La Abra Silver Mining Company v. United States

• Citation: 175 U.S. 423,20 S.Ct. 168,44 L.Ed. 223
• Decision Date: 11 December 1899
• Docket Number: No. 29,29
• Parties: LA ABRA SILVER MINING COMPANY, Appt. , v. UNITED STATES
• Court: United States Supreme Court

175 U.S. 423

20 S.Ct. 168

44 L.Ed. 223

LA ABRA SILVER MINING COMPANY, Appt.,

v UNITED STATES.

No. 29.

Argued on question of jurisdiction November 30 and December 1, 1898.

Argued on merits February 20, 21, and 23, 1899.

Decided December 11, 1899.

[Syllabus from pages 423-425 intentionally omitted] The questions involved in this case arise from a claim made by the La Abra Silver Mining Company, a New York corporation, for damages alleged to have been sustained in consequence of certain acts and omissions of duty upon the part of official representatives of the Republic of Mexico.

The claim was originally the subject of investigation by a commission organized pursuant to a convention between the United States of America and the Republic of Mexico concluded July 4, 1868, and proclaimed February 1, 1869. 15 Stat. at. L. 679.

An award was made by the Commission in relation to this claim, but it has been executed only in part—its full execution having been suspended by legislation in conformity with which the present suit was instituted to ascertain whether the award had been obtained by fraud effectuated by means of false swearing or other false and fraudulent practices on the part of the La Abra Company, its agents, attorneys, or assigns. 27 Stat. at L. 409, chap. 14.

It will conduce to a clear understanding of the questions to be determined if we state fully the circumstances that led to the organization of the commission, and show how it came about that a court established by this government took cognizance of a moneyed demand made by an American corporation against a foreign government.

By the above convention of July 4, 1868, it was provided that all claims on the part of corporations, companies, or private indiviauals, citizens of the United States or of the Republic of Mexico, arising from injuries to their persons or property committed by the authorities of the respective gov- ernments, and presented to either government for its interposition with the other since the treaty of Guadalupe Hidalgo of February 2, 1848, and which remained unsettled or did not arise out of any transaction prior to that date, as well as any other claims presented within the time prescribed in the convention, should be referred to two commissioners—one to be appointed by the President of the United States by and with the advice and consent of the Senate and the other by the president of the Mexican Republic.

The commissioners were conjointly to investigate and decide the claims presented to their notice in such order and manner as they thought proper, but 'upon such evidence or information only' as should 'be furnished by or on behalf of their respective governments.' Where they failed to agree in opinion upon any individual claim, they were to call to their assistance an umpire, who was to decide upon it finally and without appeal. It was competent for each government to name one person to attend the commissioners as its agent, to present and support claims on its behalf, and to represent it generally in all matters connected with the investigation.

When every case presented had been decided by the commissioners or the umpire, the total amount awarded in favor of the citizens of one government was to be deducted from that awarded to the citizens of the other government, and the balance to the amount of $300,000 was to be paid to the government in favor of whose citizens the greater sum had been awarded, without interest or any other deduction than that specified in the convention. The residue was to be paid in annual instalments not to exceed $300,000 in any one year, until the whole amount had been paid.

The contracting parties agreed to consider the result of the proceedings of the commission as a full, perfect, and final settlement of every claim upon either government, arising out of any transaction of a date prior to ratification of the convention, and to give full effect to the decision of the commission or the umpire without objection, evasion, or delay; and they further engaged that every such claim, whether or not presented to the notice of, made, preferred, or laid before the commission, should from and after the conclusion of its proceedings be considered and treated as finally settled, barred, and thereafter inadmissible.

The commission was organized in the city of Washington, and held its first meeting on the 31st day of July, 1869, Mr. William H. Wadsworth and Senor Don Miguel Maria de Zamacona being the commissioners respectively, and Mr. J. Hubley Ashton and Mr. Caleb Cushing, the agents respectively, on behalf of the United States and Mexico. Dr. Francis Lieber, the first umpire, having died, he was succeeded by Sir Edward Thornton, who at that time was the British minister accredited to the government of the United States at Washington.

On the 23d day of February, 1870, Secretary Fish issued a circular referring to the convention of 1868 and stating that the Department of State deemed it advisable to refer to the joint commission all claims of corporations and citizens of this country without special examination of their merits. He took care to say that the government thereby expressed no opinion either as to the merits of the claims presented or as to the principles of law to be invoked in their support. The responsibility of deciding questions of fact and law, he observed, rested with the commissioners.

On the 17th day of March, 1870, the La Abra Company gave written notice to the Secretary of State that it claimed from Mexico $1,930,000 'for damages and losses suffered by it in consequence of the violence and outrages committed by the authorities of Mexico against the rights of said company in 1867 and 1868.' It asked for the interposition of the government of the United States with Mexico for the payment of that demand, and requested that its claim and proofs thereafter to be produced be referred to the commission for settlement. This notice was transmitted by the Secretary to the commission.

Subsequently, June 14, 1870, the company filed with the commission a memorial of its claim, stating the amount thereof to be $3,000,030. Before the case was finally heard the claim was increased to $3,962,000.

The period within which the commission was to conclude its labors was from time to time extended by the two governments. Of the claims presented by the United States there was allowed the sum of $4,125,622.30, while of the claims presented by Mexico the sum of $150,498.41 was allowed.

In respect of the claim of the La Abra Company the commissioners differed in opinion, and the case went to the umpire for consideration.

The award of the umpire, which was made December 27, 1875, embraced the following items as representing the damages sustained by the La Abra Company and to be paid by the Republic of Mexico: (1) On account of subscriptions and sales of stock, $235,000; (2) money lent and advanced, $64,291.06; (3) rent, expenses, salaries, law expenses, $42,500: (4) amount derived from reduced ores, $17,000; (5) ore extracted from the mines and deposited at the mills, $100,000; in all, $458,791.06. On $358,791.06, the aggregate of the first four items, the umpire allowed interest from March 20, 1868, at 6 per cent, and upon $100,000, the fifth item, interest was allowed from March 20, 1869. The total amount of principal and interest allowed was $683,041.32.

An application was made to the umpire by the government of Mexico for a rehearing of the case, but a rehearing was denied.

Subsequently, the Mexican government without at all disputing its obligation under the convention of 1868 to comply with the award, placed in the possession of the Secretary of State of the United States certain books, papers, and documents which it alleged had been then recently discovered and would show that the claim of the La Abra Company was not only fictitious and fraudulent, but had been supported by false and perjured testimony. At that time a large part of the sum awarded to the company had been paid by Mexico and was in the hands of the Secretary of State. The distribution of the amount received had been delayed by the Secretary acting under the orders of the President to await legislation deemed necessary in order to make good to the fund the amount with which it was chargeable, and also because, as stated by the Secretary, it was desirable that the form and manner of the reservation from the instalment in hand of the expenses of the government should first be settled.

These difficulties were met by the passage of the act of June 18, 1878. 20 Stat. at L. 144, chap. 262.

By the first section of that act the secretary of State was authorized and required to receive all moneys paid by the Mexican Republic under and in pursuance of the conventions of July 4, 1868, and April 29, 1876, and whenever and as often as any instalments should be paid by the Mexican Republic to distribute the moneys received in ratable proportions among the corporations, companies, or private individuals respectively in whose favor awards were made, or to their legal representatives or assigns, except as in that act otherwise limited or provided, according to the proportion which the respective awards should bear 'to the whole amount of such moneys then held by him, and to pay the same, without other charge or deduction than is hereinafter provided, to the parties respectively entitled thereto.'

By the second section it was provided that 'out of any moneys in the Treasury not otherwise appropriated a sufficient sum is hereby appropriated to enable the Secretary of the Treasury to pay to the Secretary of State of the United States, in gold or its equivalent, the equivalent of fifty thousand five hundred and twenty-eight dollars and fifty-seven cents in Mexican gold dollars, and ten thousand five hundred and fifty-nine dollars and sixty-seven cents in American gold coin, and eighty-nine thousand four hundred and ten dollars and...