Contract with the Parsons Trading Company, New York, 23 February 1915 (English version)
Mr. John Matthews, Vice President, in the name of the Parsons Trading Company of New York, who hereinafter will be known by the name of “The Company,” and Mr. Pascual Ortiz Rubio, as representative of the Mexican Government, of which Government General Venustiano Carranza is the Chief, who hereinafter will be known as “The Party Of the Second Part,” mutually agree to the execution of the following contract:
FIRST: The Company undertakes to print for the party of the second part thirty-three million (33,000,000) bank notes three and one-quarter by seven and one-quarter (3-1/4 x 7-1/4) inches under the terms and conditions provided hereunder:
A. The notes shall be twenty-four million (24,000,000) of one dollar ($1.00) each and nine million (9,000,000) of two dollars ($2.99) each.
B. The one dollar ($1.00) notes are to be numbered consecutively with two (2) numbers of the same number on one (1) side or face of the note, such numbers running from one million (1,000,000) to twenty-five million (25,000,000). The notes to be of the design and colors of the specimen attached to this contract and signed by both parties, and instead of reading: “S. S. encargado de la Secretaria de Hda. – Regnoso,” it shall read as follows: “Por el Dpto. de Hda. el S. S. Nieto,” which reading matter shall be inserted in the same place and in the same manner as the first quotation mentioned in this paragraph.
C. The two dollar ($2.00) notes shall be of the same size and design as the one dollar ($1.00) notes, with the exception that the denomination shall be changed. The serial number, reading matter and colors are to be determined by the party of the second part within the term of twenty (20) days from the time this contract becomes operative.
D. The one dollar ($1.00) notes, as well as the two dollar ($2.00) notes, are to be lithographed by off-set process in three (3) colors on one (1) side, and one (1) color on the back, the numbering to be done with all possible care consistent with the conditions and speed with which the work must be delivered under this contract, it being understood and agreed that it will be impossible, on account of the speed at which the work is done, to make corrections should, for mechanical reasons beyond control, there be any duplicate numbers or blanks, it being understood, however, that if on examination there should be duplicated numbers, blanks, or imperfectly manufactured bills, The Company undertakes to re-number, number or re-place, upon delivery to them in New York, such imperfectly manufactured bills, such corrections to be made outside of the limit of time hereinafter mentioned. All to be first-class paper without watermark and of quality equal to the sample which, signed by both parties, is attached to this contract, but in substance of number twenty-five (No. 25), (i.e. basis seventeen by twenty-two, twenty pounds to five hundred sheets, (17 x 22 – 20 lbs. 500 sheets)). The work to be first-class, clear and without undue variation in color.
SECOND: The party of the second part, through Mr. Pascual Ortiz Rubio, or any other person duly authorised for such purpose by General Venustiano Carranza, (it being understood and agreed that such person shall be a direct representative of General Venustiano Carranza and that, unless with the written consent of The Company, he shall not be a competitor or the representative or employee of a competitor) may be present during the execution of the work for the purpose of inspection and also during the packing and shipment of the notes, which privilege shall not be denied to him by The Company, The Company binding itself to accept and carry out any suggestions submitted to it in writing that do not exceed the conditions of this contract, it being understood that any delay resulting from the carrying out of such suggestions extends the delivery dates hereinafter mentioned, to the extent of such delay.
THIRD: The Company shall deliver to the party of the second part the notes in sheets of thirty by forty (30 x 40) inches, each such sheet containing forty-eight (48) notes, or in other sizes as nay be more conveniently manufactured by them, the sheets being well packed in packages of five hundred (500) sheets each, each package to be wrapped with waterproof material, the paper being packed in widen cases of suitable weight, said cases to be encircled by iron bands.
FOURTH: The total price for the thirty-three million (33,000,000) notes referred to in the first clause shall be eighty-seven thousand nine hundred and eighty dollars ($87,980.00) U. S. Gold, i.e. at the rate of two thousand six hundred and sixty-six dollars and six cents ($2,666.06) U. S. Gold per million (1,000,000) bank notes. This price includes, as detailed in this contract, paper, lithographing, numbering, packing, and delivery to steamship dock in New York of the Ward Line or any other regular line of steamers sailing for Vera Cruz, it being agreed that in the event of a stoppage of sailings or a refusal on the part of the Steamship Company to receive freight, that the tendering of delivery to such Steamship Company shall be construed as delivery under this contract, and entitles The Company to receive payment for such delivery.
FIFTH: The Company proposes to deliver thirty-three million (33,000,000) bank notes as follows: Seven hundred thousand (700,000) bank notes three (3) weeks from the day of signing of the contract and the depositing of funds, and continuing thereafter making final delivery in eight (8) weeks and two (2) days from the completion of the first week’s delivery, and for each day less than the said eight (8) weeks and two (2) days from date of the first week’s delivery that The Company shall have completed delivery of the said thirty-three million (33,000,000) notes, they, The Company, are to receive a bonus of one thousand dollars ($1,000.00) U. S. Gold per day. For this purpose the party of the second part, in addition to depositing the purchase price mentioned, will deposit to the credit of The Company with the Battery Park National Bank of New York a further sum of ten thousand dollars ($10,000.00) U. S. Gold, to be paid over to The Company in all or such part as may be earned under the terms of this contract.
In consideration of the above-mentioned bonus, The Company agrees to deliver the thirty-three million (33,000,000) bank notes at the following rate and times, counting from the day the contract becomes operative:
In 21 days 700,000,
“ 35 “ 7,000,000,
“ 49 “ 7,000,000,
“ 63 “ 7,000,000,
“ 77 “ 7,000,000,
“ 85 “ 4,300,000,
and in the event of any failure on their part to have delivered an average, during each specified period, seven million (7,000,000) bank notes, they shall forfeit an amount equal to one thousand dollars ($1,000.00) U. S. Gold for each day during the period that they fail to deliver an average of five hundred thousand (500,000) bank notes per day, which forfeit shall be deducted by The Company from their invoice covering delivery, but should The Company deliver in any period a quantity exceeding seven million (7,000,000) bank notes, they shall be refunded any excess delivery over seven million (7,000,000) bank notes for the period at the rate of one thousand dollars ($1,000.00) U. S. Gold for each five hundred thousand (500,000) bank notes in excess of the seven million (7,000,000), said refund to be included in The Company’s invoice covering delivery.
SIXTH: The party of the second part, in order to guarantee the fulfillment of this contract, will deposit to the credit of The Company in the Battery Park National Bank of New York the sum of eighty-seven thousand nine hundred and eighty dollars ($87,980.00) U. S. Gold, which, as hereinbefore stated, is the price to be paid to The Company for the bank notes, the subject-matter of this contract, from which deposit The Company is to receive payment for the value of such deliveries as are made by it under this contract on presentation to the Battery Park National Bank of New York of The Company’s invoices showing the quantity delivered, accompanied with dock receipt showing delivery of the goods to the steamship dock, or other evidence of delivery as specified in the Fourth Clause of this contract. In order to guarantee that the quantities delivered under each such dock receipt or tendered for delivery to Steamship Company, under Clause Four of this contract, are truly stated on the invoices which it will present to the Battery Park National Bank of New York, it, The Company, undertakes to deliver to the party of the second part as quickly as possible after the signing of this contract, and before the first payment under it is due, a bond from an Indemnity Company in good standing, guaranteeing the accuracy of invoices and receipts, or other proof of delivery.
This contact to become operative from the time such deposit is made effective in the Battery Park National Bank of New York.
SEVENTH: All the provisions of this contract applying to The Company will become void in case of Force Majeure during all the time such impediment may exist, and the periods of delivery extended to an extent equal to the time of such impediment.
EIGHTH: Upon the fulfillment of this contract, the stones, designs, or matrices which have been used for the lithographing of the notes, shall be destroyed in the presence of the representative of the party of the second part.
NINTH: The party of the second part is, in lieu of a deposit of the total price, eighty-seven thousand nine hundred and eighty dollars ($87,980.00) U. S. Gold, to have the option of depositing first an amount of fifty thousand dollars (%50,000.00) U. S. Gold, in which case the party of the second part undertakes to deposit the balance of thirty-seven thousand nine hundred and eighty dollars ($37,980.00) U. S. Gold within a period not exceeding forty (40) days after the first deposit is made, the contract becoming operative from the date the first deposit is made; but in the event of the party of the second part electing to make deposits in the separate sums mentioned, it is agreed that should the deposit of thirty-seven thousand nine hundred and eighty dollars (%37,980.00) U. S. Gold not be made within a period not exceeding forty (40) days after the first deposit is made, The Company is liable for and will deliver only fifty-two percent (52%) of the total quantity above stated, viz. seventeen million one hundred and sixty thousand (17,160,000) bills, and that having delivered or tendered for delivery such quantity, it, The Company, is entitled to receive such balance of fifty thousand dollars ($50,000.00) U. S. Gold which may remain unpaid at that time.
Any reduction in quantity shall not affect the rate of delivery, the penalty for failure to deliver, or the bonus for earlier delivery.
This agreement made and executed on the Twenty third day of February in the year one thousand nine hundred and fifteen (1915).
John Matthews V.P.
For Parsons Trading Co.
Pascual Ortiz Rubio, representante especial del Gbno. del Gral. V. Carranza.
Witnesses to signatures:
R W Glanville
Wm J Dimorest
COUNTY OF NEW YORK
On this 23rd day of February, in the year 1915, before me personally came Mr. John Matthews, Vice President of the Parsons Trading Company of New York, and Mr. Pascual Ortiz Rubio, representative of the Mexican Government, of which Government General Venustiano Carranza is the Chief, to me known to be the individuals described in, and who executed the annexed contract, and severally acknowledged that they executed the same for the purposes therein mentioned.
John Matthews Jr
NOTIARY PUBLIC QUEENS COUNTY No. 883
CERTIFICATE FILED NEW YORK COUNTY No. 10
CERTIFICATE FILED NEW YORK REGISTER No. 6065