The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-08-13
THE VENEZUELA SWINDLE.
THE house COnMITTEE'S REVIEW
OF THE BYIDEkCE.
Tain,a dec'- Discreditabic Conduct The Frau
duicnt aud GroundIes- Character of the
Claims A Barefaced Swiudiing Record.

Taiua dpc'- Discreditabic Conduct The Frau
duicnt and Groundies- Character of the
Ciaims-A Barefaccd Swindiing Record.
wAsuINoToN, Aug. 12.-The report on
the Venezuela awards, which was made TO the
House yesterday by Mr.. Springer Dem, Ill,
from the Committee on Foreign Affairs, says
that the Venezuela Mixed Commission or
ganzed on April 1s, 1863, and consisted OF one
Commissioner appointed by Venezuela, and
ID Wild NJ. Talmadge. appointed by the United
states, and au umpire Machldo, appointed by
Baron Stoeckl, Russian Ambassador to the
United States. The Commission adjourned
Aug. 8, 1888 Tho amount awarded by the two
Commissioners to American citizens, to be paid
by Venezuela, was t4j9, 1853 OF, and the amount
referred to aud awarded by the umpire
ts9i l22 tue total awards aggregatng 1885,
3OOO7
The appointment Of the umpire has been the
occasion Of much controversy between the two
governments. The Venezuelan government in
slsts that Baron steeckl never appointed the
person who actually served as umpire; that he
intended to appoint DR.. PHILIPPE Machalo, his
| appointment naming simply SehOr MachadO;
thnt the name OF juan N. Machndo, Jr.. was in
serted In the appoint. nont made by Ialmadge,
anu the other commissioner In a fraudulent
| manner, and that no umpire was ever appointed
| for this cont mission and upon this ground the
findings OF the umuire IN the making OF two
thirds OF the awards OF the commission were
| utterly void. Hut our government insists that
the app ointment was regular. ihc umpire was
q manufacturer of cotton cloths aud candle
| wicks. was AN agent OF Falmadge Tor transa;
| ton Of his priv t. business, and had no quail.
| hcatiOn whatever Tor the position of umpire OF
| wIs A coai broker of New York; hal never
studied law. and had no knowledge Of Inter
national all iirs. lie had manufactured gas works
for the city Of Car ica.. and had private business
which called hin there at the time OF his APP
pOintment
rALNADGE's DOUBLE DEALINGS.
when Talmadge was waited upon by perso
having honest claims he referred them to "a
friend In New York. who demanded onehalf for
presenting them to the Commission, intimating
that peculiar facilities were cnl)ied for having
tncm allowed. and that large amount was
necessary, because the fees h I'd to be divided.
1t s also proven conclusively that all the certin
were represented bv william =. MURRAY, brother
in-lAw OF the American Minister tSulwclO aud
ralmadge, the Commissioners himself acting in
the double capacity OF judge aud attorney two
claims. one that Of William IL. Aspinwall OF
New York, ami the other represented bv Mr..
Woodruff Of that city, aggregiting half a million
OF dollars, were rejected, the claimants having
refused the eIaction OF ATTY per centum; but the
claims we're Ia NJ way tainted vi II fraud. and
were me 4ttOtiOus in every respect unless upon "A
tue American Commissioned to the United
States he became the lobbyist for tho par les
whose claims he had allowed, and endeay9red
70 get Congress 10 pay the money OF issue lV-f9
bonds to the claimants for the fnll amount ~
their awards, receiving about, tl5,0o for his
, services before Congress; Notwithstanding
! that he was acting as paid Lobbyist when he
appeared before the Committee on Foreign
Affairs In 1870. he made written statement
which had attached att AFFIDAVIT In wnicn he
: swore that he had made the st itement volnn-
r tarily from considerations of pdbhc policy. Tue
committee In reference to the conduct OF the
Commissioner say;
In view Of al the fact. above st forth In reference
COmms.iouor ialm,dge. your com niitcr are ot the
opinion that his conduct g been sueh a. TO bring ds
eledit up1n tHe Government aud TO sloJte him, an,
all concerned win him to tne uuqualinci disapprona
part Of Congress dsavosins a. TIER acts al makinS
tnat promD, rep ration which required IN tn prem
IA or pr "a L.
people. anu to MAINTAIN jut anu hb raj polcy toward
only comp aus OF the enicia condlc OF tnc Amer
ae eims a es py he Comsio or liner b I'M
Unpire OF the mission were Of themselves OF sue
- Of the claims Dy an honest and clmpcient tribunal
&c SPECIMENS OF FRAUDULENT CLAIMS
l. The report then reviews every case which wa
$ decided by the umpire. The claim OF " :
It Millet was raised from $40, 80 TO sitsS'5.e,
D. based upon two contracts executed In NAV
I. 1862, between these persons and the venezuel
,. Consul In New York. acting under the authorit
n OF Gen. Paez. then military dictator of Venezu
Il ella. The contracts were made without author
/. itv. were extraordinary In their provisions. an
Il void upon their face. ihey provided, nrsf, 10
~ mantainine a continual stream OF emigration
= from New York to Caracas for ten years
the emigranis received large donations OF land
~ landing them IN that country; second, for lin
= Of steamships between New YORK and Caracas
m with subsidy OF $1,000 year for three year
o. aud 5000 year for twenty-seven wears. Vine
the contracts were made the dictAtorlal Govern
AZ ment mad been overthiown and the Cgnstitt
= tional Government was estAb ished. Tho Unite
n States mad expressly refuse TO rec lgnise ia
,d PI-z Government a. the Government OF Nene
IN Government in the world. All the acts II III
A. Paez Government were annulled as soon a. ~
Constitutional Government was reestablishet
NJ and vi hin Two months after thus the pretende
SO contracts were made. hese two fraud LEI
contracts, which nave never been carried out b
an the claimants no ship ever having been nut int
"a service, were the basis OF an award OF S25J.OJ
n Ihe claim Of John CLARK, for which the uu
~ pire allowed SlG,,ODO, grew out OF Capt. Clark
prizes which he [ 'piured from Spain and Por
nv uga while ,iling under letters OF marque an
RI rrprish from the Banda Oriental Republic
,i- Paraguay. IN lsl7, the prizes having oeen r.
- taken from HIM 10y the Columbian navy. IN
claim. SO n a. Venez ella was concerned, la
beca paid IN full IN 1853 10 the executor OF Ciar
earnest solicit zion of our Minister IN that con-
Try and the claim at that time was without NEIL
As CLARK had no rignt to claim an thing fro
Nenez Iela Us an American citizen, from the IA
in I'll It he was acting under the commission OF al
rh Inc largest claim allowed was that Of Jacc
m Ilers heirs, who DOT iined an award OF S259.sl
tn ins grew out OF supplies t1 urn C9l2mn
he had Instituted a suit In the local courts and %
ID; tanned a Judsment for 5000, which was :
as prosecution on ldler's part tho claim was anai
doned for over thirtv;hye We irs, when 1t VI
,rs presented to the MIX d Commission and all ov
ar Ell to the amount OF $4,000, with interest cot
ere puted at $lS2 s9i Inis Is a sample Of the calu
,'e allowed. The committee say
sr- SWEEPING CONDENSATION Of THE AWARDS
Nv On careful examination of each and every one
the cases decided rs the umpire Your committee ma
failed TO d-cIYer SINGLE award Nilch /, justified
the law or thc evidence. Not one OF these
watch were AIJuugrd TO be paid out OF the impuvrr.l
cd RESOURCES OF that rtpuOAc, aMou 4tlns u neal
NO $4,000, Is Of such chNrlctcr, when the merits
80 u fairy considered and understood, Ne
titlt- Il TO any cpnsdcra Ion whatever, Now thar I
ar fraudulent character OF these C.aln- Is exposed.
Int, GoNcrnmr cannot, clnrstenty with nau0na hon
ami that far dealing which sh lud always characters
la the conduct Of stronger governments toward
a. ones, insist further upOI their payment.
The report then reviews the proceedings
or t"n-res, since we tuJptIHneht OF the 'ohln
rel sion, which resulted IN the passage Of an act
Foo. -, 1874, which declared tho adj udic ttion
tho tue claims as nnal and conclusive, ana val
Al against the Republic Of Venezuela. rms act
sun in force, and was lObbied through Congrc
ra ~ laI. ., -, "N OtnoIs