-middot_middot~ _ shy _~

lluder the International Claims- Settlement middotmiddot middot Aetmiddot of-1949~ ~middotamend~ __ __lt5-~ _

_ __ ________ middot-----bull ----~- --~-middot--middot---middotmiddot -shy

----middot~middot---middotmiddot-middotmiddotmiddot-middot-middotmiddot-

middot PROFOSED IgtmctsioN cmiddot

~lus interest bullwas presented by the partner$hplusmnp of KRAMEI MARX

GREENLEEamp BACKUS base(l ~pon debts assert~dlymiddotampUemiddotfrOm-enterprieS

nationalized by the Governmerit of Cuba Themembers of thepartriership - ~~-middotmiddot ---- middot middot- --middot-

have been citizens of the United States at -alltimel pertinent to this -

claim

Under Section 50~ of the International ~a~ims Settlement Act middotof

1949 as amendea (6~ Stat 12 69 Stat 562 72 Stat 527~ 78 Stat bull

1110 79 middotstat 988) the ComnUsslltgtrJ b glyeti juri~qis~~9~ o_y~r_gl~~ms -~-

9f nationals of the United St~tes against the Governmentof CuQa

That section provides that the Cotmnission rhalFreceive ~nd determine

in accor~ance with a_pplicabl~ su9stantive law incl11d~ng international

law the amount arid Vilidity of claims bynatiorials of the United

States against the Government of CuQa trising sj_I1ce January lmiddot i959-

for

(a) bull losses resulting fromthenationaltzation

spec1aineasures Clirected aeetnstmiddotProPerty-iricluatrismiddot -or interests therein owneO wholly or

middot parttally dir$middotctly middotor indirectly middotat the time by nationals of the United Stat-emiddots1 bull -- bull bull

expropriation intervention or other taking of or

any rights

Imiddot

of thra Act PfOVides

TJie t~rlll 1 property1 meallS any prOpe~ty I_ riehtl or interest including any_ lea~ehold middotintereft ____ middot anQ aebts owed bYdeg the aovernment of Cuba or middot

middot by enterpriies whicti ~ave been nlltion~li~ed1

middot eiqgtropriated intervened_ middotmmiddot t~en by the Government Of Cuba and debts which are a charge on property which has been n-degfiionalized~ expropriateQ interv~ned or ta~en oy the

middot Government of Cuba middot middot

The claim is based onmiddot lesal services rendered and is_ pres(i)nted in - -

two parts The first part concerns the asserted debtof $to~945~91 middotc _bull bull middotmiddot-bullmiddot-middot--7

with interest of Th~ Cuba Railroad Cqmpany and it$ affiliated companies

and the sec~nd part conc~rns the ass-ert_ed debt

interest~ of the

Claimant contends and the record shOifSthat the par~nersllip_pershy

formed services for-Inade disbursements onbehalf of aniwas_retained middot shy

middot by The Cuba Railroad Co~pampny ttmicro-ou~middot October 15t 19601_ f~r- ~ums ~n the

total principal amount of $10391J597

The Cuba Railroad Gqmpany incorporated in the$tate qf New Jersey

was wholJy owned -by_ Consolidated Railrqa~smiddotof Cuba (Ferioc~rriles middotConsolida~os de Cuba) amiddot Cuban corporationbullmiddotThe Cuba ~ailfoad Company

thus would not qualify as a national of tlle United Stste~ -micronder Section

502(1) of the Act which defines the term national 9f the Ulited Sates

as including (B) a corporation or other legal entity wbicP --~ -~----organized middot - -- - middot

under middotthe iaws of the United States or of any_ ~~ate ~be middot_Jlistribt of

Columbia 9r the Commonwealth of Puerto Rico if natmal persons wbo are - - - middot- middot_ -middotmiddot middot middot middot

citizens of the Unlted States own directlyor indirectlymiddot 50 per eentum

or more of the outstanding capital stock or other beneficial interest middot

Of sueh corporatiOTl or entity bull bull ~

middotmiddot Consolidated Railroads of Cuoa also owried Cub~ Dforthern Railways

in

middot

Company (FerrocSrriL~s Del Norte de Cpn~J eltCuban corpor~tio~ bull Tle l~ite~ _ _

turn owed a larg~ pa~t of G~~ntanamo amp _Western RaUroadmiddot Company (~ia - middot middot middotmiddotmiddot

Ferrocarril=ra de Guantanamo y Occident~) incorp~rated in the Stat~ of Maine middot ~ -

It eppearq that nle Cubl Rail~~ad Co~pany made arrang~ments with ~tt~ related

middotmiddot companies for contribution of amounts qvrlqg by lhe Cmicroba Railroad Conwany to - - - ~ middot

tne claimant to the extent Th~ C~ba RaiLroad Company deemed su~h pairnents _to

middot befor services middotin whiCh one or more of th~ compinlies had an i~terest bull Hqwever

B11 foBI companies ~re liste~ as nat~on~liZed oy Law 8Qor Plbli~n~d in the

Cuban Qfficial Gazette on O~ifo~~r l3- 1960 ~~ cUban Ac1rnin~strator bf t~e

Consolidated Railroads of Cuba diePen~ed middot rtlth the seurorvices of cLai~nt as f middotmiddot

- bull middotmiddot middot October 15 1960 ~

Claimant middotpresented biLis to The Cllba-RaiJiocid ConUiciny in raryi~S - bull middot middotmiddot

bull middot amounts on July ~o l959 January gt6 -i960 on Nov~moer 15~ 15Joo fqr September 30

middot J96o aria monthly retainer b111s ror the period ran~ary 1 196o ~q odtbber 15 middot -

1960 Claimant now asks 6 per cent interest orr ea9h item irazli the aforesaid middot middot

dates The Cuba Railroad by its Pre$icient and its leg8L qounseJ iri Cuba in separate letters of April 30 1961 acknowledged tpat $103945517 was due middot

~ j_ bull bull middot

the claimant for services and disb~sements middot However nothin~of recorQ show8

middot that interest was due to claimant from rhe Cuba Railroad Company on the inshy middot middotmiddot

d~vidual items of that part of its claim Accordinely_ it is toric1uded that

claimant suffered a loss in the amount of $)03 945 97 withi~ th~ me~~ins of Title V of the Act as a result of _the natioqalization of the ~roperty of The

Cuba R~ilroad Company by the Government of Cuba on Octooer 13 19q0 ~

Part II

Claimant contends that$923403 was due it from the ComPania _ middotmiddotmiddot

Cubana a Cuban corporation middot Tbe record-reflects that a ~OIjpany known Ss middotmiddot

The Guba Company incorpo~ated in ~ew Je~s~y was tne owner of tlie C~pania bull bull bull bull middot- bull bullr ~ bull middot middot~ - middot middotmiddot bull bull

middotCubatJa ~ middot The Cuba Company middotwas diS$~lved ~s of AUampUst 201 19~9 aml t~e ~tock middotmiddot middot

middotbull shy shy

----

~ middot

middot middot (

middot

middotmiddot middotCompany Thus alt~ough Compania-ciibaria may have been American owned middotmiddot

in large part as a corporationorganiz~din Cuba it did not qualify

as a national 9f tie United States undermiddot Section 502(1) of the Act

supra) middot middotmiddot

~ middot - The record shows that the Compania Cubana had been billed by the - middotmiddotmiddot

claimant in varying amounts totalling $91 23403 for services and - middot middot

di~bursements on Octob~r 8 1959 December 31 t959 June 30 1960 middot

middot and for services from Janmicroary 1 1960 to September 30 t960 the

latter item having been performed prior to action taken by the

Government of Cuba agairrnt compania Cubana Campania Cubana~ wasmiddot

nationalized by the -Government of Cuba by Resolution 1 of August 6

1960 (purslp3ni to Law 851 Official Gazette July 7 1960) bull

Claimant now asks 6 per cent interest on each itein so billed

to the Compania Cubana from the dates of billing The President of

Compania Cubana by letter of August 15 1962 acknowledged the bill

in the total of $923403 However nothing of record ~owsthat

interest was due to claimant from the _Compania Cubana on the inshy

dividual items of that part of its claim Accordingly it is

concluded that claimant suffered a los~ in the amotyenlt of $93403

within the meaning of Titl~ V of the Act as a result of the national- f

ization of Compania middotCubana by the Government of Cuba as of August 6

196o

The Commission has decided that in payment of losses on claims

determined pursuant to Title V of the International Claims Settlement

Act of 1949 a$ amended interest should be allowed at the rate of

6o per annum from the date of loss to the middotdate of settieme~t (See

the Claim of American Cast Iron Pipe Company FCSC Claim No CU-0249) bull

Accordingly the Commission concludes that the amount of the

loss sustained by claimant shall be increased by interest thereon at middot

middotmiddot middot middotmiddotmiddot

middotmiddot the rate of 6ap per annum on $103945 97 from October 13 1960 and on

shy middotmiddotmiddot

CU-0105

~ middot __ bull ~middot

5 middotshy

middot - The

suffered a

-~ middot

$9234QJ from August 6 r9pound)o~lt to th~ - d3te on whkh provisions are

for the settiemeDt thereof _

middot-middot

Gommissior certifies middot that KRA1fER ~-ARx GREENLEE amp BACKUS

loss as aresult of actions of the Government of Cuba

within the scope of TitleV of the International Claims Settlement

Act of 1949 as amended _in the amount of One HiL1dred Thirteen middot

Thousandmiddot One Hundred Eighty Dollars ($113180 00)middot with interest

thereon at 6foper annum fromthe respective dates of loss -totle

date- of settlemert ~ middot middot

Dated at Washington D C and entered as the Proposed

Decision of the CommissicJn

i DEC1966

Theodore Jaffe Com~issiorer

tk~R~

NOTICE PursmiddotUBnt to the Regulatios of t~e Commission if no objectiocs are filed witin 20 days after service or- -s~eipt of rootice of this Proposed Decisiol upon the expiratio of 30 days aft2r such e~rviiS

or receipt of rotice the deCisio Will be eterei ss tle Final Decision of tce Commissio~ ~-less tbe ConimiesioC-_ 0tLerwise orier2 (FGSC Peg 45 C F R 53l5(e) ard (g) (1964))

~middot - middotmiddot _ middot -~- middot middot~

cu~o105

middot