PROCEEDINGS AND EVIDENCE

IN THE ARBITRATION BETWEEN THE

GOVERNMENT OF THE HAWAIIAN ISLANDS

AND

MES RS. LADD & CO.

ARTICLES OF COMPACT AND AGREEMENT Entered into this thirteenth day of July, one thousand eight hundred and forty-six, between His Majesty's Attorney General on behalf of the King and Government of the Hawaiian Islands, of the one part, and William Ladd, Peter A. Brinsmade and William Hooper, all of Honolulu, Hawaiian Islands of the other part.

Whereas, the said Ladd, Brinsmade and Hooper, citizens of the United States of America, and for the last thirteen years, resident merchants in Honolulu aforesaid, under the name, style and firm of Ladd & Co., claim to have demands against the Hawaiian Government, which said Government deny, and which the respective parties to this agreement are mutually desirous to ascertain, liquidate and settle, upon legal and equitable principles:

They have therefore respectively agreed to submit said demands, of whatever name and kind soever, up to the date hereof, and all claims for damages arising under the same, either in law or equity, to the final award, order, arbitrament, determination and judgment under oath, of Stephen H. Williams, on the part of said Government, and of James F. B. Marshall on the part of said Brinsmade, Ladd and Hooper, arbitrators indifferently chosen by the respective parties hereto and the impartial umpire hereinafter agreed upon. unsettled book accounts, all unliquidated and unascertained claims, and all specialty contracts, specialty agreements, and all demands founded upon specialty existing between the parties, (other than mort gage contracts,) and all parole agreements and contracts (other than promissory notes) so to be submitted, and agreed to be submitted as hereinafter mentioned, are agreed to be merged in the following questions, viz:

All

"How much ought the Hawaiian Government to pay said firm of Ladd & Co. for all their property, of whatsoever name and kind, tangible and intangible, including contracts of every description, taking into consideration whether they, the said firm of Ladd & Co., are entitled to indemnity of said Government for any losses or damages they may have sustained in consequence of any illegal acts done or wrongs committed by the said Hawaiian Government."

And the respective parties hereto further mutually consent and agree to stand to, obey, abide, observe, perform, fulfill, and keep the final award, order, arbitrament, determination and judgment of the said Stephen H. Williams and James F. B. Marshall, when made and put in writing by them, under their hands and seals, and filed in cot, as hereinafter mentioned, without any appeal therefrom or objection thereto : provided, however, and this submission is up this express condition, that if the said Stephen H. Williams and James F. B. Marshall shall be unable to agree upon a final award, determination and judgment as aforesaid, then and in that case all the documents submitted to, and the testimony taken before said Sephen H. Williams and James F. B. Marshall, arbitrators on the part of the respective parties, stenographised by order of the said arbitrators, and revised and certified by them to be correct, together with the written explanations and stenographised oral arguments or written arguments of both parties, shall be placed in the hands of and submitted to Com-. modore Robert F. Stockton, in case he shall arrive at Honolulu within three calendar months from the date of this submission, or otherwise to the Chief Justice of the Supreme Court of Judicature of the State of New York, for the time being, as the impartial umpire hereby agreed upon for final award, determination and judgment.

And it is hereby further understood and agreed by and between the respective parties hereto, that the decision, determination and judg ment of the said umpire, so agreed upon as aforesaid, shall have the same force, effect and validity, and shall be as binding and obligatory upon all parties to this submission, without further appeal or refer ence, as if it was or had been the final award and determination agreed upon by the said Stephen H. Williams and James F. B. Marshall; and the respective parties hereto further agree to stand to, abide, obey, observe, perform, fulfill and keep such final award, determination and judgment of such umpire aforesaid, when made and put in writing by him, under his hand and seal, and filed in court, as hereinafter mentioned, by the party in whose favor the same may be made.

To this end the said firm of Ladd & Co. agree to file with said arbitrators a detailed statement of the grounds, reasons and items of their claims against said King and Government, within ten days from the day said arbitrators shall have been sworn, and at the same time to furnish a copy thereof to the said Attorney General, and to appear and produce their proofs and arguments in substantiation thereof