Note 2 — III. GOVERNMENT OF, BY, AND FOR THE NATIONAL CITY BANK

Originally, Mr. James P. McDonald secured from the Haitian Government the concession to build the railroads under the charter of the National Railways of Haiti. He arranged with W. R. Grace & Company to finance the concession. Grace and Company formed a syndicate under the aegis of the National City Bank which issued $2,500,000 bonds, sold in France. These bonds were guaranteed by the Haitian Government at an interest of 6 per cent on $32,500 for each mile. A short while after the floating of these bonds, Mr. Farnham became President of the company. The syndicate advanced another $2,000,000 for the completion of the railroad in accordance with the concession granted by the Haitian Government. This money was used, but the work was not completed in accordance with the contract made by the Haitian Government in the concession. The Haitian Government then refused any longer to pay the interest on the mileage. These happenings were prior to 1915.