The
State Department counselled a private settlement and negotiations with
the Dominican government dragged on for almost two years. The
Improvement Company claimed no less than $11,000,000 for the bonds it
held or controlled, for its interest in the railroad from Puerto Plata
to Santiago, for its shares of the extinct National Bank of Santo
Domingo which it had purchased at the government's request, and for
the settlement of a long list of minor claims. Arbitration was
suggested by the Company, but the Dominican government finally offered
a round sum of $4,500,000 and the offer was accepted. It is probable
that the Republic fared better under this compromise than if the case
had been submitted to arbitration, for though the Improvement
Company's demands were greatly exaggerated, its position toward the
government was that of a careful creditor who has kept minute account
of all transactions as against a spendthrift debtor who has squandered
his property with little or no record of his expenditures.
By a protocol signed January 31, 1903, the Dominican government
formally agreed to pay the sum of $4,500,000, leaving details to be
settled by a board of arbitrators to be designated by the American and
Dominican governments.
Pages:
532
533
534
535
536
537
538
539
540
541
542
543
544
545
546
547
548
549
550
551
552
553
554
555
556