concern to the President, and that he can not permit our just demands to be trifled with or evaded any longer. If no satisfactory action is taken before Congress meets, in less than two weeks, the President will be constrained to lay the matter before that body and recommend such action as he shall deem necessary.) Mr. Pearson to Mr. Hay. [Telegram.-Paraphrase.] AMERICAN LEGATION, Teheran, November 28, 1904. (Mr. Pearson reports prospect of a settlement, and asks instructions concerning an indemnity.) Mr. Hay to Mr. Pearson. [Telegram.—Paraphrase.] DEPARTMENT OF STATF, Washington, November 28, 1904. (Mr. Hay instructs Mr. Pearson to demand an indemnity of $50,000, and to obtain sufficient assurance that engagements will be carried out. The President will not brook delay, and prompt settlement must be insisted upon.) Mr. Pearson to Mr. Hay. [Telegram.-Paraphrase.] AMERICAN LEGATION, Teheran, December 12, 1904. (Mr. Pearson reports that the Persian minister for foreign affairs informs him that the Persian Government will immediately pay the indemnity of $50,000 gold, but begs the President to reduce the amount of the indemnity.) Mr. Pearson to Mr. Hay. [Telegram.-Paraphrase.] AMERICAN LEGATION, Teheran, December 28, 1904. (Mr. Pearson reports that, after consultation with the widow of Labaree, he proposed and the Persian Government accepted the following settlement: 1. Thirty thousand dollars cash gold. 2. Effective and swift punishment of all guilty persons. 3. No special tax on province or Christians to recover indemnity.) Mr. Hay to Mr. Pearson. [Telegram.-Paraphrase.] DEPARTMENT OF STATE. Washington, December 29, 1904. (Mr. Hay approves the conditions of settlement if carried out immediately.) Mr. Pearson to Mr. Hay. [Telegram.-Paraphrase.] AMERICAN LEGATION, (Mr. Pearson reports the payment of the equivalent of $30,000 gold indemnity for the murder of Mr. Labaree.) Mr. Loomis to Mr. Pearson. [Telegram.] DEPARTMENT OF STATE, Washington, January 4, 1905. The indemnity should be remitted to the Department. An administrator must be appointed in the locality and State where Mr. Labaree was domiciled. Probate court there will make distribution and will appoint guardian of infant children, with bond and approved security to protect estate of children. LOOMIS. Mr. Loomis to Mr. Pearson. [Telegram.-Paraphrase.] DEPARTMENT OF STATE, Washington, January 6, 1905. (Mr. Loomis instructs Mr. Pearson to forward the Labaree indemnity to the Department, and informs him that the President cordially commends his energetic and efficient action in this case.) PERU. SETTLEMENT OF THE CLAIM OF W. R. GRACE & CO. AGAINST No. 817.] PERU. Mr. Neill to Mr. Hay. AMERICAN LEGATION, Lima, Peru, November 19, 1903. SIR: In accordance with a request from L. H. Shearman, esq., manager of the New York commercial house of Messrs. W. R. Grace & Co., having a branch in this city, I again called the attention of this Government to their long-pending claim in a note addressed to Dr. José Pardo, the minister for foreign relations of Peru, a copy of which I herewith inclose for your consideration, calling his attention to the facts as presented to this legation. It appears the Government included in the budget this account, but it was objected to in the Chamber of Deputies. The minister of finance said that the Government had only placed this item in the budget in view of the possibility of the claim being supported diplomatically, otherwise it was altogether a matter of indifference to the Government whether the Chamber eliminated this account or not. After some discussion, in accordance with the request of Deputy Gazzain, the claim of Messrs. W. R. Grace & Co. was left out, so as to be discussed at some later date. This claim, which has been pending for the past seventeen years, will be still further delayed, to the serious detriment of the claimants, notwithstanding the fact that the balance due them is in accordance with the decision of the supreme court of Peru, and adjustment of account as made by the "tribunal mayor de cuentas" in conformity therewith. In view of what had been already written in relation to this subject, I begged to call his excellency's attention to the last communication emanating from this legation to the foreign office here, No. 76, March 3, 1899, in which the minister of the United States, acting under instructions from his Government, expressed himself as follows: A continuance of the conditions which have so long blocked progress in this case would be deemed by my Government to afford foundation for its diplomatic intervention based upon a denial of justice. All of which I submitted to Doctor Pardo, stating that further delay in taking action looking to the immediate settlement can only have the appearance of a postponement of its adjustment. Trusting my action will meet with your approval, I have, etc., RICHARD R. NEILL. [Inclosure.] Mr. Neill to Doctor Pardo. AMERICAN LEGATION, Lima, Peru, November 19, 1903. MR. MINISTER: I have the honor to most respectfully call the attention of your excellency's Government to the various notes from this legation, viz: No. 2, of October 3, 1898; No. 58, of November 11, 1898, and No. 76, of March 3, 1899, to the Peruvian foreign office, all relative to the long-pending claim of Messrs. W. R. Grace & Co., of New York City. It appears by the late action of the Peruvian Congress, now in extraordinary session, as noticed in El Comercio, of this city, in its morning edition of the 18th instant, that the settlement of this just account, which has been pending for the past seventeen years, will be still further delayed, to the serious detriment of the claimants, notwithstanding the fact that the balance due them is in accordance with the decision of the supreme court of Peru, and adjustment of account as made by the " tribunal mayor de cuentas," in conformity therewith. I beg to call your excellency's attention to the note emanating from this legation, directed to the ministry for foreign relations, No. 76, March 3, 1899, in which the minister of the United States, acting under the instructions from his Government, expresses himself as follows: "A continuance of the conditions which have so long blocked progress in this case would be deemed by my Government to afford foundation for its diplomatic intervention based on a denial of justice.” All of which I would respectfully submit to your excellency's kind consideration, as it seems to me further delay in taking action looking to the immediate settlement can only have the appearance of a postponement of its adjustment. I have, etc., Mr. Neill to Mr. Hay. RICHARD R. NEILL. No. 831.] * AMERICAN LEGATION, Lima, Peru, December 19, 1903. - SIR: I have the honor * * to attach herewith a copy and translation of a note from Doctor Pardo, in which he states that according to an agreement between the minister of finance and the head of the house of Messrs. W. R. Grace & Co., an amount had been placed in the projected general budget of the Republic for 1904 in order to pay the sum claimed by the said house, and that diplomatic action was MR. CHARGÉ D'AFFAIRES: Referring to the esteemed communications from your legation, dated November 19 last and the 12th instant, it affords me great pleasure to inform your honor that according to the agreement between the minister of finance and the head of the house of Grace & Co. an amount has been placed in the project for the general budget of the Republic for 1904 for a payment on account of the sum claimed by the aforesaid house. This matter being therefore satisfactorily arranged by the acceptance of the interested party, the diplomatic action of your legation becomes unnecessary. It is with pleasure, etc., JOSÉ PARDO. No. 856.] Mr. Dudley to Mr. Hay. AMERICAN LEGATION, Lima, Peru, February 3, 1904. SIR: Referring to Mr. Neill's No. 831, of December 19, 1903, I have the honor to inclose herewith a copy and translation of a law promulgated on the 30th ultimo, which makes provision for the payment, in annual installments of £4,200, of the claim of Messrs. W. R. Grace & Co. The adjustment thus effected is understood to be satisfactory to the claimants. I have, etc., [Inclosure 1.-Translation.] PAYMENT OF AN ACCOUNT. IRVING B. DUDLEY. LIMA, January 20, 1904. YOUR EXCELLENCY: Congress has resolved that in the general budget of the Republic, from the present year of 1904 until the total extinction of the debt, there be set aside the sum of £4,200 Peruvian, intended for the payment of the house of Messrs. W. R. Grace & Co., of New York, the amount of $99,726.86 American gold, or £19,945 3 sols 72 cents, for capital and interest owing by the State to that firm up to the 31st of August, 1901, in accordance with the sentence of the supreme court of justice, and in conformity with the liquidation made by the upper court of accounts, the Executive being hereby authorized to make payment of the interest subsequent to the above-mentioned date, but to render account thereof to the next legislature. Which we communicate to your Excellency for your knowledge and other purposes. God preserve your Excelleny. ANTERO ASPILLAGA, President of the Senate. NICANOR ALVAREZ CALDERÓN, President of the Chamber of Deputies. SEVERIANO BEZADA, Secretary of the Senate. SANTIAGO MONTESINOS. Secretary of the Chamber of Deputies. LIMA, January 30, 1904. Let it be complied with, communicated, and published. [The rubric of His Excellency.] Upon my return recently to this post, after two months' absence, I found the relations of the two countries (Peru and Ecuador) much improved. The immediate occasion of the recent outburst of national indignation against Peru on the part of Ecuador was the killing of two |