract ; that
they only paid $235,000 in specie and the rest in notes.
Q. State what you know in regard to any interviews you
had with Mr. Rameau after that time.
A. Mr. Lazare sent in his protest, and then, I think, it was
a week afterwards that Mr. Burke and Mr. Monsanto and Mr.
Lubin came to our house and told the same fact; that Rameau
felt very sorry for us, and he wanted to make reparation, and








lie said: I will call the following day." I do not think that
he came the next day, but a couple of days after.
Q. Were you present ?
A. No, sir; but I was called to the palace by Madame Do-
mingue, and Mr. Lazare received the contract for building the
palace and furnishing it. Madame Domingue wanted to see
to the furnishing of the palace, and told me she wanted me to
use my taste. Mr. Rameau and the President were present.
Mr. Ramean came to me and said to me ,in French : "I expect
you are very much pleased that we have come to an under-
standing." I said: Certainly; very much pleased;" that I
had been very unhappy as long as I was there. Then Mr.
Raineau told me that lie would give Mr. Lazare the consulate-
general in New York and an amount of money.
Q. What was the amount ?
A. $117,000 and $500. He was also to pay for the statue.
Q. How much ?
A. $20,000. And besides this, he was to give him $10,000
for some expenses, which I do not remember.
Q. He was to make Mr. Lazare consul.
A. He said lie was going to create a consulate-general in
New York for Mr. Lazare, instead of the consulate.
Q. You became impatient before you came away, and wrote
a letter to Mr. Ramean. Did you keep a copy of it ?
A. Yes, sir. I did of the answer, but not of the letter.
Q. What was it ?
A. I wanted Rameau to pay us so that we could go away.
Q. Did you get an answer ?
A. Yes, sir. This is the answer.
(The letter, which was produced by the witness, was after-
wards offered in evidence by the Counsel for Claimant, and is
hereto appended, and marked Exhibit G.")
Cross-examined by Mr. DE CHAMBRUN :
Q. When did you arrive in Hayti?
A. We left on the first of August, and it took fifteen days
for our journey. I came with Mr. Lazare.








Q. When did you leave Hayti ?
A. I think it was in the latter part of January, 1876.
Q. When did you arrive in New York ?
A. Six weeks after I was shipwrecked.
Mr. TiHOMsoN. If your Honor please, we may have a little
more testimony to introduce, but not much. We may also
wish to put in some documentary evidence, but this will be
very little. At any rate, I think time will be saved if you
will permit us to get a copy of the printed record, so that we
may scrutinize it before proceeding. It will be a very short
affair on our part after we have seen the printed testimony.
Mr. DE CHAMBRUTN. There are conversations referred to be-
tween Mr. Rameau and these witnesses. Your Honor knows
that Rameau was shot. I think it will be agreed that Rameau
was killed in the spring of 1876-in April.
Mr. TuoMsoN. That fact will be found in the public corre-
spondence .in regard to the foreign relations of the United
States, namely, that he was killed on the 17th of April, 1876.
The ARB'rRATOR. Well, let that he understood as the fact.
Mr. DE CHAMBRUN. If your Honor please, I wish to again refer
to the subject of the papers which have been laid before your
Honor. There is a good deal of diplomatic correspondence, I
understand, presented to your Honor for your perusal which
has never been brought to our attention.
The ARBITRATOR. I have examined, and probably will ex-
amine, a great many papers which I do not think it is worth
while to print. The Protocol requires me to examine these
papers, but I do not think that they will have any weight in
determining my judgment in the cases.
Mr. THoMSON. If your Honor please, we would like to know,
if possible, what effect these documents filed in the office of the
Secretary of State, and which are to be perused by the Arbi-
trator, what effect they will have as evidence. A great many
of the papers are letters or ex-parte statements. There are
statements in the correspondence which I think the Marquis
would hardly care to put before the Arbitrator. Some of







these statements are very extraordinary, and have been made
by Mr. Preston, the Minister of Hayti. They are mere per-
sonalities and are not supported by any proof whatever. In-
deed, they are utterly groundless. I refer to statements made
in regard to the character of Mr. Lazare, the claimant here.
If they are in the slightest degree to be considered as evidence
or as raising presumptions, we would like to call witnesses to
disprove them. There is a statement that Mr. Verdereau was
to have five hundred shares of this stock, and that lie put up
twenty thousand dollars which Mr. Lazare never repaid
him. Now, that statement is utterly groundless. I merely
state it as an illustration.
The ARBITRATOR. I cannot undertake to say at present what
degree of weight I will attach to ex-parte statements. I will
endeavor to give them just that weight, if any, that they are
entitled to, remembering always that they are ex part.
Mr. DE CHAMBRUN. It is for this reason that I agreed at once
to the suggestion of the Arbitrator that these papers should not
be printed. If they were, they would become a part of the
case, and ought to be rebutted.
The ARBITRATOR. There are papers found in the office
of the Secretary of State, and which have been called to
my attention, that I do not believe it is worth while to print.
If there could be a motion for a new trial, it might be desir-
able to have all those papers in print, but I suppose my decis-
ion of this case will be final.
Mr. BOUTWELL. We will not quote in argument, if your
Honor please, any statement made by Mr. Preston, unless it is
supported by proof.
Mr. TnomsoN. There are statements in some of these letters
affecting the character and position of Mr. Lazare. Now, if
your Honor is going to attach any weight to these statements,
we would like to call the friends of Mr. Lazare to prove his
position and character.
The ARBITRATOR. It is very likely that, if you would call
such witnesses, I would refuse to hear them. I do not think








you need be afraid. I will not give any undue weight to
papers which are laid before me. I will look at a great many
papers merely to obtain a complete history of these transac-
tions.
Mr. DE CHAMBRUN. I wish to call to your Honor's attention
the subject of commissions which we may like to send to
Hayti.
Mr. THomsoN. At the first meeting held in this Department
I understood your Honor to say that no commissions would
be issued, and that the witnesses must be brought here. We
have proceeded upon that statement of your Honor, and have
had our witnesses brought here at considerable expense.
The ARBITRATOR. Under the circumstances, I shall be very
reluctant to issue commissions for witnesses on the part of de-
fendants. I think that the application should have been made
earlier.
Mr. DE CHAMBRUN. How could we prepare our interrogato-
ries when we did not know what the case would disclose.
The ARBITRATOR. It seems to me that the case was a very
clear one, as stated at the beginning.
Mr. DE CHAMBRUN. Oh, there are features in this case, which
have been brought out during the examination, which are
entirely new..
The ARBITRATOR. Well, if commissions were sent out now
they could not be returned before the middle of March. That
would be deferring this matter, considering that the Pelletier
case is also before me, until too near the close of the time
limited for this Commission.

The Commission then adjourned until Monday, the 9th of
February, 1885, at ten o'clock A. M.











THE AMERICAN AND HAYTIEN CLAIMS
COMMISSION.



THE UNITED STATES
V8.
THE REPUBLIC OF HAYTI.


In the Matter of the Claim of Adolphe H. Lazare
against The Republic of Hayti.


DEPARTMENT OF STATE,
WASHINGTON, February 9th, 1885.
Pursuant to adjournment, the Commission met at 10 o'clock
A. M.
Present:
Hon. WILLIAM STRONG, Arbitrator ;
Mr. ASHTON, on behalf of the claimant, and
Messrs. DE CIIAMBRUN and BOUTWELL on behalf of the Re-
public of Hayti.
After preliminary conversation between the Arbitrator and
counsel, the following order was made :
Ordered, That on Monday, the 16th instant, the case of
Lazare shall be closed on the part of the complainant; that on
Tuesday, the 24th inst., the defence of the case shall be taken
up and continued until it is closed ;
That the case of Pelletier shall be taken up on the 18th in-
stant on the part of the defence and he proceeded with.
The Commission then adjourned to Monday, February 16,
1885, at 10 o'clock A. M.














THE AMERICAN AND HAYTIEN CLAIMS
COMMISSION.


THE UNITED STATES
vs.
THE REPUBLIC OF HAYTI. S


In the Matter of the Claim of Adolphe H. Lazare
against The Republic of Hayti.


DEPARTMENT OF STATE,
WASHINGTON, lMonday, February 16th, 1885.
Pursuant to adjournment, the Commission met at 10 o'clock'
A. M.
Present:
Ilon. WILLIAM STRONG, Arbitrator;
Messrs. THOMSON and ASHTON on01 behalf of the claimant, and
Messrs. DE CHAMBRUN and BOUTWELL On behalf of the Re-
public of Hayti.
Mr. THaosoN. If your Honor please, Mr. Lazare, the claim-
ant, has come on from New York for the purpose of sub-
mitting to a cross-examination requested by the Marquis de
Chambrun, Counsel for the Republic of Hayti. When that is
finished I have some papers to offer, which will substantially
close the case of the complainant.


ADOLPHE H. LAZARE,

the claimant, then took the stand and was cross-examined by
Mr. DE CHAMBRUN:
Question. You stated, I believe, that among the English








firms with whom you made arrangements for the purpose of
opening the National Bank of Hayti there was the firm of Ker-
ford, of Liverpool ?
Answer. Yes, sir.
Q. Do you remember whether a draft drawn by you on that
firm for 12,500 francs was protested on or about the month of
August, 1875 ?
A. Yes, sir ; I do remember.
Q. Was it drawn by yourself ?
A. Yes, sir. May I explain this transaction?
Mr. DE CHAMBRUN. Certainly.
The WITNESS. I made an arrangement with Mr. Fesser, the
manager of the bank, before I left London, that he should
come out to IIayti about the 1st of September, and that he
should receive, on signing the contract, five hundred pounds.
That would be 12,500 francs. But before he should leave he
should get 12,500 francs more. When I came out to Hayti, I
saw the manner in which the Government acted with me in
relation to the opening of the bank. I telegraphed to Mr. Ker-
ford to tell Mr. Fesser that it would be better for him not to
come out, because he would take his family and he would be
placed in the same position I was placed. I did not want
him to leave his position in London under the circumstances.
After this he presented that draft, which was protested. Mr.
Kerford told him the situation out in Hayti, and he presented
that draft, which was protested. But there was plenty of
money there to meet the draft. Afterwards, when the bank
matter was not accomplished, they sent me the balances due
me.
Mr. ASHTON. Was that draft negotiated ?
A. No, sir; not at all.
Q. It was drawn to his order and sent to him ?
A. I left it with the manager of the bank, who was to have
gone out there with me, so that lihe could draw 500 pounds.
Mr. TnoisoN. That was based upon the condition of his
going out to IIayti, was it not ?








A. Yes, sir.
Mr. AsHToN. Was it not accepted ?
A. No, sir; but there was plenty of money to meet it.
Q. It was not protested because there was no money there?
A. 0, no.
The ARBITRATOR. Why did he present the draft ?
A. Because, I suppose, he wanted to get the money.
lMr. DE CHAMBRUN. Was that matter mentioned to you in
Port-au-Prince ?
A. I never heard of it there.
Q. Did Rameau never speak to you about it ?
A. No, sir.
Q. Were you acquainted with the diplomatic correspond-
ence in relation to it Ly the Governments ?
A. No, sir; not at that time. There was plenty of money
there. I have papers which will show the whole transaction.
Q. Do you remember if you received a telegram from Ra-
meau on or about the month of April, 1875, while you were
in London ?
A. Not April; no, sir. I never got any telegram that I
remember.
Mr. THo-.soN. We admit that in May Ramean was solicitous
about the bank. It was later than April when the trouble
began. Mr. Lazare was on his way back to Hayti in thatpart
of April.
Mr. DE CHA1MBRUN. The telegram is dated March 30, 1875,
from Rameau to Lazare, London. I will translate it: Have
you left for New York ? Hurry up your operations." Did
you receive such a telegram ?
A. There is no doubt of it. I would not have been surprised
to have received some such telegram.
Q. I find here the statement of a bill settled on the 16th
of March, 1876 ?
A. I was not there on the 16th of March.
Q. It is for $2,600. "' General Septimus Rameau Dr. to A.