22 not promptly paid, refused to supply the wants of the Nicaraguan dictator and of his favorite. Then Zelaya caused the appointment of an Arbitration board, in accordance with the penal stipulation of the contract, claiming from Emery double the value of the goods furnished. Gamez sent his nephew to Bluefields as attorney for the Nicaraguan government, compensating him, as was customary in those days, with a liquor curlcession which was sold for 9, 000 gold.
This method of making payments with State property could hardly be more scandalous, especially in view of the fact that the very parties who benefited by the transactions with the house of Emery were plaintiffs against the Company. The arbitrators decided against Emery, and the fine was immediately paid. But the attorney for the Government demanded more, that is, to say, he claimed the forfeiture of the contract. Emery presented documents proving payment to Zelaya, on account of the concession, for three years in advance, and the board of arbitration declared that nothing further could be done pending those three years. At the expiration of this period the government of Zelaya moved against Emery, and without any previous legal proceedings or any new arbitration, took possession of everything.
Such was the origin of the claim which has cost the people of Nicaragua 600, 000 gold, because it is the nation which pays in the end, not Zelaya, who is enjoying its money in Belgium, not Gamez, who is spending it in San Salvador, nor Gamez nephew, who is even now a diplomatic employee of the Government of Nicaragua,