28 Zelaya had involved the country to an astounding degree with contractors and companies, English, French, German, Italian and United States. The first act of justice performed by the Government at Washington, in this respect, was the grading of all of these contracts, both European and North American. It refused to favor its own citizens in any unjust claims, an action which undoubtedly speaks very highly in favor of the sincerity of its policy.
Among those contracts, so ruinous to Nicaragua, is that of the lease of the national railways and steamships, made by the Zelaya government to Mr. Julio Weist, a German subject, whose principal partner was Zelaya himself. Zelaya son in law, Joaquin Pasos, held all of the bonds of this company and exercised control of it on behalf of his father in law. Neither Zelaya nor Weist expended any of their own personal funds in the enterprise. The entire business consisted in the grabbing of national property for the purpose of dividing the profits.
As the present government of Nicaragua annulled these contracts, so that the question of their legality might be submitted to the Mixed Commission, the German Government wanted to institute a claim on behalf of its subject. Some nations do not inquire into the justice or injustice of claims, but simply look to the quality of the claimant. If the government of Nicaragua was not protected by the American Government, German warships would already be at Corinto, and Nicaragua would be compelled to stand and deliver, as the phrase goes in modern internátional law. We were saved by the United