Evening star., 1895-02-28
THE SAN poMlNGo- TROUBLE
It Nay Affect 0ur Relations With All Gem
tzal and South American Republics
How the French government Proposes
!!
C0mDAny Affected.


United States with all of the countries Of
Central and South America, and the In
dependent republics Of the West Indies.
obligation upon the United States to pro-
feet these countries from the forciple col
lection of foreign debts and indemnities at
the hands of European powers. Several
years ago the president of Santo Domingo
foIcibly entered the premises of a French
bank there and took from the vaults a
considerable sum Of money, which he
alleged to be owing to him. The matter
being reported to the French government,
was made subject of negotiation, and
wound up with a formal demand for resti-
tuition. This was refused, and the French
government, after using peaceable means
of securing indemnity, indicated purpose
of sending some war vessels to Santo
Domingo to enforce a collection. 1t was
the purpose Of the French to seize upon q
sufficient amount Of the revenues Of the
republic to reimburse the claim.
An American Company InterpOses.
. At this point an obstacle was interposed
by an American company. The Dominican
government being in financial straits in
1888 made an arrangement with the firm of
Westendorp & Co.. bankers Of Amsterdam.
for loan of f770,OO0 to take up the in
ternal and foreign debt Of the republic.
To insure payment the Amsterdam COM
pany was given the right to collect directly
the receipts from all Of the Dominican
custom houses, and the loan was made
first lien upon all OF the customs receipts
and a mortgage on all of the revenues of
the country. In 1880 this loan was con-
siderably extended for the purpose of
building a railroad. In 1892 Westendorp &
Co. transferred all Of their rights to an
American company, chartered in New
Jersey. under the name of '"The San Do
mingo Improvement Company of New
York." the leading spirit of which was
Smith Weed. 1t is this company which
has now come to the front In opposition
to the execution Of the French program Of
a forcible collection Of the indemnity
claimed by 1t.
A Serious Injury.
It has represented to the State Depart
ment that If the French ships undertake
to interfere with the collection of the Do
minican revenues they will trench directly
upon the rights Of the American company.
and that even any attempt to close the
ports or to obstruct business in any way
that would curtail receipts would be an
injury to the company and operate to pre-
vent the fulfillment of its obligations to Its
stockholders. The case is further compli-
Gated by the fact that the bonds of the
Dominican government are largely held In
Holland. Belgium ENGLAND, as well as In
the United States and France, and natural
ly these people fee1 an interest in prevent
ing any action by France that might de-
Stroy the resources OF the company, to
which they must look for the security Of
their bonds. o. .
The Dominican gOvernment has taken no
direct action in the matter and has left 1t
to the company to appeal to the State De-
partment for protection. although the Do
minican charge, Mr. GIL, has accompanied
III he =
ative, to Washington from New York, and
has heard the statements he has made to
Secretary Gresham The Secretary has
been impressed with the justice of Mr..
Weeds claims. and about two weeks ago
he cabled to Mr.. Eustis, our ambassador to
French government that the United States
could not look with indifference upon its
proposed action. He was to represent that
an American company had large interests
in Santo Domingo. and to express the hope
of the United States government that the
French government would not be unmind-
full of the interests of that company in
whatever course 1t pursued.
This is the style of gentle diplomatic
warning that usually precedes more ur-
gent representations in case of necessity,
and 1t remains to be seen whether it will
be sufficient. Probably it will not be, for
1t strikes at the right that has been freely
assumed by European nations to collect
tndemnities and even to require the pay
AueAe u loTeiSu OeOtS Dy IOrce II necessary.
Importance of the Incident.
The incident acquires additional import
ance from the fact that several Of the
small republics of Central and South Amer
lea have recently defaulted in the payment
Of interest upon the foreign debts. mostly
held in Europe. and II the United States is
committed to the assertion Of right to
protect them against their creditors in
cases like that Of Santo Domingo, it may be
that they will follow the example of that
country and farm out their revenues to
American corporations in order to secure
immunity,
The French Governments Action.
The French government has so far &C.
ceded to Secretary Gresham's representa-
tions in the matter of attempting forcibly
to collect indemnity from San Domingo as
to abate for the time its insistence
upon an immediate settlement of the
claim for indemnity of the French
bank, and to leave this to be set
tied by diplomatic negotiations. 1t in
sists, however, condition for this ac-
ton. that the government Of San Domingo
shall Immediately pay the indemnity
claimed for the unwarrantable killing of q
French subject during one of the revolu-
tionary movements on the island. 1t is
probable that Secretary Gresham will use
his good offices to induce the Dominicans to
avoid trouble by settling this claim. if it is
meritorioIs, inasmuch as there is ample
ont 70. c,,1Hn1