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As a part of the arrangement which was reached between the parties, and at the request of the Government of Ecuador, I have consented to name an arbitrator, who, acting under the terms of the railroad contract, with an arbitrator named by the Ecuadorian Government, will pass upon the claims that have arisen since the arrangement reached through the action of a similar arbitral tribunal in 1908.
The treaties go further by providing for the creation of a Joint High Commission, to which shall be referred, for impartial and conscientious investigation, any controversy between this Government, on one hand, and Great Britain or France, on the other hand, before such a controversy has been submitted to an arbitral body from which there is no appeal.
"I would suggest, therefore, that the Peace Treaty contain a provision directing the League of Nations to hold a conference or to summon a conference to take up this whole matter and draft an international treaty dealing with the constitution of arbitral tribunals and radically revising the procedure.
That article, by depriving an arbitral award of finality and conferring the power of review on a political body with authority to order a rehearing, shows that the President believed that more complete justice would be rendered if the precepts and rules of international law were in a measure subordinated to political expediency and if the judges were not permitted to view the questions solely from the standpoint of legal justice.
Compare J. N. Stockett, Jr., "Arbitral Determination of Railway Wages," pages 46-47. Section 1. The reasons for seeking separate principles for the settlement of the wages of the lowest paid groups. Section 2. Wage statistics of these groups a matter of familiar knowledge. Section 3. The definition of the living wage idea. An inescapable element of indefiniteness contained in it. Section 4.
In January, 1910, at the request of both Governments the agents representing them met in conference at the Department of State and subsequently concluded a protocol submitting this long-pending controversy to the arbitral judgment of the Chief justice of the United States, who consented to act in this capacity.
In accordance with the provisions of the special agreement the printed case of each Government was, on October 4 last, submitted to the other and to the Arbitral Tribunal at The Hague, and the counter case of the United States is now in course of preparation.
The arbitral award of the San Domingo Improvement Company was scaled down by only ten per cent, because the bonds comprised in the award had been included therein at only one-half their face value and the other credits had also been largely reduced; even this small discount brought howls of protest from British interests that had remained discreetly silent while the State Department was pressing the claim thinking it completely American.
We should make all arbitral awards judgments by record of a court of law in order that their interpretation and enforcement may lie, not with one of the parties to the arbitration, but with an impartial and authoritative tribunal.
While binding by strict sanctions the States to submit all disputes to the pacific machinery that is provided, to await the conclusion of the arbitral and conciliatory processes, and even to accept the legal awards of arbitration, it leaves a complete formal freedom to refuse the recommendations of the Commission of Conciliation.
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