THE 

 CUBA REVIEW 



"ALL ABOUT CUBA" 



Copyright, 1913, by the Munson Steamship Line 



Volume XI 



AUGUST, 1913 



Number 9 



GOVERNMENT ' MATTERS 



en 



THE PORTS COMPANY CONCESSION ANNULLED — CUBA S FUTURE- 

 HOPEFUL, SAYS PRESIDENT MENOCAL 



On August 4th, President 

 A Great Menocal issued a decree an- 



Concession nulling the concession to the 

 Annulled Ports Improvement Com- 

 pany of Cuba, the most im- 

 portant granted during the Gomez Ad- 

 ministration, involving many millions. 



The annulment is based upon the alleged 

 failure of the company to fulfill its contract 

 and to organize according to the laws of 

 the country. The company's officials say 

 that the charges against it are not justified. 



On the advice of the attorneys of the 

 Ports Company an appeal to the Supreme 

 Court will be taken against President Me- 

 nocal's decree. 



The attorneys hold that President Meno- 

 cal's decree is unconstitutional and that the 

 President is usurping the functions of the 

 judiciary. The Supreme Court usually con- 

 venes in December, but as the law requires 

 a decision on appeals involving the ques- 

 tion of con.stitutionality within thirty days 

 after the appeal is filed the court will as- 

 semble in October. Meanwhile harbor im- 

 provement work is paralyzed and payments 

 of tonnage dues are withheld from the 

 company. 



The Ports Company intends to bring suit 

 in the lower courts demanding damages and 

 tonnage bills and that the concession 

 granted to the company by the Cuban Con- 

 gress under the Grjmez .Administration be 

 held as an escrow pending a decision. This 

 suit may last a year or two. 



The Ports Improvement Company of 

 Cuba is largely compo.sed of American 

 capitalists and holds concessions for dredg- 

 ing harbors and carrying out other im- 

 provements in Cuban ports, in return for 

 which it is permitted to collect a surtax on 

 the merchandise of incoming vessels. 



The Secretary of Public VVorks will take 



charge of the company's works in all Cu- 

 ban ports. The Secretary of Justice will 

 reserve the right to prosecute any persons 

 guilty of ofifenses in connection with the 

 concession granted to the company. Fur- 

 ther action against the company awaits the 

 convocation of the Supreme Court 



T. L. Huston, an American, says the Nezv 

 York Times, is said to have been the chief 

 backer of the Ports Improvement Company, 

 and that concern, it is said, made a per- 

 petual contract with the Dady-Huston Con- 

 tracting Company to do all the work re- 

 quired under the concession. Michael J. 

 Dady, the Brooklyn politician and con- 

 tractor, was a partner with Huston in the 

 latter corporation. 



It is expected in Washington that the 

 British government will make representa- 

 tions soon in behalf of British investors 

 who are holders of the bonds of the Cuban 

 Ports Improvement Co. and who are facing 

 great losses as a result of President Meno- 

 cal's action. 



Officials of the government in Washing- 

 ton were not inclined to discuss the action 

 of President Menocal until full details had 

 been received, but from what they already 

 know they believe that he has taken the 

 right course. The concession granted to 

 the Ports Improvement Company was put 

 through the Cuban Congress under the ad- 

 ministration of President Gomez, whom 

 Mcnf)cal succeeded. 



It is understood that President Menocal 

 is proceeding in an apparently legal manner. 

 He contends that the company, which was 

 l)romotcd by Americans but in which many 

 Cubans particii)ated, was not legally or- 

 ganized, as was provided by the law grant- 

 ing the concession. Consequently he can- 

 cels the concession, but expresses the in- 

 tention of his government to proceed ac- 



