New-York tribune., 1870-01-07
HYpOTHECATED PROPERTY IN TIE

By and by we shall know the truth, 1t may
be the unhappy truth, of the general Dominl-
can question. At present it is greatly mixed,
much befoggcd and full of fhsehOod, and ru-
mors of falsehood. One among others appears
to be the statement that San Domingo has but
two millions of debt What the outstanding
debt of the country is we cannot say; but,
since habitual revolutionists have an easy way
of annihating each others Obligations II Is
doubtless great deal smaller than 1T ought to
be. All that we certainly know is that the
loans lately contracted by President Baez will
extend his country's debt much beyond the
sum declared.
From certain printed documents which have
reached us through Dominican hands, it ap-
pears that in August last loan for f1jO, 700
was offered IN the English market by Messrs.
Smith, Payne & Smith on account of President
Baez. It's hard conditions required discount
of 20 per cent, and it was to be paid in twenty
five years, with interest at per cent. The
guano of Alta Vela. and the coal and other
mines, together with the mahogany wood of
Samana, were pledged for it, along with the
Dominican customs. The perfection of this
loan scheme would take from San Domingo
the enormous sum of S9,4020O0 in order to
obtain about one million and a half of dollars.
But we believe this is the same loan which has
reached the hands of Messrs. HartmOnt and
Lawson " CO., under tcIIns ike the foregoing
Ii gives the Dominicans G420,O00 for E157,OOO,
and guarantees the payment in twenty five years
of nearly five times the value received, exclusive
of a large discount. The negOtiatOr and mana
ger of this loan was named by President Baez
as his Consul General, but we are told that he
has been requested by Lord Clarendon to with
draw him. HartmOnt, whose German name is
said to be Hersberg, is charged with being q
convicted forger.
This is but one phase of the Dominican diff
ficulty We sec it stated that there is COM
pany of individuals in or near NewYork who
claim to own the Samana Bay lands, as well
as certain privileges in the Bay itself. Was 1t
this company which the confidential agent of
Mr.. Baez had in view when he announced, a
year ago, i'll New-York, an opportunity for
leasing the Bay of Samana for 90 years at
100000 year, with the understanding that
the Bay property should be absolutely trans
ferred to its lessees at the end of that time,
or on payment of s2OOO,0OO7 Here was a bar
gain which offered at least fifty per cent better
terms than those achieved by Messrs. Babcock,
Cole, O'Sullivan, and the rest. Yet even
this does not happen to be what seems
the sorrest feature of the case for Messrs.
HartmOnt g. Co. have been guaranteed
a hypoteque upon the mines and woods of
Samana Bay. The Bay property as it reaches
our hands, is thus not only at figure so per
cent in excess of what the President of San
Domingo was willing to sell it for year ago
in the general market, but its coal, metals,
wood, are hypothecated for the benefit of our
English friends. To make matters still worse,
and still further involve our complicated bar
gain, Gems. Luperon and Cabral have just is
sued proclamation protesting against the sale
of the town and bay of Samana. We may
blunder at last into some good fortune or bad;
but let us, if we can, have light on the Do
minican question.