Decreto n⁰. 522 referente a la concesión para el dragado y mejoras de los puertos de Cuba

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Title:
Decreto n⁰. 522 referente a la concesión para el dragado y mejoras de los puertos de Cuba
Added title page title:
Concesión para el dragado y mejoras de los puertos de Cuba
Translated Title:
Decree no. 522 with reference to the concession for the dredging and improvement of the ports of Cuba ( )
Concession for the dredging and improvement of the ports of Cuba ( )
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1 online resource (97 pages)
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Spanish
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Cuba
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Subjects / Keywords:
Harbors -- Cuba -- Dredging -- Law and legislation

Notes

General Note:
At head of title: República de Cuba, Poder Ejecutivo, Secretaría de Agricultura, Comercio y Trabajo = Republic of Cuba, Executive Power, Department of Agriculture, Commerce and Labor.
General Note:
"Publicado por la Secretaría de Estado = Published by the Department of State."

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University of Florida
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University of Florida
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All rights reserved by the source institution.
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AA00021910:00001

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REPUBLICA DE CUBA
REPUBLIC OF CUBA

PODER EJECUTIVO
EXECUTIVE POWER

SEORETARIA DE A6RIOULIURA, COMERCIO Y TRABAJO DEPARTMENT OF AGRICULTURE, COMMERCE AND LABOR






DECRJETO NKo 522

DECREE N.* 522


REFEBENTE A LA CONCESION PARA EL DRAGADO Y MEJORAS
WITH REFERENCE TO THE CONCESSION FOR THE DREDGING AND IMPROVEMENT

DE LOS PUERTOS DE CUBA.
OF THE PORTS OF CUBA.



PUBLICADO POR LA SECRETARIA DE ESTADO.
PUBLISHED BY THE DEPARTMENT OF STATE.


















H A B A NA

IMPRENTA Y PAPELERIA DE RAMBLA, BOUZA Y COMPARIA
PI Y MARGALL, NUMS. 33 Y 35 1913





















SEGRETARIA DE AGRIGULTURA, GOMERCIO Y TRABAJO



DtCRETo N.0 522.

Vistos los antecedents relatives a la concesi6n Para el Dragado de los Puertos -de Cuba, que obran en las Secretarias de Agricultura, Comercio y Trabajo, Obrag Pfiblicas, Hacienda, Justicia, Estado y de la Presidencia, y
Resultando: que segfin se lee en la pdgina tres del n-6mero 33 del Volumen XVI del Diatio de Sesiones del Senado, de fecha 27 de Junio de 1910, en la sesi6n del dia 24 de dicho mes y aflo se di6 cuenta con una Proposici6n de Ley que se acord6 pasar a las Comisiones de Obras Pfiblicas y Hacienda y Presupuestos y en la que, despu6s de consignarse que "se bace necesario dragar y limpiar la bahia de la Habana, cuyo fondo en muchos lugares,, por su estado de suciedad, exige que cuanto antes se realicen esos trabajos, que habrAn de facilitar el trAfico y movimiento maritime, por cuanto realizer esa obra equivale i sanear la entrada h la Capital de la Repfiblica, lo que indudablemente contribuirh a mantener, si no a mejorar, el magnifico estado sanitario que hoy podemos presenter con orgullo a la consideraci6n extranjera", se expresaba en un articulo -6nico que "el Ejecutivo National incluirA anualmente, durante los Presupuestos de 1911 a 1912, de 1912 a 1913, de 1913 a 1914 y de 1914 a 1915, la. suma dequinientos mil pesos, moneda official, Para el dragado, limpieza y saneamiento









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de la bahia de la Habana y que el. Ejecutivo Nacional dispondrA lo procedente a fin de que los trabajos del dragado, limpieza y saneamiento de los litorales sea realizado por los dueflos de las propiedades particulares enclavadas en los mismos".
Resultando: que asimismo se encuentra copiada en la p6gina tres del nfimero 24, Volumen XVII del referido Diario de Sesiones, correspondent al dia 27 de Enero de 1911, una exposici6n que a nombre de la Compaiiia de los Puertos de Cuba "se present al Senado solicitando una Ley para llevar a cabo obras de mejoramiento en los puertos de la Repfiblica de cuya exposici6n, que firmaba en esta capital en 21 de Enero de 1911, por la Compaiiia de los Puertos de Cuba" T. L. Huston, se di6 cuenta en la sesi6n correspondiente al dia 25 del citado mes y aflo y la que se accord pasar a las Comisiones de Obras Pfiblicas y Hacienda y Presupuestos, por estarse estudiando on ellas un proyeeto de dragado del puerto de la Habana, apareciendo de dicha exposition que siendo conocedor el que la suscribe del proyeeto de Ley referente al dragado del puerto de la Habana (antes relacioDado), ha estudiado ampliamente el importantisimo problema del mejoramiento de los puertos de Cuba, y en su virtue somete al Congreso, en nombre de la CompaMa que represents, un plan general que abarca cl asunto en toda su amplitude y responded debidamente a las necesidades de la realidad, pasando en seguida a especificar cuhles son las obras que se dobian realizer en el puerto de la Habana y algunos otros de Cuba y consignando despu&s que "la realizaci6n de todo el plan que se proponia era, por su. misma magnitude, irrealizable para el Estado, pues bien se pretendiera hacer por administration 6 bien por contract, forzosamente se tropezaria con la falta de recursos; inconvenience insubsanable aun cuando se establecieran nuevos impuestos, pues por crecidos que









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6stos fueran, nunca serial bastante para cubrir anualmente el imported de las obras durante el corto tempo en que deben ser realizadas, por lo que al Estado no le quedaria otro recurso que acudir a un empr6stito y la cuantia no seria menor que catorce millones do pesos, capital que sumados sus interests durante un nfimero de aflos que no bajaria de treinta, vendria a representer una carga excesiva para la Naci6n Cubana, 6sto apart de las grades dificultades con que hoy se tropezaria para contratar dicho empr6stito y las onerosas conditions que impondrian los financieros, dadas las circunstancias de que dicho empr6stito seria el tercero de la Repfiblica, en un espacio da tempo relativamente corto, lo que fatalinente se reflejaria en el mereado con una grave depresi6n de los valores pfiblicos, desapareciendo tales inconvenientes si el Congreso se dignaba otorgar (a la CompaMa peticionaria) una concesi6n de acuerdo con las siguientes bases: I.a--La Compaiiia de los Puertos de Cuba se obligaria a realizer las obras que a continuaci6n se expresan: el dragado y mejora del puerto de la Habana, tomando como base el proyeeto aprobado por Real Orden de IS de Alarzo de 1879, amplifindolo de acuerdo con las necesidades actuales de dicho puerto. El dragado y mejora del puerto de Santiago de Cuba, de acuerdo con la exposici6n al Gobierno de la CAmara de Comercio de dicha ciudad, de 28 de Noviembre de 1910. El dragado y 'ejora de los demAs puertos de la Repfiblica, concediendo entre ellos preference a los de La Esperanza, Cdrdenas, Alatanzas, Cienfuegos y Nuevitas, invirti6ndose en estas obras hasta un mill6n trescientos mil pesos. 2.--De acuerdo con lo dispuesto en el articulo 26 de la vigente Ley del Puerto, se establecerdn los siguientes derechos especiales para mejoras de los puertos de la Repfiblica: cada tonelada de mereancia desembareada de un buque de vapor o de vela, ($1) un peso; cada









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tonelada de carbon desembareada de un buque de vapor o de vela, ($0.25) veinticinco centavos. 3.2 La Compaiiia de los Puertos de Cuba disfrutard durante treinta afios, como compensaci6n de las obras que va a realizer, de los derechos que se determine en la base anterior, sin deducci6n por concept alguno. 4.-Se declaran de utilidad pfiblica las obras contends en la base primer. 5.1 --Se creard una Comisi6n Especial que se denominara "Junta de Puertos", en la cual intervendri la Compaflia concesionaria, cuya Junta, en un plazo breve que se sefiale, acordarh los proyeetos definitions de las obras que deben ajustarse en cada puerto, y los cuales se considerardn comprendidos en esta Ley. 6.4--La Compafiia de los Puertos de Cuba comenzarh y terminari las obras en el plazo que se le sefiale y prestarh una flanza para garantir el cumplimiento de sus obligaciones." Despu6s de lo expuesto, la exposici6n hace co-star que el plan que se proponia respondia "a un orden econ6mico y de conveniencia pfiblica, siendo las clases productoras las m6s directamente beneficiadas y tambi6n las classes populares, torque indudablemente bajaria el precio de todos los articulos al disminuir el costo de los fletes y al desaparecer los gastos del manipuleo de la carga en bahia, beneficihndose ademfis toda la Naci6n con el acrecentamiento enorme que alcanzaria su actividad econ6mica, concluyendo el peticionario su exposici6n afirmando que la Repfiblica necesitaba de modo imprescindible y urgent realizer grades obras de importance para ella, que carecia actualmentede recursos suficientes para hacer fre-ite a dichas obras a no ser acudiendo a un empr6stito, que s6lo podria obtener en conditions para ella altaTnente onerosas y que la "Compailia de los Puertos de Cuba" contaba con elements y recursos para hacer frente a dichas obras en toda sit magnitude y ofrecia a los Altos Poderes de la Naci4n realizarlas a cambio solamente de determinados recursos."











Resultando: que el mismo dia 21 de Enero, de 1911 en que a nombre de dicha Compaflia se dirigi6 al Senado de la Rep-6blica el senior T. L. Huston, este senior, que dijo ser natural de los Estados Unidos, y otro nombrado Francisco Rafael Moragas, natural de la Habana, Ingeniero el primer y propietario el segundo, comparecieron ante el Notario Pfiblico de esta capital, Licenciado Pelayo Garcia y Santiago, expresando que habian convenido constituir y constitution por la escritura que otorgaban en ese acto una Sociedad An6nima en los t6rminos y conditions siguientes: la Sociedad se denominarh "Compafiia de los Puertos de Cuba". El domicilio social serh esta capital, pudiendo variar su domicilio o ser incorporada su escritura de constituci6n a ]as leyes de otro pais, si a juicio de sus Directores asi lo exigen los intereses socials. El objeto de la Compaiiia es gestionar y explotar toda clase de contracts y concessions con el Estado, la Provincia y el Municipio o particulars, especialmente de mejora y foment en los puertos de la Repfiblica de Cuba; la desecaci6n, colonizaci6n y urbanizaci6n de terrenos; construction y explotaci6n de muelles, almacenes, canales y ferrocarriles, la compra-venta y arrendamiento de bienes inmuebles, y en general toda clase de actos de industrial, comercio y licita contrataci6n. El capital se fija por ahora en cien mil pesos moneda de los Estados Unidos, representado por mil acciones de a cien pesos cada una, y podrA reducirse o aumentarse por la emisi6n de nuevas acciones, o de otra mantra, si se estimate convenience por la Junta General convocada al effect. El noventa y cinco por ciento de las acciones, o sean novecientas cincuenta, con valor de noventa y cinco nal pesos, se adjudican totalmente liberadas al senior Moragas, Como representatives del valor de las gestiones y estudi os realizados por dicho senior en la preparaei6n del









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orden de negocios on que la Compaiiia va a desenvolverse y el cinco por ciento de las acciones restates, o scan cinauenta acciones, con un valor de cinco n?,il pesos, se adjudican, tambi6n liberadas, al senior Huston, por su cooperaci6n en el mismo hasta la misma fecha. Se reconoce al senior Huston el derecho de tanteo on los contracts de obras que la Compafiia realize, bien entendido que el ejercicio de este derecho serk incompatible con el cargo de Director que actualmente ejerce. Las acciones son al portador, su titulo originario es esta misma escritura de constituci6n, pudiendo los accionistas solicitor que sus acciones le sean representadas por certificados firmados, por los Directors, asi como tambi6n la reunion o division de las acciones quo represented cada certificado. La Junta General de accionistas podrA acordar la redenci6n o el aumento del capital sociaL La representaci6n do la Compafiia estarh a cargo de una Junta Directiva compuesta de dos Directores que serfin un Presidente y un Secretario Adrainistrador, quedando para el primer cargo el senior Huston y para el segundo el senior Moragas. El nihmero de Directores se aumentard si asi conviniere a juicio de la Junta General. La direcci6n de la Compafiia estara a cargo en primer t6rmino de los Directores conjuntamente, o sean el President y 61 Secretario Administrador, los cuales estfin plenamente facultados para firmer actos, contracts, solicitudes, poderes, cheques, letras y cualquier otra clase de documents; asi com o tambi6n para hacer negociaciones en cualquier lugar del territorio de la Repfiblica o del extranjero, disponiendo de todos los bienes, derechos y acciones de la Compafiia sin limitaci6n alguna, estando adlemfis autorizados para alterar, enmendar y rescindir en todo o en parte los Estatutos de esta Compafiia. Los Directores estAn especialmente autorizados para emitir un nfimero de Bonos d e esta Sociedad hasta la cantidad de cinco









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millions de pesos, con enter libertad para acordar la forma y texto de los Bonos, su amortizaci6n, intereses y plazos de los pagos. Tambi6n estAn expresamente autorizados para otorgar en nombre y representaci6n de esta sociedad y en garantia -de los bonos que emita, escritura de prenda o hipoteca sobre todas o cualesquiera propiedades, equips, derechos, concesiones, franquicias o cualquiera otra clase de bienes, derechos y acciones que le pertenezean o adquiera en lo future. Es condici6n esencial para el ejercicio de todas y cada una de las facultades conferidas a la Junta Directiva, que sus acuerdos sean adoptados por un-animidad, es decir, conjuntamente por los dos Directores, y en el caso de, desacuerdo, de ellos predominarA la opinion de aquel que represented mayor nfimero de acciones de la Compaiiia. Tanto la representaci6n -de la Compafiia como la ejecuci6n de los acuerdos t omados por la Junta Directiva podrfin ser delegados en el Presidente, previo acuerdo especial de los Directores, consignado en acta. La Junta General de accionistas se reunirA en el ines de Enero de cada aflo eligi6ndose los Directores con expresi6n de sus cargos; esa Junta, se reunirA adem5s en cualquier otra 6poca en que lo pidan los accionistas que represented la mayoria de las acciones, pudi6ndose tratar de cualquier asunto de la comunidad. Para la celebraci6n de la Junta General serh necesario que concurran a ella accionistas que represented la mayoria absolute de las acciones tom6ndose los acuerdos por mayoria de votos a cuyo effect cada acci6n representarA un voto, decidiendo en caso de empate el voto del Presidente. Los Directores quedan facultados para desenvolver estas bases en los Reglamentos necesarios para el buen funcionamiento de esta sociedad. La Compafiia se constitute a partir desde el dia de la fecha de la escritura y por tempo ilimitado.
Resultando: que se6n aparece del nfimero 36,









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volume XVII, del Diatio de Sesiones del Senado, correspondiente al dia primer, de Febrero de 1911, en la sesi6n del dia 30 do Enero se di6 cuenta con un extonso dictamendel 28 del mismo mes, de la Comisi6n de Obras Pfiblicas, firmado por el Senador Jos6 B. AlemAn como ponente nombrado para informer en la primitliva proposition de Ley reference al dragado del Puerto de la Habana y en el que se expose "que es aquella timid en su balance, torque no satisface debidamente las apremiantes exigencies de la realidad; la necesidad de mejorar nuestros puertos, preparhndonos asi para la gran revoluci6n commercial que se avecina: la aperture del Canal de Panamh" y que debiendo informer tambi6n conjuntamente sobre la exposici6n presented al Senado por el senior T. L. Huston, a nombre de la Compafiia de los Puertos de Cuba, lo hace favorablemente por las diversas razones que se consignan, figurando entre 6stas que segfin los edIculos que se hacen en el propio informed el 'impuesto de mejoras de puertos" en la forma que se pide ($1 por tonelada de mercancia y $0.25 por tonelada de carb6n) producira ($580.000) quinientos oohenta mil pesos por aflo, que es aproximadamento la retribuci6n que la Compafiia concesionaria recibirA como compensaci6n de todas las obras que so oblige i realizer y cuyo presupuesto tambi6n aproximado y apreciado de un modo econ6mico es de $14.141,950, que se invertir durante scis aiios en todas las obras, y ademks unos $6,000.000 para tender en los aflos que dure la concesi6n al servicio, de limpieza, conservaci6n y balizamiento del puerto de la Habana, por todo lo cual se recomienda la aceptaci6n delproyeeto de Ley que sigue y cuyo Articulo primero decia asi: "Se otorga a la Compafiia de los Puertos de Cuba una cone-esi6n para realizer obras do dragado y mejoras en los puertos de la Rep-dblica, de











acuerdo con las especificaciones consignadas en la presented Ley".
Resultando: que segfin se lee en el nfimero 31, volume XVII, del Diaio de Sesiones del Senado, correspondiente al -dia 13 de Febrero de 1911, al discutirse y votarse por el Senado en la sesi6n del dia 10 de dicho mes todo el articulado del proyeeto de Ley de la Comisi6n de Obras Pfiblicas, que fu6 aceptado casi en su. totalidad por la Comisi6n de Hacienda y Presupuestos, concediendo A la "Compaiiia de Ifis Puertos de Cuba" una concesi6n para el dra.-ado y mejora de los puertos de Cuba, se f1jaron por el Articulo 4.' los derechos en $1 por tonelada. de mercancias de todasprocedencias, $0.80 a las procedentes de los Estados Unidos de Am6rica y $0.10 por cada tonelada de carbon, quedando el Articulo primer de dicha Ley redactado definitivamente tal como figure en la Ley de 20 de Febrero de ese afio, pues la Cimara de Representantes al votarla, en 15 de dicho mes, no alter ese ni ning-6n otro precepts del proyeeto del Senado, observAndose al leer los extensos discursos de los seflores Senadores SAnchez Bustamante y Alemdn, el primer combatiendo la concesi6n a la CompaMa de los Puertos de Cuba y poniendo en duda su solvencia y hasta casi su existence y el segundo defendiendo el proyeeto por 61 redactado, que este filtimo entre otras cosas dijo lo siguiente: "que esa Compaiiia sea la que por el moment pudiera hacer con mayor facilidad y mhs rhpidamente las obras, y al propio tempo puede hacerlas mAs baratas, por Jo mismo que tiene ya parte de su capital invertido; torque al terminarse las obras del ferrocarril de Knight.Key, esa plant no tiene empleo inmediato. Elsa es una plant que cuesta algunos millions de pesos, y traida a los puertos de Cuba pondria inmediatamente en movimiento los trabajos de mejoras de los puertos de la Isla torque tiene material sufficient









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para ello y pudiera hacerlo en cantidad mayor de traoajo y en cantidad menor de precio -desde el moment en que el desembolso estA hecho. Esa es, pues, la raz6n por que yo apoyo con calor laconcesion que pide esa Compaiiia, que para mi no tengo. ningun repair que hacer. No es que no exist la Compafiia como afirma, supone, cree o pregunta mi querido compafiero el seflor Bustamante. i Ah no! Yo le digo al senior Blistamante que de mi informaci6n particular puedo afirmar que la Compafiia de los Puertos de Cuba existe y esth organized; pero, al propio tempo, por quitarle eserfipulos le.gitimos al senior Bustamante, por quita! escrfipulos a mis -demAs compaiieros del Senado y hasta para la propia satisfacci6n de mi conciencia, es que he querido enmendar el Articulo primer del Proyeeto diciendo que esa Compaiiia tendrk que justificar que estA organizada con arreglo a las leyes del pais. I Qu6 quiere eso decir? I Que la Compaiiia no estA organized ? I Que no existed ? I Que se organizgrA en el moment de la concesi6n? No. No prejuzga ia existence de la Compaiiia, que yo afirmo existed, sino que -dice de una mantra terminate y clara, quo a la hora de firmarse la concesi6n, que a la hora do firmarse la escritura, a virtue de la Ley que nosotros dictemos, esa CompaFlia tendr6 que justificar ante el Ejecutivo Nacional, que es quien firma esta clase de escrituras, que estd organized con arreglo a las leyes d(-,l Va's. De modo que no quiere decir la tal enmienda que no esO organized, sino que habr'A de exigirsele one est6 organizada... De mantra que no hay con eso temor ninguno, Esa Compaiiia estA organizada y represents un capital, que lo tiene en efectivo, como es esa plant, con la cual podrAn hacerse los trabajos rApidamente; y, al propio tempo habrA de justificar ante el Ejecutivo que ess una Compaiiia organizada con arreglo a las leyes de este pais y que de









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no cumplir sus compromises, tiene una penalidad con arreglo a otra de las eldusulas del propio contract".
Resultando: Que aprobado definitivamente en 15 de Febrero de 1911 por la CAmara de Representantes, emno se ha consignado antes, el proyecto de Ley tal e, mo lo habia aprobado el dia 10 de dicho mes y afio el Senado, el 20 lo sancion6 el seflor Presidente de la Repfiblica y el dia 22 se publie6 la Ley en la GACETA OFICIAL, en cuyo dia comenz6 a regir, se-fin lo establepido en el Articulo XVII de la misma, habi6ndose pablicado una nueva copia corregida de la Ley en la OAACCUA del dia 27.
Resultando: que el mismo dia 22 de ese mes y ano en que se publie6 la. Ley en la GACETA OFICIAL, COM,parecieron ante el Notario de esta Capital Liceneiado Jes ls M. Barraqu6 el Mayor General Jos6 Miguel G6mez y G6mez y el seflor Tillinghast L. Hominedieu Huston, el primer en su carActer de Presidente Constitucional de la Repfiblim de Cuba y como tal en representaci6n del Poder Ejecutivo de la Na ei(',n v el senior Huston en su earheter de Presidente que dice ser (asi se consign en la eseritura) de la Compaflia de los Puertos de Cuba, Sociedad An6nima organized con sujeci6n a las leyes de esta Repfibliea, asegurando ambos comparecientes hallarse con la capacidad legal necesaria para el otorgmiento de la eseritura, lo que a juicio del Notario es verdad por no onstarle nada en contrario, habiendo hecho co-star dicho Notario al final de la re ferida escritura que da fe de concern a los comparecientes y le costa sus ocupaciones y vecindad, asi como que le costa el carActer en que obra el senior G6mez y G6mez; pero sin que en la eseritura aparezea ninguna palabra o frase que demuestre que el seflor Huston era Presidente de la Oompaiiia de los Puertosde Cuba, que esaCompafiia existia legalmente y estaba organized conform a las









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leyes del pais e inscripta en el Registro, Afereantil y qut el seflor Huston estaba autorizado para otorgar la escritura a nombre de aqu6lla y si s6lo que se tuvo por bueno su. dicho de que era Presidente de la Compafiia de los Puertos de Cuba.
Resultando: que en la expresada escritura, que se titular de Convenio, y Ileva el nfimero cuatro del protocolo del Notario Licenciado Barraqu6, se consign solamente lo siguiente: en la clAusula primer que el Gongreso habia votado y el Presi-dente de la Repfiblica sancionado la Ley que se insert acto se.guido en la misma clAusula. En la segunda que el seflor G6mez, Presidento de la Repfiblica, inspirAndose en el deseo de obtener para el Estado Cubano y para el comercio de importaci6n algunas ventajas con relaci6n a las prescripciones de dicha Ley ha realizado cerea de la Compaiiia concesionaria reiteradas gestiones encaminadas a que esta renuncie a una parte de los derechos que en virtue de dicha Ley le corresponded; y como resultado de aquellas gestiones la Compaiiia ha prometido la renuncia y concessions que se consignan ,en las dos carts que con fecha 20 del corriente dirigi6 al seflor Presidente de la Repfiblica y cuyo texto es el siguiente segg-dn sus respectivos originals, copihndose a continuaci6n las dos carts firmadas por Huston, como Presidente de la 'Compaiiia de los Puertos de Cuba, en las que no hace ni siquiera co-star que tiene facultades para hacer las ofertas que hace, diciendo en la primer que darian al Estado el veinte por ciento de las entradas por cobro del impuesto que excedan de un mill6n quivientos mil pesos y en la segunda carta que suscribirian una escritura modificando las quotas fijadas para el cobro de tonelaje de mercancias con excepei6n de la seiialada al carbon, que quedarA como se halla consignada en la Ley aprobada por el Congress, en la siguiente forma: donde diee un peso quedarh consignado ochenta y ocho centavos y donde









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dice ochenta centavos quedarA consignado setenta centavos, aceptando ademhs la condici6n -de dejar en dep6sito en las areas del Tesoro toda cantidad que se debiera por concept de recaudaci6n desde la. fecha. de la vigencia, de la, Ley hasta transcurridos tres meses de iniciadas las obras por la, CompaRia, devolvi6ndose transcurridos los tres meses el total de dicha, recaudaci6n. En la, tercera, (Ahusula, agrega, el senior Huston que con los antecedents expuestos y l1evando a cabo el objeto de la escritura. otorga: que en nombre de la. CompaRia de Ios Puertos de Cuba aprueba, y ratifica en todas sus parties y el contenido de las dos carts transcripts y oblige. a dicha Compaiiia, al cumplimiento de, cuanto en las mismas se establece y declare, del propio modo que los t6rminos de dichas carts formarAn parte integrate -de la Ley a que las mismas se refieren. Por la, clAusula cuarta el seflor G6mez accept, en nombre del Gobierno de la, Rep-6blica. de Cuba y en favor del Estado la escritura, segun su contenido, a los usos conveniences y en la clfiusula quinta, y filtima, de la escritura las parties se someten a los Tribunales de esta. ciudad para todos los actos y diligencias a que U lugar esta, escritura, convienen en que todos los costs y gastos serhn del cargo de la Compafiia que represents el seflor Huston y se consignan los -demks particulars de costumbre antes de la firma del instrument.
Resultando: que despu6s de otorgada dicha escritura de 2 de Febrero de 1911 no se dict6 ningdn Decreto por el Ejecutivo Nacional ni en los demfis diversos Departamentos del Gobierno existed ninguna, constancia, de haberse otorgado escritura alguna, por el senior Presidente de la Repfiblica reconociendo que la Compaiiia de los Puertos de Cuba tenia existence legal antes de la votaci6n de la Ley en el Congreso y de la promulgaci6n de la misma en la, GACETA OFICI&L y de que habia, justificado estar organized, an-








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tes de esa promulgacio'n, con arreglo a las leyes del pais por lo que se le otorgaba la concesi6n que la dicha Ley establecia, considerAndola en lo sucesivo como tal concesionaria si cumplia, entre otros, con el requisite del articulo XIII de depositary en las areas del Tesoro como garantia del cumplimiento de sus obli.-aciones durante los treinta dias si.Uientes A la publicaci6n de la L-ey en la GACETA, una flanza por valor de trescientos mil pesos en moneda official, cuya suma seria devuelta al terminal las obras. Esa fianza cuando fu6 prestada lo fu6 por medio de una Compafiia de Fianzas que, como las de su clase, s6lo tienen un -dep6sito de garantia en las areas del Tesoro por veinticinco mil pesos.
Resultando: que en cuatro de Marzo de mil novecientos once se otorg6 con el nfimero doscientos cincuenta y dos ante el Notario de esta capital Licenciado Antonio Mufioz y Vald6s G6rnez uA escritura que se titular asi: Sociedad Mereantil An6nima, Compafiia de los Puertos de Cuba, en la que figuran como comparecientes el seflor Tillinghast L. Huston y los shores F. R. Truffin, Pedro Rodriguez y Manuel Otaduy, los que hacen co-star en el apartado titulado Exposici6n lo siguiente: Que son los Gnicos representantes de todos los derechos y acciones y de todas las obligaciones de la Compaiiia organized con arreglo a las leyes de esta Rep iblica que se denonlina "Compafiia de los Puertos de Cuba", en justificaci6n de lo cual exhiben al Notario para que lo agregue a continuaci6n y forme parte de esta escritura, la n6mina de Jos mismos seflores accionistas y nfimero de acciones que cada uno represents (de dicha n6miina unida a la escritura aparece que en 4 de Marzo de 1911 cran accionistas do la Compaiiia de ,,, los Puertos de Cuba, Huston, con 900 acciones por $90,000; Truffin, con 26 acciones por $3,600; Rodriguez, por 32 acciones, por $3,200; y Otaduy, con 32









17

acciones, por $3,200, 6 s6ase un total de 1,000 acciones representando un capital total do $100,000. Que la expresada Compaiiia fu6 fundada para gestionar y explotar toda clase de contracts y concessions del Estado, la Provincia o particulars, para la realizaci6n de obras especialmente de foment y -mejoras de los puertos de la Rep,-dblica y es la concesionaria del Estado para realizer obras de dra.-ado y mejora de los puertos de la Rep6blica, de acuerdo con la Ley votada por el Congreso y sancionada por el Sr. Predente de la Repfiblica con fecha 20 del pasado mes (20 de Febrero de 1911) publicada en la GACETA OFIciAL de 22 del mismo y de la cual Ley se a.-rega una copia al final de la escritura v que necesitando la C(Y" ailia reorganizanqe en virtud de Ta gran importancifa y des-envolvimiento qu e hffn alcanzado sus negocios, ampliando su capital, han celebrado los dicentes varies reunions y han determina-do reor.ganizar la "Compafiia de los Puertos de Cuba" d6ndose los Estatutos que siguen y en los cuales entre las diversas prescripciones del caso, se establece que la sociedad queda organized bajo la forma de MercantilAn6nima con el titulo de "Compafiia de los Puertos de Cuba", que la Compafiia es por la indole de sus operations concesionaria de Obras Niblicas, pudiendo tambi6n realizer las drinks operations que se (leterminar6n al especificarse los objets socials, debiendo regirse por los precepts generals del C6digo de Comercio y demAs leyes que le sean applicable con arre(rio A la indole de sus operations, todo ello sin perjuicio de lo que est6 establecido en los mismos Estatutos, que la Compaiiia llenari los requisitos que exijan las leyes especiales cuando por virtue de sus operations le sean applicable y por tal raz6n estarh en aptitude de obtener concessions de todo g6nero del Estado, la Provincia o el 3Tunicipio, que el plazo de duraci6n de la sociedad es indefinido, retro-









18

trayindose sus effects payla deterinmInar -el iomienzo de las operations al dia veintium A Enero Qtimo, on cuyo dia ge organize la gociedad con arregliq a las leyes de esta Rep0llca, que el objeto de la Compaflia, entre otros que se determinant, es el cumplimiento de la Ley de 20 de Febrero -dltimo, explotando la concesi6n que en dicha Ley se le ha otorgado en los t6rminos y conditions que en la misma se establecon; que el capital autorizIadb de Ta Compaiiia es de diez milloves de pesos en moneda americ)and, representado por cien mil acciones de d cien pesos efectivos cada, una, todas iguales en derechos y obligaciones, que las acciones son al portador, se extenderAn on in-16s o espafiol; pero podrA solicitarse por cualquier accionista que sus acciones se conviertan en nominatives, que los certificados de acciones serAn firmados por el Presidente y el Secretario General de la Compaiiia, teniendo ademAs el sello social en forma de un circulo que contender las siguientes palabras: "Compaiiia do los Puertos de Cuba" y dentro del circulo la palabra "Incorporada".
Resultan do: Que la escritura de 4 de Marzo de 1911 antes relacionada contiene entre otras las siguientes disposiciones transitorias: "Primera: El capital social, o sea DIEZ MILLONES DE PESOS, es capital efectivo que result pagado por la Coimpaiiia aZ reorganizarge por esta escritura toda vez que dicho capital represents el valor de las acniones y de todas las actividades de la primitive sociedad a mds del valor de la concest6n que se le ha otorgado-por el Gobierno. En tal virtue la Compafiia pagarh a los seflores Huston, Truffin, Rodriguez y Otaduy, diez mil pesos representados por cien acciones de a cien pesos, de las de nueva emisi6n a cambio de cada una acci6n prinvitiva de a cien pesos. Ademhs, se dard al seilo-r Huston que es dueKo dc la mayoKa de las ac-&ones por services prestados a la Compahia OCH-OCIEN-








19

TOS VEINTICINCO MIL PESOS en Bonos de la pr mera hipoteca de la. emisi6n de diez millions de pesos acordada y de que se hablark mAs adelante con las conditions que fijarh el Consejo de Directores al hacer dicha. emisi6n. Segunda: Los Sres. Huston, Truffin, Rodriguez y Otaduy, que son duefios de la totalidad de !as acciones de la. Compafiia, convienen en traspasar y por la presented traspasan a favor de la misma el quince por ciento de sits respectivas accioneg, depositAndolas a ese effect en la Tesoreria a la disposici6n del Consejo de Directores y para cubrir atenciones o necesidades financiers de la Compafiia, quedando en carter cualquier remanente que hubiere despu6s de cubiertas, esas necesidades o atenciones para darle la aplicaci6n que acuerde el Consejo de Directores, pero debe entenderse que la Compaffia. no tiene que abonar nada. a los dicentes por el traspaso que le hacen del quince por ciento de sus acciones, pues lo, estiman necesario para la buena mareba de las operations socials como una garantia mAs -de los interests que represents como finicos duefios de todo el capital social y precise para el desenvolvimiento financiero de la sociedad. TerceraQueda desde lue.-o autorizado el Consejo de Directores para contratar un empr6stito hasta la swma de (Nez milbones de pesos oro ameriaano, concertan-do y acordando la emisi6n de bonos, c6dulas u obligaciones hipotecarias garantizadas. con hipoteca de la concesi6n que tiene la Compafiia y de todos los demfis bienes, f1jando plazos, cantidades para quotas, reembolsos, amortizaciones y estipulaciones de todas clases delegando en el Presidente para que de acuerdo con el Comit6 Ejecutivo celebre los contracts y otorgue los documents, que al. effect se requieran; usando el Consejo de Directores de todas estas atribuciones tan ampliamente como pudiera hacerlo la Junta General de accionistas, pues. al. effect convienen en









20

que a esta escritura se le d6 el carActer de acta de la Junta General de accionistas y que se transcribe co mo tal acta en el Libro correspondent de la Compaiiia." "Quinta: A los effects do la declaraci6n precedente de exenci6n en el pago de derechos fiscales c inscripciones, se hace co-star que de acuerdo con lo establecido en la Ley de la concesi6n, la Compailia se acoge a las pregcri pcioms de la Orden %itimero treinta y cuatro de la serie de 1902 y de una mantra especial a lo establecido em el Artioulo Sgptimo, Capffitlo de ignal nimero de la referida Orden".
Resultando: que a pesar de ser Francisco Rafael Moragas, seg-fin la escritura de 21 de Enero de 1911, el duefio del noventa y cinco por ciento, o s6ase
-de la casi totalidad de las acciones. no se ha podido encontrar ningfin antecedents que demuestre, ni so consicna en la escritura de 4 do Marzo, extractada en los Resultandos anteriores, por qu6 ni por cuinto Mora.gas, despu6s de votada la Ley de 20 de Febrero de dicho afio, se desprendi6 de todas sus acciones y no obstante haber sido adjudicadas las mismas a 41 como representatives del valor de Zas gestiones dic estudios realizados por dicho seKor en la preparaci6n del orden de negocios en que la Campafl a va a desenvolverse, fu6 T. L. Huston al que a mAs de la casi totalidad de las acciones de la escritura de 4 de Marzo (nueve millions de diez) se le adjudicaron por servicios prestados a la Compaiiia $825,OW en Bonos de primer hipoteca de la emisi6n que a los pocos dias se c6loe6 en la plaza de la Habana.
Resultando: Que la escritura do que so hace menci6n anteriormente, o sea la de 4 de Marzo de 1911, fu6 presented a la Zona Fiscal y devuelta el 18 de Mayo de 1911 al presentante sin exacci6n de derechos por haber resuelto la Secretaria de Hacienda en la misma fecha ser applicable a la "Compafiia de los iPuertos do Cuba" la exenci6n. de derechos que









21

precept-6a el pArrafo s6ptimo del capitulo octavo de la Orden 34, serie de 1902, cuando en ningfin modo era applicable tal exenci6n, siendo inseripta el dia 31 de Mayo de 1911 en el Registro Mercantil de la Habana la Sociedad An6nima "Compafiia de los Puertos de Cuba", por virtue do los documents que se presentaron el dia 24 de ese mes y afio se,-u'n los asientos nfimeros 196 y 197 y se relacionan en la. hoja 5363, folio 2 del Libro 182 de Sociedades, inscripcion primer, con la limitaci6n en su caso fi que se refiere la Ley de 20 de Julio de 1910 y Decretos concordantes del Ejecutivo, siendo una de las escrituras presentadas para la inscripei6n la de 21 de Enero de 1911, ante el Notario Licenciado Pelayo Garcia, por la que los Sres. Mora.gas y Huston constituyeron la "Compailia de bos Puertos A Cuba", Sopiedad Av6nima, y que hasta esa oportunidad no se habia anotado en el Registro Mercantil.
Resultando: Que en 11 de Marzo de 1911 el Notario Licenciado Pelayo Garcia y Santia.go otor-6 la escritura, de hipoteca nfimero sesenta y siete de su protocol, en la que fi.guran como comparecientes los seflores Tillinghast L. Huston y Norman H. Davis, naturals de los Estados Uni-dos de Am rica, el primero en su cardeter de Presidente y como tal en nombre y representaci6n de la Sociedad An6nima "Compafiia de los Puertos de Cuba", y el segundo on su caricter de Vicepresidente y como tal en' representaci6n del The Trust Company of Cuba, a cuya sociedad se denorninard el Trustee, constando sus caracteres y la autorizaci6n que respectivamente ostentan para firmer la escritura de los documents agregado-s. al final de la misma y en la que se dice por la representaci6n de la Compafiia que la Compaiiia de los Puertos de Cuba es duefia de la concesi6n otorgada por la Ley de 20 de Febrero de 1911 para realizer obras de dragado y mejora de los puertos de Cuba,









22

que teniendo necesidad de arbitrary mAs condos para sus atenciones ha determined emitir diez nvillones de pesos ew bonos hipotevarios y emite, en este acto mil bonos de a mil pesos eada, uno en oro acufiado de los Estados Unidos de Am6rica, const-ituyendo la scrie "A", que se pagarAn en la oficina del Trustee el dia 28 de Febrero de 1936 o antes si debieran ser amortizados o recogidos anticipadamente como mAs adelante se expresarA, que los bonos deven-arAn el inter,6s de einco por ciento anual, pa.-aderos por semestres vencidos, que para los effects de formula las reclamaciones judiciales que proceden y cuanto mAs exija que los tenedores de bono-s est6n representados se considerard como representative de los imismos a The Trust Company of Cuba o su. sucesor, que en los casos que prev6 de falta de pago por la Compaffia, se harh cargo el Trustee de toda la ges ti6n y de los bienes y products de la Compaiiia, asi como de su Administraci6n y dependencia, que retendrA mientras pague con los impuestos que perciba directamente del Estado, que-bastarA que el Trustee communique al Gobierno haberse hecho cargo de la Administraei6n de la Compaiiia. con s6lo presenter un acta notarial en la forma que se establece para que el Gobierno pueda entregarle directamente los impuestos de que disfruta la Compafiia, que la Compaiiia, inmediatamente hark y entregarh al Trustee los referidos mil bonos y 6ste sin esperar el registry, etc., certificar6. y entregarh inmediatamente esos mil bonos al Tesorero de la Compafiia sien do su recibo sufficient resguardo para el Fiduciario respect a dichos bonos y el Fiduciario no estarh en el deber de averiguar el uso que se haga de estos bonos o de sus products; que la Compafiia podrA emitir dentro del plazo de cinco aflos, ademfis del mill6n de pesos en bonos a que se refiere esta escritura otros nueve millions con los mismos derechos, etc., que Jos que se emiten sin preference alguna en-









23

tre unos y otros; que en garantia del pago del mill6n do pesos que import el capital de los mil bonos emitidos, de sus interests, gastos y costas, constitute primera hipoteca sobre la concesi6n para el dragado y mejora de los puertos, que deberA inscribirse en el Registry de la Propiedad de acuerdo con lo establecido on el articulo segundo de la Ley Hipotecaria, el 27 de su Reglamento, el 334, nfimero X del C6digo Civil y el XVII de la Ley de 20 de Febrero de 1911.
Resultando: Qire on la citada escritura de hipoteca despu6s de aceptar el sefior Norman H. Davis, como Vicepresidente de The Trust Company of Cuba para esta Compaiiia y para los tenedores de bonos las obligaciones e hipotecas que acababan de constituirse. ge lee en la clAusula 24a "qie ambas parties contratantes tasan en veinticinco millions de pesos la conoesi6n que se hipoteca y renuncian a todo nuevo avaIfto o acci6n encaminada a ese fin."
Resultando: que en la misma escritura al describir la concesi6n se express que la conces!6n se otorg6 a la Compafiia -delos Puertos de Cuba por la Ley de 20 de Febrero de 1911 y en la clAusula 27a que aquella es una Compafiia Mereantil-An6nima, organized con arreglo, a las Leyes de esta Repfiblica fundada para gestionar y explotar toda clase de concessions y contracts del Estado, la Provincia y el Municipio o particulars, quedando reorganizada por tempo indefinido a contar desde el 21 de Enero de 1911 por escritura ante el Notario Licenciado Antonio Mufioz y Vald6s G6mez con fecha 4 del corriente mes (Marzo, de 1911) y que oportunamente se inscribirh en el Registro Mercantil de esta ciudad, domicilio de la misma.
Resultando: Que en 1.0 -de Julio de 1911 el proPio Notario Licenciado Pelayo Garcia y Santiago, con el nfimero 190 otorg6 una. escritura de Emisi6n de Bo-









24

nos, con garanfla Hipotecaria en que figuran tambi6n ?omo comparecientes las mismas personas de la anterior, los sefiores T. L. Huston y Norman H. Davis, concurriendo con igual carActer y en que se hace constar que la Compaiiia de los Pueros de Cuba, que es duefia de ]a concesi6n otorgada por la Ley de 20 de Febrero de 1911 con garantia de ]a misma emiti6 un nzill6n de pesos de Bonos Hipotecarios, o, scan los mil Bones del uno al mil, de la serie "A", que en la escritura correspondent se convino en que podifan emitirse otros nueve millions de pesos en Bonos y que hacienda uso de ese derecho, venia a emitir otra serie de Bonos por scis millores, sin perjuicio de emitir mAs tarde los; tres millions restates, emitiendo, esos seis nifflones en doce mil Bonos de quinientos pesos eada uno de la serie de. Londres, o serie "B", consignAndose despu6s las mismas estipulaciones de la primer escritura de hipoteca cuando la emisi6n de la serie "A" y otras elhusulas mAs, convini6ndose que Ins estipulaciones favorable a Ics tenedores de las dos escrituras se aplicarian a los Bonos de las dos series, considerAndose a todos los effects legalese como un solo documents diebas dos escrituras para protege unn emisi6n de siete millions de pesos de la serie "A' y de la de Londres, consignindose en la clditstla 51a qte ambas parties contratantes tasan en veinticinco milloies de pesos la concesi4n que se hipoteca.
Resultando: Que en la propia citada escritura bipotecaria a que se reflere el resultando anterior se establece en la clAsula 12a qu e se tendrA por vencida ]a deuda y podrA el Trustee proceder a su cobro entre otros motives por los que se, consignan en el inciso que dice asi: (C). En el caso de que la concesi6n que describe ]a clAusula vig6sima quinta de la escritura principal y cuya descripci6n se copiarA mfis adelante, eaduque o se pierda y en el caso de que la Com-









25

pafiia omita el cumplimiento de cualquiera_ de los debores que le impose la concesi6n o realize cualquier acto contrario a la misma en t6rminos que legalmenmente pueda dar lugar a que se declare caducada o rescindida dicha concesi6n, el Trustee certificarA por escrito y bajo juramento su opinion sobre habex Ilegado el caso previsto en este inciso y esta certificaci6n serh suficiente para tenerse per vencida la deuda y puede procederse a su cobro". Y por filtimo se consigna en la cl5usula 55.' que las mismas parties contratantes (La "CompaRia de los Puertos de Cuba" y "The Trust Company of Cuba", 6sta por si y en representaci6n de los bonistas) designan esta ciudad y so someten expresamente a sus jueces y Tribunales para todos los actos, notificaciones y diligencias a que por cualquier causa U origin esta escritura".
Resultando: Que en la GACFTA OFiciAL de 15 de Noviembre de 1911 se public la Ley del -dia 14 do dicho roes y afio, per la que el Congreso vari6 la redacci6n -del Articulo V de la Ley de 20 de Febrero, de 1911 quedando dicho articulo en la misma.forina que, lo estaba antes con la modificaci6n de que la tonelada de mercancia procedente, de los Estados Unidos pagari $0.70 y las de los demAs passes $0.88 y cada tonelada decarb6n $0.10 como cstableci6 la Ley de Febrero, ordenAndose a mAs que se devolvieran las cantidades ya pagadas en excess y por el articulo 3.0 y filtimo se derog6 el Decreto Dfimero 400 de 18 de Mayo de 1911, que habia side dietado per el seflor Presidente de la Rep-Gblica para ordenar que s6lo se cobrara el impuesto en la, cuantia establecida en la escritura de 23 de Febrero de 1911 ante cl Notario sefior Barraqu6.
Resultando: Que de los antecedents que constant en la Secretaria de Agricultura, Comercio y Trabajo aparece: que en la cuenta, -de Caja de la Compaiiia de










26

los Puertos de Cuba no aparecen ingress que puedan referirse a la primer emisi6n de acciones al portador para eonstituir el capital, ya fuese por el cobro total del imported de las acciones o en parte del valor de las mismas, ni operaci6n al.-una de cr6dito on el Libro Diario que pueda representer dinero efectivo ontrado en Caja como valor de las acciones emitidas; que en los certificados de acciones en blanco, adhexidos a sus respectivas matrices, asi como de las archivadas por canes de traspasos, o cambio -de nombre de Jos nuevos compradores, aparece en castellano e ingl6s, en lugar bien -visible "Acciones liberadas" Full-Faid"; que tampoco aparecen operations por Caja que puedan referirse a los condos quo pudieron haberse levantado en los primers meses de operaciones de la Compafiia, autorizada por la Segunda de ]as Disposiciones Transitorias de la Escritura de Constitution, toda vez que para ese bbjeto cedieron el quince por ciento de las acciones los cuatro dueflos -de la totalidad de las acciones cumpliendo lo convenido on la escritura; quo el cambio de acciones al portador por acciones nominatives fu6 obligado por el Reglamento de la Bolsa de Londres al presenter alff la emisi6n de Bonos, no pudi6ndose cotizar diellos valores sin esa condici6n; que en los primers libros de registers de acciones no existent traspasos porque los certificados eran al portador; que despu6s la mayoria de los traspasos y vents se ban becho en Londres y los Agentes y Corredores los han enviado
la OfIcina principal para obtener los nuevos Cortificados; que en el Libro Diario el primer asiento, fecha 31 de Marzo de 1911, dice asi: "Concesi6n. a Capital Social $10,000.000 cantidad pagada en acciones a los accionistas de la Compaiiia original, por la concesi6n, segfin escritura -de 4 de Marzo do 1911 ante el Notario A. Alufioz; Bonos en carter $1,000.000 a










27

Bonos emitidos de la serie "A" segfin escritura ante cl Notario Pelayo Garcia; conces!6n $825,000 imported de los bonos eDtregados al CapitAn Huston; acciones en carter $1,500.000 a fondo especial de accionistas, quince por ciento del capital social dado a la Compafiia para vender o dar en comisi6n a los compradores de los Bonos de la Compaiiia"; que con lo que ante, cede queda probado que la emisi6n de accione% s hizo sin dinero: que las dos emissions de bonos hechas se ban colocado con el Trust Company of Cuba al 857o de valor; y se vendieron los de la serie "B" a 97 y :11217o en Europa y que al repartirse en Londres impresa la carta del Sr. T. L. Huston, f echa Abril 25 de 1911, hacienda la propaganda para colocar los bonos y dando detalles a los Sres. Sperling & Co., de Londres, se express lo siguiente: "Que la primitive CompaFffa fv6 ivcorporada a las leyes de Cuba en 21 de Enero de 1911 con el objeto de lograr del Gobierno de Cuba uva cowcesi6n, la cual se logr6 en Febrero de 1911; y a mas que las obras costarian diez millions de pesos y que de acuerdo, con las importaciones habidas en Cuba en el afio fiscal de 1909-10 la Compaiiia recibiria por los derechos de mejoras de Puertos $1.060.000 anuales, aumentando mAs ca-da afio, asi como que la Compaiiia estaba en una buena situaci6n para todo proyeeto future sobre los Puertos de Cuba, debido a su representaci6n en la Junta de Puertos; que en la primer Junta General de 14 de Marzo fueron nombrados various Directores siendo uno de los Directores nombrado en la escritura de 4 de Marzo, en la que se le nombr6 tambi6n Presidente, el Sr. T. L. Huston; qu e en 29 de Marzo ante el Notario Licenciado Pelayo Garcia se hizo un contract para las obras de la Compajaiia con la T. L. Huston Contracting Company; que la Compafiia de los Puertos de Cuba no tiene la propiedad de casi ninkfin material para los trabajos a








28

que debe dedicarse ylleva a cabo 6stos por medio de contracts con la T. L. Huston Contracting Company, la que a su vez tiene various subcontratistas y por filtimo que en 5 -de Agosto de 1912 tom6 posesi6n del cargo de Directory Presidente de la Compaiiia el seflor Eugene Klapp, cesando el senior Huston.
Resultando: que de los antece.dentes que obran en la referida Secretaria de Agricultura, Comercio y Trabajo aparece que la "Compaiiia de los Puertos de Cuba" ha invertido fuertes sumas de dinero para gastos politicos, de publicidad, legalese etc. y ha pagado diversas sumas a un Abogado nombrado J. O'Brien, que ha utilizado para diversas gestiones en Washington, D. C., al que en una sola partida se le' abonaron veinte y cinco mil pesos ($25.000) y gestiones que deben estar relacionadas con los trabajos hechos por la Compaiiia cerca del Gobierno de Washington para que no siguiera considexando la concesi6n onerosa para Cuba y contrarian a los Tratados vigentes con los Estados Unidos yde cuyos trabajos existent antecedents en la citada Secretaria.
Resultando: que. desde que fu6 de pfiblico conocida la concesi6n otorgada por la Ley de 20 de Febrero de 1911 ha sido la misma muy combatida y criticada, consider6ndosele altamente onerosa para la Naci6n Cubana y Ramada a caesar a su cr6dito, interior y exteriorrnente gran quebranto, habi6ndose producido contra ella todos los diversos elements que constituent el Pueblo Cubano y al5n ha sido motive de protest para los mismos extranjoros, a extreme tal que desde el 23 de Junio de 1911 el propio Gobierno Americano dirigi6 nota al Ministro de Cuba en Washington y por medio de su Mnistro en la Habana, el 27 del mismo mes y afio di6 a concern a nuestra, Secretaria de Estado la expresada nota, en que se decia que el Gobierno Americano a causa de su Arancel








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especial y relaciones commercials on general con Cuba lamentaria que la Ley pudiera resultar indebidamento one.rosa o prejudicial. al comercio americano en Cuba; que el proyeeto desde el punto de vista de Cuba era poco apetecible, pesto que parecia sex un compromise completamente improvisor de un ingreso important de Cuba y que no era de desear desde el punto de vista de todos los otros interests communes torque el impuesto parecia. excesivo y gravoso al. comercio de, la Isla, que no parecia calculado sobre una base razonable, pues el costo del dragado seria completamente reembolsable en un period de 15 afios, suposici6n corroborada per el prospeeto empleado al poner en circulaci6ri los boDos de la CompaMa, y siendo s6lo pequefio el costo de sostenimiento, per lo que prheticamente la totalidad del impuesto cobrado desPu6s de esa fecha seria utilidad liquid y que el Gobierno de los Estados Unidos deseaba Ilamar encarecidamente la. atenci6n del Gobierno Cubano hacia el asunto y manifestar que un studio cuidadoso continuado lo ha convencido de que este proyeeto, que affect, como vitalmente affect los ingress ordinaries de la Isla, en la actualidad aparentemente arenas adecuados para sufragar los gastos del Gobierno, refleja una political, fiscal altamente imprudent y peligrosa que amenaza Ilevar a Cuba a una situaci6n de bancarrota, national y a la consiguiente incapacidad de mantener un Gobierno adecuado especialmento para tender a las necesidades -de la Naci6n y que por consi.guiente los interests del Pueblo Cubano parecen demander imperativamente que el proyeeto sea completamente reformado, que su imprevisi6n manifiesta sea re.mediada y que se haga que se ajuste a las exigencies -de una administration razonablemente segura y econ6mica do los ingress de la Naci6n, habiendo tambi6n en Junio 13 de 1912 hecho saber el









30

31inistro de los Estados Unidos de Am4rica que su Gobierno, despu6s de haber estudiado atentamente el asunto, ha formado la opinion de que. dicha concesi6n, tal como se halla actualmente, no se conform estrictamente a las prescripciones del articulo 2.0 del Tratado de Afayo 23 de 1903 entre los Estados Unidos y Cuba y que aunque no ignore que ya. ha sido impua.nada ]a validez de la. concesi6n ante los Tribunales de Cuba, alegando su inconstitucionalidad, y que ninguna de las objections presentadas hasta. ahora contra su constitucionalidad ha sido admitida por el Tribunal Supremo de Cuba, no obsfante la cuesti6n del alcance de las disposiciones del articulo 2.0 precitado, sobre esta concesi6n no se ha determined por ningfin Tribunal -de Cuba, expresando a mAs que la validez de la concesi6n en cuanto a las limitaciones constitucionales de Cuba y los Tratados no pueden ser determinadas en definitive por los Tribunales Cubanos en lo que a los Estados Unidos atafie y despu6s de un examen de, la Ley de 20 de Febrero de 1911 expose que es visible que la concesi6n. esth en pugna con las limitaciones del articulo 2.0 citado, aprovechando laoportunidad de saber que la Compafiia de los Puertos de Cuba estaba dispuesta a introducir ciertas modificaciones en la concesi6n que serial ventajosas para el Gobierno de, Cuba, para. indicar a 6ste la convenience de obtener todas las ventajosas modificaciones que en esta concesi6n est6 dispuesta a introducir la CompaMa y que el Gobierno de los Estados Unidos se cree justificado al indicar este proceder al Gobierno Cubano, apart de la cuesti6n. de la legalidad de la. concesi6n, torque una, concesi6n otorgada sin el debido studio podrh luego, por sus propiasconseenencias, o en, conexi6n con la situaci6n general de, Cuba, producer un estado de cosas embarazoso con arreglo al. articulo 3.0 del Ap6ndice de la









31

Constituci6n Cubana y al Tratado de Mayo 23 de 1903, y por esto es de desear desde el punto de vista de ambos Gobiernos, que esta concesi6n se modifique en cualquier forma que sea necesaria para evitar las eventualidades que en dicho articulo se prevent.
Resultando: que despu6s de diversas gestiones de la Compafiia de los Puertos de Cuba cereadel Sefior Presidente de la Repfiblica y de las negoeiaciones que Ilevaron a cabo con 6ste, el Seflor Presidente, despu6s de consular por -conducto de su Legaci6n en la Habana al Gobierno Americano si le parecian ventajosas las ofertas y benefi-cios que ofrecia la Compaiiia, a lo que contest en sentido affirmative dicho Gobierno; dict6 el Decreto rrdmero 510 de 12 de Mayo de 1913, que se public en la Gaceta Oficial del dia 15, en el. cual a la vez que aceptaban a1gunas modificaciones que pueden considerarse beneficiosas para el Estado y que ofrecia la Compafiia, se le reconocian a 6sta derechos tales como el de que hacia suyos los terrenos ganados al mar cuando los trabajos que babian de producer esa ganancia se hacian por
-cuenta del Estado y para el Estado, pagAndolos 6ste con los impuestos que recauda y entrega a la Compaiiia y se le eximia de la ejecuci6n de a1gunas obras que venia obligada a ejecutar y que s6lo, una Ley po,dia variar y tambi6n de un modo, indire'eto, al convenir en el modo que el Gobierno podia adquirir para si la concesi6n, se declaraban v6lidas y eficaces las hipotecas constituidas por la CompaRia para garantir sus emissions de bonos y se aceptaba que el. capital de la Compaiiia estaba represented por sus diez millions de pesos en acciones de cien pesos cuando esas acciones no representaban, como result de todos los antecedents que se tienen a la vista, ni un solo centavo de capital efectivo suscrito y pagado por las personas que concurrieron al otorgamiento de la es-









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critura de 21 de Enero de 1911 ante el Licenciado Pelayo Garcia y por las cuatro que acordaron emitir y que se repartieron los diez millions de pesos en a-cciones al otorgarse la escritura de 4 de Marzo de 1911 ante el Notario 2vlufioz, obligAndose el Gobierno a reconocer todos los contracts existences y uno de los cuales es de pensar que seria el de obrascon la T. L. Huston Contracting Company; ddndosele tal importanaia a la Compafiia de los Puertos de Cuba que se, estableci6 que el precio de las acciones en el caso, de compra se Iijaria por tres periods y se aprobaria por el Gobierno de los Estados Unidos, -debiendo nombrarse dichos periods por el Gobierno de los Estados Unidos a solicited del de Cuba, siendo designado uno de ellos por el Gobierno de Cuba y otro por la Compafiia de los Puertos de Cuba fijAndose la valua-ci6n, por una mayoria de los periods en caso de desacuerdo entre ellos'
Resultando: que por decreto, nfimero 246 de IS de Junio del actual ailo, publicado en la Gaceta Oficial del 20 del mismo mes y refrendado por el Seflor Secretario de Obras Pfiblicas, esta Presidencia declar6 nulo, sin ningiui valor Pi effect el Decreto 510 antes citado, por las razones que se continent en el mismo, quedado repuesto el asunto motive de la Resoluci6n al estado que tenia antes de haber sido dictado el expresado Decreto 510 y mandAndose dar cuenta al Congreso para lo que estime oportuno, expres6ndose en uno de los fundamentos de la Resoluci6n que 6sta se dicta para salvar en lo que quepa los interests de la Naci6n gravemente amenazados por el Decreto 510, aunque sin rechazar las ofertas de modifleaciones hechas fn firme por la Compaiiia, que pudieran traer alguna utilidad para el pais y sobre cuyos particulars, como modificaciones de una








33

Ley, debe resolver primeramente el Congreso pa-.-4 conform a ello proceder la Administraci6n.
Resultando: que de los datos que existent en la Secretariat de Hacienda se hall recaudado, por los impuestos credos por la Ley de 20 de Febrero de 1911 tal como qued6 modificada por la -de 14 de Noviembre del mismo afio y que se han entregado a la Compaflia de los Puertos de Cuba, desde el mes dc Abril a 30 de Junio do 1911 $312,431.47, en el afio fiscal de 1911-1912 $1.295,708.55, y en el de 19121913 $1.342,654.41 y con todo lo cual se demuestra. que con tipos m6s bajos de derechos que los que tuvo en cuenta el Ponente -de la Comisi6n de Obras P& blicas del Senado de la Repfiblica, desde el printer aRo, se lia recaudado una enorme cantidad de mfis sobre los $5SO,000 que 61 calculaba.
Resultando: que se-fin aparece del Registro, Mereantil de la Habana en 27 de Mayo de 190,5 se inscribi6 la escritura de 29 de Septiembre de 1904 ante el Notario Jos6 Ramirezde Arellano, por la cual los Seflores T. L. Huston, Norman H.- Davis y Manuel Garcia constituyeron la Sociedad An6nima nombrada T. L. Huston Contracting Company, con domicilio en esta capital, organizindose a perpetuidad a surtir sus effects desde la fecha del otorgamiento, siendo el objeto de la misma los fines y operations a que pueden dedicarse las Compaflias que se constituyen de acuerdo con lo prescripto por el C6digo de Comercio, y especialmente para emprender las operaclones y negocios que correspond den a una Compafiia de contrucci6n, fabricaci6n y contracts y para obtener concessions y celebrar contracts con el. Estado, las Provincias y los Ayunt amientos, para explotar esos contracts o -concesiones y disponer de los mis mos y para realizer toda clase de operations propias de una Compaiiia concesionaria de servicios de Obras









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Pfiblicas, asi como para otros diversos objets que se hacen co-star, siendo el capital social, de veinte mil pesos ($20,000) dividido en cuatrocientas acciones al portador de cineuenta pesos ($50) a la par, ]as que no se emitirAn hasta que la Compaffia haya recibido en efectivo o en equivalent su valor nominal, y una vez emitidas estarAn completamente liberadas y exentas de dividendog pasivos, de la Junta Directive serd Presidente el Sefior Huston, Vice-presidente el Sefior Davis y Secretario, el Sefior Garcia, y como los Sefiores Huston y Davis se han dedicado, hasta ahora al ne.-ocio de fabricaci6n aportan a la nueva sociedad como capital todo el -efectivo, materiales, contracts, bienes, derechos, etc., sean a nombre de Huston o de T. L. Huston y Cia., euyoc bienes y derechos aprecian en diez y nueve mil novecientos pesos ($19,900) y cien pesos ($100 ) el Sefior Garcia, reparti6ndose los seflores Huston y Davis cada uno ciento noventa y nueve (199) acciones y dos (2) el Senior Garcia. Esta Compafiia, la T. L. Huston Contracting Company, es la misma que .,gfin aparece en las pAginas 9 y 1 0 de la Memoria anuol de 1911, repartida por ]a Compaiiia de los Puertos de Cuba" contract con aqu6lla en 29 de Afarzo de 1911, por eseritura ante el Licenciado Pelayo, Garcia, la ejecuci6n de las obras y en las que se lee tambi6n que "a modida, que las circunstancias lo han ido, exigiendo, se han celebrado contracts adicionales y se ban aprobado y subcontracts que no s6lo dan mayors facilidades para la rApida ejecuci6n de los trabajos, sino que interesan a nuevas entidades en los negocios y prosperidad de la Compailia cop I)eneficio de todos sus asociados". Los dos dueflos de la casi totalidad de las acciones de la T. L. Huston Contracting Company, los Sefiores T. L. Huston y N. H. Davis, son: el primer, el que figure como Presidente de la "Com-









35

paiiia de los Puertos de Cuba" en la escritura de 21 de Enero de 1911 y que present en ese mismo dia la solicited al Senado para que votara una Ley que otorgara a la expres-ada Compailia la coneesi6n para el dragado y mejora de los Puertos de Cuba, siendo tambi6n el quo segfin la escritura de 4 de Marzo de 1911 recibi6 nueve millions de pesos ($9.000,000) en acciones de la "CompaRia de los Puertos de Cuba" que se reorganizaba, por las novecientas acciones que representaban woventa mil pesos ($90,000) de la Compaiiia que on dicha escritura se llama primitiva, o s6ase la de la escritura de 21 de Enero y a mfis de ochociewtos veinte y cinco mil pesos ($825,000) en bonos de la primer hipoteca, por servicios prestados a la Compafiia, y siendo tambi6n elect Directory President dela misma, actuando -con este -filtimo car eter hasta Agosto de 1912 en que tom6 posesi6n el nuevo Presidente de la Compaiiia, y el segundo es el que a onmbre de The Trust Company of Cuba, como, Vicepresidente primer y despu6s como Presidente de esta sociedad y a nombre de los bonistas contract con la Compaiiia de los Puertos de Cuba, la compra de las dos emissions do bonos hechas, la de la serie A de un mill6n de pesos y los de la serie de Londres o B de seis millions, aceptando para la CompaMa que representaba el cardeter de Trustee, y el de representative de los bonistas en sus relaciones con la "Compaiiiade los Puertos de Cuba".
Resultando: que segfin se lee en las p6ginas 13 y 14 del folleto publicado por la Compaiiia de los Puertos de Cuba que -contiene la escritura de 11 do Alarzo de 1911 ante el Notario Licenciado Pelayo, Garcia, para la emisi6n de los bonos de serie A en dichos bonos se habia de hacer co-star, como se hizo, despu6s, que los mismos y sus cupones: anexos gozaban de la garantia de primer hipoteca que a favor de










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The Trust Company of Cuba, como, Trustee, se constituy6 en dicha e.scritura (la de 11 de Marzo, de 1911) sobre la coizcesi6n otorgada a la "Coinpaiiia de los Puertos de Otba" por el Ejecidivo de la Bep0lica de Otba en citinplimiento de la Ley de 20 de Pebrero de 1911, y en la pAgina 37 del otro folleto que contieDe la escritura de emisi6n de bonos con garantia hipotecaria de primer de Julio de 1911 ante el propio Notario se hace co-star entre los que debia consigmarse en eada bono que todos los bonos de las dos series quedan asegurados por la. hipoteca sobre la concesi6n e igualmente y por un gravamen latent sobre todas las tierras, propiedades y bienes de que ahora es duefia o que pueda adquirir en adelante la Compaiiia, sin que en la dicha escritura se describan ,euAles son esos bienes.
Considerando: que al expresar el articulo 1.0 de la Ley de 20de Febrero de 1911, que comenz6 a regir al publicarse en la Gaceta Oficial de 22 de dicho mes y aho, "que se otorga a la. Com-paMa denominada "Compaffia de los Puertos de Cuba", la cual habr de justificar estar organized con arreglo a las leyes del pais, una concesi6n para realizer obras de dragado, y mejoras en los puertos de la Repfiblica," es indudable que se estableci6 de un modo claro, y terminate la necesidad de la existence previa, esto e.9, anterior a la Ley que otorgaba la con-cesi6n, de una CompaRia, denorninada "CompaRia, de los Puertos de Cuba", ya. organized conform a las Leyes ,del pais, la cual habria de justificar debidamente.
Considerando: que aunque el Poder Legislativo por el articulo 1.0 antes citado otorgaba la concesi6n a la CompaMa denominada "Compafiia de los Puertos de Cuba", es evidence que el Congreso dej6 al Poder Ejecutivo Nacional la facultad de decidir si la Compafiia existia realmente al promulgarse la Ley









37

y si estaba organizada con arreglo a Ins leyes del pais, todo lo cual, como es l6gico, debi6 justificarse ante dicho Poder Ejecutivo para que 6ste dictara un Decreto declarando que por la eoncurrencia de esos requisites adjudicaba, en cumplimiento de In, Ley de 20 de Febrero de 1911, a In. Compaiiia de los Puertos de Cuba", In, concesi6n, coino concesionaria de la misma para dragar y mejorar los puertos de Cuba y lo que finieamente correspondia hacer al Presidente de la. Repfiblica, ya que al Poder Ejecutivo, que 61 ejerce, estA atribuida por el inciso lo. del articulo, 68 de In, Constituci6n vigente, la facultad de sancionar y promulgar Ins Leyes, ejecutarlas y bacerlas ejecutar, expidiendo los decretos; v 6rdenes que para la mejor ejecuci6n de Ins mismas creyere convenientes.
Consideran-do: que del examen de todos los antecedentes que se han extractado y relacionado en los resultandos de esta resoluci6n se viene en conocimiento de que nunca, el Poder Ejecutivo, hasta que comenz6 A entregar k la. "Compaflia de los Puertos de Cuba", iii aun despu6s, el imported do los derechos de mejoras de puertos que se recaudan en las Aduanas nacionales, ha dictado decreto o resciuci6n aIguna en que se estimate como cosa cierta y comprobada In existence previa, d la vi.-encia de la Ley de 20 de ebrero de 1911, de In, "Compafiia de los Puertos de Cuba" y su organization, tambi6n coh anterioridad a dicha Ley, con arreglo a Ins leyes do4 pais, siendo de observers que aunque el decreto 6 resoluci6n se liubiese dictado, o alguna escritura reconociendo esos extremes se hubiese firmado, care-cerian de valor a1guno y no obligarian al Ejecutivo si en cualquier tempo se demostrase que no eran ciertos esos extremes.
Considerando: que el ineumpliraiento de In expresada obli.(raci6n por parte del Poder Ejecutivo, se









38

hace mAs notorio cuando se recuerda quo el propio Congress Nacional la estim6 indispensable por boca del ponente de la Comisi6n de Obras Pfiblicas del Senado, el Senador seflor AlemAn, cuando 6ste, sosteniendo la redacci6n del articulo primer tal como figure en la Ley, dijo, seon se lee en uno de los resultando del presented Decreto. "que d la hora de firmarse la concesi6n, que a la hora de firmars.- la escritura, a virtue de la Ley qae nosotros &Ectm"s, esa Compailia (la "Compafiia de los Puertos de Cuba", cuya existence y organization con arreglo i las leyes del pais ya afirmaba corao cosa cierta el ponente) tendrei que justifidar ante el Ejecutivo Nacional, que es quien firma esta clase de esariktras, que estd organized con arreglo, a lw leyes del pais.
Considerando: que cuando el 22 de Tebrero de 1911, concurrieron ante el Notario senior Barraqu para otorgar la escritura nfimero cuatro de su protocolo, titulada de "Convenio", de dicho dia, los sefiores Mayor General Jos6 Miguel G6mez y T. L. Huston, 6 s6ase el mismo dia en que se prornulg6 en la GACETA OFICIAL y comenz6 a regir dicha Ley, el. primer como Presidente de la Repfiblica y eu representaci6n del Poder Ejecutivo de la Naci6n, y el segundo diciendo ser Presidente de la "Compaiiia de los Puertos de Cuba", sin que justificara en ninon modo el carficter con que comparecia, como debi6 Ilaberse hecho para cumplir con los precepts del articulo, V de las Instrucciones Generales sobre la manera de redactar los documents p6blicos sujatos a Registros", los dos comparecientes se limitaron en dicha escritura a convenir en una reducci6n de los derechos por tonelada que debian cobrarse a las mercancias importadas en Cuba, esto es, en una alteraci6n de la Ley de 20 de Febrero de 1911, que no estaban ellos facultados para acordar y que, por tanto, no pudo tener va-









39

lor alguno hasta que el Congreso no acord6 la misma reducci6n per Ley de 14 de Noviembre de 1911, derogando el Decreto nfimero 400 del Presidente de la Repfiblica, de 18 de Mayo de 1911 en que se maud6 A hacer efectivo lo convention en la escritura, antes citada; sin que en esta escritura, en que per primer vez concurria con la mAs alta representaci6n del Estado, a1guien que se titulaba, sin justificarlo en modo alguno, Presidente y representative de la "CompaMa de los Puertos de Cuba", se exigiera la demostraei6n de la previa existence de dicha CompaRia y de que estaba organized con arreglo a las leyes.
Considerando: Que era una necesidad imperiosa la de que fuera el Poder Ejecutivo quien por un decreto o resoluci6n adjudicara, la concesi6n a la Compoiiia a que se referia la Ley de 20 de Febrero de 1911, case de que existiera ya al comenzar a regir la misma y estuviera organized con arreglo a las leyes del pais, lo demuestra la consideraci6n de que podia existir (como ha sucedido en el caso presented con la denominada Compaiiia de los Puertos de Cuba") una sociedad que se Ilamara Compafiia de los Puertos de Cuba" que, sin estar organized conform a las dichas leyes, se atribuyese la propiedad de la eoncesi6n y ejercitando sus pretendidos derechos se presented a percibir las sumas que por el impuesto de derechos de puertos se recaudaran, cosa que es precisamente lo que ba realizado con 6xito la Compaiiia de que se viene tratando, torque sin justificaci6n de que estaba en las conditions prescriptas per el articulo primero de la Ley de 20 de Febrero de 1911, se le tuvo per concesionaria, implemented torque habia prestado una flanza, no depositando trescientos mil pesos en moneda official, come exigia la Ley, y si s6lo por medio de una Compafiia de Fianzas, y pudi6ndose dar tambi6n el caso de que sociedades organizadas con el mismo nombre en distintos lugares de la Re-









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pfiblica alegasen a la vez ser la Compaiiia concesionaria, dado que la identidad de nombre es cosa posible no obstante la prescripei6n del articulo 152 del C6digo de Comercio vigente.
Considerando: Que aun en el caso de que no hubiera sido necesario o indispensable que el senior PiTsidente de la Repfiblica adjudic-ise en uso de sus facultades la concesi6n a la Compaiiia que se denoininaba "Compaiiia de los Puertos de Cuba", no puede caber duda alguna de que siempre era necesario, para que en el moment de promulgarse la Ley de 20 de Febrero de 1911, o en cualquier moment despu6s, se le estiniase coino concesionaria y no se pudieran controvertir los derechos que alegara al cobro de las. sumas recaudadas en las Aduanas nacionales por el iiiipuesto de mejoras de puertos y al ejercicio de todas las denies facultades y prerrogativas establecidas por aqu6lla, que la denominada "Compafiia de los Puertos de Cuba", tuviese una existence previa a la vigencia de la tantas 'eces citada Ley y que esa existencia naciera del hecho de que se habia organized conforme a las leyes del pais, por lo cual y para concern o no si se habia cumplido con esos requisites es de examiDarse cufiles eran las leyes del pais de aplicaci6n para efectuar la organization.
Considerando: que la Compafiia de los Puertos de Cuba" que se pretendi6 organizer por los sefiores Huston y Aforagas por la escritura de 21 de Enero de 1911, ante el Ldo. Pelayo Garcia, segfin se consign en aquella, era una sociedad an6nima, por acciones, formada para gestionar y explotar toda clase de contratos. y cuncesiones con el Estado, la Provincia y el Municipio, especialmente de mejora y foment en los puertos de la Repfiblica de Cuba; por lo cual puede estimarse que se trataba de una Compailia de Obras Pfiblicas, de aquellas a que se refiere la Secci6n Nove)ia, del Titulo V del Libro 2.1 del C6digo de Comer-









41

cio vigente y que estd en vigor para todas las CompaMas de esa clase salvo las de Ferrocarriles.
Considerando: que segdn el articulo 184 del citado C6digo corresponded principalmente a las Compafifas de Obras Pfiblicas la construcei6n de Obras Pfiblicas de cualquiera clase que fueren y la explotaci6n do las mismas, bien a prepetuidad, o bien durante el plazo sefialado en la concesi6n; debiendo el capital social de esas Compflias, unido a la subvenei6n, si la hubiere, representer por lo menos la mitad del presupuesto total de la obra, soon establece el aticulo 185 el que asimismo prescribe, de modo terminate, que las citadas Compaiiias no podrfin constituirse mientras no tuvieren suserito todo el capital social, y realizado el veinte y cinco por ciento del mismo, preceptos tan incumplidos por la eseritura de 21 de Enero de 1911 en que se constituy6 la sociedad an6nima de que se trata, que el capital de la misma era s6lo de cien mil pesos, cuando el costo de las obras se calculaba, en la petici6n que a su nombre el mi mo dia 21 de Enero present al Senado de la Repfiblica su Presoidente el seflor Huston, en catorce milloites de pesos, y constituci6n efectuada en contra del precepts referido, desde el moment que ni aun del corto capital social sefialado se habia realizado el veinte y cinco por ciento (25 por 100) esto es, se habia pa.rrado en dinero efectivo dicha parte del capital social.
Considerando: que el hecho de consigDar en la escritura de 21 de Enero que de la totalidad de las novecientas acciones al portador, que representaban el capital, 850 so adjudicaban totalmente liberadas al senior Moragas, como representatives del valor de las gestiones y studios realizados por dicho seflor en la preparaci6n del orden de negocios en que la Compaiiia va a desenvolverse y las otras cincuenta, al senior Huston, tamWn liberadas, por su cooperaci6n on los mismos hasta la fecha, implica una violaci6n conscien-









42

te y evidence del articulo 164 del tantas veces citado C6digo de Comercio, que terminantemente prescribe que en todos los titulos de las acciones en las compailias an6nimas, ya sean nominativas o al. portador se anotarA siempre la. suma de capital que se haya deserabolsado a cuenta de su valor nominal, o que estfin completamente liberadas, y todo lo cual implica que no puede hablarse de acciones totalmente liberadas donde no hay ac'Ciones totalmente desembolsadas, esto es, pagadas en dinero efectivo y lo, que corrobora el propio articulo citado al orderiaren otro de sus pdrrafos que todas las acciones serfin nominatives hasta el desembolso del cincuenta, por ciento, del valor nominal, y que despu6s de desembolsado este cincuenta por ciento podrdn convertirse en acciones al portador, si asi lo acordasen las compaiiias en sus Estatutos, o por actos especiales posteriors a los mismos.
Considerando: que aun en el caso de que se quisiera discutir que la sociedad que se pretendi6 organizar por la escritura de 21 de Enero de 1911 lo habia sido s6lo como una compaiiia an6nima, de las comprendidas en la Secci6n 4.a del Titulo 1.0 del Libro 2.0 del C6digo, de Comercio, y no como una de obras pfiblicas a que se contrae la Secci6n g.a del propio Titulo y Libro, siempre cabria afirmar sin temor a ser contradicho con 6xito que se falt6 a las prescripciones del articulo 151 del propio, C6digo, que establece que en la escritura social de las compafiias an6nimas deberh co-star el capital social, con expresi6n del valor que se haya dado, a los bienes aportados que no sean metfilico, o de las bases segfin las que habrA tie hacerse el avalfio y el plazo o plazos en que habr6. de realizarse la parte de capital no desembolsado al conostituirse la compaiiia, faltkndose tambi6n a lo, que establece el articulo 164, ya citado antes, de que en todos los titulos de las acciones se anotarA siempre la suma de capital que se haya desembolsado a cuen-









43

ta de su valor nominal o que estfin complatamente liberadas, todo lo que implica desembolso de dinero efectivo, como lo demuestra el hecho de que el articulo 171 dice que el socio que por cualquier causa retarded la entrega de su capital, transcurrido el t6rmino prefijado en el contract social, o en caso de no haberse prefijado, desde que se establezea la Caja, aboard a la masa coffin el interns legal del dinero que no hubiere entregado a su debido tempo.
Considerando: que la sociedad an6nima organizada por la escritura de 21 de Enero de 1911 ante el Notario Licenciado Pelayo Garcia, ni antes de acudir al Senado de la Repfiblica pidiendo el- otorgamiento de la concesi6n que se cre6 por la Ley de 20 de Febrero de ese afio, ni despu6s de esta fecha, cumpli6 tampoco con otras prescripciones del C6digo de Comercio, tales como las del articulo 119 que ordena que todas las compaiiias de comercio, antes de dar principio a sus operations, presentardn su escritura de constituci6n para su inscripci6n en el Registro Mercantil, conform a lo dispuesto en el articulo 17, que hace obligatoria aquella para las sociedades que se constituyan con arreglo al propio C6digo, no habi6ndose presented la mencionada escritura al Registro basta que a 61 se llev6 en el ines de Mayo de 1911 la de 4 de Marzo de dicho afio ante el Licenciado Mufioz, por la que se reorganize, seg-dn se express, la sociedad an6nima denominada Compafiia de los Puertos de Cuba. "
Considerando: Que no puede afirmarse que si la
Compafiia de los Puertos de Cuba" a que se refiere la escritura de 21 de Enero de 1911 ante el Notario Licenciado Garcia, no estaba organized con arreglo a las Leyes del pais al promulgarse la Ley de 20 de Pebrero e dicho afio, no teniendo, por tanto, existencia legal ni antes ni despu6s de esa fecha la misma adquiri6 esa existence legal al reorganizarse









44

por la escritura de cuatro de Marzo ante el Notario Licenciado Mufloz, ya que entonces si se organiz6 conform a las leyes de Cuba pues a Ln en el supuesto que no puede admitirse mas que para discutirlo, que la Ley de 20 de Febrero per-. mitiera que la organizaci6n.con arreglo a las leyes se hiciera despu6s de la vi.-encia de la misma, siempre quedaria en pie, en contradicei6n con dicha afirmaci6n, que no puede estimarse organized conformed las leyes del pais una sociedad an6nima que dici6ndose concesionaria de obras pfiblicas falta fundamentalmente a las prescripciones del articulo 185 del 05di-O de Comercio ya antes citado, que establece one el capital social de las compaiiias de esa indole, unido a la subvenci6n, si la hubiere representarh por lo menos la mitad del imported del presupuesto total de. la obra y que las mismas no podrAn constituirse mientras no tuvieren suscripto todo el capital social y realizado el 25 por ciento del mismo, precepts cuyo incumplimiento, desde el moment que ninguno de los cuatro concurrentes al otorgamiento de la escritura desernboM ni un solo centavo, impedian que la Compahia pudiera constituirse, maxima cuanlo tampoco se hizo co-star el capital social con expresi6n del valor que se hubiera dado a los bienes aportados que no sean metfilico, o de las bases segfin las que habia de haeerse el avalfio, conform ordena el articulo 151 del propw COdigo y menos se cumpli6 con lo que express el 164 ya, citado, articulos los dos applicable lo mismo a las sociedades de obras pfiblicas que a las simplemente an6nimas, ytodo lo cual produce el convencimiento de que la "Conipaflia de los Puertos de Cuba" no estA or,,anizada conform a las leyes del pais pues que las acciones que represents su ficticio capital no pueden ser consideradas sino como acciones de agua, que no reconoce ni permit el C6digo de Co-










45

mereio vigente y que. no son representatives de aportaci6n alguDa de dinero ni do propiedad determined a la sociedad, ya que as! como en la primer escritura de 21 de Enexo de 1911 so dijo que las acciones cran representatives del valor de las gestiones y estvdios realizados en la. preparaci6n del orden de negocios en qzte la compatia va a desenvolverse, en la do 4 de Afarzo se express que el capital de la sociedad reorganizada representaba el valor de las acciones y de todas las actividades de 7a primitive sociedad a m6s del valor de la concesi6n qw se le hd otorgado por el Gobierno.
Considerando: Que- ese carActer ficticio de las acciones a que se contraen las dos escrituras de 21 do Enero y 4 de Marzo de 1911, que no pueden, como se ha dicho ya, ser consideradas sino como acaiones de agita, no obstante lo cual, sin preocuparse de las responsabilidades que se contrarian, se consignan, en los certifica-dos de las emitidas despu6s de la. reorganizaei6n, las palabras castellanas acciones liberadas y las higlesas fidl paid shares, que quieren decir, acciones complctamt)?te pagadas, Io demuestra el hecho de que en los libros de la denominada "Compaiiia de los Puertos de Cuba" no existed indicaci6n alguna roveladora de niovimiento de condos, procedentes del pa(,o de las expresadas fieciones emitidas seg-dn las dos eserituras cicadas.
Considerando: Que de todo 10 expuesto se deduce como consecuencia natural y l6gica la obligaci6n para el Ejecutivo Nacional de no poder consider a la denominada "Compaffla do los Puertos de Cuba" como la concesionaria de la concesi6n a quo se contrae la Ley de 20 de Febrero dt. 1911, suspending. do para lo sucesivo la entrega a la misma de los derechos que se recauden por el impuesto de mejoras de piiortos, sin perjuicio de las acciones que el Secretario












de Justicia, por si, o por medio del Alinisterio Fiscal, ejercite, -de conformidad con lo que se establece on el p rrafo segundo del articulo 102 de la Ley OrgAnica del Poder Ejecutivo, contra la mencionada Compaiiia, al objeto de que los Tribunales; de Justicia declared, en armonfa con el principio consignado en el artfeulo 4.' del C.6digo Civil que son nulos los actos ejecutados contra lo dispuesto en la Ley, la caducidad de la carta constitutive de la misma, esto es, la nulidad do su escritura de organization y la consiguiente disoluci6n de la dicha sociedad por haberse organized o constituido sin cumplir lo que establece el C6digo de Comercio vi.gente y para exigir, si procediere, la devoluci6n de las cantidades que pudiera haber recibido la Compafiia sobre el valor -del costo total de las obras que haya realizado para el Estado, ejercithndose para ello el derecho que reconoce elarticulo 1895 del C,6digo Civil, de exigir la restituci6n de lo que no habla derecho a cobra y que por error ha sido indebidamente entregado.
Considerando: que la obligaci6n que en el razonamiento anterior se entionde existed para el Poder Ejecutivo Nacional es tanto mayor si se recuerda que desde los primers dias del otorgamiento do la concesi6n, 6sta ha sido considered por propios y extraflos como grandemente funesta para el buen nornbre, cr&dito y prestigious del pueblo y del Estado cubanos y la "Compafiia de los Puertos de Cuba" que tan indebidamente ha venido disfrutando de aqu6lla, como una gran detentadora de parte de la riqueza national, ya que no puede ser considered de otro modo desde el moment en que sin tener un solo centavo de capital enefectivo, ni maquinaria, ni material alguno con que acometer las obras a cuya realizaci6n se obligaba, por medio do peticiones y escrituras mafiosamente redactadas, obtiene la entrega de sumas tan cuantiosas como las que produce el Impuesto de










47

derechos de mejoras de puertos, sin que el Estado, para el caso de incumplimiento, de los t6rminos de la concesi6n, tuviera otros bienes donde hacer efectivas las responsabilidades que existieren a su. favor, que los propios condos que entregara a la Compaflia, o los que 6sta tuviere en su poder por haberlos levantado con garantia de lo que recibiera del Gobierno y todo lo cual quiere decir que medi6 en la negociaci6n de que se trata un element de dolo o fraud, consist-ente en haber asegurado que poseia para las obras capitales propios y lo que se ha demostrado que no tenia, como deben tenerlo las CompaMas que aspirin a prestar servicios o realizer obras para el Estado, a lo que hay que agregar el daflo inmenso que al cr6dito de los valores cubanos en el extranjero ha oeasionado poniendo en circulaci6n acciones que no son representatives de capital alguno desembolsado y bonos en que se consicna que para el pago de sus intereses y amortizaci6n se hipoteca una coricesi6n, al parecer no hipotecable por su naturaleza,,ya que el propio Tribunal Supremo ha declarado, en un recurso de incontitucionalidad, examinando la Ley de 20 de Febrero de 1911, contra la afirmaci6n de que dicha Ley en el fondo y en la forma no es otra cosa que un contract administrative, que el Congreso al dictarla s6lo dej6 regulado un servicio de. carActer administrativo, determinando por qui6n ha de prestarse y estableciendo las reglas, a su juicio convenientes, para su prestaci6n," y cuando la actual concesi6n de prestaci6n de servicios o de obras para el. Estado, no adjudicaba bienes races al concesionario, el. que, por otra parte, cuando se otorgaron las escrituras de emisi6n de los borlos, no tenia, torque no constant, ni se described en ellas, ninguna otra clase de bienes inmuebles inscribibles en el. Registry de la Propiedad, y sin embargo de lo cual los declare hipotecados y asi lo hizo co-star en dichos bonos.










48

De conformidad con el parecer del Consejo de Secretaries y ejercitando las facultades de que estoy investido,

RESUELVO:

Primero:-Que como el articulo 1.1 de la Ley de 20 de Febrero de 1911 exige que la Compaiiia concesionaria habrA do justificar estar organized con arreglo a las leyes del pais, la Compahia de los Puertos de Cuba" no es ni puede seguir siendo considerada en lo sucesivo como tal concesionaria, ya quo la misma no estaba organized con arreglo a dichas leyes al promulgarse la Ley citada, ni lo ha sido despu6s, en la hip6tesis de que ello fuera legalmente admisible.
Segundo: En consecuencia de lo antes resuelto el Secretario de Hacienda suspenderA desde el dia de boy la entrega A la mencionada Compaiiia -de las camtidades que se recauden por el impuesto de derechos; de mejoras de puertos.
Tercero: El Secretario de Obras Pfiblicas proecderA a hacerse cargo de todas las obras que hasta el presented se hubieren realizado para el Estado por la "Compahia de los Puertos de Cuba" en los diversos puertos de la Repfiblica, debiendo los funcionarios que para ello design hacer co-star en actas que levantarAn al effect el estado y la cuantia de las obras efectuadas, las que dicho Secretario hard tasar oportunamente, debiendo el mismo proponerme aqueIlas medidas que estime conveniences tomar para conservar las obras y continuarlas hasta Ilevarlas A feliz t6rmino, ya para acordarlas por si el Poder Ejecutivo si estuviese en sus facultades, ya para dar cuenta, para la resoluci6n que correspond, al Congreso Nacional.









49

Cuarto: El Scretario de Justicia procederA, con vista de todos los antecedents que obran en poder del Secretario de Agricultura, Comercio y Trabajo y que 6ste con su informed y recomendaciones le remitirA, a establecer, por si mismo o por medio del Ministerio Fiscal, conform a los precepts del pfirrafo segundo del Articulo 102 de la Ley OrgAnica del Poder Ejecutivo, los procedimientos correspondents para quo se declare judicialmente la caducidad 6 nulidad de la carta constitutive 6 escritura de constituci6n de la Sociedad An6nima denominada "Compaiiia de los Puertos de Cuba", por no haberse cumplido en su escritura de constituci6n con los precepts de las leyes vigentes de Cuba; igualmente tambi6n deberA en su dia el Secretario de Justicia, cuando le informed el de Obras Pfiblicas sobre el costo total hasta el presente do las obras llevadas A cabo por la Compaiiia de los Puertos de Cuba", establecer las demands que procedan para reclamar, a nombre del Estado, las sumas que en excess del costo de dichas obras tengan percibidas hasta el dia la mencionada Compafiia, sin perjuicio de promoter igualmente los procedimientos de cualquier indole que scan necesarios para la mejor (I-efensa de los derechos del Estado y para la persecuci6n y castigo de cualquier delito que pueda haberse cometido en relaci6n con la concesi6n para el dragado y mejora de los puertos de Cuba.
Dado en el Palacio de la Presidencia, en la Habana, el dia cuatro de Agosto de 1913.

MARIO G. MENOCA-L,
President.

Emilio A,(tfiez,
Secretario de Agricultura, Comercio
y Trabajo.




















EXECUTIVE POWER

DEPARTMENT OF AGRICULTURE, COMMERCE AND LABOR


DEcREE No. 522.

Having examined the data concerning the concession for the dredging of the ports of Cuba, which exists in the Departments of Agriculture, Commerce and Labor, Public Works, of the Treasury, of Justice, of State, and of the Presidency, and,
It appearing that as may be read on page 3 of No. M, Volume 16 of the Journal of Session of the Senate, dated the 27th of June, 1910, at -the session held on the 24th day of the said month and year a report was made on a bill by which it was resolved to refer the same to, the Committees on Public Works and Appropriations and which after stating that "It was necessary to dredge and clean the harbor of Havana, the bottom of which at many places on account of its filthy state demands the execution of works as early as possible to facilitate the marine traffic and movements, inasmuch as the performance of such work is equivalent to the sanitation of the entrance to the capital of the Republic, thereby undoubtedly contributing to maintain, if not to improve, the magnificent sanitary conditions which we may now with pride present to the consideration of foreigners", it was further stated in its only article that "The National Executive shall include annually during -the









52

budgets of 1911 to 1912, of 1912 to 1913, of 1913 to 1014, and of 1914 to 1915, the sum of $500,000.00 officiarl currency foar the dredging, cleaning and sanitation of the harbor of Havana and that the National Executive shall provide as may be in order to the end that the dredging, cleaning and sanitation work of the maritime zone be carried out by the owners of private properties located thereon"
It appearing further that on page 3 of No. 24, Volume 17 of the said Journal of Scssion corresponding- to the 27th day of January, 1911, a statement appears copied, which in behalf of the Coinpaflia de los Puertos de Cuba "was presented to the Senate applying for a law to carry out the work of improvement of tile ports of the Republic", which statement, signed in this city on the 21st day of January, 1911, by the Compafiia de los Puertos de Cuba, T. L. Huston, was reported at the corresponding session of the 25th of the said month and year and was referred to the committees on Public Works and Treasury and Appropriations, because the same were studying a bill for the dredging of the port of Havana, it appearing from said statement that the party signing the same, being acquainted with the bill referring to the dredging of the port of Havana (above referred to), has studied sufficiently the very important problem of improving the ports of Cuba, and therefore Submits to Congress, in behalf of the company by him represented, a general plan which covers the matter fully and answers duly the necessities, thereupon passing on to specify which are the works that sould be performed in the port of Havana and some other ports of Cuba and stating thereafter that "The execution of all the plan proposed, on account of the magnitude of the same, could not be accomplished by the State, inasmuch as by carrying it out either by administration or by contract, the State would neces-










53

sarily be confronted with the lack of funds, an unsurmountable inconvenience even in case new taxes were established, because no matter how high the same should be they would never be sufficient to cover annually the amount of the work during the short period in which the same must be performed, wherefore the State would necessarily have to resort to a loan, the amount of which would not be less than $14,000,000.00, to which sum the interests added during a number of years, which would not be less than thirty, would represent an excessive burden on the Cuban nation, this aside from the great difficulties encountered at present to obtain said loan and the burdensome conditions which would be imposed by bankers, bearing in mind the circunmstance that said loan would be the third raised by the Republic in a comparatively short period, which would unfortunately reflect on the market with a serious :depression in public securities, such inconvenience disappearing if Congress should grant (to the applying company) a concession in accordance with the following bases:
1st. The Compaihia de los Puertos de Cuba would bind itself to perform the works hereinafter stated, dredging and improvement of the port of Havana, taking for a basis the project approved by Royal Decree of March 18, 1879, enlarging the same in accordance with the present necessities of said port. Dredging and improvement of the port of Santiago de Cuba in accordance with the statement filed with the Government by the Chamber of Commerce of said city on the 28th of November, 1910. Dredging and improvement of the rest of the ports of the Republic, granting preference amongst them to those of La Esperanza, Cdrdenas, Matanzas, Cienfuegos and Nuevitas, investing in these works as much as $1 ,300,000.00.
2nd. In accordance with the provisions of Art-










54

icle 26 of the Law of Ports in force, the following special fees shall be established for the improvements of the ports of the Republic: each ton of merchandise unloaded from a steam or sailing ship $1.00, each ton of coal unloaded from a steam or sailing- ship 25c.
3rd. The Compaiiia de los Puertos de Cuba shall enj-oy 'during thirty years as a consideration for the works which it is going to perform the fees fixed in the foregoing basis without deductions of any kind.
4th. The works contained in the first basis shall be declared of public utility.
5th. A special commission, which shall be named Board of Ports, shall be created, in which commission the concessionaire company shall have intervention, said board, within a short period to be specified, shall determine the final projects of the works to be performed in each port and which shall be considered comprised in this la-w.
6th. The Compafla de los Puertos de Cuba shall begin and terminate the works within the period that shall be assigned and shall furnish a bond to guarantee the fulfillment of its obligations".
After the foregoing, said statement sets forth~ that the plan proposed answered "an economical and public convenience plan, the producing classes being thereby most 'directly benefited and'likewise the popular ,classes because the price 'of all articles would undoubtedly decrease when the cost of freight were smaller and when the cost of handling goods in the harbor should disappear, furthermore the whole nation being benefited by the enormous growth of its economical activity, the petitioner winding up his statement by asserting that the Republic needed in an unavoidable and urgent manner the execution of great works of importance to the Republic which lacked at present sufficient resources to attend to said works unless it should resort to a loan, which it could










55

only obtain under very burdersome conditions, "and that the Compailia de los Puertos de Cuba had the elements and means to attend to said works in all their magnitude and it offered the high powers of the nation the performance of the same, receiving in exchange only certain funds".
It appearing that on the same 21st day of January, 1911, on which date AMr. T. L. Huston in behalf of said company adressed himself to the Senate of the Republic, said gentleman, who stated that he was a native of the United States of America, and another person named Francisco. Rafael Moragas, a native of Havana, the former an engineer and the latter owner of property, appeared before the Notary Public of this city, Ldo. Pelayo Garcia y Santiago-, stating that they had agreed to constitute and they did constitute by deed executed at that moment a corporation under the following terms and conditions: The name of the corporation will be Compaiifa de los Puertos de Cuba. The corporate domicile shall he in this city, being able to change said domicile or to incorporate its deed of organization under the laws of any other country if in the judgment of the directors the corporate interests require this. The purpose of the company will be to execute and perform all kinds of contracts and concessions with the State, the Province and the Municipality or with private parties, especially to improve and develop the ports of the Republic of Cuba; the dessication, colonization and improvement of lands; building and operation of wharves, warehouses, channels and railroads, purchase and sale and lease of real estate and in general any other acts of industrial, commercial and lawful contract. The capital is fixed for the present at $100,000.00 United States currency, represented by 1,000 shares of $100.00 each, and may be decreased or increased by the issue of new shares or











56

in any other manner if deemed convenient by the general meeting of stockholders called for that purpuse. Ninety-five per cent of the shares, or in other ivo rdg, 9.50 shares, with a valite of $95,000.00, are turned over full paid to Mir. Moragas as representing the value of the works and studies made by that gentleman in preparing the business in which the company is going to be developed, and 57o of the remaining shares, or in other words 50 shares with a value of $5,000.00, are turned over, also full paid, to MIr. Hluston for his co-operation in the business up to the same date. Mr. iluston's right of preemption (dere(410 de tanteo) in contracts for works which the company is to perform is recognized therein, with the understanding that the exercise of such right shall be inconsistent with the position as director which he holds at present. The shares are issued to bearer (their original title is this deed of constitution) the shareholders being entitled to request that their shares be represented by certificates signed by the directors and likewise to apply for the accumulation or division of the shares represented by each certificate. The general meeting of stockholders may resolve on the reduction or increase of the corporate capital. The representation of the company shall be entrusted to a Board of Directors constituted by two directors who shall be a President and a Secretary-Manager, the first position to be filled by Mr. Huston and the second by Mr. Moragas. The number of directors may be increased if deemed convenient in the judgment of the general meeting of stockholders. The managemnent of the company shall be entrusted in the first place to the directors jointly, or, in other words, to the President and the Secretary-Manager, who are fully empowered to sign acts, contracts, applications powers of attorney, cheeks, bills of exchange and documnents of any other kind as also to transact busi-










57

ness in any part of the territory of the Republic, or in foreign countries, disposing of all the properties, rights and actions of the company without any limifation, further being empowered to alter, amend and annul in wlicie or in part the By-laws of this company. The directors are specially empowered to issue a number of bonds of this corporation to the amount of $5,000,000.00, with perfect freedom to decide on the form and text of the bonds, their redemption, interests, and periods of payment. They are likewise expressly empowered to execute in the name and representation of this corporation and as security of the bonds issued, a deed of pledge or mortgage on all or any properties, equipments, rights, concessions, franchises or properties, rights and actions of any other kind which may belong to the same or may be acquired in future. It being an essential condition for the exercise of any and all the powers conferred on the Board of Directors that their resolutions be unanimously adopted, that is to say, jointly, by the two directors, and in case of disagreement the'opinion of the director holding, the greater number of shares in the company shall prevail. The representation of the company as well as the execution of the resolutions passed by the Board of Directors, may be delegated in the President upon special resolution of.the Board of Directors recorded in the minutes. The general meeting of stockholders shall be held in the month of January of each year, to elect the Directors and determine their positions; further meeting's shall be held at any other time, at the request of shareholders representing a majority of the shares, to transact any business of the corporation. For the holding of the general meeting it shall be necessary that it be attended by shareholders representing an absolute majority of the shares, passing their resolution by a majority vote, to which purpose each share shall re-










58

present a vote and the President's vote deciding in case of a tie. The directors are empowered to develop these bases in the necessary regulations for the operation of this corporation. The company is constituted from the date of this deed and for unlimited time.
It appearing that as shown by No. 36, Volume 17 of the Journal of Sessions of the Senate of the 1st of February, 1911, the committee on Public Works reported on the 30th of January an exhaustive report signed by Senator Jos6 B. AlemAn, who had been appointed to report on the original bill with reference to the dredging of the port of Havana, and in which he stated "that the scope of the same is not large and that it does not duly satisfy the true requirements; the necessity of improving our ports, thus preparing us for the great trade revolution which will shortly take place, the opening. of the Panama Canal" and that it being his duty to report on the petition presented to the Senate by Mr. T. L. Huston in behalf of the CompaMa de los Puertos de Cuba, he does report on same favorably for several reasons, which are stated, appearing amongst the same, that -according to the estimates made in the report "the tax for port improvements" in the form applied for ($1.00 per ton of merchandise and 25c. per ton of coal) will produce $580,000.00 per year, which is approximately the remuneration which the concessionaire company is to receive as a compensation for all the works which it undertakes to perform and the budget of which, also approximate and estimated in an economical manner, is $14,141,950,00, to be invested in the term of six years in all the works and in addition thereto about $6,000,000.00 for the cleaning, maintenance and the placing of buoys in the port of Havana during the period of duration of the concession, in view of which the acceptance of the following bill is recommended, article 1st thereof reading as follows:










59

"A concession is granted to the Compaflia de los Puertos de Cuba to perform the works of dredging and improving the ports of the Republic in accordance with the specifications set forth in the present law".
It appearing that as shown under No. 31, Volume 17 of the Journal of Sessions of the Senate of the 13th of February, 1911, the Senate, at the session held on the 10th of the same month, upon discussing and voting all the articles of the bill reported by the Committee on Public Works, which was accepted almost in whole by the commission of the Treasury and Appropriations, granting the Compaiiia de los Puertos, de Cuba a concession for the dredging and improvement of the ports of Cuba, fixed under Article 4 the taxes at $1.00 per ton of merchandise, wherever coming from, and 80c. por ton for those coming from the United States of America, and 10e. per ton of coal, Article 1st of the said law being finally worded as appears in the law of February 20th of the same year, inasmuch as the House of Representatives, upon voting the same on the 15th of said month, did not alter either this or any other provision of the Senate bill, it being noticed upon reading the exhaustive speeches made by Senators Sanchez ]3ustamante and Aleman, the former against the concession to the Compafla de los Puertos de Cuba and doubting the solvency and even the existence of the same, and the latter speaking in favor of the bill by him prepared, stated among-st other things, the following: that said company is the one that at present can more easily and quickly perform the work and at the same time at a smaller cost because it already has a part of its capital invested; because upon ending the work of the Knights Key Railroad its plant becomes useless. Said plant costs several millions of dollars, and brought to the ports of Cuba could immediately start










60

the work of improvement of the ports of the Island, because it has sufficient material for this and could do more work at less cost, inasmuch as its disbursements have already been made. That is therefore the reason for which I h eartily support the concession applied for by said company and which I find no objection to grant. It does not appear that the company does not exist as asserted, supposed, believed or asked by my dear colleague, Mr. Bustamante. No, I tell Mr. Bustamante that through my private information I can assert that the Compailia de los Puertos de Cuba does exist .and is organized, but at the same time, in order to avoid the legitimate scruples entertained by Mr. Bustamante, to wipe out whatever scruples my other colleagues in the Senate may have, and even to satisfy my own conscience, I have wished to amend Article 1st of the bill, to read that said company shall have to justify that it has been organized under the Jaws of the country. What does that mean? Does it mean that the company has not been organized? That it does not eixst? That is it to be organized at the time of the concession? No; it does not imply the non-existence of the company which I assert does exist, but it states in a clear and final manner that at the time of signing the concession, that at the time of signing the deed, by virtue of the law which we shall prepare, said company shall have to justify before the National Executive, whose ditty it is to sign this kinid of deeds, that it has been organized nder thte lauws of the country. Therefore, such amendment does not mean that it is not organized but that it shall be required to be organized. Wherefore there is nothing to be feared therefrom. Said company is organized and represents a capital, which it has in cash such as said plant, with which the works may be carried out rapidly and at the same time it shall have to justify before the Executive that is it a company organized









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under the laws of this country and that in case it should not fulfill its obligations it shall be punished in accordance with another of the clauses in the same contract".
It appearing that the House of Representatives finally approved on the 15th of February, 1911, as above stated, the bill as the same had been approved on the 10th of the same month and year by the Senate and that it was sanctioned by the Honorable, the President of the Republic, on the 20th and published as a law on the 22d in the GACETA OFICIAL, on which date it was enforced in accordance with the provisions under Article 17 of the same law, a new corrected copy of the law having been published in the GACETA of the 27th.
It appearing that on the same 22d day of said month and year on which said law was published in the GACETA OriciAL, Major General Jos6 Miguel G6mez and Mr. Tillinghast L. Hommedieu Huston, the former in his capacity as Constitutional President of the Republic of Cuba and as such representing the Executive Power of the nation, and Mr. Huston in his capacity as President, which he alleges he is (it is thus stated in the deed), of the Compafia de los Puertos de Cuba, a corporation organized in accordance with the laws of this Republic, appeared before the Notary of this city, Ldo. Jesfis M. Barraqu6, both parties asserting that they enjoyed the necessary legal capacity for the execution of the deed, which, in the judgment of the Notary, is true, inasmuch as he does not know anything to the contrary, the said Notary having stated at the end of said deed that he certified to the knowledge of the parties appearing and that lie was acquainted with their occupation and place of residence and that likewise he was certain of the capacity with which ,Mr. G6mez y G6mez acted; but not one word or phrase appears in the deed showing










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that Mr. Huston was President of the Compafifa de los Puertos de Cuba, that said company existed lawfully and was organized in accordance with the laws of the country and recorded in the Mercantile Registry or that Mr. Huston was empowered to execute the deed in behalf of the same, and it was uly stated that his saying that he was President of the CompaMa de los Pucrtos de Cuba was accepted as sufficient.
It appearing that in said deed, which was entitled an Agreement and bears No. 4 of the Notarial Record of Ldo. Barraqu6, only the following is stated: under Clause 1st., that Congrcss had voted and the President of the Republic had sanctioned a law thereinafter inserted in the same clause. In the 2nd, that Mr. G6mez, President of the Republic, with the desire of obtaining for the Cuban State and for the import trade some advantages in connection with the provisions of said law, had repeatedly taken steps with the company for the purpose that the latter should renounce a part of the taxes which by virtue of the said law were assigned to the company and that as a result of such steps the company had promised the renunciation and concessions set forth in the two letters which, under date of the 20th instant, were addressed to the President of the Republic and the text of which is as follows, according to the respective originals, thereafter copying the two letters signed by Mr. Huston as President of the Compaiiia de los Puertos de Cuba, in which he does not even state that he is empowered to offer what he did offer, stating in the first letter that the Company would grant the State 20% of the income for tax collections over $1,500,000.00, and in the second letter that a deed would be signed amending the prices fixed for the collection of tonnage of merchandise, excepting the prices fixed on coal, which would remain as stated in the law approved by Congress, in the folloiwng form:









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where it reads $1.00, to read 88c., and where it reads 80c., to read 70c., furthermore accepting the condition to leave in the safes of the Treasury all amounts due by way of collections from the date of enforcement of the law until the expiration of three months after the beginning of the works by the company, returning at the expiration of said three months the total of said collections. Mr Huston added, under the 3rd clause, that with the data mentioned above and carrying out the purpose of the deed he states that it behalf of the Compaffia de los Puertos de Cuba he approves and ratifies in all their parts and contents the two letters transcribed and binds the said company to the fulfillment of all the statements contained therein and in the same manner he declares that the terms in said letters shall form part of the whole of said law to which the same refer. Under Clause 4th Mr. G6mez accepts in behalf of the Government of the Republic of Cuba and in favor of the State the said deed in accordance with the contents thereof and for the most convenient uses, and under the 5th and last clause of the deed the parties submit to the courts of this city for all acts and proceedings which may arise from the deed,
agreeing thereby that all costs and expenses shall be per account of the company represented by Mr. Huston, and thereafter the other usual particulars in deeds of this kind are set forth before the signing of the instrument.
It appearing that after the execution of said deed of February 2, 1911, no decree was issued by the National Executive, nor does there exist in any of the other departments of the government any records to show that any deed has been executed by the President of the Republic recognizing that the Compaffia de los Puertos de Cuba had a legal existence before the approval of the law by Congress and


I









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the promulgation of the same in the GACETA OFICIAL and that it had justified that it was organized, before such promulgation, under the laws of the country, wherefor it had been granted the concession established by said law, being considered thereafter as such concessionaire if it complied amongst others with the provisions under Article 13, depositing with the Treasury, within thirty days following the publication of the law in the GACETA, a bond in the amount oJ $300,000.00 official currency, to guarantee the fulfillnmeit of its obligations, which sum would be returned to the company upon completion of th wori. Said bond, when furnished, was done so by'a bond company which, as those of its kind, only had deposited with the Treasury a guarantee in the sum of $25,000.00.
It appearing that on the 4th of March, 1911, before the Notary of this city, Ldo. Antonio Mufioz y Vald~s G6mez, and under No. 252, a deed was executed entitled as follows: Mercantile Corporation Compafiia de los Puertos de Cuba, in which appear as parties thereto Mr. Tillinghast L. Houston and
Messrs. F. R. Truffin, Pedro Rodriguez and Manuel Otaduy, who state, under the paragraph entitled Statemwcts, the following: that they are the only representatives of all the rights and actions and of all the obligations of the company organized under the laws of this Republic entitled Compafia de los Puertos de Cuba, to justify which they exhibit to the Notary, to be added at the end and to form part of this deed, the list of the shareholders and the number of shares represented by each (From said list added to the deed it appears that on the 4th of March, 1911, the following were shareholders in the Compafifa de los Puertos de Cuba: iuston with 900 shares for $90,000.00, Truffin with 36 shares for $3,600.00, Rodriguez with 32 shares for $3,200.00, and Otaduy with 32 shares










65

for $3,200.00, or in all 1,000 shares representing a capital of $100,000.00). That the said company was constituted to execute and operate all kinds of contracts and concessions of the State, the Province or private parties, for the performance of works especially of development and improvement of the ports of the Republic and that it is the concessionaire of the State to carry on the work of dredging and improving the ports of the Republic in accordance with the law approved by Congress and sanctioned by the President of the Republic dated the 20th of last month (February 20, 1911) published in the GACETA OFICIAL of the 22nd of the same month, of which law a copy has been added at the end of the deed and that said company, requiring to be reorganized in View of the great importance and development reachcd by its business, increasing its capital, the deponents have held several meetings and have determined to reorganize the Compafiia de los Puertos de Cuba granting to the same the following by-laws in which, amongst the several provisions in such case, it is established that the corporation is organized under the form of a mercantile stock corporation entitiled Compafiia de los Puertos de Cuba", that the company is, by reason of its operation, a concessionaire of public works, being entitled also to perform other operations which shall be determined upon specifying the corporate purposes, that it shall be ruled by the general provisions of the Code of Commerce and other laws applicable thereto in harmony with its transactions, all of which is without prejudice to the provisions of its by-laws; that the company shall fulfill the requriements of the special laws when by virtue of its transactions such laws be applicable, and for that reason it shall be in a position to obtain concessions of all kinds from the State, the Province or the Municipality, that the term of duration of the corporation is










66

unlimited, that for the purpose of determining the beginning of its transactions it is antedated to the 21st day of last January, on which date the corporation was organized under the laws of this Republic,
that the purpose of the company, amongst others therein determined, is the fulfillment of the law of February 20th, fijtimo, operating the concession granted to it by said law under the terms and conditions therein established; that the authorized capital of the Company is $10,000,000.00 United States currency represented by 100,000 shares at $100.00 in cash, each, all having the same rights and obligations, that the shares shall be issued to bearer and written in English or in Spanish but that any shareholder may request that his shares be registered to his name, that the certificates of shares shall be signed by the President and the General Secretary of the company bearing furhermore the corporate seal which shall be circular in form and containing the following words: "Compafifa de los Puertos de Cuba" and within the circle the word: "Incorporada".
It appearing that the deed of March 4, 1911, above mentioned contains, amongst others, the following transient provisions: "1st. The corporate capital, or in other words TE N MILLION DOLLARS, is the cash capital which has been paid in by the company upon reorganizing the same under its deed inasmuch as said capital represents the value of the shares and of all activities of the original corporation in addition to the value of the concession, which, has been granted to the same by the government. Therefore the comnpany shall pay Messrs. Hluston, Truffin, Rodriguez and Otadny $10,000.00 represented by 100 shares of $100.00 each of the new issue in exchange for each original share of $100.00. In addition thereto Mr. Hluston, who is the owner of the majority of the shares, shall receive for services rendered to the cont-










67

pawy EIGHT HUNDRED TWVENTY-FIVE THO USAND DOLLARS first mortgage bonds of the $10.000.000.00 issue resolved and which shall be mentioned hereafter together with the conditions establishod by the Board of Directors upon making said issue. 2d. Messrs. Huston, Truffin, Rodriguez and Otaduy, who are the owners of all the shares in the company, agree to transfer and hereby do transfer in favor of the same 15%c of their respective shares, to that effect despositing the same in the Treasurer's office at the disposal of the Board of Directors and to cover the financial transactions or other requeriments of the company, leaving as Treasury Stock any surplus remaining after covering such transactions or requirements, to be applied as resolved by the Board of Directors, but it should be understood that the company is to pay nothing to the deponents for the transfer made of said 15%/ of their shares inasmuch as they deem the same necessary for the better working of the corporate transactions and as a still greater guarantee of the interests by them represented as sole owners of all the -capital stock and necessary for the financial development of the corporation. 3d. The Board of Directors is hereby authorized to contract a loan in the sum of $10.000,000.00 United States currency, agreeing to and resolving the issue 'of mortgage bonds, certificates or obligations guaranteed with a mortgage on the concession held by the company and on all its other properties, fixing the terms. amounts, reimbursements, redemptions and stipulations of all kinds, delegating in the President in order that with the concurrence of the Executive Committee he shall enter into contracts and execute the documents to that effect required; the Board of Directors using all these powers as fully as they could be used by the general meeting of stockholders inasmuch as to this purpose it is agreed that the present deed be









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granted the force of a resolution by the general meeting of stockholders and that as such it be recorded in the proper book of the company." "5th. That to the proper effects of the foregoing statement coucerning the exemption from payment of transfer and recording fees, it is hereby stated that pursuant to the provisions of the law for this concession the coinpany resorts to the provisions of Order No. 34, Series of 1902, and in a special manner to the provisions under Article 7, Chapter 7 of the said order."
It appearing that although Francisco Rafael Moragas was, according to the deed of January 21, 1911, the owner of 957o, or in other words nearly all, of the shares, nothing can be found to show, nor is it stated in the deed of March 4th, briefed in the foregoing finding, why or for what reason Moragas, after the approval of the law of February 20th of said year, parted with all his shares and notwithstanding the saine had been awarded to him as representing the value of the work and studies per. formed by said gentleman in the preparation of the business in which the company was to be developed,
it was to Mr. T. L. Huston to whoin, in addition to nearly the whole of the shares under the deed of March 4th ($9.000,000.00 out of $10-000,000.00) were awarded for services rendered to the company, $825,000.00 in first mortgage bonds of the issue which a few days later was floated in Havana.
It appearing that the above mentioned deed, or in other words the deed of March 4, 1911, was filed with the Fiscal Zone and returned on the 18th of May, 1911, to the party who had filed the same. without charges because the Secretary of ethe Treasury had decided on the same date that the exemption of fees provided under Paragraph 7 of Chapter 8 of Order 34, series of 1902, was applicable thereto, when in truth such exemption was in no way applicable,










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the corporation Compaflia de los Puertos de Cuba having been recorded in the Mercantile Registry on the 31st day of May, 1911, by virtue of the documents which were filed on the 24th of said month and year. according to entries No. 196 and No. 197, and which are itemized under Page 5362, Folio 2, Book 182 of Corporations, 1st entry, with the proper limitation referred to under the law of July 29, 1910, and the executive decrees connected therewith, one of the deeds filed for recording being that of January 21, 1911, before the Notary Ldo. Pelayo Garcia executed by Messrs. Moragas and Hluston, constituting the Compaiiia de los Puertos de Cuba a corporation and which until then had not been recorded in the Mercantile Registry.
It appearing that on the 11th of March, 1911, the Notary, Ldo. Pelayo Garcia y Santiago, executed a mortgage deed under No. 67 of his record in which Messrs. Tillinghast L. Huston and Norman H. Davis, both natives of the Ulnited States of America, appear as parties thereto, the former 'in his capacity as Pre. sident, and as such in behalf and representation of the corporation, Compaiiia de los Puertos de Cuba, and the latter in his capacity as Vice-President, and as such 'representing the Trust Company of Cuba, which corporation shall be hercinhafter called tho Trustee, their capacities and the powers which they respectively hold to sign the deed with the documents attached at the end of the same and in which it is stated by the representative of the company that the Compaiiia de los Puertos de Cuba is the owner of a concession granted by the law of February 20, 1911, to perform the work of dredging and improving the ports of Cuba, that requiring to raise funds for its business it has determined to issue $10.000,000.00 in mortgage bonds and it hereby does issue 1000 bonds of $1,000.00 each in gold coin of the United States of










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America, which constitute series "A" to be paid at the office of the Trustee on the 28th day of February, 1936, or before if they should be redeemed or takea in prior to that date as hereinafter stated, that the bonds shall bear 57o interest per year, payable at the expiration of every six months, that for the purpose of presenting judicial claims that may be in order and whatever else may be required on the part of the holders of said bonds, the Trust Company of Cuba or its successors shall be considered the representative of the bond holders, that in the case foreseen of default in payment by the company, the Trustee shall undertake all steps and take charge of all the properties and products of the company as well as of the management of the same, which it shall retain until it shall pay from the tax received directly from the State, but it shall be sufficient for the Trustee to notify the Government that it has taken charge of the management of the company by simply filing the notarial act in the form established, for the Government to deliver to the same directly the tax enjoyed by the company, that the company shall immediately make out and -deliver to the Trustee the said 1000 bonds and the latter without waiting for the recording, etc., shall certify to and immediately deliver such bonds to the Treasurer of the company, the latter's receipt being sufficient security for the Trustee in regard to said bonds, and it shall not be the duty of the Trustee to see to the use made of said bonds or of the proceeds thereof; that the Company. may issue within term of five years, in addition to the $1.000,000.00 bo)zds referred to in this deed, another $9.000,000.00 with the same rights, etc., that the same shall be issued without any preference in favor of either, that to guarantee the payment of the $1.000,000 amount of the said 1000 bonds issued, the interest thereon, expenses and costs, a first mortgage is eons.










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tituted on the concession for the dredging and improvement of the ports, which shall be recorded in the Registry of Property in accordance with the provisions under Article 2d of the Mortgage Law, under Article 27th of its Regulations, Article 334th, No. 10 of the Civil Code and Article 17th of the law of February 20, 1911.
It appearing that in said mortgage deed Mr. Norman H. Davis, as Vice-President of the Trust Comnpany of Cuba, after accepting for this company and for the holders of the bonds, the obligations and mort gages just constituted, it is stated under Clause 24 "that both parties appraise the concession thereby mortgaged at $25.000,000.00 and they waive all new estimate or action to that end."
It appearing that in the same deed, upon des. cribing the concession, it is stated that the concession was granted to the Compaiiia de los Puertos de Cuba by the law of February 20, 1911, and under Clause 27 it is stated that the same is a mercantile stock corporation organized under the laws of this Republic, constituted to operate and execute all kinds of concessions and contracts with the State, the Province and the Municipality, or private parties, having bee~a reorganized for an indefinite period to be counted from the 21st of January, 1911, by deed before the Notary, Ldo. Antonio Mufioz y Yald6s G6mez, dated the 4th inst. (March, 1911) anid that in due time it would be recorded in the Mercantile Registry of this city wherein it has its principal office.
It appearing that on the 1st of July, 1911, the said Notary, Pelayo Garcia y Santiago, under No. 190, executed a deed for the issite of bonds guaranteed by mortgage, in which as parties thereto the same above mentioned persons appeared, Messrs. T. L. Huston and Norman H. Davis in the same capacity, and that it is therein stated that the Compaliia de los Puertos










72

de Cuba, being the owner of a concession granted under the law of February 20, 1911, under guarantee of the same issued $1.000,000.00 in mortgage bonds, or in other words 1000 bonds numbered "1" to "1000" of the series "A", that under said deed it was agreed that another $9.000,000.00 in bonds could be issued and that availing themselves of this right they hereby issue another series of bonds for $6.000,000.00 without prejudice to issue later the remaining $3.000,000.00, issuing said $6.000.000.00 in 12,000 bonds of $500.00 each, of the London series or series "B", thereafter stating the same stipulation as in the first mortgage deed when the series "A" was issued and other additional clauses, thereby agreeing that the stipulations in favor of the holders of the two deeds would be applicable to the bonds of the two series, both of said deeds being considered to all lawful purposes as one deed to protect the issue of $7.000,000.00 of series "A" and the London series, stating uvder Clause 51 that both contracti2ig parties estimated the concession thereby mortgaged tit $25,000,000.00.
It appearing that in the said mortgage deed referred to under the foregoing finding it is established under Clause 12 that the debt shall be considered matured and that the Trustee may proceed to the collection thereof, amongst other reason, for those stated under the paragraph which reads as follows: (C) In case the concession described under Clause 25 of the principaldeed and the description of which shall be copied hereafter should be forfeited or lost, and in case the company should omit the fulfillment of any of its duties imposed by the concession or should perform any act contrary thereto under conditions which may lawfully cause the concession to be declared forfeited or rescinded, the Trustee shall certify in writing and under oath his opinion that the










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case mentioned in this paragraph has arrived, and such certificate shall be sufficient to considerer the debt matured, and proceed to the collection thereof''. And finally it is stated under 'Clause 55 "that the said contracting parties (the Cornpaiiia de los Puertos de Cuba an~d the Trust Company of Cuba, the latter for itself and in representation of the bond holders) designate this city and expressly submit to the judges and courts of the same for all acts, notifications and proceedings which for any cause should arise out of this deed."
It appearing that in the GACETA OFICIAL of November 15, 1911, the law of the 14th of said month and year was published, by which Congress changed the wording of Article 5 of the law of February 20th, 1911, said article remaining in the same form that it bad before, with the amendment that the ton of merchandise from the United States should pay 70 etsa. and from other countries 88 ets. and each ton of coal 10 cts. as established under the law of February, further directing that the amounts up to that date charged in excess should be returned, and under Article 3d and last the decree No. 400 of May is, 1911, was repealed, said decree having been issued by the Honorable, the President of 'the Republic, to direct that the tax should be collected only at the rate established by the deed of February 23, 1911, before the Notary, Mr. Barraqu6.
It appearoing that the data existing in the Departmnent of Agriculture, Commerce and Labor shows that in the cash account of the Compafiia de los Puertos de Cuba no receipts appear which might refer to the first issue of shares to the bearer to constitute the capital either for the full collection of the amounts of the shares or of a part of the value of the same or arny transaction in the journal book which might represent cash received in the Treasury as the value of










7-4

the shares issued; that in tihe blank certificates of shares added to their respective stubs as well as in the shares filed through transfers or change of names of the new purchasers thereof in a prominent place and in Spanish and English appear the words: "acciones liberadas" "full paid". That transactions do not appear through the cash book which might refer to funds that might have been raised during thc, first month of the company's business authorized by the second of the transient provisions of its deed ,)f incorporation, inasmuch as for that purpose 15%1 of~ the shares were assigned by the four owners of the total amount of the shares, thereby fulfilling the agreement in the deed; that the change of shares to bearer for registered shares was compelled by the regulations of the London Exchange upon presenting there the issue of bonds because said securities could not be quoted there without such condition; that in the first register book of shares no transfers exist because the certificates were issued to bearer; that thereafter the majority of the transfers and sales have been made in London and the agents and brokers have sent the same to the principal office to obtain new certificates; that in the journal book the first entry. dated March 31, 1911, reads as follows: "concession to capital stock $10.000,000.00, amount paid in shares to the stockholders of the original company, for the concessi6n according to deed of March 4, 1911, before the Notary, A. Mufioz; Treasury bonds $1.OOO0.OOO.OO to bond issue of series "A" according to deed before the Notary Pelayo Garcia; concession $825,000.00, amount of bonds delivered to Captain Huston; Treasury shares $1.500,000.00 to special shareholders fund, 15%o of the capital stock given to the company to sell or give away as commission to purchasers of the company's bonds." That it is evidenced by the foregoing that the issue of shares was made 'without










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money, that the two issues of bonds made have been placed with the Trust Company of Cuba at 857o of their value and that those of series "B" were sold at 971/,,%o in Europe and that upon distributing in London the printed letter from Mr. T. L. Huston, dated April 25, 1911, as propaganda to help float the bonds and furnishing data to Messrs. Sperling & Company of London, the following is stated: "The original company was incorporated under the laws of Cuba on the 21st day of January, 1911, for the purpose of obtaining from the government of Cuba a concession which was obtained in February, 1911, and moreover that the works would cost $10.000,000.00 and that according to the importations made into Cuba diriug the fiscal year of 1909 to 1910 the company would receive for the port improvement fees $1.060,000.00 per year, increasing each year, and likewise that the company was in a good position for all future projects concerning the ports of Cuba due to its representation in the Board of Ports; that at the first general meeting of the 14th of March several directors were appointed, one of the directors being appointed by the deed of March 4th, in which he was likewise appointed President, this being Mr. T. L. Huston, that on the 29th of March, before the Notary, Ldo. Pelayo Garcia a contract was made for the works of the company with T. L. Huston Contracting Company; that the Compafiia de los Puertos de Cuba does not hold the property or scarcely any material for the works to which it is devoted and carries out the same through contracts with the T. L. Huston Contracting Company which in turn has several sub-contractors, and finally that on the 5th of August, 1912, Air. Eugene Klapp took possession as President and Director of the Company, Air. Huston ceasing in said position.
It appearing that the data existing in the said department of Agriculture, Commerce and Labor










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shows that the CompaMade los Puertos de Cuba has invested large sums of money for political expenses, publications, legal expenses, etc., and has paid several sums to a lawyer named J. O'Brien, of whom it has availed itself for steps taken at Washington, D. C.2 who under one heading only, has been paid $25,000, his steps being connected with work carried out by the company near the government at Washington for the latter not to continue considering the concesssi6n burdensome to Cuba and conflicting with the treaties in force -%vith the United States, concerning which works data exists in said Department.
It appearing that since the concession granted on the 20th of February, 1911 became known to the public it has been criticised and opposed, having been considered highly burdensome to the Cuban nation and directed to cause great loss to its -domestic and foreign credit, all elements constituting the Cuban people being against such concession, and that it has even been the cause of protest by foreigners to such an extent that as far back as the 23d of June, 1911, the American Government addressed a note to the Cuban Minister at WashiDgton and through its Minister at Havana on the 27th of the same month and year it made known said note to our Department of State, stating therein that the American Government because of its special tariff and general commercial relations with Cuba, would regret that the Law might prove onerous or injurious to American commerce with Cuba; that the project was undesirable from the standpoint of Cuba since it appeared to be a wholly improvident pledging of an important Cuban reve.nue; and that it was undesirable from the standpoint of all other common interests because the tax seemed excessive and burdensome to the island's commerce; that it further appeared not to have been calculated upon a reasonable basis inasmuch as the










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cost of dredging -would be entirely repaid within a period of fifteen years, a supposition corroborated by the prospectus used in floating the Company's bonds, and the cost of maintenance being but small, practically the entire tax collected after that date would be net profit; and that the Government of the United States earnestly desired to bring this matter to the attention of the Cuban Government and to state that a continued careful study has convinced it that this project, vitally affecting as it does the ordinary revenues of the Island now apparently scarcely adequate to defray the expenses of the Governimnent, reflects a highly imiprovident and dangerous fiscal policy which threatens to lead Cuba to a condition of national bankruptcy and the consequent inability to maintain an adequate Government especially to serve the needs of the nation and that accordingly the interests of the Cuban people seem imperatively to demand that the project be thoroughly reformed, that its manifest improvidence be remedied and that it be made to conform to the requeriments of a reasonablyr safe and economical administration of the nation 's revenues; the American Minister, under date of June 13, 1912, also made known -that his Governmnent, after a careful study of the matter has formed the opinion that said concession, as it is at present. does not conform strictly to the provisions under Article 2nd of the Treaty of May 23, 1903, between the IUited States and Cuba, and that although it is not unaware that the validity of this concession has already been challenged in the Courts of Cuba, alleging unconstitutionality and that none of the objections up, to the present urged against its constitutionality has been admitted by the Supreme Court of Cuba, however, the question of the bearing of the provisions of Article 2nd above mentioned upon this concession bag not as yet been determined by any court in Cuba,











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further stating that the validity of the concession insofar as to the constitutional limitations of Cuba and the Treaties cannot be finally determined by the courts of Cuba so far as the United States is concerned; and after an examination of the Law of February 20, 1911, he states that it is clear that the concession conflicts with the limitations under Article 2nd, above mentioned, availing himself of the opportunity of knowing that the Compaftia de los Puertos de Cuba was willing to make certain modifications in the concession which would be advantageous to the Government of Cuba, to suggest to the latter the advisability of securing all the advantageous modifications which the Company is willing to make in this concession, and that the Government of the United States feels justified in su.-gestino, this course to the Cuban Government, apart from the question of the legality of the concession, because a concession awarded without due consideration might later, by its own consequences or in connection with the general conditions in Cuba, produce an embarrassing state of things under Article 3d of the Appendix to the Cuban Constitution and of the Treaty of May 23, 1903; and for this it is desirable from the standpoint of both Governments that this concession be modified in any form which may be necessary to avoid the eventualities foreseen under said article.
It appearing that after several steps taken by the Compafiia de los Puertos de Cuba near the President of the Republic and the negotiations carried on with the latter, the President upon hearing the opinion of the American Government, furnished through its Legation in Havana, as to whether the offers and benefits made by the company appeared advantageous to which said Government replied in the affirmative, he issued the decree No. 510 of the -12th of May, 1913, published in the Gaceta Oficial of the










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15th, in which, while accepting some of the modifications that may be considered advantageous for the State and which had offered by the company, rights were recognized to the latter such as the ownership of the lands recovered from the sea when the work for such recovery should be performed per account of the State and for the State, the latter paying for the same with the revenues collected and delivered to the company, and the company was exempted from the execution of some works which it was bound to execute and that only through a law could be changed and also in an indirect way upon agreeing as to the manner in which the Governament would be able to acquire for itself the concession, the mortgages constituted by the company to guarantee the issues of bonds were declared valid and official and it was further accepted that the capital stock of the company was represented by its $10,000,000.00 in shares of $100.00 each, when such shares did not represent, as shown by all data which has been examined, even a cent of cash capital subscribed and paid by the parties who appeared at the execution of the deed of January 21, 1911, before the Notary, ,Ldo. Pelayo Garcia, or by the four persons who resolved to issue and distribute the $10,000,000.00 in ,shares upon executing the deed of March 4, 1911, before the Notary Mufioz, the Government binding itself to recognize all the existing contracts and one of which, we are bound to believe, is the one held for works by the T. L. Huston Contracting Company. ,The Compaiiia de los Puertos de Cuba was granted such importance that the price of its shares in the case of purchase would be fixed by three experts and approved by the Government of the United States, said experts being appointed by the Government of the United States at the request of the Cuban










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Government and to be chosen, one by the Government of Cuba and the other by the Colnpaflia de los Puertos de Cuba, the value to be fixed by a majority of the experts in case they should not agree.
It appearing that by decree No. 246 of the 18th of June of the present year, published in the Gaceta Oficial of the 20th of the same month and counterxigned by the Secretary of Public Works, the President declared void and without any value or effect the decree No. 510, above mentioned, for the reasons therein stated, the subject which caused said resolution having, been brought back to the state enjoyed prior to issuing said decree 510 and ordering that the matter be reported to Congress for proper action and stating in one of the bases of the resolution that the same was issued to save as far as possible the interesests of the nation seriously threatened by decree 510, although not rejecting the offers of modifications made finally by the company and which might be in some way advantageous to the country and concerning which particulars, as amendments to a law, Congress should first resolve for the administration to proceed in conformity therewith.
It appearing from the data existing in the Department of the Treasury that the collections of the revenues created by the law of February 20, 1911, as modified by that of November 14th of the same year, and which have been turned over to the Coinpafiia de los Puertos de Cuba, from the month of April to the 30th of June, 1911, were $312,431.47, during the fiscal year 1911 to 1912, $1,295,708.55, and during the fiscal year 1912 to 1913, $1,342,654.41, all of which shows that with lower rates than those considered in the report by the committee on Public Works of the Senate of the Republic, beginning with the first year, the amount collected has been










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largely in excess of the $580,000.00 estimated therein.
It appearing that, as shown by the Mercantile Registry of Havana, on the 27th day of May, 1905, the -deed of September 29, 1904, before the Notary Jos6 Ramirez de Arellano was recorded, by which deed Messrs. T. L. Huston and Norman H. Davis and Manuel Garcia constituted a corporation named T. L. Huston Contracting Company, having its principal office in this city and organized in perpetuity to begin transactions from the date of the execution, its objects being the purposes and operations in which the companies organized under the provisions of the Code of Commerce may engage and especially to start the operation and business corresponding to a construction, building and contracting company and to obtain concessions and enter into contracts with the State, the Provinces and the Municipalities, to execute such contracts or concessions and to dispose of the same and to perform all sorts of transactions proper to companies which obtain public works concessions as well as for other purposes therein stated, the corporate capital being $20,000.00, divided into 400 shares to bearer at $50.00 par value of each, which shares would not be issued until the company should have received in cash or its equivalent their face value and upon issuing the same they should be full paid and exempt of calls. The Board of Directors would be: President, Mr.,Huston, Vice-President, AtIr. Davis, and Secretary, Mr. Garcia, and as Messrs. Huston and Davis have been devoted up to the present to the building business they contribute to the new corporation as cash capital materials, contracts, properties, rights, etc., whether the same be in the name of Huston or of T. L. Huston & Co., which properties and rights are valued at $19,900.00, and










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Mr. Garcia $100.00, Messrs. Huston and Davis distributing amongst each other 199 shares and two to Mr. Garcia. This company, the T. L. Huston Contracting Company, is the same which, as appears on pages 9 and 10 of the annual report for the year 1911, distributed by the Compafiia de los Puertos de Cuba, contracted with the same on the 29th of March, 1911, by deed before the Notary, Ldo. Pelayo Garcia, the performance of the works, and which deed reads as follows: "As circumstances have been requiring, additional contracts have been entered into and approved, also sub-contracts which not only furnish greater facilities for the quick performance of the works but also interest new enterprises in the business 'and prosperity of the company with benefit to -all its associates." The two owners of almost all the shares of the T. L. Huston Contracting Company, Messrs. T. L. Hiuston and N. HI. Davis, are, the former who appears as President of the Compailia de los Puertos de Cuba in the deed of January 21, 1911, and who on that same day filed his request to the Senate to vote granting to the said company the concession to dredge and improve the ports of Cuba, also being the party who according to the deed of March 4, 1911, received $9,000,000.00 in shares of the Coinpaiiia de los Puertos de Cuba, which was reorganized, in lieu of 900 shares which represented $90,000.00 of the company which in said deed is called "original" or in other words the one constituted by the deed of January 21st, and in addition thereto $825,000.00 in first mortgage bonds for services rendered to the company, he having, also been elected director and President of the same and acting in the last mentioned capacity until August, 1912, when the new President of the company took possession, and the latter, Mr. Davis, is the party










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who, in behalf of the Trust Company of Cuba, as Vice-President first and later as President of this corporation and in the name of the bond holders, contracted with the "Compafiia de los Puertos de Cuba the purchase of the two issues of bonds made, that of series ''A'' for $1,000.000.00, and those of the London series or series "B" for $6,000.000.00, accepting for the company which he represented the capacity as Trustee and also as representative of the bond holders in their relations with the Compaiiia de los Puertos de Cuba".
It appearing that as may be read under pages 13 and 14 of the pamphlet published by the Compaftia de los Puertos de Cuba, which contains the deed of March 11, 1911, before the Notary, Ldo. Pelayo Garcia, for the issue of the bonds of series "A" said bonds should state, as was, done later, that the same and their attached coupons enjoyed the guarantee of a first mortgage, which in favor of the Trust Comnpany of Cuba as Trustee was constituted under said deed (that of March 11, 1911) on the concession granted to the Cornpailia de los Thfertos de Cuba by the Executive of the Republic of Cuba pursuant to the law of February 20, 1911, and under page 37 of the other pamphlet containing the deed Pf issue of bonds with mortgage security of the 1st of July, 1911, before the same Notary, it is stated, among what should be the statements in each bond, that all the bosuds of the two series are thereby guaranteed by the mortgage on the concession and likewise by a latent encumbrance over all the lands and properties now possessed or which may hereafter be acquired by the company, without describing in said deed which are such properties.
WHEREAS Article 1st of the law of February 20, 1911, which became' operative upon being ipubli-










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shed in the Gaceta Oflciai of the 22d of tihe said month and year, expressed "that the company entitled Compaiiia de los Puertos de Cuba, which shall have to justify that it is organized under the laws of the country, has been granted a concession to perform the works of dredging and improving the ports of the Republic," there is no doubt that it thereby established in a clear and final manner the 'necessity of the prior existence, that is to say prior to the law which granted the concessions, of a company entitled Compaiiia de los Puertos de Cuba theretofore organized according to the laws of the country, which the same should justify duly.
WHEREAS although the leg-islative power, by Article 1st. above mentioned, granted the concession to the company entitled Compaflia, de los Puertos de Cuba, it is evident that Congress left to the National Executive Power authority to decide whether the company really existed at the time of promulgating the law and whether it was organized under the laws country, all of which logically should have been justified before the Executive Power for the latter to issue a decree declaring that by the concurrence of all such requirements he awarded fulfilling the law of February 20, 1911, to the Compaflia de los Puertos de Cuba the concession, as a concessionaire of the same, to dredffe and improve the ports of Cuba and what really only pertained to the President of the Republic in accordance with the first paragraph, Article 68 of the constitution in force is the exercise of the Execuive power to sanction and promulgate laws to execute and enforce the same, issuing the decrees and orders which he may deem most convenient for the better execution thereof.
WHEREAS an examination of all the data herein briefed and mentioned in the findings of this










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resolution shows that the Executive power, up to the the time when it began, or even after that, to deliver to the Compaiiia de los, Puertos de Cuba the amount of the revenues for the improvement of ports which were collected by the national customs, has never issued a decree or resolution stating as certain or proven the existence, prior to the enforcement of the law of February 20, 1911, of the Coinpaifiia de los Puertos de Cuba or its organization also prior to said law, under the laws of the country, and that it should be notice that although such decree or resolution should have been issued or any deed recognizing these points should have been signed, the same would be valueless and would -not bind the Executive if such points were at any time shown not to be true.
WHEREAS the unfulfillment of the said obligation on the part of the Executive power is more notorious when we remember that the National Congress considered indispensable as expressed through the report of the committee on Publie Works of the Senate, Senator Aleman, when the latter amending the wording of Article 1st such as it appeared in the law, said, as may be read in one of the findings this decree "that at the time of signing the concession, that at the time of signing the deed by virtue of the law which we prepare, that company (the Compaiffa do los Puertos de Cuba, the existence and organioation of which under the laws of the country was already assert ted as something true by the reporting Senator) shall have to justify before the Natitonal Executive whose duty it is to sign deeds of this kind, that it is organized under the laws of the country
WHEREAS, when, on the 22d of February, 1911, Maijor General Jos6 Miguel G6mez and T. L. Huston appeared before the Notary, Mir. Barraqu6,










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to execute the deed No. 4 of his records entitled Agreement of said day, or in other words on the same day on which said law was published in the Gaceta Oficial and became operative, the former, as President of the Republic, and in representation of the Executive Power of the nation, and the latter stating that he was President of the Compaiiia de los Puertos de Cuba, without justifying in any case the capacity in which he appeared, as he should have done to comply with the provisions of Article 3d of the "Genarl Instructions concerning the manner of wording Public Documents subject to Recording," the two parties appearing were limited in said deed to agree to a reduction in the tax per tonnage that should be collected on merchandise imported into Cuba, that is to say to an amendment of the law of February 20, 1911, which they were not empowered to agree upon and which therefore could have no value until Congress decided the same reduction by the law of November 14, 1911, repealing the decree No. 400 of the President of the Republic of the 18th of May, 1911, which ordered the enforcement of the agreement under the above mentioned deed; in this deed, in which for the first time appeared, with the highest representation of the State, a party entitled President and representative of the Compafila de los Puertos de Cuba, without justifying his capacity in any way and without requiring that he should show the prior existence of the said company and that the same had been organized under the laws.
WHEREAS it was an imperative necessity that it should be the Executive power who by a decree or resolution should award the concession to the company referred to in the law of February 20, 1911, in case it should already exist at the time of enforcement of said law and that it were organized in











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accordance with the laws of the country as shown by the consideration that a company might exist, as happens in the present case with the company entitled Compafiia de los Puertos de Cuba, and that such corporation were entitled Compafiia de Los Puertos de Cuba without being organized in occordance with said laws that it should attribute to itself the owner,hip of the concession and in the exercise of its claimed rights it should appear to recive the gums which through port taxes were collected, this being precisely what has been done with success by the company referred to because without justifying that it came within the conditions prescribed by Article 1st of the law of February 20, 1911, it was considered as concessionaire simply because it furnished a bond, not depositing $300,000.00 in official currency as required by law but simply through a bond company, and the case might occur of corporations organized with the same name at different places in the Republic who at the same time should allege that they were the concessionaire company, inasmuch as identical names arc a possible things, notwithstanding the provisions of Article 152 of the Code of Commerce in force.
WHEREAS even in case that it were not necessary or indispensible that the President of the Republic should award, availing himself of his powers, the concession to the company entitling itself Compaiiia de los Puertos de Cuba, -no doubt can exist that it would always be necessary that at the time of publishing the law of the 20th of February, 1911, or at any time thereafter, in order that It should be considered as concessionaire and that its rights could not be contested, that upon collecting the sums iteceived in the national customs from the tax for port improvements and upon exercising all










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the other powers and privileges established by said law, that it should allege that the entitled Compaffia de los Puertos de Cuba existed prior to the enforcement of the above mentioned law and that such existence was originated by the fact that it was organized in accordance with the laws of the nation, wherefore and to know whether or not such requirements had been fulfilled, it is necessary to examine the laws of the country applicable to such organization.
WHEREAS the Compaiiia de los Puertos do Cuba which Messrs. Huston and Moragas purported to organize by the deed of February 21, 1911, before Ldo. Pelayo Garcia, as stated in said deed, was a stock corporation formed to execute and operate all kinds of contracts and concessions with the State, the Province and the Municipality, especially for the improvement and development of the ports of the Republic of Cuba wherefore it may be deemed that it referred to a public works company of the kind referred to under Section 9, Title 1st, Book 2d of the Code of Commerce in force and which is operative in Cuba in regard to all companies of that kind with the exception of railroad companies.
WHEREAS, according to Article 184 of the said Code, the main duty of Public Works companies is the execution of public works of any kind and the operation of the same either in perpetuity or during the period mentioned in the concessions, the corporate capital of those companies, added to the subsidy, if any, should represent at least one-half of the total estimate of the work as established under Article 185, which likewise provides in a clear manner that the said companies cannot be constituted until the corporate capital shall have. been subscribed to and










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257o thereof paid in, which provisions have remained unfulfilled in the deed of January 21, 1911, by which the corporation referred to was constituted, the capital of the same being only $100,000.00 when the cost of the works as estimated in the petition which in the name of that company was filed with the Senate of the Republic on the same 21st day of January by its President, Air. Huston, was $14,000,000.00, and its constitution was conflicting with said provision inasmuch as -not even 25%o of the small corporate capital mentioned had been paid in, that is to say-, said part of the capital had not been paid in cash.
WHEREAS the fact of stating in the deed of January 21st. that of the total of the 900 shares to bearer 850 were turned over full paid to Mr. Moragas as representing the value of his works and studies made by that gentleman in the preparation of the order of business in which the company is to be developed and the other 50 to Mr. Huston, also -full paid, for his cooperation in the same up date, implies a conscious and evident violation of article 164 of the above mentioned Gode of Commerce, which clearly prescribes that a note shall always be made in all certificates of shares in corporations, whether registered or to bearer, of the sum which may have been disbursed per account of the face value of the same or otherwise that they are full paid, all of which implies that reference cannot be made to full paid shares in a case in which shares totally disbursed, or in other words paid for in ready money, do not exist, this being corroborated by the same said article, upon providing in another of its paragraphs that all shares shall be registered until 50% of their face value shall have been paid in and that thereafter they may be converted into shares to bearer if so decided by the company in its by laws or by special acts thereafter.










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WHEREAS, even in case that a desire existed to discuss that the company which purported to have been organized by the deed of January 21, 1911, had only been organized as a corporation of the kind referred to under Section 4, Title I, Book 2d of the Code of Commerce and not as a public works company referred to under Section 9 of the same Title and Book, it would always be possible to assert without fear of being contradicted with success that the provisions of Article 151 of the same Code had been violated, *the same establishing that the corporate deed of corporations should show the corporate capital, expressing the value placed on properties contributed, which are not ready money or otherwise the basis in accordance with which the estimate is to be made and the installment or installments in which the part of the capital not disbursed upon constituting the company is to be paid. in; the provisions of Article 164, above mentioned were also unfulfilled, the same rejuiring that a note be always made in certificates of shares of the same of capital that has been disbursed per account of the face value of the same or that they have been full paid, all of which implies disbursements of ready money as shown by the fact that Article 171 states that the stockholder who for any cause should delay the delivery of his capital, at the expiration of the term fixed in the corporate deed or, in case the same should not fixed, from the time of establishing the Treasury, shall have to pay the lawful interest on the money not delivered in due time.
WHEREAS the corporation or-anized. by the deed of January 21, 1911, before the Notary, Ldo. Pelayo Garcia, did not comply, either prior to appealing to the Senate of the Republic requesting the granting ui the concession created by the law of February 20th of the same year nor after said date, with other provisions of the Code of Comerce such as those under










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Article 119, which ordered that all mercantile companies before beg-inning their operations shall file their deed of incorporation with the Mercantile Register for the recording thereof in accordance with the provisions of Article 17, which makes the same obligatory for corporations constituted under the said Code, the above mentioned deed not having been filed with the Registry until in the month of May, 1911, the deed of March 4th of said year, executed before Ldo. Mufioz, by which, as stated therein, the corporation entitled Compaiiia de los Puertos de Cuba was reorganized, was presented in said office.
WHEREAS it cannot be asserted that if the Cornpaiuia de losPuertos de Cuba, referred to in the deed of January 21, 1911, before the Notary Ldo. Pclayo Garcia, was not organized under the laws of the country at the time of publishing the law of February 20th of the said year, not having therefore a lawful existence either before or after said date, the same acquired such lawful existence upon being reorganized by the deed of March 4th before the Notary Ldo. Muiioz inasmuch as it was then organized according to the laws of Cuba, because even assuming, a thing which can only be admitted for the sake of discussion, that the law of February 20th allowed that the organization under the laws of this country should take place after the enforcement of said law, a contradiction would always remain with said assertions because a corporation cannot be considered organized according to the laws of the country when it calls itself a concessionaire for public works and violates the fundamental provisions of Article 1815 of the Code of Commerce, as above mentioned, by which it is establishied that the corporate capital in companies of this kind added to the subsidy, if any, shall represent at least one half of the total estimated value of the work and that such companies cannot be constituted until










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all the corporate capital has been subscribed to and 25% thereof paid in; as none of the parties appearing at the execution of said deed paid in one cent, the unfuillment of said provisions hindered the company from being constituted, moreover when the corporate capital was not stated expressing the value assigned to the proporties contributed, which are not cash, or the basis upon which such estimate should be made, pursuant to the provisions of Article 151 of the above mentioned Code, and munch less did they comply with the provisions of Article 164, above mentioned; both said articles being applicable to public works corporations -as well as to other corporations, all of which is evidence that the Compailia de los Puertos de Cuba is not organized according to the laws of the country since the shares representing its fictitious capital can be considered only as watered stock whieh is neither recognized or allowed by the Code of Commerce in force and which are not representative of contributions to the corporation either in money or properties; in the first deed of January 21, 1911, it was stated that the shares ivere representative of the value of the work and stitdy performed in the preparation of the order of the business in which the company is to be devoloped, and a similar statement was made in the deed of March 4th expressing that the capital of that the shares were representative of the value of the shares and of all the activities of the original corporation in addition to the value of the concession that has been granted to it by the Government.
WHEREAS such fictitious character of the shares referred to under the two deeds of January 21st and March 4th, 1911, and which as above stated can only be considered as watered stock, notwithstanding which and without worrying as to the responsibilities which were contracted, it is stated in the certificates issued after the reorganization the words in Spanish










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aeciones lib cradas and in tihe English full paid shares, the latter words meaning shares completely paid in, as shown by the fact that in the books of the entitled Compaiiia de los Puertos de Cuba no indication exists showing movements of funds originated by the payment of tile said shares issued in accordance with the two deeds mentioned.
WHEREAS all the foregoing implies as a natural and logical consequence the duty of the National Executive not to consider the entitled Compafia de los Puertos de Cuba as a concessionaire of the concession referred to under the law of February 20, 1911; withholding in future the delivery to the same of the fees that may be collected through taxes for port improvements, without prejudice to the actions which the Secretary of Justice, either personally or through the State Attorney, may exercise, pursuant to the provisions under paragraph 2d, Article 102 of the organic law of the Executive power against the said company for the purpose that the courts of justice declare,, in harmony with the principle under Article 4 of the Civil Code, that the acts executed against the provisions of the law are void, the annullment of the charter of incorporation of said company, that is to say the annuilment of its deed of organization and the consequent dissolution of said corporation because it was organized or constituted without complying with the provisions of the Code of Commerce in force, and to require, if proper, the refund of the amounts which the company may have received over and above the value of tbe total cost of the works performed for the State, therefor exercising the right recognized under Article 1895 of the Civil Code to demand the return of what there was no right to collect and of what through error has been unduly delivered.
WHEREAS the duty of the National Executive power, which exists under the foregoing paragraph,









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is all the more important if we recollect that from the very first days after the granting of the concession the same has been considered by natives and foreign ers as most unfortunate for the good name, credit and prestige of the Cuban people and State, and the Compafiia de los Puertos de Cuba, which has so unduly been enjoying that concession as a great unlawful withholder of a part of the national wealth, as it cannot be considered otherwise from the moment that without having a cent of capital in cash, or machinery or any material with which to start the works to the performance of which it was bound, through a petition and deeds cleverly worded it obtained the delivery of enormous sums such as those produced by the tax on port improvements, the State not having, for the case of unfulfillment. of the terms of the concession, other properties with which to make effective the responsibilities which might exist in its favor except the same funds that it had delivered to the company or the funds which the latter might have on hand, raised with the guarantee of what it had received from the Government, and all of which means that in the transaction referred to there was, an element of deceit or fraud consisting in assuring that it possessed, which has been shown not to be so, to carry on the work, capitals of its own such as companies should have when they aspire to render services or perform works for the State, to which we have to add the enormous injury caused to the credit of Cuban securities abroad by floating stock that is not representative of any capital disbursed and bonds in which it is stated that for the payment of interest thereon and redemption thereof a concession is mortgaged which by its nature does not appear mortgageable, ,inasmuch as the Supreme Court itself has declared, in an appeal for unconstitutionality, examining the law of February 20, 1911, against the assertion that










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the said law in its essentials, and in its form is nothing but an administrative contract, "that Congress approving the same only regulated a service of administrative character determining by whom the service was to be rendered and establishing the rules which in its judment were convenient to the rendering of the same". And when the present concession for the rendering of services or works for the State did not award real state to the concessionaire, who, on the other hand, when the deeds for the issue of bonds were executed, did not have, inasmuch as it was not shown or described in such deeds, any other kind of real state recordable in the Registry of Property, and notwithstanding the company declared the same nortgaged and it was thus set forth in said bonds.
After hearing the opinion of the Secretaries of the Cabinet and availing myself of the powers vested in me,

I Rnso~vF,:

First. That as Article 1 of the law of February 20, 1911, requires that the concesionaire company, shall justify that it is organized under the laws of country, the Compaia de los Puertos de Cuba is not or cannot continue to be considered hereafter as such concessionaire, inasmuch as the same was not organized in accordance with said laws at the time of publishing the above mentioned law and it, has not been organized thereafter, admitting the hypothesis that tbis were lawfully admissible.
Second. In consequence of the foregoing resolution the Secretary of the Treasury shall from this day suspend the delivery to the above mentioned company of the amounts which may be collected through the tax for port improvement fees.










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Third. The Secretary of Public Works shall proceed to take charge of all the works which up to the present may have been performed for the State by the Compafif a de los Puertos de Cuba in the various ports of the Republic, it being the duty of the officers assigned to attend to this to express in instruments prepared to that effect the state and amount of the works performed, which works the said Secretary shall have appraised in due time, it being his duty to recommend the measures which he may deem convenient to preserve the works and continue the same until completed either to be decided by the Executive power, if within his jurisdiction, or to report to the National Congress for proper action.
Fourth. The Secretary of Justice shall proceed, after examining all the data existing in the files of the Secretary of Agriculture Commerce and Labor and which the latter with his report and reconimendation shall forward, to establish either personally or through the State Attorney, pursuant to the provisions under Paragraph 2d of Article 102 of the organic law of the Executive Power the proper proceedings for the judicial declaration of the expiration or nullity of the charter of incorporation or deed of constitucion of the corporation entitled Coinpaflia de los Puertos de Cuba inasmuch as it has not complied in its deed of constitution with the provisions of the laws in force in Cuba; the Secretary of Justicia shall likewise in due time and when the Secretary of Public Works shall have reported on the total cost up to the present of the works performed by the Compaiiia de los Puertos de Cuba, establish the complaints which may be in order to claim in behalf of the State the sums which in excess of the cost of said works may have been received up to the present day by said company, without prejudice to institute likewise the proceedings of any other kind









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that may be necessary for the better defense of the State 's rights and for the prosecution and punishment of any crime that may have been committed in connection with the concession for the dredging and improvement of the ports of Cuba.
Given in the palace of Presidency in Havana, this 4th day of August, 1913.

MARIO G. MENOCAL, President.
Emvilio Ntiez,
Secretary of Agriculture, Commerce
and Labor.