Subsequently it was determined in Bolivia that the entire indemnity received from Brazil should be expended on railroads, with an additional sum of £3,500,000, to be raised by loan. For the settlement of the remaining question of rights in the Acre territory, between Bolivia and Peru, a treaty of arbitration, negotiated in December, 1902, but ratified with modifications by the Bolivian Congress in October, 1903, provided that "the high contracting parties submit to the judgment and decision of the Government of the Argentine Republic, as arbitrator and judge of rights, the question of limits now pending between both republics, so as to obtain a definite and unappealable sentence, in virtue of which all the territory which in 1810 belonged to the jurisdiction or district of the Ancient Audience of Charcas, within the limits of the viceroyalty of Buenos Ayres, by acts of the ancient sovereign, may belong to the Republic of Bolivia; and all the territory which at the same date and by acts of equal origin belonged to the viceroyalty of Peru may belong to the Republic of Peru." The case was pending until July, 1909, when judgment favorable to the claims of Peru was pronounced by the President of the Argentine Republic, Señor Figueroa Alcorta. According to the award, as announced officially from Peru, the line was drawn to "follow the rivers Heath and Madre de Dios up to the mouth of the Toromonas and from there a straight line as far as the intersection of the river Tehuamanu with meridian 69. It will then run northwards along this meridian until it meets the territorial sovereignty of another nation." The Bolivians were enraged by the decision against them, and riotous attacks were made on the Argentine Legation at La Paz, the Bolivian capital, and on Argentine consulates elsewhere. Worse than this in offensiveness was a published declaration by President Montes of Bolivia that the arbitration award respecting the frontiers of Bolivia and Peru had been given by Argentina without regard to Bolivia’s petition that an actual inspection of the territory should be made in case the documents and titles submitted were unsatisfactory. "Had this been done," said the President of Bolivia, "the arbitrator would have been convinced of the respective possessions of the two countries. It is inexplicable how the arbitrator, after examining the titles and documents, could give such a decision. He passed over the elementary principles of international rights in awarding to Peru territory which had never been questioned as belonging to Bolivia. As a consequence Bolivia rejects the award."