tion at any time, on the basis of the recognized capital of the companies plus a compensation of 20 per cent. I ought to add that the proceeds of the tax of 3 per cent will be applied, as appears in the respective article, in their entirety to the construction and repairing of roads and bridges in the municipalities traversed by the railroad, and especially of those roads leading to the stations. In this way I think I have conciliated the legitimate interests of the provinces traversed by the national lines, by contributing to the expenses they necessarily incur in respect of the police and sanitary services in connection with railroads. This, then, so far as future concessions are concerned. This project being converted into law, we shall have the permanent standard of reference for all concessions that may hereafter be made, on a basis of uniformity and equality for all. But the existing railway companies are governed by provisions not contained in the present project, except partially and in certain determinate cases. Under these circumstances, I have included in the project two articles empowering the existing railway companies to avail themselves of its prescriptions. In so doing I believe I have consulted not only the public interest but also that of the companies. When I say the public interest, I do not so much refer to the interests of the treasury as to the propriety of placing upon a regular footing the position of great factors of national activity which in their relations with the Government of the country are to-day under the rule of variable provisions not always based on legality or equity. Recently the procurador fiscal, at the behest of the minister of finance, issued a document specifying the conditions of all the railway companies now existing in the Republic, from the point of view of their relations with the national treasury, which shows a surprising disparity in their various standings. Thus, for instance, the Buenos Aires Western Railway at the present time is exonerated from all customs or other dues, and yet there exists no law of Congress granting this exemption, which is based solely upon a decree of the National Executive, of the 28th November, 1891, without legal force. The Southern Railway did not enjoy any exemption from taxation. The exemption it now has it obtained in a manner that seems to me a little creditable to a company of such importance. In January, 1896, toward the end of the sessions, when Congress lacks the time for the mature consideration of its sanctions, there was conceded to the Compañia del Sur the right to extend its line from Bahia Blanca to Neuquen. It was a line of strategical importance from a military point of view, urgently required by the country by reason of its then circumstances, under the threat of a conflict with Chile. The company demanded a subsidy for the construction of this line of $750,000 gold. This premium was in itself sufficiently substantial, but it involved an addendum which rendered it much more so. Whenever I think of this concession I recall to mind the case of the penitent who contritely accuses himself of having stolen a rope, and when the confessor comforted him saying it was no great matter, the penitent added that at the end of the rope was a horse. The company got the premium from Bahia Blanca to Neuquen-that was the rope; but at the end of the premium was the exemption during fifty years from all taxes, whether national, provincial, or municipal-that was the horse. This exemption is equivalent, according to calculation, to several times the capital of the company during the course of the fifty years, etc. It is thus clear that the situation of these companies is entirely lacking uniformity, unduly favorable to some, to the detriment of others. It is desirable to introduce the uniformity, at present so deficient, in order that the position of these factors of our present and future progress may stand on a perfectly equable basis for all, in which the interests of the companies as well as those of the Republic may be both conciliated in accordance with the principles of justice and equity. It is quite probable that during the present session of Congress there will be some railway legislation based upon the fundamental idea of Mr. Mitre's project. At the proper time I will report again to the department. I am, etc., A. M. BEAUPRÉ. File No. 8573/13. No. 621.] Chargé Wilson to the Secretary of State. AMERICAN LEGATION, Buenos Aires, October 4, 1907. SIR: Referring to Mr. Beaupré's dispatch No. 585, of August 19, 1907, I have the honor to report that after long discussion the railway concession law has been passed by both houses of congress with some modifications from the bill as originally presented, and in this connection I inclose herewith duplicate copies of an article from the Buenos Aires Herald, of October 4, 1907, containing a translation of the law as passed. I also have the honor to inclose duplicate copies of an article which appeared in the Standard, of September 28, 1907, in regard to the above law. [Not printed.] I am, etc., CHARLES S. WILSON. [Inclosure. Translation.] The Railway Concessions Law. ARTICLE 1. All railway concessions, whether in respect of main or branch lines, to be hereafter granted, shall be governed by the clauses of the present law in accordance with the general law on railways, No. 2873. ART. 2. The rolling stock, weight of rails, accessories, and other materials used in the constructions of the line shall be specified in the tender to be submitted for the approval of the executive power. ART. 3. The concessionaire shall sign the respective contract within the term of six months from the date of promulgation of each law of concession. In each concession the terms shall be fixed within which the plans must be submitted and the works must be begun and ended, and the fines shall be laid down to be incurred by the concessionaire in the event of the work not being completed within the specified time. ART. 4. Before signing the contract the concessionaire shall deposit in the Bank of the Argentine Nation, as security, the sum of $200 national currency for each kilometer of the line, in cash or in national bonds, which shall be returned to him in proportion to the advance of the works. ART. 5. Should the concessionaire fail either to sign the contract, or to submit complete plans, or start the work or finish the first 50 kilometers of the principal line within the terms fixed in accordance with article 3 hereof, the concession shall lapse, and, save in the case of unavoidable necessity declared by the executive power, the security deposited shall be forfeited. In such case the deposit shall be transferred by the bank of the nation to the order of the national council of education. ART. 6. For each month's delay in the performance of the work, the company shall pay a fine to be fixed by the executive power in the tender and to be deducted from the security deposited. In case the deposit should be thus exhausted and the company should be indebted to the extent of more than two months' fines, the concession shall lapse in respect of the portion of the uncompleted line. ART. 7. All lands shall be subject to expropriation by reason of public utility the occupation whereof may be necessary for the railway lines, stations, workshops, warehouses, etc., in accordance with the plans in each case approved by the executive power, and the concessionaire shall be entitled to effect such expropriation in terms of general law on the subject. ART. 8. The materials and articles used in the construction and working imported into the country, shall be free of all customs duties, this exemption remaining in force until the 1st of January, 1947. The company shall pay during the said term whatever may be the date of its concession, a single tax equivalent to 3 per cent of the net returns from its lines, remaining exonerated during the said term from all other taxes, whether national, provincial, or municipal. The net returns shall be determined by recognizing as expenses 60 per cent of the gross receipts. If the expenses should exceed this limit during three consecutive years the company shall be held bound to prove the same to the satisfaction of the executive power. The amount of 3 per cent of the net returns shall be applied to the construction or maintenance of the bridges and ordinary roads of the municipalities or departments crossed by the line, in the first place to the roads leading to the stations and in proportion to the extent of the line in each province. The executive power will deposit in a special account in the Bank of the Argentine Nation, the sums which may be paid by the companies in execution of article 8. Without prejudice to such sums as may be voted by special laws or by that of the estimates, this fund may not be applied to any other purpose than the one expressly determined in the present law. ART. 9. The passenger and goods tariffs shall be subject to the intervention of the executive power whenever the average gross earnings of the line during three consecutive years shall exceed 17 per cent of its share and debenture capital as recognized by the executive power and the expenses do not exceed 60 per cent of the receipts. If the proportion of expenses are greater during three consecutive years, the company will be held bound to show the same to the satisfaction of the executive power, and in such case the limit of the intervention will be proportionately raised. For these purposes the capital shall be determined by the executive power on the opening of the line for public service and may not be increased without its consent. ART. 10. The charges for conveyance of materials and articles belonging to the nation and intended for the construction of the national or provincial works authorized by the laws of Congress shall be appraised at the rate of 50 per cent of the usual tariffs. On the same conditions shall be charged the conveyance of war "matériel," national officials, officers and soldiers on public service, immigrants sent forward by the central immigration office, and provincial police officials and official telegrams. ART. 11. The tariffs for the telegraphic lines for the use of the public shall be the same as those used by the national telegraph department. The apparatus and materials of the telegraphic line shall be subject to the approval of the executive power. ART. 12. The company shall be bound gratuitously: 1. To convey, in special compartments in which letters and printed matter can be classified, the mail bags and the officials accompanying the same. 2. To extend parallel to the railway line and along its entire length a telegraph wire to be placed at the disposal of the Government for its own use, the maintenance and repair of the same to be borne by the company without any liability or charge to the State. 3. To set apart a building in the principal stations for telegraph offices and post-offices. 4. To permit the junction of the national wires with those of the company's line. 5. To provide a way for horsemen over the principal bridges where such is considered necessary by the executive power. ART. 13. The executive power may enjoin upon the company to render movable the bridges across rivers and canals which may be declared navigable, without compensation of any kind. ART. 14. The final plans and the works in construction shall be subject to the inspection of the department of public works and all expenses incurred in or by such inspection shall be borne by the company. ART. 15. Both the construction and the working of the lines shall be subject to the general law on railways and to such police regulations or regulations for inspection as may hereafter be issued. The legal domicile of the company shall be in the capital of the Republic. ART. 16.-The nation reserves to itself the right of at any time expropriating the works effected under the concession for the amount of the recognized capital plus 20 per cent. ART. 17. Railway concessions may be transferred to third parties with the authority of the executive power; but the transfer of the concession or of the railroad and the lease of the same can not be effected in favor of any other railway company in the country, nor can the management be amalgamated with that of other companies without the sanction of Congress. ART. 18. The company may construct small branch lines not exceeding 30 kilometers for the purpose of connecting industrial or rural establishments, subject to the approval of the respective plans by the executive power. ART. 19. The railway companies at present existing may, within the term of six months, counting from the promulgation of this law, avail themselves of the benefits set forth in article 8 hereof, providing they accept the conditions laid down in said article 8 and in article 9. ART. 20. At the expiration of their present exemptions, the railway companies now existing who shall not avail themselves of the option contained in the preceding article, shall pay all the taxes and imposts which duly fall upon them, remaining in other matters subject to the prescriptions of the present law in so far as it does not interfere with acquired rights. ART. 21. The sleepers to be employed on all the railroads in the Republic shall be of a hard wood indigenous to the country. ART. 22. To be communicated to the executive power. Given in the Chamber of Deputies, in Buenos Aires, on the 25th of September, 1907. CONVENTION BETWEEN ARGENTINE REPUBLIC AND THE REPUBLIC OF URUGUAY, CONCERNING LETTERS ROGATORY. File No. 9786. No. 627.] Chargé Wilson to the Secretary of State. AMERICAN LEGATION, Buenos Aires, October 9, 1907. SIR: I have the honor to inclose herewith duplicate copies, together with translation of same, of a convention between the Argentine Republic and the oriental Republic of Uruguay, providing for the suppression of the authentication of signatures in requisitorial letters between the courts of the two countries. The exchange of ratifications of the convention took place on the 4th instant. I am, etc., CHARLES WILSON. [Inclosure. Translation.] MINISTRY FOR FOREIGN AFFAIRS AND WORSHIP. I. Convention with the oriental Republic of Uruguay for the suppression of the authentication of signatures in letters requisitorial which shall be exchanged between the courts of the two countries. Jose Figueroa Alcorta, constitutional President of the Argentine Republic, to all whom these presents come, greeting: Whereas, between the Argentine Republic and the oriental Republic of Uruguay, there has been negotiated, concluded, and signed in the city of Montevideo on the 18th day of September, 1903, by the plenipotentiaries duly authorized for that purpose, a convention for the purpose of abolishing the authentication of signatures in letters requisitorial and letters rogatory which shall be exchanged between the courts of the two countries in civil or criminal cases through the intermediary of their respective diplomatic agents, or, in default of these, through the consuls, of which the contents is as follows: Having met together, the minister for foreign affairs of the oriental Republic of Uruguay, his excellency the envoy extraordinary and minister plenipotentiary of the Argentine Republic, Dr. Mariano Demaria, and his excellency of the same ministry, Dr. José Romeu, with the purpose of simplifying the conditions established by Chapter II, articles 3 and 4, of the treaty of legal procedure sanctioned by the South American Congress of Private International Law of Montevideo on January 11, 1889, in that portion which refers to the authentication of signatures, letters requisitorial, and other documents proceeding from either countries, and after having communicated to each other their full powers, found in good and due form, have agreed as follows: ARTICLE I. Letters rogatory in civil or criminal cases directed by the courts of the Argentine Republic to those of the oriental Republic of Uruguay, or by those of the oriental Republic of Uruguay to those of the Argentine Republic, shall not need the authentication of signatures in order to have faith, when they shall have proceeded through the intermediary of diplomatic agents or, in their default, of the consuls. ARTICLE II. If the letters rogatory be issued upon a petition of a private party there shall be indicated in the same the person who is charged with the procedure before the authorities of the country to which he is going, and who shall be responsible for the costs. ARTICLE III. When the letters rogatory shall be issued officially the costs caused by the procedure shall belong to the Government of the country receiving them. ARTICLE IV. The present convention shall remain in force for an indefinite period; it may, however, be terminated by being denounced by either of the high contracting parties giving one year's notice. ARTICLE V. The exchange of ratifications of this convention shall take place in the city of Buenos Aires with the shortest delay possible. In faith whereof the plenipotentiaries have signed and sealed duplicate copies in the city of Montevideo on the 6th day of September of the year 1903. [L. S.] MARIANO Demaria. [L. S.] JOSÉ ROMEU. Law No. 4329. DEPARTMENT OF FOREIGN AFFAIRS AND WORSHIP, Buenos Aires, August 25, 1904. Whereas the Senate and Chamber of Deputies of the Argentine Republic in Congress assembled, etc., have sanctioned with the force of Law. ARTICLE I. Let it be approved, the convention signed in the city of Montevideo the 7th day of September, 1903, by the plenipotentiaries of the Argentine Republic and of the oriental Republic of Uruguay, for the purpose of abolishing the authentication of signatures in letters rogatory in civil and criminal cases, issued by the courts of both countries, when they shall have proceeded through the intermediary of the diplomatic agents or, in their default, of the consuls. ARTICLE II. Let it be communicated to the executive power. Given in the hall of sessions of the Argentine Congress in Buenos Aires the 12th of August, 1904. N. QUIRNO Costa. Secretary of the Senate. Pro Secretary of the Chamber of Deputies. |