Savannah morning news. [volume] (Savannah) 1868-1887, 1886-02-09

OF bis governments bonds now held by
citizens of the United States, for the pur-
pose OF buying them up at a nominal
price. Among the documentary evidence
died with the committees letter marked
'sStrictly confidential" and bearing date
OF April y last, and addressed by the
Venezuelan Minister to his New York
correspondent, of which this is a copy:
"If you could secure the whole 81, 253, $40
Venezuelan awards at 40 per cent, COM
putting in this 40 the 15paid, or, say % per
cent, will engage TO get the thing done
at once"
A few days before the minister is
charged with having written this: "About
the 81, 900 Venezuelan fraudulent
awards (pardon the plain talk }, which |
have contested and will. it seems to me
that if they could be purchased by you at
avery reasonable figure would have my
government to protect you" Further,
the Venezuelan Minister is charged with
VariOusly using his official influence to
bring about a review of the award made
on these bonds by international arbitra-
ttOns, which award was declared to be
final, but to review which contemplated
long delay, a probable reversion of the de-
cisi0n, and consequent depression of
their market value, during which they
were to be bought up at nominal figures.
The charges were filed by Grammond
Kennedy, an attorney of New York, who,
II is understood, intends prosecuting them
vigorously.
A member OF the Senate Committee on
Foreign Relations is quoted as having said
that he believed these charges will result
in not only the removal OF the Minister
but the withdrawal Of the treaty now
pending between this country and Nene-
zuela.
Your correspondent called upon Senior
SOteldO tonight and obtained from him a
brief statement of the subject of the Ken
nedy charges. The Minister said that he
had written certain letters to a friend who
had verbally communicated with Gram
mOnd Kennedy, the attorney for holders
OF Venezuela commission award certi1-
Gates, in which it had been stated that
compromise would be made, by which, at
a figure greatly less than the par value of
the certificates, he would recommend to
his government the purchase Otthe claims
represented by these certificates. This,
the Minister said, was proposed as an
easy settlement of veXatiOus matter.
He says both he and his government con.
sidered the awards fraudulent, but were
willing to forego this consideration for
the sake OF closing the matter and thus
avoiding further uncertainty and trouble.
The proposition of Mr.. Kennedy was to
bCbbAC dL aDOub ~ pCl NNhbs VI tAN law
value of the certificates.
The amount of these certificates all told
as near as the Minister could recall is
81, 253, 800.
The return proposition made by Senior
SOteldO. however, was to settle at much
lower figure than this. The proposition
was made through a mutual friend. The
Minister thinks that the letters which
Kennedy filed to-day must have been those
written to this friend. If so, he says there
is gross violation of honor on the part of
the party who permitted them to become
public. or to fall into the hands for which
they were notintended, and il not so the
letters are fabrication of Kennedy. or
some one for him. He has no doubt that
the object sought to be accomplished is
the defeat OF the treaty negotiated early
December last and now pending before
the Senate. TO reopen the Caracas awards
and provide for repeating OF the claims
by new commission.
The object OF this treaty is to stop pay
ment of the awards now represented by
the Caracas certificates from the fund in
the Treasury to the credit of the State
Department, and the holders of the certif-
ieates naturally wish to defeat the new
commission. Many of the awards were
grossly fraudulent and scandalous to a
high degree in their method of procure
ment. On Jan. u Senator Sewell, of New
Jersey, offered a resolution calling for in
formation from the State Department on
this subject, but it is not likely that the
official files will throw any light on the
merits OF the Kennedy charges.
The resolution was referred to the COM
mIttee on foreign relations, and has not
since been reported back. Senior SOteldo
has letters from Kennedy containing the
40 per cent. compromise proposition.