The Providence news. (Providence [R.I.]) 1891-1906, 1895-02-28
FOR DIPLOMATS.
To Dispell Clouds Hanging
Over the Republic.
Farming Out Of Revenues Has Drawn
Uncle Sam Into a Muddie.

WASHINGTON, Feb. 2S "A quesUSn mas
recently arisen for tho determination OF
the state department that may be OF tho
first order Of Importance as affecting the
relations of the United States with all OF
the countries OF Central and South Amer
lea and the independent republics OF the
West Indies, involving as it does the OK
tent of the obligation upon the United
States TO protect these countries from the
forcible collection of foreign debts and in
IDENTITIES at the hands OF European
powers.
Several years ago the President of San
Domingo forcbly entered a French bank
there and took from the vaults consid-
cradle sum of money, which he alleged to
be owing TO him. The matter being re-
ported to the French government, IL was
made subject of negotiations, ana
wound up with a formal demand for restl'
tuition.
This was refused, and the French govern
ment. after using peaceable means OF Sc
curing indemnity, indicated purpose OF
sending some war vessels to San Domingo
TO enforce collection. 1t was the pur-
pose of the French TO seize upon suffi-
cient amount of the revenues of the re-
public TO reimburse the claims
beginning of Complications
At this point an obstacle was interposed
by an American company. The Domini-
can government, being in financial straits
in 1883, made an arrangement with the
firm of Westendorph q Co, bankers of
Amsterdam, for a loan of g710, 900 TO take
up the internal and foreign debt of the
republic
10 insure payment the Amsterdam
company was given the right to collect di-
rectly here from all the Dominican custom
houses, and the loan was made first
lien upon all the customs receipts and
mortgage of all the revenues of the coun-
try.
In 1890 this loan was considerably ex-
tended for the purpose OF building rail
road In 1892 Westendorph a. Co. trans
ferred all of their rights to an American
company chartered in New Jersey under
the name OF "The San Domingo Improve
ment company of New York" the lead.
tng spirit Of which was Smith Weed.
lit was this company which has now
come to the front in opposition to tho
French program of forcible collection of
the indemnity claimed by it. 1t has rep
resented to the state department that II
the French ships undertake TO interfere
with the collection of the Dominican rev.
enues 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 will be an injury
to the company and operate TO prevent
the fulflllment of its obligations.
The case is further complicated by the
fact that the bonds of the Dominican
government are largely held in Holland,
Belgium and England, as well as in the
United States and France, and naturally
these people feel an interest TO prevent
any action Of France that might destroy
the resourcesof the company TO which
they must look for the security of their
bonds.
state Department Appealed To.
The Dominican government has taken
no direct action in the matter and has
left IL TO tho company TO appeal TO the
state department for protection, although
the Dominican charge d'affaires, Mr.. Gill,
has accompanied Smith Weed, the COM
pany's representative, to Washington
from New York, and has heard the state
ments he has made TO Secretary Gresham.
The secretary has been impressed with
the justice of Mr.. Weeds claims, and
cabled Mr.. Eustls, our ambassador TO
France, instructing him to inform the
French government that the United
States could not look with Indifference
upon its proposed action.
That Is the usual gentle diplomatic
warning that precedes more urgent repre-.
sentations In such cases. and it remains
to be seen whether it viii be sufficient.
Probably IL will not be, for 10 strikes at
the right that has been freely assumed by
European nations To collect indemnities,
and even TO require the payment of foreign
debts by force If necessary.
The incident acquires additional i'm.
portance from the fact that several of the
small republics Of Central and South
America have recently defaulted i'm the
payment, of interest upon the foreign
debts, mostly held in Europe and If the
United States is committed To the assert
ing of rights TO them against their cred.
itors in cases like that of San Domingo. it
may be that they will follow the example
OF that country and farm out their rev.
snues TO American corporations in order
60 secure Immunity.