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Thi+i Aiiieicn awnd Hayti+l Claims C ommissioi
THE UNITED STATES v19.
THE REPUBLIC OF HAYTI.
In the Matter of the Claim of A. H. Lazare.
WASIIINGTFON, D. C.
GIBSON BROS., PRINTERS AND BOOKBINDERS.
- , - I
TABLE OF CONTENTS.
T he P rotocol . . . . . The Arbitrator and Counsel . 1 Statement on behalf of claimant . 2
Testimony of John Joseph Andain . 22
Do . David Francis Burke . 27 Do . Adolph Henri Lazare . 38, 89, 109 Do . Adolph Eustace Verdereau . 61)
D o . Adrienne Lazare . 74 D o . M athilde Lazare . 81 O rd er . 87 Exhibit A.-The contract . . . . 38, 1*, 15*
Report of Committee on Finance relative to Bank . 12*, 26* Message of the Assembly . . . . 13*, 27*
Exhibit B.-Modifications of contract .38, 29*, 32*
Do. .-Agreement as to keys of Bank . . >8, 36*, 38*
Do. D.-By-laws of the Bank .38, 40", 65* Do .E.-Notice of formation of Bank . 49, 90*, 91*
Do. .F.-Protest of Lazare . . . 55, 92", 93*
Do.G.-Letter of liameau to Mrs. Lazare . 95* Annex BB.-Letter of Rameau to Mr. Lazare . 63, 96*, 97*
Do.D.-Notice of postponement of opening of Bank . . 64, 98*
Do. E.-Delay granted Lazare . 64, 99*, 100* Do.El.-Letter of Lazare as to delay . 64, 101* Do.E2 -Letter of Ilaytien Government as to delay . 61, 102*, 103* Do.F. -Letter of Haytien Government relating to deposit.65, 104*, 105* Do. .G.-Letter of Lazare in reply . 65,105*, 106* Do . tI-Letter of Haytien Government as to deposit . 65,107*, 108* Exhibit If.-Letter of Haytien Minister in Paris . 94, 109* Do.I.-Revoeation of Lazare's consulship . . 96,111*, 112*
Do .K.-Letter of Preston to Lazare . . 98,112* Do.L. --Letter of Preston to Lazare . . 98,114*
Do. .-Letter of Preston to Lazare . 98,115* Do.N.-Letter of Rameau as to palace . 98,117*, 118* Do.O.-Resolution as to loan . 99, 118*, 120* Do.P.-Decree as to loan . 100, 121*, 122* Do.Q.-Letter as to White. Hartman loan . 100, 123*, 124* Do .l.-Article as to White, Hartman loan . 100,125*, 126* Do .S.-Agreement as to Silvie loan . 101,126*, 127* Do.T.-Agreement as to appropriation of revenues . 102, 128*, 129* Do. U.-Guarantee of White, Hartman loan . 102, 129*
Exhibit V.-Further guarantees of loans . 105, 130* Do. .W.-Message of Assembly as to the Bank . 106,131* Do .X.-Article establishing the Bank . 106,132* Do.Y.-Statement of finances of Hayti . 106, 133* Do.Z -Letter to Lazare ant report of Committee . 106, 135*, 142* Exhibit At.-Telegram as to refugees . 108,142*
Do . .A2.-Report of U. S. Minister as to refugees . 108,142* Do.-A3.-Extract from Civil Code . . 108,143*
Do. .A4.-Case of Bazerque vs. Otard . 108,143*, 145* Do .A.-Extracts from Civil Code . 108,147* Do.A'. --Extracts from Civil Code . 109,148* Do. A.--Extracts from Civil Code . 109,148*, 149* Do.A.-Letter of Preston to Lazare as to palace . 149* Do . A'-Letter of Haytien Government toLazare concerning palace. 151* Do.A I0 .-Letter of Preston to Rameau relative to Lazare . 151* Do. A' '.-Letter of Haytien Government concerning debt to France. 153* SECOND PART.
Opening argument of M r. Ashton . 1 Argument in reply of Mr de Chambrun . 61
D o .do . . 83 Argument in reply of Mr. Boutwell . 123 Closing argument of Mr. Thomson . 143
Letter transmitting award to HIaytien Minister . 1* A w ard . . . 1
IIAYTt : PELLETIEIl AND LAZAIRE CLAIMS.
PROTOCOL OF AN AGREEMENT
THE SECRETARY OF STATE OF THE UNITED STATES
AND TIE ENVOY EXTRAORDINARY AND MINISTER PLENIIPOTENTL IiY OF THE
REPUBLIC OF IIAYTI.
FOR SUBMISSION TO AN ARBITRATOR OF TIE CLAIMS OF ANTONIO PELLETIER AND A. H. LAZARE, AGAINST HAYTI.
Sign ed -5ay 24, 1884.
Protocol of an Agreement for
the submission to an arbitrator of the claims known as the Pelletier and Lazare claims against l-ayti.
Whereas, the Government of the United States of America has presented to the Government of Hayti, the claims of Antonio Pelletier and A. H. Lazare for indemnity for acts against person and property alleged to have been done by Haytien authorities; and
Whereas, the Government of Hayti has persistently denied its liability in the premises ; and Whereas, the Honorable William Strong, formerly one of the Justices of the Supreme
Pro to c o le des Conventions fiites en wue de sounettre ti an arbitre les reclamations connues sous le nor (les rjclamations Pelletier et Lazare contre 1laiti.
Attend que le Gouvernement des Etats-Unis d'Am6rique a pr6sent6 an Gouvernement d'H1aiti les r6elamations d'Antonio Pelletier et d'A. H. Lazare., atin dobtenir des indemnit6s pour actes contre la personne et la proprit6 qui auraient (t commis par des autorit6s haitiennes ; et
, Attendu que le Gouvernement d'Haiti a constamment ni6 sa responsabilit6 dans la mati~re: et Attendu que l'honorable William Strong, autrefois juge ht la Cour Supreme des Etats-Unis
Court of the United States of America, inspires both the contracting parties with full confidence in his learning, ability and impartiality: therefore
The undersigned Frederick T. Frelinghuysen, Secretary of State of the United States, and Stephen Preston, Envoy Extraordinary and Minister Plenipotentiary of the Republic of Hayti, duly empowered thereto by their respective Governments, have agreed upon the stipulations contained in the following articles.
"The said claims of Antonio Pelletier and A. H. Lazare against the Republic of Hayti shall be referred to the said Honorable William Strong, as sole Arbitrator thereof, in conformity with the conditions hereinafter laid down.
The following facts as to these two claims are admitted by the Government of Hayti.
AS To ANTONIO PELLETIER:
That Pelletier was master of. the bark " William," which vessel entered Fort Libert6 about the date claimed (31st of March 1861) ; that the master and crew were arrested and tried on a charge of piracy and attempt at slave trading; that Pelletier, the master, was sentenced to be shot and the mate and other
d'Am6rique, inspire aux deux p a r t i e s contractantes entire confiance dans sa science, son habilet6 et son impartiality: En consequence,
Les soussign6s, Frederick T. Frelinghuysen, Secrtaire d'Etat des Etats-Unis, et Stephen Preston, Envoy6 extraordinaire et Ministre pl6nipotentiaire de la R6publique d'Haiti, ayant reeu les pouvoirs necessaires do lours Gouvernements respcctifs, out arrt6 les Conventions continues dans les articles suivants:
Les dites r6clanations d'Antonio Pelletier et d'A. H. Lazare centre la R6publique d'Haiti seront r6f6r6es aI l'honorable William Strong, dont il vient d'ctre park, comme soul arbitre en la matiire, sous les conditions ci-apris exprimes.
Les faits suivants sont admis par le Gouvernement d'Ha'ti en ce qui regarde ces deux r6clamations.
QUANT A ANTONIO PELLETIER.
Que Pelletier 6tait Capitaine de la barque "William," lequel navire entra dans le port de Fort Libert6 h peu prs ai la date Cnonc6e (le 31 Mars, 1861) ; que le Capitaine et l'6quipage furent arrct6s et jugds comme accuses de piraterie ct de tentative d traite des noirs; que Pelletier, le capitaine, fut condamn6 Li otre
members of the crew to various terms of imprisonment ; that the Supreme Court of Hayti reversed the judgment as to Pelletier, and sent the case to the Court at Cape Haytien, where be was retried, and sentenced to five years' imprisonment ; and that the vessel, with her tackle, was sold, and the proceeds divided between the Haytien Government and the party who, claiming to have suffered by her acts, proceeded against the vessel in a Haytien tribunal.
AS TO A. If. LAZABE:
That Lazare entered into a written contract with the Haytien Government, September 23, 1874, for the establishment of a National Bank at Port anPrince, with branches, - the capital being fixed first at $3,0001000, and afterwards reduced to $1,500,000 of which capital the Government was to furnish one-third part and Lazare twothirds; that the Bank was to be opened in one year from the date of the contract, and an extension of forty-five days on this time was granted on Lazare's request; and that on the day when the Bank was to be Opened the Haytien Governbent, alleging that Lazare had not fulfilled his part of the engagemnent, declared, in accordance with the stipulations of Article 24 of the agreement, the contract null and void, and forfeited on his, Lazare's, part.
fusill6, et que le second et les autres gens de l'Squipage furent condamnuns a diverses peines d'emprisonnement ; que la Cour Supreme d'Haiti (Tribunal de Cassation) mit A n~ant le jugement centre Pelletier, et renvoya l'affaire a la cour de Cap Haitien on Pelletier fut jug6 de nouveau, et condamn h cinq ans d'emprisonnement, et. que le navire, avec ses agrs, fut vendu, et les produits divis6s entre le Gouvernement haitien et les personnes qui, pr6tendant avoir 6t les victmes de ses acts, avaient proc6d6 centre le vaisseau dorant un Tribunal haitien.
QUANT A A. H. LAZARE.
Que Lazare fit un contrat 6crit avec le Gouvernement haitien le 23 Septembre 1874, 1 l'effet d'6tablir une Banque Nationale au Port-au-Prince, avec des succursales,- le capital 6tant fix6 d'abord A 83,000,000 et ult~rieurement rdduit a 1, 500,000; le Gouvernement devait en fournir un tiers et Lazare deux tiers; que la Banque devait 6tre ouverte dans un an, A. partir de la date du contrat,qu'une prolongation do quarante-cinq jours fut accordee a la demande do Lazare, et que le jour o la Banque devait 6tre ouverte, le Gouvernement haitien allSguant que Lazare n'avait pas 6xScnt6 les obligations qui rdsultaient de son contrat, dSclara, aux termes des stipulations tie l'article 24 de la Convention, le coutrat nul et non avenu, et Lazare de son ctS d6chu de ses droits.
The said Arbitrator shall receive and examine all papers and evidence relating to said claims, which may be presented to him on behalf of either Govermnent.
If, in presence of such papers and evidence so laid before him, the said Arbitrator shall request further evidence, whether documentary or by testimony given under oath before him or before any person duly commissioned to that end, the two Governments, or either of them, engage to procure and furnish such further evidence by all means within their power, and all pertinent papers on file with either Government shall be accessible to the said Arbitrator.
Both Govermnents may be represented before said Arbitrator by Counsel, who may submit briefs, and may also be heard orally if so desired by the Arbitrator.
Before entering upon the discharge of his duties, the said Arbitrator shall subscribe to the following declaration:
"I do solemnly declare that I will decide impartially the claims of Antonio Pelletier and A. H. Lazare preferred on behalf of the Government of the United States against'the Government of the Republic of Hayti ; and
Le dit arbitre recevra et prendra en consid6ration tous les documents et preuves relatifs aux dites r6clamations qui pourront lui ire pr6sent6s an noni de l'un des deux Gouvernements.
Si, en pr6sence de ces dits documents et preuves ainsi soninis, le dit arbitre demande quo des preuves additionnelles 6crites an testimoniales, soient produites devant lui ou devant toute personne duiment nomme i cet effet, les deux Gouvernements on lun d'eux s'engagent k procurer et h fournir par tons les moyens en leur ponvoir ces preuves additionnelles; et tons les documents pertinents dans les archives do Fun des deux Gouverneinents seront accessibles an dit arbitre.
Les deux Gouvernements aurout le droit de se -faire repr6senter devant le dit arbitre par des Conseils qui fourront pr6senter des m6moires (" briefs ") et qui pourront etre aussi entendus oralement, si l'arbitre le desire.
Avant d'entrer dans l'exercice de ses fonctions, le dit arbitre signera la d6claration suivante:
"Jo d6clare solennellement que je decidcrai avec impartialit6 les r~clarnations d'Antonio Pelletier et d'A. H. Lazare prsent(es au nomr du Gouvernenent des Etats-Unis contre le Gouvernement de la R6publique
that all the questions laid before me by either Government iii reference to said claims shall be decided by me according to the rules of International Law existing at the time" of the transactions complained of."
The said Arbitrator shall render his decision, separately, in each of the aforesaid cases, within one year from the date of this agreement.
The High Contracting parties will pay equally the expenses of the Arbitration hereby provided; and they agree to accept the decision of said Arbitrator, in each of said cases, as final and binding, and to give to such decision full effect and force, in good faith, and without unnecessary delay or any reservation or evasion whatsoever.
In witness whereof, the undersigned have hereunto set their hands and seals this twentyeighth day of May, 1884.
d'Haiti ; et que totes les questions qui me seront r6f6r6s par l'un des deux Gouverneinents au sujet des dites r6claioations seront d6cid6es par moi d'apr~s les principes du droit international en vigueur h l'6poque des 6vinements qui font le sujet des r6clamations."
Le dit arbitre devra rendre sa decision s~par6ment dans chacune des aftaires susdites, dans un an a partir de la date de cette Convention.
Les Hautes parties contractantes payeront en parts 6gales les dipenses de l'arbitrage qui est ici convenu; et elles s'engagent a accepter la decision du dit arbitre dans ehaeun des dits cas commne finale et obligatoire, et a donner ih cette decision plein effet et vigueur de bonnie foi, sans d6lais qui ne seraient pas justifiables et sans reserve et sans evasion quelle qu'elle soit.
En foi de quoi, les soussign6s ont sign6 la pr6sente et y ont appos6 leurs sceaux le vingthuititme jour de mai, 1884.
FREDK. T. FRELINGnUYSEN. STEPHEN PREsToN.
*mcrican ab 9ptCnQlainw Qfrnrissin,.
THE UNITED STATES VS.
THE REPUBLIC OF HAYTI.
IN THE MATTER OF THE CLAIM OF
A. H. LAZARE
THE REPUBLIC OF HAYTI.
DEPARTMENT OF STATE, WASINGTON, January 15, 1885. In pursuance of the announcement of the ARBITRATOR, the case of A. H. LAZARE against the Republic of Hayti was called up this morning for trial. Present:
The Arbitrator, lion. WILLIAM STRONG; Mr. AMEs ThioMsoN, of the firm of FORSTER & TnMSoN, Counsel for the claimant, and The Marquis DE C1A-.MNRN amd the Hon. GEORGE S. BorWELL, Counsel for tle Republic of Havti. Mr. THO.iSON then read the opening statement in this case, which is as follows:
Before Hon. WILLIAM STRONG, Arbitrator.
THE UNITED STATES
vs. Claim of A. H. Lazare.
REPUBLIC OF HAYTI.
Mr. Lazare, a citizen of the United States, was, in June, 1874, president of the West India Steamship Company, whose steamers plied between New York and Port-au-Prince in Hayti, and other ports in the West Indies.
At the same time he was managing director of the Indiana and Illinois Central Railway Company. H. had large personal interest in these companies, and his time and attention were absorbed in their management.
While thus occupied, Mr. Preston, the Haytien Minister, suggested to him that he undertake the placing of a loan for the ilaytien Government. Mr. Preston suggested to Mr. Lazare that he should go to Hayti and treat personally with the officers of the Ilaytien Government upon thi subject.
Shortly afterward, and in the month of June, 1874, AiIr. Lazare found that he might make a visit to Hayti advantageously to his steamship company, and he determined to go there with the double object of attending to the business of his said conipany and of the negotiation in respect of the suggested loall.
lie left New York in the last-named month in one of the steamers of his company, bearing letters of introduction from Mr. Preston to the Haytien officials.
Upon his arrival lie was received with much consideration by the President and Vice-President of the Republic. The President was Mlichel Domningue. The Vice-Prbsident was Septimus Rameau. The latter was a nephew of Domingue. He appeared to absorb all the powers of the Government, and was fully empowered to act for it in all matters. The Presi-
dent conferred upon him the most absolute authority, and the chambers recognized him as paramount.
He is the person who dealt with Mr. Lazare in behalf of the Haytien Government throughout the whole of the transactions which constitute the grounds of complaint and claim herein.
Mr. Lazare was a stranger at the time to Hayti and its officials, except so far as a slight knowledge had been derived from the steamship connection.
He had no previous knowledge whatever of Raineau, his (haracter, or his methods.
Arid before we proceed further, and that the Arbitrator may be intelligent throughout the perusal of the narrative in respect of the element of character on the part of the VicePresident, with which Mr. Lazare had to deal, and which affects the case throughout, we quote from official documents a description of Raineau.
" Keeps faith with none, except so far as it may serve his own selfish purposes."
Foreign Relations of U. S., 1876, p. 323.
But Rameau, in spite of his apl)arent intelligence, was a wicked, prej ud iced, avaricious,conceited, even gefnl, thoroughly dishonest man. He was, I imagine, never known to keep his word or pay an honest debt or to forgive even an imagined
-light or offence. Ile was by nature a tyrant, and was ahnost without a redeeming trait in his character. And yet, he had gained such perfect control over his uncle Dominigne that the latter became a complete nullity in the conduct of affairs, and left everything to Rameau, who, in his unlimited control of affairs, showed forth alike his evil nature and disposition and his capacity for mischief and wickedness."
]6id, page 329.
At the head of the Ministry was )omninmine's nephew, Septimus Ramneau, who considered ' that the whites had no rights which the blacks were bound to respect.' His own friends had foretold an age of peace and enlightenmcut when Septimus came inlo power, but of all the narrow-minded ne-
groes with vast pretensions to superiority, none equalled this man. As a rule, the abler a negro is the more wicked and corrupt he appears. But we could never discover this mruchvaunted ability, though the wickedness and corruption were manifest to all."
St. John's "Hayti," page 120.
"Thus fell the very worst Government that even Hayti had ever seen. Cruel and dishonest, it had not a redeeming quality. lDomingue, brutal and ignorant, was entirely dominated by his nephew, Septimus Ramean, whose conduct has been only excused by his friends on the ground of insanity. There was too much method in his madness for that plea to be accepted. His hatred of foreigners may be partly accounted for by his being a member of the Vaudoux ; it is even asserted that he was a Papaloi or priest of the sect."
Ibid, page 124.
This is the character with whom Mr. Lazare had his dealings, and the result transpired as might have been expected.
During his interviews and communications with Ramean, Mr. Lazare made himself acquainted to a great extent with the resources and internal affairs of the Republic, and ascertained among other things that its population of nearly a million were without banking facilities ; that little or no attention had been given to the subject of finance or currency, and that the banking system between Hayti and foreign countries was cumbrous in its method and expensive to the planters.
He gave attention to the working out in his own mind of a system of finance suitable for the Haytiens, to be connected with the establishment of a national bank to be conducted under proper safeguards, with power to issue currency and to carry on a general exchange banking business with London, Paris, New York, and other commercial and money centres.
At the request of Ramneau he discussed with him his suggestions for the organization and maintenance of such a bank.
Negotiations ensued between them having for its object by Rameau the inducement of Mr. Lazare to give up the presidency of his steamship company, and the management of his
railroad, and move his family to Hayti and personally undertake the establishment and management of the bank, the plan of which had formed the subject of their discussions.
Their negotiations resulted in an agreement that Mr. Lazare, in consideration of important concessions, which were then satisfactory him, undertook to give up all his other engagenients and act in the establishment of the l)ank, and, having no reason to believe that RIameau would not act in good faith throughout the matter, he set about the same.
The agreement was reduced to writing and was laid by Ramean before the legislative chambers and the same was ordaincd by the latter and given the effect of statute law.
The :,greement as engrossed was interchangeably executed with much of form and ceremony before the Government notary and was duly certified by the American Minister.
The prominent features of the contract were:
1. The grant by the Haytien Government to Mr. Lazare for thirty years of the exclusive right to establish a bank to be called " The National Bank of Hayti."
2. The capital of the bank to be three millions of dollars to be divided into shares or obligations or both.
Of this the Governmvnt agreed to subscribe to the bank as a shareholder one million dollars, the full amount of which it engaged to pay at the offices, and to deposit in the vaults of the principal bank on the completion of the organization being duly certified.
In consequence of the due making of said deposit, Mr. Lazare on his personal guaranty took the charge of and responsibility for the balance of the shares or obligations to be issued by him for his account and that of his " co-associates," and engaged on his part to pay at the offices of the principal bank, to be deposited in its vaults, the sum of two million dollars, to make the total amount of the metallic funds, which was fixed at three millions of dollars.
3. During the period of concessioh the Government not to
grant to any other persons or company any privilege for the establishment of similar institutions.
4. The bank to have the right to put in circulation notes to the amount of three times the metal in its vaults, such notes to be legal currency in Hayti.
5. The counsel of administration of the bank to be composed of the directors of the bank and an officer of the Government appointed for that purpose.
6. In addition to the ordinary business of a bank of circulation, the transactions of the bank to extend to loans on deposit of merchandise and the issuing of bills of exchange, and might embrace manufacturing and commercial enterprises, public works and especially advances on the security of ledges or on mw tgagres, in conformity with the statutes, (of the bank to be adopted.)
7. The Government not to issue any paper money during the existence of the contract, the paper of the bank alone to be legul currency in the Republic.
8. The bank on its part formally engaging to supply on demand of the Government the annual budget voted by the'legislative chambers, the reimbursement to be seefired upon the total amount (" montant ") of the custom receipts (as shall be agreed on) to be applied upon the payment of the same. That the custom duties may be collected by the bank and its branches in all the ports of the Republic, should the Government recognize the occasion.
9. The Government to pay for constructing the bank building and warehouse a sum limited to $200,000, to be considered an advance on account of disbursement for first expenses ; the amount to be put to the credit of the Republic, to be reimbursed in proper time and place with interest, as agreed. The building and warehouse to go to the Government at the end of the thirty years.
10. A subsidy to be paid by the Government to the bank during the first three years of its existence, out of the customs receipts, of '50,000 every half year,. viz., $300,000 in all.
11. There was accorded to Mr. Lazare twelve months within which to start the principle bank; that is to say, that in seven months the entire materials necessary for the construction of the said bank and of the warehouse should be delivered in Portau-Prince, and that four months thereafter the buildings above mentioned should be finished, and that at the expiration of the last month the completed establishment should be in full operation.
The non-fulfilment of this last condition in the prescribed twelve months (even though these works should have been begun) shall have the effect of nullifying the contract, and the Government to be free to act as it shall please.
This first contract was dated September 2d, 1874. It was duly approved by the Haytien Legislature, the negotiation in respect of it having occupied over two months.
Mr. Lazare thereupon went to New York and closed his connection (very much to his disadvantage) with the West India Steamship Company and the Indiana and Illinois Central Railroad Company, and devoted all his time and energies to the affairs of the bank.
He there made the arrangements for the construction of the bank building and the warehouses, including the shipment of the material; selected the designs, and ordered the engraving of the currency ; prepared prospectus collating the resources of Hayti as affecting the bank and the banking business to be carried on. Much time and labor was necessarily spent in regard to the plans and estimates for the bank, and in consulting and dealing with architects and material men in regard thereto.
As quickly as circumstances allowed he went to Europe in regard to the financial relations of the bank, leaving an agent representing him in New York for perfecting the arrangements there upon which he had been working.
He sailed for England in the month of November, 1874. When lie reached London and Paris he devoted himself to financial consultations, negotiations, and arrangements, as
well as all the other necessary preparations for operating the hank.
When in consultation with prominent b:,nkers he was strongly advised that the proposed sum of $3,000,000 for capital would be largely in excess of any immediate or early necessity, and upon their advice he returned to Ilayti to suggest that such reduction be made by mutual consent.
He also, in view of the fact that his labor and outlay in and about his preparations were much greater than he had anticipated, determined to press upon the Government a claim that further concession be made to him by amendment of the contract.
lie arrived in Port-au-Prince in the month of April and at onec put himself into communication with Rame au. The latter appeared to be still solicitous for the establishment of the bank.
He received the suggestions of Ar. Lazare, and after discussion running through many dayshe agreed to modifications of the agreement and the same were reduced to writing and interchangeably executed and delivered with the same form and ceremony as in case of the original contract.
The modifications were made and dated May 11, 1875, and were as follows:
1. The bank should n.t be called on to advance to the Government more than what would aggregate at any one time a million dollars.
2. The capital of the bank to be reduced to $1,500,000 instead of $3,000,000. The Government to pay in $500,000, .Mr. Lazare $1,000,000. The residue of the $3,000,000 to be called in subsequently according to the wants of the establishment.
3. The Government guaranteeing ten per cent. per annum dividend to shareholders for a period of five years.
4. The $300,000 subvention granted by the Government in the original contract to the bank to go instead to Mr. Lazare in consideration of his payment of the preliminary expenses.
Also the $200,000 which the Government pay for the building and furniture to be abandoned to Mr. Lazare. T'h-us making tte bonus to 3fr. Lazare 8500,000.
This " encouragement " is stated in the modifications to be "considered due in good faith to Mr. Lazare, considering that the expenses which ie is obliged to make greatly exceed the amount at first estimated by him." It also served to measure tie value of _[fr. Lazare's concession as far as the republic of Hfayti is concerned.
When Mr. Lazare was then in Hayti the national bank providcd for in the agreement as modified was duly organized-by mutual arrangement of himself and the Government. The instrument of organization, being called the statutes of the bank, ws simed in behalf of the Government by namean, Heurtelot and Execellent, and by Mr. Lazare or himself.
By the terms thereof the $500,000 of bonus was to remain with Mr. Lazare as his own property, and not to fellow the banl -, the latter accepting all the obligations of the contract as modified, and including the obligation to turn over the building to the Government at the end of thirty years.
Upon May 22, 1875, the organization of the bank was duly certified by the Government at the head of the Government newspaper " Le Moniteur."
In the announcement was contained the statement that the local directors will be named later.
Thereupon Mr. Lazare left ilayti again and proceeded to London and Paris to perfect his arrangements.
Up to the month of May, 1875, the then existing Governulent of Hayti had held control without any appearance of threatened outbreak, such as had successively removed every Government in that country from the time it had been under French control. The proposed bank would under a continuation of such circumstances have been greatly for the advantage of those in power. It would have simplified and unified the currency, and set in operation machinery for a smooth
working of the financial affairs of the country and the Government.
The foreign merchants alone, who up to this time had done all that was done of banking, would have opposed it. In time of peace and quiet their opposition was of comparatively little consequence, and it was very desirable for the Government to improve and reform the financial condition, which is described by Minister Bassett as follows
President Domingue on his accession to power found the finances exhausted, the French debt, that standing bnrden to
_Hayti, in arrears, the army unpaid, the country staggering under interior debts and floundering generally in financial embarrassment."
U. S. Foreign Relations, 1875, p. 684.
After the execution of the agreement of modification, and after the announcement of the organization of the bank, matters materially changed with the then existing Haytien Government, and affected its relations with Mr. Lazare and the bank, and also with everything American.
During the month of May, Domingue and, Ramean began to suspect certain individuals of disaffection to their rule. The persons suspected were Pierre, Brice, and Boisrond Canal. The last named was the most important of the three, as is evidenced by the fact that subsequently he became the suecessor of Domingne as president of Hayti.
Short and characteristic work was made by Ramean of Pierre and Brice. A force was sent to arrest each of them. They each knew what that meant with Domingue and his Vice-President, viz., an immediate and cruel death. They resisted, but were killed in their resistance.
A third force was sent to arrest Boisrond Canal, who lived a a few miles outside of Port-au-Prince. He, for the same reasons, made resistance, and was able to make his way to the residence of the United States Minister, and having obtained entrance without previous permission from the Minister, he de-
manded asylmn there. This was equivalent to a demand that the Minister should not thrust him out of his house into the hands of the Ilaytien soldiers, who were awaiting him outside of the house, and who would, according to Haytien custom in such cases, have butchered him then and there.
Ordinary feelings of humanity, as well as compliance with a custom which had grown up among the official foreign representatives there, induced Mr. Bassett, the American Minister, to accord to him the protection demanded.
Thereupon the Government made demand for the expulsion and exclusion of the fugitive from l[r. Bassett's house.
This demand was made upon Mr. Bassett in Hayti, as well ais upon the State )epartment in Washington, through Mr. Preston, the Haytien Minister.
Rameau well understood that Mr. Bassett, after having allowed asylum to Canal when he first obtained entrance, could not changed his course of conduct and expel him or deliver him to the Ilaytien officials without orders from Washington.
The principal communication upon the subject, therefore, was between Mr. Preston and Mr. Fish in Washington.
The llaytiens were very solicitous in respect of the answer to be received from the State Department, and until that was received Rameau deemed it politic to counsel moderation and restrain any undue exhibition of feeling toward the United States and American citizens and interests.
Prior to June 4, 1875, (For. Rol. 1875, p. 701,) Mr. Preston had received his answer. The United States Government did not approve the original conduct of Mr. Bassett in allowing asyluin to the fugitive, but refused to direct his surrender, except upon assurance that he be allowed to leave the country withOlt molestation.
The indignation and malice of Rameau against America and Americans then broke bounds, and from that time the opening of the bank was in his mind never to be allowed, and faith was to be broken by the Haytien Government with Mr. Lazare.
This determination upon his part was also helped out by the threatening state of affairs among the Haytiens themselves.
Ever since they have established a government of their own they have in one respect been among the nations a burlesque upon sovereignty.
No person has been allowed by them to die in his bed at the head of the nation.
Revolutions have succeeded revolutions, and administrations after administrations have successively succumbed to armed force on the part of insurrectionists, the alleged patriot insurrectionist of one day becoming the alleged fugitive tyrant of the next.
Even Boisrond Canal, who succeeded Domingue, has since given place to Salomon, the present President. Domingue deposed Saget, Saget deposed Salnave, Salnave deposed Geffrard, Geffrard deposed Soulouque, and so on back to the French domination.
These revolutions have been conducted with violence and cruelty as regards the Haytiens themselves, and with as much disregard to the persons and property of foreigners as might be tolerated by the governments to which they' owed allegiance, and to whom they naturally looked for protection.
Rameau early in June, 1875, saw the signs of disaffection toward the Government increasing among the people, and lie became quite solicitous in regard to the tenure of his administration.
For the first time he began to look for the favor of the Port-au-Prince merchants who had opposed the establishment of the bank, and whose interests were best subserved by the continuance of instability in the finances. These merchants had held the Government to great disadvantage when the latter was in need of money by exacting extortionate rates for the temporary use of it, reaching in frequent instances from ten to fifteen per cent. a month.
The conciliation of these merchants was an additional reason
with Ranieau for determining to break faith with Mr. Lazare in respect of the opening of the bank.
Another reason which assisted in determining lhim was the unsatisfactory condition of the Haytien national indebtedness, and he made up his mind that even if no other and personal reason had set in, the bank project would have to succumb to a successful composure of that difficulty.
When Mr. Lazare was in Paris and London in June and July, 1875, he found indications of the changed intentions of Rameau.
The ilaytien agents in Paris for negotiating the 'required Haytien loan showed hostility to the bank establishment, and acted against Mr. Lazare's preparations. The Haytien -Minister also showed hostility. Bankers having correspondents in Hayti informed Mr. Lazare that he was being duped. and that the bank would never be opened or allowed by the GovernInent to be opened. They informed him that the shipment of specie to Hayti at that time would be idle as well as dangerous, and, as far as expense was concerned, ruinous. It was also apparent that if it were shipped from Europe to Hayti that was not the natural course of trade and finance, and that it would have to be shipped back again to make it the basis for bills of exchange on London, Paris, New York, and other money centres. Also it was apparent that specie was more secure in Europe or the United States as a basis for financial transactions than in Hayti, where revolutions were always in order and where the sure destiny of every administration was to be deposed with bloodshed and pillage.
Mr. Lazare in Paris met with apractical and absolute breach of /us contract o the part of ]-ameau.
Article 14 of the agreement provided for the pledge of the customs to the bank to secure the amount of the annual budget which the bank contracted to advance to the Government.
When Mr. Lazare was in Paris lie found that three grants of the same duties had already been made by the Haytien Government to their creditors.
He found :
Fir a. The double French debt had the customs as security.
Second. For the first loan made through Mlessrs. Marcuard, Andre & Co., of Paris, the IHaytien Government had appropriated all the general revenues of the Republic, and especially the export duties on coffee, with the provision that they should not be reduced below the price fixed ; and
Third. The Government had appropriated as security upon the now loan negotiated through Sievers & Co. and the credit general forty-five per cent. of the proceeds of the customs.
Vide, pp. 40, 41, Parliamentary Inquiry, 3d div., No.
1, p. 45, and various other letters.
Those constituted a flagrant breach of the contract with Mr. Lazare, and the difficulty remained unremoved up to the time of the declaration by Rameau of the abrogation of the contract on October 15th, 1875.
This breach was even aggravated, as afterwards ascertained by Mr. Lazare, by a system adopted by the Haytidn Government of borrowing at ruinous rates from the resident merchants upon certificates receivable for customs dcitics.
Mr. Lazare madI his arrangements for the transmission of funds from Europe to Iffati in amount sufficient to enable him to supply his proportion of capital to the bank in case Rameau should continue to act in good faith with him in regard thereto.
lie brought over to Hayti with him his family and his family servants. He also secured while in Europe, and at considerable expense, the services of a gentleman prominent as a practical banker to work out the detailed operations of the bank, and brought him with him, together with competent assistants. He arrived with his family and business retinue about the first of August, 1875.
Upon his arrival Ile found the unpleasant condition of affairs between the Governments of Hayti and of the United States still existing.
Boisrond Canal was still in asylum at the house of the American Minister, and diplomatic correspondence of a pointed character was still in pr,,gress between the Governments both in Port-au-Prince and Washington. Rameau was also uneasy in respect of his position and that of his uncle. An insubordinate spirit was cropping out all through the country.
Rameau had prohibited the newspapers from publishing the names of the local directors of the bank, and never after allowed them to do so, nor to publish any advertisement in the interest of the bank.
Mr. Lazare's first visit to Rameau forced upon him the unpleasant conviction of the latter's intended bad faith. His tone was entirely changed.
The bank having been organized in May previous, and it being competent that under the contract the Government share of the capital, 8500,000 in metallic funds, should be deposited therein at once, Mr. Lazare demanded of Riamean that he should deposit the same, he deeming that such deposit might serve to a certain extent as an evidence of good faith so as to justify him in making the corresponding deposit of $1,000,000 in ease the difficulty in respect of the double pledge of the customs duties should be removed or adjusted.
His answer was evasive and unsatisfactory.
Ramean in a characteristic manner determined not only to break off the contract in regard to the 1)ank, but to bring his cunning to bear in the manner of it, so as to avoid if possible the demand which would be made for reparation ; in fact, to go through a sham and a form of complying with the terms of the agreement, and to endeavor to charge the fault upon Mlr. Lazare.
Towards this end lie devised and undertook to carry out a shallow scheme, befitting by his character and methods.
lie extended the time named in the contract within which the bank building was to be completed and everything to be ready for operation until October 15th, 1875. The representatives of the Haytien Government appear to labor under the
impression that this delay was at the special instance and request of Mr. Lazare, but we fail to find where this appears, although the Flaytien Government " admit " it in the Protocol.
After the completion of the bank building there were two keys procured which could open the door and procure entrance. One of these was kept by MIr. Lazare, and the other l)y the Government.
About September 1st, 1875, the Government obtained from Air. Lazare the key which he kept, thus obtaining absolute possession of the bank, to the exclusion of Mr. LazarQ.
Upon the 15th October, without notice to Mr. Lazare, Raineau appointed a commission, including several of his newly conciliated friends, the merchants, to certify that on that day the Government put into the bank building the sum of five hundred thousand dollars. This was done by him with the intention of having the bank arrangement broken up by a declaration that the contract for the same with Mr. Lazare would thereafter be held by the Government to be null and void.
On the said 15th October, 1875, some boes in which soap had originally been packed were taken into the bank building, but Mr. Lazare having had no notice to attend, and having no key for access, the proceeding was entirely exparte.
Mr. Lazare knew nothing about what was going on in the premises until the official statement was made that the Ilaytien Government abrogated the contract.
The manner of the movement shows that it was not intended or at all contemplated to be a business transaction.
Although notice to attend was not sent to Mr. Lazare, such notice was sent to ten selected witnesses. Some of these were native flaytiens, and others were Ramean's new friends, the merchants, who were the enemies of the bank movement.
These ten were calledd in to act as witnesses to the fact of the deposit by the Government of the $500,000 in metallic funds which by the contract was to be deposited by it as a
condition precedent of the deposit to be made by Mr. Lazare.
These witnesses, upon request of Rameau, signed a paper in which they state that " after taking note of the contract and the modifications brought to same, we have proceeded to the veriflation of which mention has been made hereabove, and have found that the capital to be furnished by the Government for the opening of the National Bank of iHayti has duly been deposited, amounting to the sum of five hundred thousand dollars, and which have been deposited in the vaults of the National Bank.
"We have then taken note that Mr. A. 11. Lazare had neither previously nor during the running of the fifteenth day of October made any deposit of funds, notwithstanding the delay which had been granted him for the execution of the contract by the Government of Hayti."
This statement was called for by Rameau for the purpose of working a fraud upon'Mr. Lazare, and was in itself, as was everything else begotten of Rameau, a fraud.
The contract called for the deposit of metallic funds. This was fully recognized and understood by the Haytien officials, and yet the commissioners do not certify that $500,000 was deposited in metallic funds.
The reason why they did not so certify was because there was no deposit of $500,000 in metallic funds, and they were unwilling to certify for Rameau that there was.
The boxes put into the bank building did not contain more than $235,500 of metallic funds, viz, $215,000 of silver and $20,500 of gold. Any forn or ceremony by Ramea, of putting in more than that was a sham. If anything um ,re was put it, it consisted of I 0 U's or other papers or tickets having within them no substance or sincerity.
Even the ,235,000 was a shmamn, because it was not put there to stay under any circmnstances. It did nor belong to the Government. Collateral statements show 'that the Governwenit had on hand at that time no real funds of any kind, and
whatever of coin was then put in belonged to Ratneau or Domingue and was only put in to help out the fraud.
The reliance of the iaytien Government for money at that time was upon its loans in France. They supplied themselves thus at runious rates as they best could. The rates were of little consequence compared with obtaining the money.
In September, 1871, it obtained a loan of ten million francs, (or 81,875,000,) and cancelled the same four months afterwards by paying for it fourteen and a half millions of francs, thus incurring a loss of about a million dollars. This fourteen and a half millions was obtained through a new loan negotiated for sixty-eight million francs, (or $12,000,000.)
This last loan was arranged through Messrs. Sievers & Co., a house doing business in Port-au-Prince. This house had been speculating heavily in coffee, and had incurred great losses and was then in precarious condition. The proposal by this house for raising the loan was an effort for rehabilitation. It was unsuccessful as such, as the house failed in the autumn ensuing. Le Moniteur, the official journal, announced the contract with Sievers & Co., on 1Iarch 13, 1875. The Cr6dit Gdnral Franqais of Paris undertook its management there. Notwithstanding all efforts, the putting out of the loan proved a failure, and instead of sixty millions of francs expected to be raised, only 21,842,235 francs could be placed, and on the 10th day of August, 1875, the Haytien Government had used up all of it except 397,082 francs ($79,420.48) which it had then to its credit at the Credit Gdnrral Franqais, while it still remained pressed by creditors at home for a much larger amount, and was substantially without any other resources.
The ownership, or, at least, the asserted ownership in Ramean of the $235,500, which was put into the bank building, was made manifest when the revolution was in operation which overturned the Domingue administration. Ramean then undertook to ship the money away as his own, and the populace stole the money, each one making off with what he could secure.
The fact is that in order to carry out the formula of fraud upon PMr. Lazare, Rameau went from Port-au-Prince to the north part of Hayti to raise as much money as possible with which to go through the form of deposit, and was unable to raise more than the sum of $235,500 above mentioned. In this errand he occupied a good portion of the time between September 1st and October 15th, which it is suggested was accorded as a delay to Mr. Lazare.
77e failure of the Government to deposit the whole $500,000 in metallic funds takes from it the ability to raise even the technical question against i3fr. Lazare, but notwithstanding that they declared to Mr. Lazare the contract to be at an end, and thus violated the same directly and finally.
Nothing more remained for Mr. Lazare to do in the matter, but to seek his reparation.
Before he had opportunity of presenting the matter to his Government the relations of Hayti and the United States began to assume a more friendly aspect. The Government of Domingue began to feel more reassured in. its position, and not so reliant upon the merchants, and the extradition of Boisrond Canal became in the mind of Rameau a more advisable policy than his butchery, and by arrangement with the United States Government Canal was embarked for Kingston.
This change of relations began to draw Rameau into reflection upon his treatment of Mr. Lazare, and he began to feel his inability to justify bib conduct to Mr. Lazare's Governiment.
He thereupon opened negotiations with Mr. Lazare for a comnposure of the grievance, and after considerable discussioll agreed to a solatumn which, if carried out, Mr. Lazare decided to accept, rather than appeal to his Government.
Ramean agreed to pay Mr. Lazare $117,500, fixed and agreed upon by them as the amount of disbursemients made and incurred by the latter in his preparations for the establishment of the bank. He also agreed to give to Mr. Lazare a contract for the erection of a national palace at Port-an-
Prince at a gross cost of $350,000, which would have offered a profit of $.00,000. lie also agreed to commission Mr. Lazare to take the initiatory steps toward the arrangements for the purchase of two iron-clad steamers for the Ilaytien navy. He also agreed to make Mr. Lazare the consul for Hayti in the city of New York, a position supposed to be worth about $6,000 a year.
He also agreed to pay Mr. Lazare the agreed price ($20,000) of an equestrian statue of l)omingue which he had obtained Mr. Lazare to order when he was in L oidon, and which is now in Mr. Lazare's possession.
And in addition to the above matters he agreed to give Mr. Lazare two special orders for .5,000 each.
These concessions were agreed upon in reparation of the wrong done Mr. Lazare in order that an appeal might he prevented from Mr. Lazare to his own Government next time. They operate as a confesion of the validity of i/Jr. Lazare's claim, and a bar to any denial thereof.
If they had been honestly carried out by the Ilaytien Govei nment Mr. Lazare would have accepted them in satisfaction.
It is believed that Rameau intended to carry them out. Mr. Lazare and others authorized by him pressed upon Rameau the carrying out of the terms. Ie, however, postponed and procrastinated, never., however, after that denying the Haytien Government's responsibility for redress.
The terms, however, were never carried out beyond the delivery of the two orders for $5,000 each and the appointment of Mr. Lazare as consul in New York, and the'allowance to him of the enjoyment of that position for six days, during which lie made disbursements about the office for which he has never been reimbursed.
And here comes in another element which has been incident to dealings with Hayti as a sovereign power.
As above shown, at short intervals, those temporarily at the head of the Government have been deposed to make room for the heads 6f a new revolutionary party.
The cruelty and wanton destruction of life among themselves which has always accompanied these changes, have been tolerated by the other governments of the world, but they have never been recognized as satisfactory reasons for affecting the treatment of citizens and subjects of such other governments, nor for injuries to their interest by breach of faith.
In the present case Mr. Lazare is asked to suffer by reason of one of these characteristic revolutions. On the 17th day of April, 1876, after Ramean had procrastinated the carrying out of his promise to ir. Lazare to make reparation for the injury he had done him, an uprising took place, having for its object one of the usual violent changes of administration. As usual it was accompanied by bloodshed and brutal violence and destruction of life.
Domingue succeeded in embarking on board a French manof-war, and escaped to St. Thomas. Ramean was murdered while walking arm in arm with the French and Spanish Ministers, who were escorting him under their protection to the French legation.
Boisrond Canal was made the successor of Domingue as President.
He was the same person to whom the American Minister gave asylum in 1875, and for whose expulsion from the linister's house, which would have resulted in summary butchery, Ramean and his Minister in Washington were clamoring.
One of th]e Xrst acts of the Ilaytien Government after the explsion of Domingue and murder of IRaineau, was to repudiate the arrangement made for reparation to 3r. Lazare.
The same Minister who had just been demanding the withdrawal of asylum from Boisrond Canal, which would beyond doubt have led to his immediate murder, notified Mir. Lazare in behalf of the new Government, that the latter repudiated all obligations of Hayti to him, made by the former administration
This conduct left ir. Lazare no recourse except to lay his treatment before his own Government. He did 'so and the
same was made the subject of prompt communication by the State Department.
After much procrastination and attempted avoidance by the Haytien Government, the reclamation upon the demand of the United States has been made the subject of the arbitration now pending.
Claim is made in behalf of Mr. Lazare for $500,000 and interest from October 15th, 1875.
SAMUEL F. PHILLIPS, Counsel for United States.
FOSTER & THOMPSON, Counsel for Claimant A. I. Lazare.
The ARBITRATOR. On page three of your statement there are extracts describing Rameau; was that part of the correspondence between the two Governments ?
Mr. TnomsoN. The first passage is contained in a letter from the American Minister in iayti to the Secretary of State, not relating especially to this claim. There are other extracts from a work published by St. John, on Hayti; he was for a long time Minister in Hayti.
JOHN JOSEPH AUDAIN,
a witness on behalf of the claimant, being duly sworn, testified as follows:
Examined by Mr. THolasoN:
Question. Where do you reside?
Answer. At Port-au-Prince.
Q. How long have you resided there ?
A. Fifty-two years.
Q. Are you a native of Hayti?
A. I am.
Q. What official positions have you borne in Hayti ?
A. I was three times deputy, once constituent, once senator and was Treasurer-General of the Republic, as well as
Minister of Finance; at present I am Consul-General and Charg6 d'Affaires of Liberia.
Q. You are also the editor of a newspaper ?
A. Yes, sir; for the last twenty-five years.
Q. What is the name of the paper?
A. Sometimes it is called " Le Peuple," and sometimes " Le Commerce; " I am compelled to change the character of my newspaper when things get rather hot; then I take the name of "Le Commerce," so as not to mix too much with the politics of the country; nevertheless, I have been exiled three times for publishing that paper.
Q. Have you always taken an active interest in the public affairs of Hayti?
Q. Were you acquainted with President Domingue during his incumbency .
A. I helped him with my newspaper.
Q. Then you are well acquainted with him ?
A. Yes, sir.
Q. Were you also well acquainted with the Vice-President?
A. I knew him, but not so well'as Domingue.
Q. The Vice-President was his nephew, wasn't he?
A. Yes, sir.
Q. What relations did Rameau bear to the Government and people of Hayti and to his uncle, the President ?
A. He was more the President of Hayti than Domingue was himself; lie was not Vice-President of the republic, but he was only Vice-President of the Council of Secretaries of State.
Q. What do you say in regard to his public dominion over the affairs of Hayti ?
A. I say he was more the President than Domingue himself ; lie was more intelligent and could hold the position better than his -uncle, who was very poor in mind.
Q. What position was conceded him by the legislative chambers?
A. Ioiningue asked the two chambers to recognize him as Vice-President of Hayti by introducing into the constitution of the country an article to that effect ; the lower chamber voted for it; at that time I was senator; Donlingne came to my house, begging me to have the majority of the senate, which was in my hands at that time, to approve what the lower chamber had done, but I refused, and the following day the law voted for by the lower chamber for the introduction of that amendment into the constitution was defeated by the Senate ; Septimus Rameau remained Vice-President of the Council, but not of the republic of Hayti.
Q. How far did that refusal on the part of the Senate affect his dominion over affairs
A. It affected it very little.
Q. He was the ruling spirit of the whole Government ?
A. He was.
Q. Do you remember Mr. Lazare when he was in Hayti ?
A. I do.
Q. Do you remember any directions given by Raineau to you regarding the publication of the statutes of his bank.
A. Well, Lazare came to'me, as printer,.and begged me to print the statutes of the bank; but Rameau sent me word by one of his relatives not to print the statutes ; so I did not print them.
Mr. TnomsoN. If your Honor please, the statutes of the bank are the by-laws.
Q. Was this when Lazare was there in the summer of 1875
A. Yes, sir.
Q. Were you one of those gentlemen who were selected by Rainean to attend at the bank building on the 15th of October, 1875 ?
A. I was one of them, selected by the minister of Finance Excellente.
Q. And you continued in the building ?
A. I did.
Q. Was Lazare there
Q. Was Mr. Ramean there any part of the day ?
A. Ile was there in tile morning.
Q. Had certain papers been prepared for the signatures of tie gentlemen present ?
A. The paper was made at the bank itself.
Kr'. BOUTWELL. Why should not this witness state what actually took place without being led ? WITNESS. We went there in the morning abont ten o'clock, and renained there mitil five o'clock, and there was presented to us $235,500; $215,000 were in silver arnd $20,500 in gold, whi(h gold I coalted myself. The rest was counted, [ believe, by some other of the members of the commisSion. At five o'clock the whole amount was not deposited ; that is, $500,000, but some bonds' to the order of the Government were deposited by Tweedy Peters & Company,
Sievers & Company, Ocutts, and others, which constituted 1 0 U's. This made the whole sum amount to $500,000.
Q When you speak of bonds just describe what kind of paper you mean ?
A. They were promises to pay to the order of the Governmnent, within fifteen days, the amount of so-and-so, $15,000 or "20,000 or $100,000.
Q. These people were merchants there ?
A. Yes, sir.
Q. Sievers & Company were the people who were negotiating the loan ?
A. Yes, sir.
Q. They failed, did they not, in the autumn ?
A. Yes, sir; some time after.
Q. What do you know about the pledge of the customs diuties for obligations of the Government in Hayti ?
A. I know that the duties were given to Mr. Lazare.
Q. I mean others than Mi'. Lazare ?
A. Of course the Government was compelled to give the same part of the customs revenues for the new French loan,
which was made with Mr. Mareuard & Company by the minister of Hayti in Paris.
The ARBITRATOR. Are you speaking of your own knowledge?
WITNESS. I am, sir.
Mr. TuomisoN. What do you know of the issue by the Government to merchants of certificates in anticipation of the importatien or exportation of goods, payable in customs duties ?
A. Well, the Government, when it wants moneys, always goes to merelflants and asks them for money, and then it gives the export duties or import duties in compensation for the moneys taken from the merchants.
Q. Was this the case during the pendancy of Lezare's contract ?
A. Oh, it was done under Domingue, under Canal, under Salomon, and under every government.
Q. To what sums did this amount up?
A. According to the wants of the Government; sometimes four or five or six hundred thousand dollars; sometimes a million; whenever they want money they send for it.
Q. In September, 1875, what was the condition of the financial affairs of the Government, as far as you know ?.
A. As now, always embarrassed.
Cross-examined by Air. DE CHAMBRUIN:
Q. Please look at this paper and tell me whether you know the seal and the signature ?
The WITNESS. [Examining the paper, which was afterwards marked by the Arbitrator.] It is the seal of a notary in Portau-Prince.
Q. Describe to the Arbitrator what paper I handed you.
A. This is a contract between the Government of iayti and Mr. Lazare.
Q. Do you know the notary or his signature ?
A. I know him, because lie is married to my wife's cousin.
Q. Do you recognize the signature as correct ?
A. I do, sir; he is my private notary, too.
Q. You recognize this paper as a correct copy so far as the extrinsic evidence goes ?
A. I think it is a correct copy, but to know whether it is absolutely I would have to read it; but I know the paper is lawful and legal.
DAVID FRANCIS BURKE,
a witness called on behalf of the claimant, being duly sworn, testified as follows:
Examined by Mr. THomsoN:
Question. Where do you live ?
Answer. At Port-au-Prince, Hayti.
Q. How long have you lived there?
A. Twenty-eight years.
Q. You are a native of Jamaica ?
A. A native of Kingston, Jamaica.
Q. Have you been in active affairs in Hayti ?
A. I have been engaged in commerce there.
Q. But you have never held official position ?
A. No, never.
Q. Were you well acquainted with Domingue?
A. Yes, sir; very well acquainted. Q. On intimate terms with him ? A. On very intimate terms.
Q. Also with Rameau ?
A. Yes, sir.
Q. State the relations which Rameau bore to the Government and also to his uncle.
A. Rameau was the Vice-President of the Council of the Secretaries of State, and he was de facto President, for you could get nothing done by the President without addressing yourself directly to Mr. Rameau, and through him everything was done.
Q. Are you acquainted with Mr. Lazare?
A. The very day he arrived I made his acquaintance through Mr. Basset, the American Minister.
Q. That is where Mr. Lazare resided ?
A. Yes, sir.
Q. You are acquainted generally with the fact of Mr. Lazare negotiating with respect to a hank ?
A. Yes, sir; I have been with Mr. Lazare on several occasions to Mr. Rameau on this subject.
Q. In what capacity ?
A. At first I got a letter from the Vice-President, in which he asked me to look for the gentleman who came out to build the bank, and any advances I might make would be paid on the arrival of Mr. Lazare; I had everything arranged, and had the superintendence of the building in the absence of Mr. Heuvelnan ; Mr. Rainean named me to look after his interest in case of having anything to do in connection with the batik; at the same time, being very friendly with Lazare, I had several communications from him, and acted for the whole three.
Q. What were the relations between Iuvelman and Lazare?
A. He was to build the bank under Mr. Lazare's arrangement with the Government.
Q. Heuvelman came out from New York ?
A. Yes, sir, afterwards.
Q. With the view of erecting the bank building ?
A. Which he did.
Q. Then you are the mutual friend of the three parties?
A. Yes, sir.
Q. You were acquainted with everybody and knew their relations ?
A. Yes, sir.
Q. Will you be kind enough to state what took place when you were present in Mr. Rameati's chamber in the summer of 1875, during the absence of Lazare-I mean his last absence
A. Mr. Lazare, when he first came out, was on very friendly terms with Ramean ; in fact, the President's carriage was often sent for him when they wanted him ; after the last trip
of Lazare to Europe, Rarnean became quite cool and did not want to receive him and do things as he usually did.
Q. I refer now to a time when Lazare was still absent ; that is, before he arrived in August.
A. I went to see Rameau on business; when I went in I saw sitting beside him on a sofa the Minister, Mr. Fort, and Mr. Medoux, also one of his Ministers ; they were in conversation ; when I got in I sat on a chair at the side of the door; Mr. Mcdoux asked Mr. Ramean whether lie had heard from Mr. Lazare ; lie said no, and lie didn't care to hear from him; the other then questioned him about the bank : he said lie had no intention of continuing the affairs of Lazare with the bank; he intended to do it himself, for he had all the means of carrying it out himself.
Q. Be good enough to state whether at that time a change was made in the method of Rameau's dealing with you in connection with building the bank
A. Yes, sir; formerly I used to go there and r, ceive money weekly to pay the expenses of the laborers, and I always gave a receipt, signing for Lazare; I went a few days after with a receipt for $2,000, in the same form, in dupligite, and lie refused to accept it; lie told me I must go back and change it, and make the receipt out in my own name, which I did, and he paid it; after that he would accept no receipts except those made in my name.
Q. State what you know in regard to any agreement of reparation to Mr. Lazare on the part of Ramnean subsequently to October 15, 1875.
A. When this difficulty arose between Mr. Lazare and Mr. Rarneau and the Government of Iayti, Mr. Basset, the Minister, wanted Lazare to make a protest against it, and advised it; but Rameau sent for me, and asked me to speak to Lazare and ask him to see whether they could not come to some amicable settlement; I went there with Monsanto; we saw Ramean and spoke over the matter with him ; Raniean consented to give to M[r. Lazare $117,000 ; he would give also to him
$20,000 for the statue of Domingue, an equestrian statue, which I believe is still there; he also said he would give $10,000 for other expenses to Lazare, and would appoint him as Consul-General here, and that he would also give him two ironclads to build; also the palace for $350,000 and some other things, and told us that Lazare would make much more out of that than in the bank; I advised Lazare, rather than have any difficulty with the two Governments, to accept it, and Lazare did so, so much so that between Basset and myself, who were very friendly, there came a coolness, because he thought I advised Lazare that way, and he wanted him to go the other way.
Q. What do: you mean when you say that he was giving Lazare a palace for $350,000 ?
A. I mean the building of the palace ; the contract to build it and to furnish two vessels of war.
Q. State what you know in regard to what was done on the part of Lazare towards carrying out this promise of reparation; that is, as to dunning Mr. Rameau for it.
A. After Lazare consented he left there and came on here; the next thing a heard was that it was revoked by the overthrow of the Government ; the consulship was revoked.
Q. Did Lazare leave immediately ?
A. He remained some time with a view to having the arrangement carried out ; nothing was carried out, but Rameau told him to go and it would be sent after him.
Q. Did you go to Rameau to obtain the carrying out of this contract for Lazare ?
A. I did; repeatedly.
Q. What did Rameau say ?
A. He always said lie would carry it out ; I think lie would have carried it out if he had not been killed.
Q. At the time we are speaking of, what had becon e the feelings of Rarnean toward the United States ?
A. They were fearful.
Q. What had they been at an earlier period ?
A. They had been very friendly, but when Canal entered into the house of Basset and t ,ok protection there he wished Basset to force Canal out ; lie then got into a regular turmoil with Basset, and on one occasion they even came to damning each other, but Raijieau afterwards went down stairs and bid Basset good-bye.
Q. You were with Ramean?
A. 0 yes, sir ; after Mr. Lazare's affair, I was charged with other affairs.
Q. After Canal embarked for Kingston and the trouble was over, state what occurred.
A. Then things had become more friendly between them, but Basset always felt the annoyance he had experienced from Rameau.
Q. Do you know tht Rameau appointed Lazare to the consulship ?
A Yes. sir.
Q. Do you know how long that lasted?
A. I do not think it could have lasted more than ten or fifteen days ; he hardly arrived here before I got news that he was revoked, because Lazare only left a few daysbefore the revolution.
The ARBITRATOR. The revocation, then, came under the succeeding Government?
WITNEss. Yes, sir.
Mr. Tuo IrsoN. When this revolution took place what became of Domingue ?
A. He was being conducted by the French and Spanish ministers along with Rameau; Rameau was killed in the streets and Domingue was embarked for Kingston.
Q. Were you in Port-au-Prince when Rameau was killed ?
A. Yes, sir ; when lie was walking arm in arm with the French and Spanish Ministers.
Q. What became of the $235,000 that were in the bank building ?
A. In the morning Ranicau sent for me and told me that
he had a small schooner that had arrived from Curacoa, and that lie intended to remove that money, and that I nmmt go and tell Havelman to come with carts and men to meet him at the bank, and for me also to be there; I told Havelan and he went after his carts and horses to be there ; but, knowing as I did, that if he touched that money, the whole affair would be finished, I didn't go to the bank, but at eleven o'clock I heard guns being fired about the streets, and the people divided the money among themselves; they broke into the bank and removed all the money ; they broke open everything and destroyed everything.
Q. Who was the President who succeeded Domingue ?
Q. When the appointment of Consul was given Lazare do vou know also that two orders for $5,000 were given to him ?
A. Five thousand dollars.
Q. What became of those orders ?
A. They were not at first sold.
Q. You disposed of them ?
A. Yes, sir; lbut the whole affair did not realize more than $900.
Q. Was that on account of the condition and credit of the Government ?
A. Yes, sir.
Al'M. DE CIIAMBRUN. Were those orders ever paid ?
WITNESS. Never; I do not believe they have been paid now; they were put in tile Caisse des Mortissements ; they remained there, for they are not paid ; they only pay the interest on the bonds of that institution, and they do not even pay that regularly; they are behind about 18 months ; these orders are in the same condition.
Mr. Ttzo-soN. All that was realizable was realized
A. Yes, sit'.
Q. You were in the habit o)f visiting Ramean with Basset ?
A. Yes, sir; very frequently.
Q. You know the relations between them .
A. Very often Basset wanted to go there, but if I was not with him he would not go ; he knew I was very friendly with Rameau, and he thought that on most occasions Rameau would favor me with anything.
Q. Do you know whAt Rameau's disposition was towards Basset and the United States ?
A. It was very bad at the latter end, so much so that I heard Basset grow furious, and they actually abused each other.
Q. That was very undiplomatic.
A. Quite ; but Ratncau kept his temper and walked down to the door and bowed Mr. Basset out of the office very coolly.
Q. What do you know about the system of the Haytien Government discounting certificates payable out of the customs duties ?
A. Well, I do not know that they discount; but they have a way of borrowing money from the different merchants and of giving in return a certificate for duties payable when the erop arrives. It may be six months or a year afterwards, according to what arrangement they enter into.
The ARBITRATOR. You refer to the export duties ?
WITNESS. Yes, sir; the export duties.
Mr. THoMPSON. To what extent are they outstanding
A. I cannot tell exactly ; they run up to hundreds of 'thousands of dollars; it is impossible for one merchant to attend to the whole affair; it is done among five or six.
Q. Do you know anything about the amount that was put into the bank?
A. Nothing, except by hearsay ; I did not go there.
Q. 1 do not ask you what the general repute is, but was there a general repute as to the amount ?
A. Oh, yes, sir.
Q. Were you ever told by Mr. Monsanto as to what was put in ?
A. I never was.
Q. At the time that Mr. Lazare was in Europe, in the sum3-L
mer of 1875, you say that Mr. Rameau changed his methods of dealing by requiring vouchers to be made in your own name instead of the name of Lazare; did he also make arrangements with you at that time in regard to doing some work about the bank by yourself ?
A. He promised me at the time that I should be paid when the work was completed and my account was made out.
Q. I ask you with reference to his making spedial arrangements with you about doing some levelling around the bank ?
A. Yes, sir; I had about fifty or sixty men employed daily, so as to level all round the bank.
Q. That was the time he made that special arrangement with you to do it yourself, without reference to Lazare ?
A. Yes, sir.
Q. Do you know when Sievers & Company failed?
A. I cannot tell you exactly ; it was just before that draft was made.
Q. Was it after the affair of the 15th of October
A. Yeg, sir.
The ARBITRATOR. With reference to this promise agreed upon, giving $117,000 and something more, how long a time after that was it when the revolution took place and Doiningue and Rameau fled?
WITNESS. Mr. Lazare remained there, I suppose, something like a couple of months.
Q. Mr. Lazare left before the revolution ?
A. Yes, sir ; just a few days before.
Q. Do you know what Lazare was doing during that two months in relation to that affair with Ramean 2
A. He was up and down there three or four times a day I was with him, and lie was endeavoring to carry out the arrangement.
Q. Do you know when Mrs. Lazare and family left ?
A. They left before Mr. Lazare ; lie remained so as to get this thing settled with .Rameau.
Q. That was the time when Mrs. Liza e and family were shipwrecked ?
A. Yes, sir.
Cross-examined by Mr. DE CIIAMBRUN:
Q. What became of the bank building ?
A. It is still there.
Q. Is it completed ?
A. It was completed before the fixtures inside were destroyed .on the day of the revolution.
Q. Who paid for the building?
A. That I cannot tell you-who paid for the building.
Q. Didn't you have anything to do with the construction of the building ?
A. I had.
Q. Who paid you ?
A. Mr. Ramean paid me from time to time ; I gave receipts in the name of Lazare for work done around the bank in question.
Q. Do you know whether Lazare filed any protest after the abrogation of the contract ?
Q: With the Government of Iayti or with the United States Minister ?
A. No, sir.
Q. You do not know?
A. No, sir.
Q. Have you ever talked with Mr. Lazare on that subject?
A. No, sir; because I do not believe lie did ; he did not file any to my knowledge.
The ARBITRATOR. If you have nothing further I will adjourn this case until Monday next, with the understanding that it shall proceed then from day to day until its completion.
Mr. THoMNsoN. It would greatly accommodate me if you will make it Wednesday, as I am obliged to go to Albany on Mon-
day. If the ease is adjourned to Wednesday, I will be better prepared to proceed with it as your Honor suggests.
The ARBITRATOR. With this understanding, I ain willing to adjourn the ease until Wednesday next, the 21st instant, at ten o'clock A. MT.
Subsequently, upon application of the Counsel for the claimant and the concurrence of the Counsel for the respondexit, the Arbitrator postponed the case of Lazare until Wednesday, the 28th inst., at 10 o'clock A. M.
THE AMERICAN AND HAYTIEN CLAIMS COMMISSION.
THE UNITED STATES
THE REPUBLIC OF HAYTI.
In the Matter of the Claim of Adolphe H. Lazare
against the Republic of Hayti.
DEPARTMENT OF STATE, WASHINGTON, D. C., January 28th, 1885.
Pursuant to adjournment, the Commission met at 10 o'clock A. M.
The Arbitrator, Honorable WILLIAM STRONG;
Messrs. THOMSON and J. HUBLEY AsHTON, Counsel for the laimant; and
Messrs. DE CHAMBRUN and BOUTWELL, Counsel for the Republic of Hayti.
The ARBITRATOR. It occurs to me, Mr. Thomson, that the first thing to be shown is the contract. I merely make this Suggestion, for I do not wish to direct the order of your proof. Mr. THomsoN. Your Honor is right, and we will do that. (A written contract was then introduced by the Counsel for the claimant.)
Mr. BOUTWELL. We do not object to the introduction of this paper, provided we are permitted to make objections upon an examination of it.
Mr. DE CHAMBRUN. Of course all these papers are subject to objections, which may be presented hereafter.
The A.BITRATOR. I do not propose to rule upon the paper now.
Mr. B OUTWELL. Some of these papers are in French, and of course translations will have to be made.
The ARBrrRA'TO. The translations will have to be made and accepted, subject to objections which may be raised hereafter.
Mr. THomsoN. If your Honor please, we first offer in evidence the contract between this claimant and the Republic of Hayti, together with the translation.
(These papers are hereto appended and marked " Exhibit A.")
Mr. Taenosox. We now offer in evidence the modification of this contract, together with a translation.
(These papers are appended hereto, and marked " Exhibit B.")
Mr. Tiio-.so-;. We now offer further modification, merely relating to the manner in which tile keys of the bank were to be kept.
(These papers are hereto appended, and marked " Exhibit C.")
Mr. TiroMsoN. I also offer what are called the )y-laws of the bank, or charter, of which there is an English copy.
(These papers are hereto appended, and marked " Exhibit D.")
ADOLPHE HENRI LAZ.kRE,
the claimant, being first duly sworn, testified as follows:
Examined by Mr. THoMsoN :
Question. How long have you been a citizen of the United States ?
Answer. About 16 or 18 years.
Q. What was your residence in June, 18741
A. New York.
Q. What was your business at that time?
A. I was in the railroad and steamship business.
Q.State what railroad business you were engaged in ?
AI was connected with the Indiana and Illinois Central R.R.
Q. In what way
A. I was largely interested in the securities of the company, was a director, and one of the executive committee.
Q. To what extent did you have the management of the affairs of the company
A. I had the management of the negotiation of the securities and attended to matters of the road ; seeing about the construction of the railroad, etc., and I was at one time managing director.
Q.Immediately before you left for Hayti in that year were you managing director ?
A. Yes, sir.
Q. Was any salary or pay attached to the office?
A. Yes, sir ; $6,000 a year.
Q.Give the particulars in regard to the steamship business?
A. I was connected with the steamship line as president of the company.
Q. Of what company ?
A. The New York and WVest India Steamship Company.
Q. What is the route occupied by that company?
A. The steamers make trips between New York and Hayti.
Q. How many steamers bhlonged to the company ?
A. We had about three steamers.
Q. And you were president of the company?
A. Yes, sir ; I was president.
Q- Was any salary or pay attached to that office?
A. I had a salary.
Q* How much was it
A. The salary was about $4,000, I think.
Q- Do you remember of going in the summer of 1874 to Rayti ?n
A. Yes, sir.
Q. Tell us upon whose suggestion, and how you came to go.
A. Mr. Preston, the Ilaytien Minister in Washington, who was living in INow York, came to see me and told me the Government of iayti required a loan, and he wanted me to see whether I could obtain th.i loan for the Government of layti. He advised me to go to Iayti and see the Government in person, and at the same time to look into matters in regard to my steamship line. To that effect he gave me a letter of introduction, and recommended me to the Government of Hayti, with letters to Rameau, in which lie told themMr. BOUTWELL. Are those letters in existence ?
Mr. TnoMsoN. They were delivered. They were not letters that be would retain.
Mr. BoU'rWELL. Have Yon any copies of them?
Mr. THomsoN. No, sir; there are some letters written by Mr. Preston, but that was at a little later stage. They are printed in the investigation made by the Haytien Government
Mr. BOUTWELL. Very well; I do not object.
Mr. THOMSON. Mr. Lazare, allow me to interrupt you, and I wish you to excuse me for going back again to the sulhe-t we had passed in relation to the Indiana & Illinois Central Railway Company. Explain wlhat that company was, where its railway was situated, and who your associates were in the company.
A. The road was running from Indianapolis to Decatur, Ill.
Q. Who were your associates ?
A. Mr. Geo. AT. Pullman, of the Pullman Palace Car Co.; Sydney Dillon, Henry B. Hammond, Mr. Bates, president of the Bank of Commerce in Boston; about eight or nine altogether.
Q. When did you go to Hayti?
A. About the 1st of July, 1874.
Q. In one of your company's steamers ?
A. Yes, sir; I took one of our steamers and went to Portau-Prince.
Q. What was your object in going to Hayti.
A. My object was relating to looking after the subsidy of our steamship line.
The ARBIrRATOR. Ask him what he did, and not what was his objec-t.
Mr. TiOMSON. May I suggest to your Honor that it might be satisfactory to go more into detail in respect not only of facts, but of motives?
The ARBITRATOR. We generally judge of motives from acts.
The WITNESS. It was in relation to the steamship line, and at the suggestion of Air. Preston, I went for that loan which the Government wanted to obtain.
Q. State what occurred and whoin you saw when you arrived there.
A. I sent my letters to the Goyernment. The Government was Mr. Rameau. I gave him my letters of introduction, and lie sent for me.
Q. Why do you state that the Government was Mr. Ramean?
A. I mean that everything concerning the Government was done by him. Nothing could be done except through Mr. Ranean. lie was everything. If you went to the Minister of Finance lie would send you to Ramneau. All my transactions were with Ramean. Ile had power and authority, especially for this matter; I mean the bank.
Q. I ask you not in regard to any special authority in reSpect to this hank, but in regard to his general authority, his functions, and his powers.
Mr. BOUTWELL. Must not that be proved by some other evideu(.c than Lazare ? There must be better evidence. The ARBI1'RAToR. I do not at present see the necessity of this evidence. It is admitted that the Government made a contract ; it is in the Protocol, and was in reference to the bank. What more is needed ?
Mr. THOMsoN. There will be a long series of facts brought
out in evidence, facts occurring after the making of this contract, and bearing upon the conduct of the Haytien Government in respect to the contract, where Raineau figures all the time as the impersonation of the ilaytien Government.
The ARBITRATOR. Can you prove his power by the mere fact that he acted ?
Mr. THoNIsoN. I think his authorty is a consequence from the facts. How far the evidence proves that authority was given to him is another matter. But it appears to me that it is important to show that Rameau reputed himself as the General Government. Rameau acted for all branches of the Government.
The ARBITRATOR. He acted in making this contract. But it would seem from the admission in the Protocol that lie had power to act in making the contract. But it does not seem to me, by the testimony of the witness who made .the contract, that lie had power to release the Government, or that he had power to bind the Government in any other way than to make that contract.
Mr. TnoxsoN. Well, your Honor, it is an ulterior question. It may come up later. Perhaps I :,m anticipating the order of proof.
The ARmTRNrOR. That a contract was made by the Government, and made through Rameau, is a coriceded fact.
Mr. Tuo-Itsox. What was Ramean's official position
A. lIe was Vice-President of the Council.
Q. Who was President of Hayti at the time
Q. What was the relationship between Domingue and Rameau
Mr. BOUTWELL. Do you mean official or personal.
Mr. Tuo.soN. I mean personal. You called on Domingue and Raimeau, did you not?
A. Yes, sir.
Q. State how they received you, and what was done and said.
A. I gave my letter of introduction, and he was very friendly. In talking to me about the loan he said that he would like to have a bank with a capital of $10,000,000. I observed to him that'that was too large a capital, and that llayti was a new country ; that it would be much better to have a smaller capital. I proposed a capital of one million dollrs, but lie would not listen to that; he wanted then to have a capital of $3,000,000, and we entered together into this contract.
Q. When you speak of " him" you refer to Ramean
A. Yes, sir.
Q. Was Domingue present at any of the interviews between you and Ramean ?
A. Sometimes he was there, and sometimes not.
Q. How long were you occupied in negotiations with Ratncan ?
The ARBrrRATOR. Mr. Thomson, you have a contract here; about that there is no doubt. Are antecedent negotiations of any consequence whatever ? It is not to your advantage to show what took place previous to the contract. We have the contract, and can start from there.
Mr. Tho.msoN. I will take your Honor's suggestion.
Tile ARBITRA'OR. I do not want to interfere with your line of evidence, but I am accustomed to get at the real core of a ease as soon as possible.
Mr. THoMusoN. This contract was executed in duplicate, was it, you having one and the Government of Iayti the other ?
A. I really don't remember.
Mr. DE CHAMBRUN. We admit that it is a copy-that the contIraet was made in the French form. The original is deposited with the notary under the laws of Hlayti, and the notary delivers certified copies to parties entitled to them.
Tle ARBITRAroR. They all have the force of originals.
Mr. ASHTON. Under the civil law system my experience is that the notarial record is really the original, and people get copies of the notarial record certified.
Mr. DE CHAMBRUN. Every party to a contract is entitled to a copy to be delivered by the notary, which is called an expedition.
Mr. THOMSON. If your Honor please, Mr. Lazare has just informed me that, on reflection, lie remembers that he had not begun to draw salary from the steamship company. It was only agreed that lie should receive a salary. I only mention this because I do not want any statement to go down in the record that is not accurate. This contract was approved by the Haytien Legislature?
A. Yes, sir.
The ARBITRATOR. I did not notice that it was.
Mr. THOMsoN. It is certified.
Mr. DE CHAMBRUN. Well, it is admitted.
The ARBITRATOR. I think that the Protocol admits that it is a binding contract.
Q. After this contract was made where did you go and what did you do ?
A. Mr. Rameau, before the contract was made, advised me to give up my position in the railroad company and in the steamship company, and attend to the whole- matter of that banking business, and to come down with my family and manage the bank. After I was through with Ramean, in the end of November or December, I came back to New York.
Q. What did you do in New York ?
A. I attended to the materials for the bank building. I made contracts for the warehouse which I had to construct under this contract, and made arrangements with an agent to attend to the matter in my absence. When I had all my arrangements complete in New York I left for Europe in December, 1874.
Mr. ASHTON. If your Honor please, this bank building figures more conspicuously in the case than would at first appear. There is a little duplicity in the papers about the bank. At one time the word " bank" signifies corporation, and at other times it signifies the building.
The WrrEss. I made arrangements with Mr. Heuvelman. Q. He constructed the bank. A. Yes, sir.
Q. How soon was the work of putting lip the bank commenced ?
A. Right off.
Q. And it was completed within what period ?
A. Before the specified time. Q. Before or after a year ? A. Before a year.
Q. Who was the architect of the bank with whom you made the arrangement ?
A. Edward Kendall, of New York.
Mr. ASHTON. Do you mean a year from the date of the contract ?
A. Yes, sir.
Mr. TiiomsoN. Did you make the arrangement in regard to having the currency engraved ? A. Yes, sir; I made an arrangement with the American Bank Note Company.
Q. Before you sailed for Europe?
A. Yes, sir; and he came to see me afterwards in London; I mean the president of the American Bank Note Company.
Q. So that you set that in motion before you went awayI mean the erection of the bank building?
A. Yes, sir; and the warehouse too.
Q. When did you sail for England?
A. In December; I don't remember exactly.
The ARBITRATOR. In December, 1874?
A. Yes, sir.
Q- You went to London?
A. Yes, sir.
Q. What did you do there ?
A. When I came to London I went to see my friends, certain bankers there, and told them my object in coming to London; I made an arrangement with the house of Robert Ben-
son & Co., at that time one of the first houses in London, with very high standing.
Q. For what ?
A. For the capital of my bank.
Q. Do you mean for the donhle amount as it is stated in the original contract before the modification was made ?
A. Yes, sir; for $2,000,000.
Q. That was on the basis of $3,000,000 for the entire capital of the company?
A. Yes, sir.
Q. State why you came back again to Hayti?
A. After negotiating with Mr. Robert Bonso:, & Co. and some of their friends who examined the papers and the concession, he thought the capital Nvas too large for layti, and that it should be reduced. Ile asked me to return to Ilayti and get a modification of the contract in relation to the capital of the company. We went to their lawyers, taking all the papers there, and before leaving I left them about fifteen hundred pounds, I think, for the expenses which they might have incurred while I was absent in regard to the bank ; it was nnderstood that everything should be done. I then went down to Iayti. I came there about the first or second of Afay.
Q. Did you prepare a prospectus setting out your bank plan ?
A. Yes, sir; everything.
Q. Where did you prepare that?
A. In London.
Q. Is that the paper there-that printed document ? (Pointing to paper.)
A. That printed document was prepared in New York before I left. That is a copy of the contract translated -into English, together with certain statistics which are attached.
Mr. THo-msoN. I do not offer this paper in evidence to show the correctness of the statistics, but to show the history of that transaction.
Q. When did you arrrive at Port-au-Prince on your return?
A. In the beginning of May, 1875.
Q. Whom did you see there ?
A. Mr. Rameau and the President.
Q. State what took place between you and Rameau at that time.
A. I told Mr. Rameau the object of my return to Port-auPrince; that my friends in London thought that the capital was too large and that it should be reduced, and several other modifications should be made in the contract. He consented to it. We discussed the matter, and the concession was modified. This is the modification. I explained to him that my expenses were larger than I anticipated, and he made me a concession of $200,000.
Mr. DR CIIAMnRUN. Was this approved by the Chambers?
A.'I do not know; [ went away.
Mr. Tuo.isoN. There is no certificate on it to that effect.
Mr. DE CIIAMBRUN. I do not raise any point, however, in connection with that. It is admitted to have been regularly done.
The ARBITRATOR. I think that is contemplated in the language of the Protocol. The language of the Protocol is this: "That Lazare entered into a written contract with the Haytien Government September 23d, 1874, for the establishment of a national bank at Port-au-Prince, with branches, the capital heing fixed first at $3,000,000, and afterwards reduced to S1,500,000, of which capital the Government was to furnish one-tlhijrd and Lazare two-thirds."
Mr. DE CIAMBRUN. If your Honor please, iry only object in making the inquiry was to know whether it had been approved by the Chambers.
Q. What was done at that time ?
A. We talked over the modifications and by-laws of the bank, tile names of the directors, and so on; and the modification was made up and the by-laws the same way.
Q. Are those the statutes of the bank agreed upon at that time?
A. Yes, sir.
Mr. ASHTON. It is really a charter.
The ARBITRATOR. If I understand the case, I do not see that this amounts to anything one way or the other ; perhaps you may have a different opinion.
Q. State as to who acted in behalf of the Government of Hayti after that, as representing the Government in connection with the bank in addition to Rameau.
A. General Monsanto; he was appointed by the Government as director and agent for the Government.
Q. Can you tell when the organization of the bank was announced by the Government, if it was announced ?
A. It is in this paper. I do not remember dates. I will look. It is the 22d of May. He announced the formation of the company in an official paper called the Moniteur; (presenting paper to counsel.)
Q. Tell me what this paper is.
A. That is owned by the Government, and nothing can go into it except what the Government approves.
Q. It is an official Government paper ?
A. Yes, sir.
The ARBITRATOR. This is the formal announcement of the organization of the bank with a capital of $3,000,000?
Mr. TnomIsoN. The modification did not reduce the capital; it reduced the amount to be originally called in.
The ARBITRATOR. That was after the modification.
Mr. THo.NsoN. It reduced only the amount to be called in, leaving the nominal capital to be called in as the necessities required.
The ARBITRATOR. The statement in the Protocol is this: "The capital being fixed first at $3,000,000, and afterwards reduced to 81,500,000." If that means capital called in, that is another thing.
Mr. TnomIsoN. It is explained in the modification.
The ARBITRATOR. It is not a very important matter, probably.
Q. After those matters transpired, where did you go?
A. I returned to London.
Mr. THo.isox. We o,ï¿½fr this announcement in evidence.
('re paper is appended hereto, and marked " Exhibit E.")
Q. When did you leave for Europe ?
A. I left for Europe in the early part of Miay.
Q. When you got to London what did you do ?
A. When I returned to London I w3nt to see Robert Benson & Co. A panic at that time rage in London and Europe generally, and the house of B3nso:i & C.). failed. Everybody was surprised. It was one of the best houses in England.
The AnirrRA'roa. They failed before you returned ?
A. I just found it out when I came back. I lost a great deal of money by that transaction, and after that I was obliged to begin further negotiations. I made some further negotiations after some time with the houses of Kerford & Co., of Liverpool, and with Sears & Co., of Loioon, and with the JIazlewood Brothers, of London. I met these gentlemen, and I submitted my concessions and modifications and everything. After some discussion with them they agreed to furnish me with a capital for my bank; that is, the money which I required. After the negotiations were finished I engaged a secretary in London, and a manager for the company.
Q. Whom did you engage, as manager for the company ?
A. Francis Fessor, of London ; lie was manager of the Mercantile International Bank. (limited,) in London.
Q. And yon made arrangements with him to co:ne out to Ilayti ?
A. Yes, sir ; as permanent manager of the bank.
Q. With whom did you make arrangements to act as secretary of the bank ?
A. With Mr. Verderean. He was a young man, but he was a e.italist, and lie agreed to furnish me some money for my bank.
Q- Ie came out with you
A. Yes, sir ; Mr. Verderean is here. After negotiations were
completed in Liverpool I went to Paris with Mr. Verdereau to make purchases of the installation of the bank; I mean the books, paper, drafts, etc. They were obliged to be made in French, so I ordered them in Paris; and I shipped to Hayti at the same time all the furniture needed, and took my servants with me and went back to London. While in Paris we learned that the Government pledged the customs duties, after my contract was made, for a loan of 80,000,000 of francs, and gave those same customs duties, pledged to my bank, as a pledge for the payment of the new loan.
The ARBITRATOR. The bank engaged itself to supply the budget of the Government annually ?
Mr. Tuo~tsoN. The Government gave these customs duties to secure the bank. All this was on the 1st of September, 1874
A. When I came to Paris in 1875 1 found out that the Govermnent had given the duties, which were pledged to this bank, again to the loan in Hayti for 80,000,000 of francs.
Q. They were negotiating that loan in Paris
A. Yes, sir.
The ARBITRATOR. Pledging the custons ?
A. Yes, sir.
Mr. Tnosmsox. What effect had that upon your friends?
A. Mly friends in London heard of it, and they were very much surprised, and they lost a little faith in the Government. They advised me and Verdereau to leave at once for Hayti and demand of'the Government to fix that matter. They were to place $500,000 in the bank, as was agreed in the contract. Of course they had agreed to pay their money in as soon as the bank was organized. When I came there everything was changed, and -Mr Ramean received me coolly.
Q. What took place in Port-au-Prince?
A. I went to see Rameau with Secretary Verdereau, and explained to him the difficulty I had out there, the difficulty which he put me in in pledging those duties, and not to have put in his $500,000 in the bank, as was agreed. I told him
he should have put in that money. He answered me very coolly, saying, " I will see to it when 1 have time." I went there repeatedly, but a little while afterwards I was informed that Rameau changed his mind and didti't want to let me open the bank. He saiI lie was opposed to it.
The ARBITRATOR. Did you learn that from Rameau?
A. Mr. Monsanto came to me and told me so; he told me he was very sorry, and lie said that Rainean told him that, and told him a few days afterwards that he wanted to have the keys of the bank, of which I had one.
Mr. AsiiroN'ï¿½. Of the bank building ?
A. Yes, sir.
Mr. THo.)tsD9N. Was the bank building finished at that time ?
A. Yes, sir. I had put in all tie furniture which I had ought in Paris ; all the paper and stationery, everything ready for the opening of the bank.
Q. Did you surrender your key ?
A. Yes, sir. I surrendered it ; but I said that I didn't want to sin render it, that I would talk to Rarican again. I went baclk to Rtrmeatr the same day, and told him that he should put il that money, and arrange something in regard to the customs duties, and that we could cable to Europe and require the transmission of the funds to be put in. I told him that no money would be scat out there in specie until he had put his money in and fixed that customs matter up.
The ARBITRATOR. You told him so ?
A. A Government agent came the next day and said: " You hal better not have any trouble; yon had better give me the ky." It wa. sa' a c matry tat I didn't want to have any fuss, and I surrendered the key.
Q. What time wa that ?
A. That was about the end of August ; about a day before the first of September.
Q. What was the political condition of Hayti at that time ?
A. At that time Mr. Boisrond Canal was in the consulate of the American Minister. Mr. Ramean was not very well dis-
posed to Americans at that time. lie wanted them to surrender Canal, and the United States Government refused to surrender him. This Canal afterwards became the President.
Q. Was any statement made to you by Ramneau, or by the Government agent, in regard to the position assumed by merchants at that time
A. IRameau told me that, and Monsanto told me that.
Q. Told you what?
A. That the merchants were opposed to the hank. They didn't want to have any bank there, because they were doing a kind of banking business themselves, selling drafts to the Government, &c. They didn't wantt to have anyone there who did a regular banking business. They were opposed very much to the bank, and renewed pressure was brought to bear onl Rameau whenever he needed money.
Q. How did it affect the merchants ?
A. The Government had to entrust itself entirely to the merchants.
Q. What for?
A. To get money or anything it needed.
Q. At that time IRameaui was afraid the merchants would join the opposition and overthrow him. Do you mean armed opposition ?
A. There is always some opposition there down in that island. They were afraid thle merchants would help those opposed to the Government, and therefore they did not want to oppose thle merchants. If the Government needed two, three, or four hundred thousand dollars it would go to the merchants and the merchants would give money to the Government by it pledging duties.
Mr. DE CHA~NEBUN. We Ob~ject to this.
Mr. THOISON. I will ask you to continue your statements of fact, whether it wvas a custom existing then?
The ARBITRATOR. flow does hie know?9
The WITNESS. I saw it myself.
The ARBITRATOR. You say he would go to the merchants ?
A. Yes, sir.
The ARBITRATOR. And pledge the customs?
A. Yes, sir.
The ARBITRATOR. Then I think it is evidence.
The WITNESS. Of course; you could see the vouchers going around the streets, where they gave promises to the bearer of the paper to pay the duties.
The ARBITRATOR. Did you see such paper at that time ?
A. Certainly. I know one house that had $800,000 worth of paper of that kind. They gave it to every one.
Q. Do you know yourself in regard to the financial condition of the Haytien Government at that time?
The ARBITRATOR. What has that to do in this case ?
Mr. THO~tsON. To show that these people were all the timne hard tip for money and embarrassed.
The ARBITRATOR. I hardly think you had better press that. I do not see that that has any bearing on the case. The question, after all, is whether the contract was made in good faith, and whether it was entered into on the part of the Haytien Government and was cancelled without cause. It is not a question of policy.
Q. What was the condition of the relations of Hlayti and the money centres of Europe, say London, Paris, &c.; I mean whether the exchange was in favor of the Government of Hlayti, and what wvas the rate of difference ?
The ARBITRATOR. I do not see the bearing of that question.
Mr. THomso.N. It has a collateral bearing, to wit, that the shipment of gold from London to Hayti would have been a transaction that would have been a waste, worse than a waste, because of the condition of exchange between Hayti and London. Gold in London was worth a premium in Hayti, and bringing it from London to ilayti would be bringing it tip hill to thle extent of quite a percentage, and the only use would be to send it back again.
Mr. BOUTWELL. We must object to that question for the
reason stated. I think that was not the contract, that the money should he delivered in London.
Mr. THo3soN. But it concerns the good faith of the Haytien Government.
The ARBr'RATOR. I do not see it. It is a mere question of contract and breach of contract. Whether it was advisable that the contract should be carried out or not, is a matter of no importance. The q'iestion is, what did the parties to the contract do ?
Mr. AsnTON. It might be very important as throwing light on what the contract means. The contract speaks of metallic money. This matter, which seems collateral, might have a bearing on that provision of the contract in which the term " metallic " occurs. Whether that means the actual dollar or specie put in the place, and then to be sent off to some other place or not, must be determined. The rate of exchange might have a bearing on that part of the arrangement.
The ARBITRATOR. At present I do not see that it has any bearing. I will allow the question to l)e put. If it is unimportant it will have no weight. I do not propose to treat the matter with the strictness I would if I m:tintainel a rigid adherence to the admission of evidence. The evidence is already before me to be considered hereafter, and I will give it the weiglt which it deserves.
The WITNESS. The business generally was done in drafts at that time. People would buy drafts.
The ARBITRATOR. We know all over the world that drafts on London are worth more than cash itself. Still the question remains, what was the contract ? It might have been very important for the credit of the bauk that American money should have been there rather than there should have been credit. It might have been considered of great importance as a matter of form. It would not do always to start a bank with a deposit elsewhere. I will consider it, and if I think it ought to have weight I will give it weight. I do not Ifican on either
side to be very strict in ruling in or out evidence, for the reason that I am sitting here as a juror as well as judge. I will endeavor to give to everything before me the weight I think it ought to have.
Mr. THOMSON. Did either Rameau or Monsanto tell you how much metallic funds were put into the bank building on October 15th, 1875 ?
A. I learned it from Monsato thle 15th of October, and later Mr. Rameati told me himself. Before that tine I did not have any conversation with hitn.
Q. What did Monsanto tell yonu?
A. Onl the 15th of October Monsanto conie to me at my house and told me that they had appointed a commission to thle bank, composed of friends of thle Government, and they made out a kind of certificate to the effect that they had deposited $500,000, when really $235,500 were there, and that they stored the money in the bank vaults ; that they had no more and could not raise any more. Monsanto told me this the same day, and I told him I would protest against it at once.
Q. What occurred between you and Ramean after MonSanto told you this?
A. Onl the 15th of October, when Mlonsanito told me that in, the presence of Mr. Preston, a brother of the ilaytien Minister here, Mr. Preston helped me to make out a protest, and he said: "Give that to me, and I will show it to one of the first lawyers here." I handed it to him, and hie brought it back corrected a day or two afterwards. In the meantime I received from the Government a paper saying that " as you have not deposited your money in thle bank, and as we have deposited our money, the contract is void." I made out the protest and sent it to the Government at once. That was on the 18th of October. This is one of thle copies that was made at the time.
(This paper is hereto annexed and marked Exhibit "F.")
Mr. THOMSON. Go on and state what occurred between you and Rameau after that.
A. This letter I sent about the 18th.
Q. I understand that he sent that to the Secretary of Finance.
A. 1 sent this to Ramean. My transactions were with Ramean. I never had anything to do with anybody else.
Q. Was Rameau the Minister of Finance ?
A. No, sir; the Minister of Finance was a man named Excellente. Some time before the end of October, Ml. Monsanto, the Government a(cnt; General Lul,in, and Mr. Burke, came to see me at my house, and said that they had been sent for by Mr. Rameau, and that Rameau would like to make reparation for what he had done. Monsanto said he sent him there to find out in what manner I would be satisfied. I told them I would not be satisfied with less than my concession, which was worth a good deal of money ; it was by their fault that the arrangement was not carried out, and I wanted $500,000 for this concession. Ie went back to Ramcan and reported what I have said, and he sent again Mr. Monsanto, who told ire that I should come there the next day at 11 o'clock ; the next day I went there.
The ARBITRATOR. To Ramean's.
A. Yes, sir ; and, after talking awhile, he said " You ask $500,000. I cannot pay it. I am sorry for what happened I would like to have opened the bank with you, but I could not do it. Pressure was brought to hear, so hat I was obliged to break this contract." The merchants were against it, and there was fear that a, revolution would break out, and he was afraid the merchants would help the enemies of the Government. After talking awhile, lie said: " You ask $500,000, and we can't pay that." Then we sat down and made our figures. Finally he came down and said: Lazare, I will tell you what I will do. I will give you $117,000, and you must not ask more. I will give you $20,000 for the equestrian statue of President Domingue,
which I had in my hand, through the Minister, Mr. Preston. There were some other matters, and he said $1.00,000 would set them off, and then he said, " I will give you the appointment as consul-general in New York, which is a very good post, and I will give you the national palace to build and to furnish. We will fix the price at $300,000, and there you can make $100,000 ;" and he said, I will give you an order for the purchase of two vessels for the Government. After talking awhile, I accepted that. I said: "Rameau, when will this be carried out ? Of course I have my family here, I and would like to know." Ile said : ,' It will not be long, but have a little patience. I cannot fix it to-day. I will fix it very soon." Things wvent on, and I went to see him every day or so. I did not live far from him. I saw him repeatedly. The President was very much pleased that we were friends again, and he himself said to me: "Mr. Lazare, I am very glad that that matter is fixed up with you. I am soriy that we must lose you." I went there repeatedly ; I don't know for what length of time. His reply always was, " I cannot do it to-day ; to-morrow, maybe, I think I can do it." After about two months I was tired of this business, and he said, " The next day will fix something up." I said I needed money. lie said, I will fix it up. It was about two months when le began to write lne about the palace. He said that the President has decided to let you build the palace, and the payments you can fix yourself. Of course, we cannot pay up all at once. This was two months, perhaps, after I ran after him. In about two more weeks he said, I will give you the consul. I told him that Mrs. Lazare was sick, and that I wanted to go away. Ile had fooled me right along. The President came to see my wife and requested that she should leave with the family, and that I should remain there with my eldest son until the matter was all fixed. After that Mrs. Lazare left, and was shipwrecked, and I remained there with my son. They kept always promising. Aboutthe 14th of March I went again, and he said, " I will fix you up I will pay you, but I have not much money. There is trouble
in the finances, and so oil, but I will send you something, and afterwards I will send you the balance in New York. I waited again, but nothing came. Finally he said to me I must go at once to New York and see about these two war vessels, and that he would send oil, just as soon as he could, the money. I left, and on the steamer Mr. Monsanto came to me and brought me two vouchers, saying: "He said he could not send you any more money; he needs all the money, but he sends you two special vouchers each for $1,000." They were worthless.
The ARBITRATOR. When did you leave ?
A. I left the 30th of March, 1876. He kept me there all that time.
Mr. THOMSON. Did he appoint you consul-general?
A. Yes, sir, and arranged for the palace.
Q. Then he told you to go up and attend to your consulate?
A. Yes, sir; and I left and went to New York, and fixed up the consulate and spent money on it. A few days aftervard I was informed by Mr. Preston that a revolution had broken out and some of those people were killed and some sent to Kingston, Jamaica, and that the contract between me and the Government would not be recognized. The next day I received a letter, saying you are suspended and another person appointed. They did not even pay me the expenses of the consulate. Then I sent my son down when Mr. Canal was President there. He could not do anything. He came back and I went down myself with my son, and stayed there I don't know how many months, but I could not do anything.
The ARBITRATOR. That was then a new government?
A. Yes, sir; I could not do anything with those people. Afterwards I made out papers and sent them to Mr. Bassett, who was the Minister at that time.
Q. What did you realize out of those two orders ?
A. They were worth about -;900.
Q. You say Rameau was killed?
A. Yes, sir.
Q. You got no pay as consul?
A. Nothing; they did not even pay the rent.
Q. Did you pay the rent?
A. Yes, sir.
Q. Where is that statue ?
A. I have it in New York. It is a full-sized equestrian statue.
At this point the Commission adjourned until to-morrow, Thursday, 29th instant, at 10 o'clock A. M.
THE AMERICAN AND HAYTIEN CLAIMS COMMISSION.
THE UNITED STATES
THE REPUBLIC OF HAYTI.
In the Matter of the Claim of Adolphe H. Lazare
against the Republic of Hayti.
DEPARTMENT OF STATE,
January 29, 1885.
Pursuant to adjournment, the Commission met at ton o'clock A. M.
Ron. WILLIAM STRONG, Arbitrator;
The SOLICITOR-GENERAL and Messrs. THoMsoN and ASHTON, Counsel on behalf of the claimant ;
Messrs. DE CHAMBRUN and BOUTWELL, Counsel on behalf of the Republic of iayti.
Testimony of the claimant, A. II. LAZARE, continued.
Examined by Mr. THOMSON:
Question. When you got back to Hayti, in August, 1875, did you take any measures for publishing any advertisement in respect to the announcement of the directorship of the hank, or any matters connected with the bank; and, if so, what did you do?
Answer. In the latter part of August I made out a statute, containing the names of the directors, for the sale of four thousand shares of stock which Rameau wanted me to sell to the people of iayti, and to have it published in the official paper, the " lIoniteur." I gave it to Rameau and he refused to put it in. It never appeared. I went to him a few days afterwards
and inquired why it did not appear, but he gave mic no satisfaction. Isent to Mr. Audain, and he told me that he had received formal orders from Rameau not to print my statute, or the bylaws of the bank, which are required for circulation.
The ARBI'rRATOR. What authority had you alone to make out a statute for the bank ?
WITNESS. It was made out with Mr. Raameau.
The ARBITRATOR. This statute of which you speak?
WITNFSS. Yes, sit. The by laws of the bank. It was prepared in England by the people who furnishedc the capital, and at the same time it was submitted to the Goverunment down there. It was modified and fixed lip in this shape.
The ARBITRATOR. Then it was not the statute unless it was agreed to by the Government ?
WITNESS. Yes, sir; it was agreed to by the Government.
Mr. THoMrsoN. If your Ionor please, I think the witness misunderstands.
Q. When you speak of advertising the statute, do you refer to advertising those by-laws of the batik put in evidence yesterday?
A. Yes, sir ; the by-laws of the bank.
The ARBITRATOR. I understand him to speak of a new statute.
WITNESS O no, sit.
The ARBITRATOR. Then you mean the old statute which you got ip before you left.
WITNESS. Yes, sir.
Mr. TaoMsoN. You mentioned four thousand shares ; state what there was about that four thousand shares.
WITNESS. Mr. Rameau said he would like to reserve four thousand shares for the people of fl:yti ; that lie wanted the people of iayti to have the benefit of that institution. When I went to Europe I reserved these four thousand shares. I said I wanted to make arrangement for the whole capital iii case the people in Hayti would not take it, but, to ple ise Rameau, I prepared the advertisement for the sale of the four thousand shares, but he refused to insert it.
The ARBITRATOR. Those four thousand shares were a part of the million.
WITNESS. Yes, sir.
Mr. TtiomsoN. But you made your arrangement in case the people did not want the shares.
WITNESS. Yes, sir.
Mr. AsHroN. How many shares were there altogether.
WITNESS. Sixty thousand shares-three million dollars at first.
Cross-examination by Mr. DE CHAMBRUN:
Mr. DE CHAMBRUN. Before we proceed to examine Mr. Lazare, I would like him to take the French copy of the contract which lie has offered in evidence, the contract between him and the Government of Hayti, and read that copy, in order that I may compare it with my own, because I see in the diplomatic correspondence that there are charges that the copies do not agree. The copy I hold was identified by _Mr. Audain the other day.
(Mr. LAZARE thereupon read the copy of the contract in French, which his Counsel had introduced in evidence, and it was agreed by all parties that there was no substantial difference between the two copies.)
The ABRITRATOR. Now there is a translation to be examined.
Mr. DE CHAMBRUN. The translation presented here is full of inaccuracies, and I think that the Secretary should order another to be made by the authorized translator.
Mr. DE CIIAMBRUN. I find here in a note addressed by Mr. Preston to the Department of State of the United States copies of certain papers, or what purport to be copies of certain papers. I would like to read these papers and see whether you remember them. They are in French, and I will translate them into English. I will first read this letter marked " Enclosure B B" and dated Nov. 30, 1874.
(This exhibit is hereto annexed and marked " Annex B B.") Mr. DE CIHAMBRuN. Do you remember, Mir. Lazare, having received such a letter as that?
A. I may have received a letter like this. I remember something of it, but it has been 10 years since then.
Mr., THomsoN. You have no doubt you did, have you ?
A. I have no doubt I did.
Mr. DE CIHAMBRUN. I will now read an extract from the "Moniteur," the official gazette of the Republic of Hayti, dated Saturday, August 28th, 1875, No. 35.
(E.shibit hereto appended and marked " Annex D.")
Mr. DE CRAMBRUN. Do you remember any such statement published in the " Moniteur ?"
A. They published nearly everything in the " Moniteur."
Q. I ask you whether you remember this article ?
A. I remember something like that. Naturally I doi't remember it exactly.
The ARBITRATOR. Of course it would not be expected that you should remember any more than the substance.
Mr. DE CHAMBRUN. I will now read a paper signed by Mr. Excellent, dated August 27th, 1875.
(Exhibit hereto appended and marked " Annex E.")
Mr. DE CIIAMBRUN. Do you remember that paper.
A. I remember something like that.
Q. I will now read a paper dated Port-au-Prince, September 11th, 1875, which purports to be a copy of a letter from you to Mr. Excellent.
(Exhibit hereto appended and marked " Annex E'.")
Q. Do you remember having written that letter
A. 0 yes, sir ; something like that.
Mr. DE CHAMBRUN. I will now read a paper dated Port-auPrince, September 14th, 1875, being a copy of a letter from Mr. Excellent to yourself.
(Exhibit hereto appended and marked "Annex E2.")
Q. Do you remember having received that letter ,
A. 0 yes, sir ; something of that kind.
Mr. THomsoN. Is there any answer to that letter ?
Mr. DE CIIAMBRUN. There is none here. I now call your
attention to a letter dated Port-au-Prince, October 14th, being a copy of a letter from Mr. Excellent to yourself.
(Exhibit hereto appended and marked "Annex F.")
Q. Do you remember having, received that paper ?
A. 0 yes, sir.
Mr. DE CHAMBRUN. I will now read copy of a letter by yourself, dated Port-an-Prince.
(Exhibit hereto appended and marked " Annex G.")
Q. Do you remember having written such a letter as that
A. Yes, sir.
Mr. DE CHAMBRUN. Here is a letter from General Excellent to yourself, dated Port-au-Prince, October 14th, 1875.
(Exhibit hereto appended and marked " Annex H.")
Q. Do you remember having received that letter?
A. Yes, sir.
Mr. DE CHAMBRUN. If your Honor please, this is a report made by the commission that was appointed by the Government of Ilayti to pay into the vaults the sum of $500,000. These papers are a part of the case, and they will appear in evidence in different ways. (To the witness :) Will you be kind enough to take your copy of the contract and point out in that contract the provision to which you referred yesterday in relation to the pledging to your bank when organized of the customs duties of Ilayti.
A. It is article 14.
Q. Is it the only one, or is there another provision in that contract on which you rely ?
A. There are two articles-article 14 and article 15.
Q. Was there any other understanding about that matter between you and the Government, except as mentioned here ?
A. Nothing except my conversation with Rameau when we made it.
Q. May I call your attention to article 17 of the contract, which read as follows:
"Article 17. The Banque Nationale d'Haiti and its branches
in all the open ports of the Republic will have power to collect customs duties if the Government should deem it advisable."
Now please state whether the Government of Hayti has not paid for all expenses incurred in building the establishment called the bank ?
A. Yes, sir; they have paid.
Q. The hank-notes of which you spoke, or the printing of the bank-notes, how about that ?
A. The Government has paid that.
Q. Have you been out of pocket for any of those advances, or has everything been repaid ?
A. Nothing, except what was agreed upon, sir. The Government agreed to pay the expenses of the bank, or rather the bank building and the warehouse, and that was paid.
Q. And the printing of the bank-notes was also paid for A. There is a little balance due yet, but it is nearly all paid. The whole thing is not paid yet. There is a balance left, which they hadn't paid under President Canal.
Q. Is it due to you or due to other parties?
A. I am responsible for it if it be not paid. Of course I have given the contract.
Q. How much does all that amount to?
A. It may amount to $10,000 or $15,000 ; I don't know exactly.
Q. Are you sure that that has not been paid ?
A. They have given some bonds which are in the caisse d'amo'tissements, on which they have not paid the interest for some time. That is, under President Canal.
Q. Were those payments in bonds, and were they not accepted by the parties ?
A. What could they do ? They didn't get the money, and they took the bonds.
Q. Please state how much metallic currency you had on the 15th of October within your control for the opening of the bank on your part.
A. I had made my arrangements previously to have all my capital which 1 required ; that is, the money required in case the Government acted in good faith and deposited their money and arranged that matter about the customs.
Q. I ask you simply this: Did you have actually in your possession or under your control metallic currency on the 15th of October, 1875 ?
A. I might have had it under my control if the Government should have acted in good faith.
Q. I ask you whether you had actually the metalic currency under your control in Ilayti ?
A. I didn't have it in my pocket ; I had something there.
The ARBI IRATOR. What he means is that lie had the power to draw for that amount, but admits that lie hadn't the coin there.
Mr. DE CIIAMBR JN. What arrangement had you made in London or Liverpool concerning this matter ?
A. I made arrangements to obtain the money which I needed for the capital of the bank.
Q. Was it an absolute agreement on their part to advance you money on customs certificates or other bonds furnished by the Government of Hayti ?
A. There was nothing spoken of customs bonds at that tine. Nothing was talked about it. I didn't know they had customs bonds at that time. I made arrangements to furnish the required amount of money.
Q. That is, if the Government of Hayti had paid ?
A. That caine afterwards. They agreed to furnish me capital, but when they found out what was done with the custonis duties, and fe iring that the G.)vernnmat would not act in good faith, they sent mis down to find out whether the Governmerit would act in good faith.
Q. They agreed to accept your drafts ?
A. Yes, sir'; certainly.
Q. And there was to be a deposit by way of drafts instead of a deposit of metallic currency ?
A. No, sir; nothing of the kind.
The ARBITRATOR. You don't say that. But. of course, if the drafts were not drawn in sufficient time the metallic currency could not have been there.
The WITNESS. I could have gone to Kingston and St. Thomas and negotiated the drafts and got the metallic funds.
Q. Had you any agreement in writing with these bankers
A. I had an agreement in writing and verbal.
Q. Have you those agreements ?
A. I have some.
Q. Have you some in writing?
A. Yes, sir.
Q. What security were those bankers to have ?
A. They were to take shares of the bank.
Q. They were then to be suberibers to the stock ?
A. They were to take the shares.
Mr. DR CHAMIBRUN. Look at this Moniteur. You will find there certain letters, or what purport to be copies of certain letters. Did you see them at the time?
A. I think so.
(Copy of " Moniteur " was here shown witness.)
Q. When you heard in Paris of the new loan, what steps, if any, did you take to protect what you claimed to be your rights Under the contract ?
A. I wrote to Rameau about it right off.
Q. What did he answer ?
A. He gave me no answer at all.
Q. Can you produce the letters you wrote him?
A. My papers, unfortunately, were stolen in Port-au-Prince. I had all my bank matters there, and one day I went out and the trunk in which those papers were %'as stolen. [ suppose that Mr. Raineau sent for them and took them away.
The ARBITRATOR. That is mere suspicion ?
A. Yes, sir ; but they were taken.
ADOLPIHE EUSTACE VERDEREAU,
a witness on behalf of the claimant, after being first duly sworn, testified as follows
Examined by Mr. THomsoN:
Question. Where do you reside
Answer. At present in Paris.
Q. But you are sojourning in New York
A. Yes, sir.
Q. Are you an American citizen ?
A. I am, sir.
Q. What is your business in Paris?
A. I am at present connected with the Equitable Life Assurance Society of the United States.
Q. That is Mr. Hyde's company
A. Yes, sir.
Q. Did you become an American citizen by naturalization A. I am an American citizen de facto. Mly father was an American citizen. I was brought up in Worcester, Massachusetts, and afterwards at Cambridge.
Q. Where were you residing in June, 1875 ?
A. At Brussels, Belgium.
Q. Were you acquainted with Mr. Martin Lazare ?
A. Yes, sir ; he was a distinguished gentlemen there.
Q. And with Mir. Lazare's family ?
A. Yes, sir.
Q. When did you first see him-I mean Mr. Lazare, the claimant ?
A. At the Alexandria Hotel, London.
Q. State any facts that occurred in London bearing upon this matter of Mr. Lazare and his national bank.
A. Mr. Lazare called my attention a few days after my arrival in London to his contract with, and concession from, the Haytien Government. After reading it very carefully I came to the conclusion that it was a very valuable grant, and upon
his proposing to me to act as his secretary I accepted. It was also agreed that he was to allow me 500 sh;ires of the bank stock, for which I was to pay him in cash after the allotment was made, provided the Government carried out its part of the contract. I afterwards met Mr. Kerford, of the hose of Kerford & Co., of Liverpool ; Mr. Sears, of the firm of Sears & Co., of London, and Mr. Ilazlewood, of the firm of Hazlewood Brothers, of L ndon. These gentlemen also had understanding's with Mr. Lazare in reference to participating in the capitalstock of the bank.
Q. What was their position ?
A. I understood Mr. Crawford to have been a commission merchant, and that he also had steamers running down to those ports.
Q. They were people of recognized reputation and standing ?
A. 0 yes, sir ; Ilazlewood Brothers were bankers in London. Mr. Lazare had also previous negotiations with the house of Benson & Co.
Q. But you know nothing about that personally ?
A. No, sir; it was a house of first-clais standing, and it was a matter of surprise to the whole commnnity when they failed. Their position was something like that of the house of Duncan, Sherman & Co., in this country.
Q. Were you in communication with those gentlemen and Mr. Lazare in regard to their furnishing funds
A. I understood from the conversation that took: place between thee gentlemen, and at some of which I was present, that they were to furnish the necessary amount of capital, taking as security shares of stock for the earryiug oat of his part of the contract.
Q. Was anything said about a reservation of four thousand shares ?
A. I remember reading that in the contract.
Q. You do not remember whether they talked about it
A. No, sir.
Q. You then became secretary of the bank ?
A. Yes, sir.
Q. And you went over to Paris with Mr. Lazare?
A. I accompanied. him to Paris.
Q. What did you do together ?
A. We bought all the material necessary for the bank building-the stationery, printed matter, &c., which it was necessary to have done in Paris 6n account of the language of the country being French.
Q. When you were in Paris was there anything in regard to the customs duties that came to your notice ?
A. I remember the fact of a gentleman mentioning the sulbject, a large gentlemen. I do not know his name. He said that they heard in Paris that those duties had been pledged to the new French loan of eighty million francs.
Q. Did you go back to London with Mr. Lazare?
A. Yes, sir.
Q. Was anything said there about this matter ?
A. It scems that these parties had heard in the meantime of this news that had been scattered, that the customs had been pledged, and they understood that it had been already pledged to the bank. They called Mr. Lazare's attention to the change, and like all capitalists, being a little shy, they requested us both to go down there and have a decided understanding with the Government.
Q. In regard to the good faith of the Government '
A. Yes, sir.
Q. Then you went out with Mr. Lazare ?
A. Yes, sir ; we sailed from South Hampton. It was at the end of July.
Q. Was Mr. Lazare's family on board ?
A. As I remember, Mr. Lazare, Mrs. Lazare, Miss Lazare, and a young man were on board.
Q. What did you do when you got to Hayti
A. When we arrived at Hayti Mr. Lazare and I called upon Ranmeau. lIe introduced me as his secretary. Mr. Lazare tried to impress upon Ramean the change which should be made.
Mr. BOUTWEEL. If this witness was present let him state what was -aid.
A. He told Mr. Ramean that he had heard this in Paris, and that the people with whom he was interested found there was a difference in the condition of things, and that he had come out there to make satisfactory arrangements in order to satisfy these parties in England, and have the matter clearly understood.
Mr. Tiio.isoN. That is in regard to a satisfactory understanding?
A. Yes, sir; as I understood, Mr. Rameau seemed to be worried.
Q. What did Ramean say ?
A. He said, I will attend to this bye and bye, at the proper time. I cannot attend to it just at present.
Q. What did L.zare say to Runean, if anything, in regard to wishing him to pay his capital into the bank ?
A. I don't recollect anything in regard to that. Mr. Lazare and Rainean had a little whispering conversation which I did not hear.
Q. State as well as you can what you did there?
A. This is all I can remember. I cannot tell any -more.
Q. Did yon know General Monsanto?
A. Yes, sir.
Q. Did lie say anything with reference to a changed condition of feeling there about Rameai
A. Ile did state to me that he didn't think the Government would aliow Mr. Lazare to carry out his scheme. I mean this bank scheme.
Q. After the 15th of October did Monsanto say anything to vou about the alleged deposit by the Government in the bank vault of any particular aniirunt, or did you have any conversation with him on the sui jcct ?
A. I did not have any direct conversation with Monsanto wiih regard to that, nor with Ramean.
Q. Did Monsanto say anything to you after the 15th of
Oo.tober in regard to the Government making reparation to Lazare ?
A. iHe told me this the dry before I left Port-au-Prince. 'lie said, " You need not be in any hurry." I said I was thoroughly disgusted with the whole business. lIe said, " Don't you know that Lazare is going to get some reparation and you may come into this thing ; you are interested in it."
Mr. DE CIJAMBRuN. I object to this part of the testimony as to what transpired after the 15th of October.
The ARBITRATOR. It may possibly have some bearing on one aspect of the case.
Cross-examined by Mr. DE CI-AMBRUN:
Q. What arrangements were made between Mr. Lazare and those bankers in London ?
A. Simply that threy were to take the amount of shares that Lazare would allot to them as credited, and so an arrangement was made with those bankers that at any time a certain amount, say one million in coin, should be shipped by them to Hayti.
Q. After opening the bank?
A. No, sir.
Mr. THo.MsoN. When you say " shipped by them in coin do you draw a distinction between the drawing of drafts and tile actual transmission of metallic currency ? A. I do draw the distinction, and I mean in the former. I mean the transmission of money in the ordinary way of exeihange.
The ArBrTARTOR. Do I understand you correctly as intendil, to coavey the idea that they undertook to take the stock of the bank and to pay for it, thus furnishing the money ?
The WITNESS. Yes, sir.
Mr. BjurWELL. Do you mean to be furnished at the time named for the opening of the bank, so that the funds of the bank should be in speie there at Hayti at the tiine ?
A. That I have not said.
ADRIENNE HENRI LAZARE,
a witness on behalf of the claimant, after being duly sworn, testified as follows :
Examined by Mr. TnomsoN
Question. How old are you ?
Answer. 2S years of age.
Q. Are you the son of the claimant, Adolphe II. Lazare
A. I am, sir.
Q. Where do you reside now ?
A. At Port-au-Prince, Hayti.
Q. Arc you connected with the American legation
A. I am clerk of the United States legation at Port-auPrince.
Q. Were you in Hayti during the years 1874 and 1875 ? If so, state.
A. I was in 1875. I came there in the beginning of September, having been engaged to go there.
Q. Where did you go from .,
A. I have been for five years in the Importers' and Traders' National Bank in New York city. I was engaged to go there as assistant cashier.
Q. You went there for the purpose of acting as assistant cashier of this bank
A. I resigned the position which I held in the bank in New York to accept the position of assistant cashier in the bank in Hayti.
Q. When did you arrive there ?
A. In the beginning of September.
Q. Did you find your father and the rest of his family there ?
A. I did, sir.
Q. What did'you find in regard to the condition of the bank enterprise that you were to take part in ?
Q. Well, I saN that my father was in constant communication with General Monsanto.
Q. Who was General Monsanto ?
A. lie was the agent of the Government in regard to the bank. HIe was the director appointed by the IHaytien Government.
Q. Did you become acquainted with Monsanto ?
A. I met him a few hours after my arrival.
Q. Did you have any conversation with him relative to matters of tile bank ?
A. I heard him say repeatedly that he was afraid the Government w.mld not allow Mr. Lazare, my father, to open that hank.
Q. That was about the 1st of September ?
A. That w.is about the 21 or 31 of Septenber.
Q. DiA lie state anything more in regard to the matter, giving reasons, or making further statements ?
A. Ile did mention that my father woul not likely open the bank. I asked him why he said that, and he replied that the Government was opposed to the opening of the bank. I remember that on several occasions lie mentioned several merchants' names there, the names of firms that had large influence with the Government and who were opposed to my father opening the bank.
All'. DE CiN1BataUN. We object to this testimony. It is mere gossip. It is the mere opinion of the agent.
The ARBITRA OR. I do not think it is a matter of much importance. You have shown that there was an apparent relnetanue on the part of the Government to go on with this proojet of establishing the bank, and it is not necessary to give tile reasons for that reluctance. Besides, these conversations have nothing in themselves to do with the contract and the Obligation of the parties under it.
Q. On or after the 15th of October, did Monsanto say to you, or any one in your presence, anything about the alleged deposit by the Government ?
A. Ile did, sir.
Mr. DE CHAMBPUN. We do not make any point on that. It
is admitted that there were $235,000 in specie and the balance was in bonds and drafts.
The ARBITRATOR. Well, that is admitted then.
Mr. THoMsoN. They were mere promises to pay.
Q. As to matters transpiring in Port-au-Prince after the 15th of October, in relation to the Government desiring to make reparation to your father for what had occurred, state what you know on this point, and limit it to what you heard from those connected with the Government.
Mrl. DE CHAIBaU.N. I object to this form of question. It assumes that the Government meant to make reparation to Mr. Lazare. Mr. Lazare may have been very friendly to the Republic of Hayti subsequent to this time, without the Government putting itself under any obligation to make any reparation.
The ARBITRATOR. If he heard from anybody connected with the Government who had apparent authority to speak in regard to a settlement with his father, he c.An state what he heard.
Mr. THOMSON. I adopt the language of the Arbitrator.
The WrrINE3s. I did. Towards the end of October, I cannot recollect the precise date, but know it was between the 20th and 25th of October, three gentlemen called to see my father.
The AIRBITRATOR. Who were they?
A. General Monsanto, General Lubin, and Mr. Burke. They called on my father, and in my presence, and in the presence of my mother and my brother, (who was a young man then,) stated that General Rameau felt very sorry at what had occurred between them, and that he was willing to make amends for what had occurred, and asked him what lie would take in reparation for the wrong that lie considered had been done. My father told him all the trouble and expenses he had been put to, and explained to them what had occurred on the 15th of October. He said he considered that that was a shame that was perpetrated upon him, and listened to nothing
but the acceptance of the sum of $500,000, and that that only would satisfy him. The gentlemen said they had no power to negotiate, but simply came to ask what lie would take.
The ARBITRATOR. Is that all the conversation ?
A. That is all, as near as I can recollect.
Mr. THOMSON. Is there any more ?
A. Then, General Monsanto came back in the afternoon alone and told my father that Mr. Rameau wished to see him the next day in the morning at 11 or 12 o'clock. I went with him the next day.
Q. What took place when you arrived there ?
A. Rameau was much excited when we arrived, and said to my father: ' You have protested against the action of the Government. What do you intend to do about it ?" My father replied that he would appeal to his Government if the Haytien Government denied him the justice which he asked.
Mr. THoMsoN. Well, go on.
A. Rameai said: " I sent you yesterday the Government's agent, General Lubin, and -Mr. Burke, and you have seen fit to ask $500,000; I cannot give you that. I won't give you that amount." My father still insisted for the $500,000. Ramean finally said: " Let's get down to figures. I cannot give you what you ask. But this I will do. I will give you a reasonable amount for all expenses that you have incurred." My father said : " Name it; " and he named $100,000. My father said he would not take that amount. Then Rameau said: "I will tell you what I will do. I will give you $117,000; put that down as expenses. Then I will allow you $10,000 special. Then the Government has ordered of you a statue; I will give you $20,000 for that. Besides this, I will give you the Construction and furnishing of the palace, and I will allow you to make profit out of that." My father said, " What profit will you allow me?" lie said, " It is for a very large slim, $350,000, and you certainly ought to be able to make $80,000 or $90,000 out of that." " Then," lie said, " I will make you COnsul-general at New York. At present there is only a con-
sul there. It is a good position, and you will have many orders to execute, and I think by accepting these terms you will make more out -f it than if you had opened the bank." After
a long time, my father finally consented to accept it.
Q. Was all this detailed proposition on the part of Rameau the result of long-continued discussion, or was it done in a
very summary way?
A. The principal thing was the amount to be given himthe sum to be awarded in cash. That was where the bickering took place.
Q. Then the amount was a kind of compromise ? A. It was a compromise amount. Q. It was what we would call " splitting the difference ?" A. My father was holding out for $200,000, and it came down to $150,000. Ranmau said, "Put it down to $L17,030
and a fraction."
Q. Well, did you ever see R-v.neua after that in reward to the collection of these amounts ?
A. Repeatedly. I was sent to himn by my father. I recolt lect my father, upon accepting tlmeoe terms, asked l General
t Ramean, " When an I to g t these thia-g ?" LIe replied,
"Mr. Lazare, you will not have long to wait, and you can send your son to me." Mly father sent me there repeatedly. I r think the first time must have been about a mnmth after the
t arrangement had been entered into between Raamneau and my'
Q. What did Ramean say ; did he pay you ? A. No, sir; le did not. The first time he said, " 0, you have come for m3ney to day ? " I said, " Yes, sir ; I have."
He said, " Well, we are not quite ready; come next week."
I went there at the time fixed. Ile said, " Your father ought not to be impatient ; everything is all right ; come back wain next week." I went again, andl he put in off on sono other excuse. I remember his telling me that " we canot always do as we would like to do; tell him not to be impatient ; everything will be all right." I asked him, as I always did, " When
shall I return ? " and he always put me off a week or ten days. I always went back when he told me to come, until one day I had been so many times I thought it best that my father should go with me. So we did go together a few days afterwards. When we got there we found General Monsanto and the President together. My father said, " My son has been coming here as often as you ask him to come; that is, repeatedly for weeks. I think it is about time for you to execute the terms of the arrangement you have entered into with me;" and he told my father to have a little patience, to wait ; that in February the receipts would be large from the crops, and that then he would be able to execute his arrangement, and the President told my fatherQ. Were you present ?
A. Yes, sir; and I ought to say here that the President and Rameau lived in two wings of the same building. I often went to see Ramean while at Domingue's. I had free access and was known, and could go right up to him. I had no trouble in reaching him.
Q. You were going to repeat what the President said go on.
A. Fie told my father not to be anxious; that the Government was embarrassed for want of funds, but that the arrangements made with my father would be carried out entirely.
Q. In regard to the letter of your father, which was spoken of here yesterday, that is, the protest, did you take that to General Rameau ?
A. I carried that myself to General Ranleau, and handed it to him.
Q. You did not go to New York with your mother early in1876 ?
A. They went before me. She was sick.
Q. The last statement you were making was in regard to Your intercourse with Rameu in Hayti. When did you leave Hayti ?
A. I left towards the end of Mlarch, 1876.
Q. Did you remain there after your father left ?
A. I went on with my father.
Q. Your mother and family went before?
A. Yes, sir; about the beginning of February.
Q. When you got to New York, were you sent back to Hayti by your father ?
A. I was sent back at once. My father was appointed consul-general, and three or four days after his appointment it was revoked, and he had received notice that no attention would be given to any of the contracts that he was commissioned to execute or carry out, and I was sent by my father to Hayti. I left by the very same steamer, if I recollect aright, that lie and I came on.
Q. What were you sent there for?
A. To see the provisional Government with reference to the arrangement that had been made by the preceding Government with my father for paying him, and I could receive no satisfaction at all.
Q. Whom did you see ?
A. I saw General Boisrond Canal, General L. Tannis, and I saw Mr. Hannibal Price, who was the Provizional Mini~ter of Finance, Commerce, and Foreign Relations.
Q. What was Canal?
A. He had the Department of the Interior, if I recollect, of the provisional Government.
The ARBITRATOR. The Domingue Government had been overthrown ?.
A. Yes, sir.
Q. And that happened before you got back ?
A. It happened in the beginning of April or the end of March.
Mr. TnoiisoN. I presume your Honor will assume that as a matter of history ?
The ARBITRATOR. Yes, sir; I suppose I will.
Mr. Tuom1soN. They gave you no satisfaction, you say?
A. None whatever.
Q. And you went back to New York?
A. Yes, sir.
Q. Did you afterwards go back again to Hayti with your father ?
A. I did, sir.
Q. For the same purpose ?
A. Yes, sir.
Q. And with the same result?
A. Yes, sir; that is, with no result at all.
Cross-examined by Mr. DE CHAMBIRUN:
Q. When you returned to Hayti the last time, did you see the former members of the Government at Jamaica ?
A. Io, sir; my father came back to New York.
Q. You refer to the last trip to Hayti. When was that ?
A. In the fall or summer of 1S76.
Q. At that time the Domingue Government was overthrown ?
A. Yes, sir.
Q. What had become of the members of the Dominguan Government ?
A. They were in exile.
Q. Where ?
A. Well, they generally go to Jamaica or St. Thomas.
Q. Did you see any of them, or did your father, to your knowledge, see any of them
A. Not to my knowledge.
Q. Were you informed that he saw any of them ?
A. I was not with him all the time.
a witness on behalf of the claimant, being first duly sworn, testified as follows:
Examined by Mr. Tno-usoN:
Question. Were you in Europe the same time as your husband, in the spring of 1875 ?
Answer. Yes, sir.
Q. And you came to Hayti with him and brought your family ?
A. Yes, sir, and my sons.
Q. That is your household ?
A. Yes, sir, and Mr. Verdereau.
Q. When you got there you became acquainted with the President and the Vice-Presideat of the Council, Mr. Ram eau
A. Yes, sir; I know them all very well.
Q. Do you know Monsanto?
A. He came to our house every day.
Q. Do you remember any statement that Monsanto made to you, after your arrival in iayti, with regard to the intentions of the Government as to allowing Mir. Lazare to proceed with his bank arrangements?
A. Oh, yes! He always told me that Mr. Lazare would never open the bank. He told me that there was a very bad feeling against the bank; that the merchants were opposed to it.
Q. Did his statement refer to Mr. Rameau's not allowing Mr. Lazare to open the bank ?
A. Oh, yes, sir!
Q. Do you remember Monsanto going to your house about October 15 and making a statement ?
A. Very well. Ile came from the bank. He said that a trick was played ; that they did not fulfil their contract ; that they only paid $235,000 in specie and the rest in notes.
Q. State what you know in regard to any interviews you had with Mr. Rameau after that time.
A. -Mr. Lazare sent in his protest, and then, I think, it was a week afterwards that Mr. Burke and Mr. Moonsanto and Mr. Lubin came to our house and told the same fact; that Ramneau felt very sorry for us, and he wanted to make reparation, and
lie said: " I will call the following day." I do not think that he came the next day, but a couple of days after.
Q. Were you present ?
A. No, sir; but I was called to the palace by Madame Domingue, and Mr. Lazare received the contract for building the palace and furnishing it. Madame Domingue wanted to see to the furnishing of the palace, and told me she wanted me to use my taste. Mr. Rameau and the President were present. Mr. Ramean came to me and said to me in French : "I expect you are very much pleased that we have come to an understanding." I said " Certainly; very much pleased;" that I had been very unhappy as long as I was there. Then Mr. Rameau told me that ie would give Mr. Lazare the consulategeneral in New York and an amount of money.
Q. What was the amount ?
A. 8117,000 and $500. He was also to pay for the statue.
Q. How inuch ?
A. $20,000. And besides this, lie was to give him $10,000 for some expenses, which I do not remember.
Q. He was to make Mr. Lazare consul.
A. He said lie was going to create a consulate-general in vew York for Mr. Lazare, instead of the consulate.
Q. You became impatient before you came away, and wrote a letter to Mr. Ramean. Did you keep a copy of it ?
A. Yes, sir. I did of the answer, but not of the letter.
Q. What was it ?
A. I wanted Rameau to pay us so that we could go away.
Q. Did you get an answer?
A. Yes, sir. This is the answer.
(The letter, which was produced by the witness, was afterwards offered in evidence by the Counsel for Claimant, and is hereto appended, and marked " Exhibit G.")
Cross-examined by Mr. DE CHAMBRUN:
Q. When did you arrive in Hayti?
A. We left on the first of August, and it took fifteen days for our journey. , I came with Mr. Lazare.
Q. When did you leave Hayti?
A. I think it was in the latter part of January, 1876.
Q. When did you arrive in New York ?
A. Six weeks after I was shipwrecked.
Mr. THoMtsoN. If your Honor please, we may have a little more testimony to introduce, but not much. We may also wish to put in some documentary evidence, but this will be very little. At any rate, I think time will be saved if you will permit us to get a copy of the printed record, so that we may scrutinize it before proceeding. It will be a very short affair on our" part after we have seen the printed testimony.
Mr. DE CHAMBRuN. There are conversations referred to between Mr. Rameau and these witnesses. Your Honor knows that IRameau was shot. I think it will be agreed that Raieau was killed in the spring of 1876-in April.
Mr. To.MsoN. That fact will be found in the public correspondence in regard to the foreign relations of the United States, namely, that he was killed on the 17th of April, 1876.
The ARBi'rRATOP. Well, let that he understood as the fact.
Mr. DE CTAMBREUN. If your Honor please, I wish to again refer to the subject of the papers which have been laid before your Honor. There is a good deal of diplomatic correspondence, I understand, presented to your Honor for your perusal which has never been brought to our attention.
The ARBITRATOR. I have examined, and probably will examine, a great many papers which I do not think it is worth while to print. The Protocol requires me to examine these papers, but I do not think that they will have any weight in determining my judgment in the cases.
MKr. ThoMtsoN. If your Honor please, we would like to know, if possible, what effect these documents filed in the office of the Secretary of State, and which are to be perused by the Arbitrator, what effect they will have as evidence. A great many of the papers are letters or ex-parte statements. There are statements in the correspondence which I think the Marquis would hardly care to put before the Arbitrator. Some of
these staterneiits are very extraordinary, and have been made by Mr. Preston, the Minister of Hayti. They are mere personalities and are not supported by any proof whatever. Indeed, they are utterly groundless. I refer to statements made in regard to the charactor of Mr. Lazare, the claimant here. If they are in the slightest degree to be considered as evidence or as raising presumptions, we would like to call witnesses to disprove them. There is a statement that Mr. Verdereau was to have five hundred shares of this stock, and that lie put up twenty thousand dollars which Mr. Lazare never repaid him. Now, that statement is utterly groundless. I merely state it as an illustration.
The ARBITATOR. I cannot undertake to say at present what degree of weight I will attach to ex-parte statements. I will endeavor to give them just that weight, if any, that they are entitled to, remembering always that they are ex parte.
Mr. DE CHAMBRUX. It is for this reason that I agreed at once to the suggestion of the Arbitrator that these papers should not be printed. If they were, they would become a part of the case, and ought to be rebutted.
The ARBITRATOR. There are papers found in the office of the Secretary of State, and which have been called to my attention, that I do not believe it is worth while to print. If there could be a motion for a new trial, it might be desirable to have all those papers in print, but I suppose my decision of this case will be final.
Mr. BOUTWELL. We will not quote in argument, if your Honor please, any statement made by Mir. Preston, unless it is supported by proof.
Mr. Tno5msoN. There are statements in some of these letters affecting the character and position of Mr. Lazare. Now, if your Honor is going to attach any weight to these statements, we would like to call the friends of Mr. Lazare to prove his position and character.
The ARBITRATOR. It is very likely that, if you would call such witnesses, I would refuse to hear them. I do not think
you need be afraid. I wvill not give any undue weight to papers which are laid before me. I wvill look at a great many papers merely to obtain a complete history of these transactions.
Mr. DE CHAMBRUN. I wish to call to your Honor's attention the subject of commissions which we may like to send to Hayti.
Mr. TuomsoN. At the first meeting held in this Department I understood your Honor to say that no commissions would be issued, and that the witnesses must be brought here. We have proceeded upon that statement of your Honor, and have had our witnesses brought here at considerable expense.
The ARBITRATOR. Under the circa instances, I shall be very reluctant to issue commissions for witnesses on the part of defendants. I think that the application should have been made earlier.
Mr. DE CHA.MBRUN. How could we prepare our interrogatories when we did not knowv what the case would disclose.
The ARBITRATOR. It Seems to mce that the case was a very clear one, as stated at the beginning.
Mr. DE CHAMBRflN. Oh, there are features in this case, which have been brought out during the examination, which are entirely new.
The ARBITRATOR. Well, if commissions were sent out now they could not be returned before the middle of Marchi. That would be deferring this ma tter, considering that the Pelletier case is also before me, until too necar the close of the time limited for this Commission.
The Commission then adjourned until Monday, the 9th of February, 1885, at ten o'clock A. M.
THE AMERICAN AND HAYTIEN CLAIMS COMMISSION.
Tu UNITED STATES
THE REPUBLIC OF HAYTI
In the Matter of the Claim of Adolphe II. Lazare
against The Republic of Hayti.
DEPARTMENT OF STATE, WASINGTON, February 9th, 1885. Pursuant to adjournment, the Commission met at 10 o'clock A. M.
Hon. WILLIAM STRONG, Arbitrator;
Mr. AsuTON, on behalf of the claimant, and
Messrs. DE CIIAMBRUN and B3OUTWELL On behalf of the Republic of Hayti.
After preliminary conversation between the Arbitrator and counsel, the following order was made:
Ordered, That on Monday, the 16th instant, the case of Lazare shall be closed on the part of the complainant ; that on Tuesday, the 24th inst., the defence of the case shall be taken up and continued until it is closed ; That the case of Pelletier shall be taken up on the 18th instant on the part of the defence and be proceeded with. The Commission then adjourned to Monday, February 16, 1885, at 10 o'clock A. 21.
THE AMERICAN AND HAYTIEN CLAIMS COMMISSION.
THE UNITED STATES
TILE REPUBLIC OF HAYTI. S
In the Matter of the Claim of Adolphe H. Lazare against The Republic of Hayti.
DEPARTMENT OF STATE, WASHINGTON, zMonday, February 16th, 1885.
Pursuant to adjournment, the Commission met at 10 o'clock' A. _M.
ton. WILLIAM STRONG, Arbitrator; Messrs. THOMSON and ASHTON 011 behalf of the claimant, and Messrs. DE CHAM RUN and BOUTWELL On behalf of the Republic of Hayti.
Mr. THOMISON. If your Honor please, Mr. Lazare, the claimant, has come on from New York for the purpose of submitting to a cross-examination requested by the Marquis de Chambrun, Counsel for the Republic of Hayti. Whcn that is finished I have some papers to offer, which will substantially close the case of the complainant.
ADOLPHE H. LAZARE,
the claimant, then took the stand and was cross-examined by Mir. DE CHAMBRUN:
Question. You stated, I believe, that among the English
firms with whom you made arrangeme nts for the purpose of opening the National Bank of Iknyti there was the firm of Kerford, of Liverpool ?
Answer. Yes, sir.
Q. Do you remember whether a draft drawn by you on that firm for 12,500 francs was protested on or about the month of August, 1875 ?
A. Yes, sir ; I do remember.
Q. Was it drawn by yourself ?
A. Yes, sir. May I explain this transaction
Alr. DE CHAMBR JN. Certainly.
The WITNESS. I made an arrangement with Mr. Fesser, the manager of the bank, before I left London, that he should come out to Hayti about the 1st of September, and that he should receive, on signing the contract, five hundred pounds. That would be 12,500 francs. But before he should leave he should get 12,500 francs more. When I came out to Hayti, I saw the manner in which the Government acted with me in relation to the opening of the bank. I telegraphed to Mr. Kerford to tell Air. Fesser that it would be better for him not to come out, because he would take his family and he would be placed in the same position I was placed. I did not want him to leave his position in London under the circumstances. After this he presented that draft, which was protested. Mr. Kerford told him the situation out in ilayti, and he presented that draft, which was protested. But there was plenty of money there to meet the draft. Afterwards, when the bank matter was not accomplished, they sent me the balances due me.
Mr. ASHTON. Was that draft negotiated ?
A. No, sir; not at all.
Q. It was drawn to his order and sent to him ?
A. I left it with the manager of the bank, who was to have gone out there with me, so that le could draw 500 pounds.
Mr. TnoisoN. That was based upon the condition of his going out to Iayti, was it not ?
A. Yes, sir.
Mr. AsnToN. Was it not accepted ?
A. No, sir; but there was plenty of money to meet it.
Q. It was not protested because there was no money there?
A. 0, no.
The ARBITRATOR. Why did he present the draft ?
A. Because, I suppose, he wanted to get the money.
l'. DE CHAMBRUN. Was that matter mentioned to you in Port-au-Prince ?
A. I never heard of it there.
Q. Did Rameau never speak to you about it?
A. No, sir.
Q. Were you acquainted with the diplomatic correspondence in relation to it fy the Governments ?
A. No, sir; riot at that time. There was plenty of money there. I have papers which will show the whole transaction.
Q. Do you remember if you received a telegram from Rameau on or about the month of April, 1875, while you were in London .?
A. Not April; no, sir. I never got any telegram that I remember.
Mr. Tibo-'%rsoN. We admit that in May Ramnean was solicitous about the bank. It was later than April when the trouble began. Mr. Lazare was on his way back to Hayti in thatpart of April.
Mr. DE CI,1AMBuN. The telegram is dated March 30, 1875, from Rameau to Lazare, London. I will translate it: " Have you left for New York ? Hurry up your operations." Did you receive such a telegram ?
A. There is no doubt of it. I would not have been surprised to have received some such telegram. Q. I find here the statement of a bill settled on the 16th of March, 1876 ?
A. I was not there on the 16th of March. Q. It is for $2,600. -' General Septimus Rameau Dr. to A.