Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1899-01-31
HAvANA'S FINANCES.
President GaIbis Of Banco Es-
pamela Of Havana,
Must Explain Transactions With City
or Be Jailed for Contempt.
Spanish corrupllon in Musicipal Affairs 10 D
Thoroughly Ventilated.

| president of the BlancO Espanola, was
notified. today, by the special commits
| sion now investigating the finances Of
| the municipality that he must appear
before the commission, tomorrow morn
| ing, to answer interrogatories or must
| take the consequences of contempt,
| the penalty for recalcitrancy in the
mind of the commissioners being inn
prisonment until he Is willing to tes-
| tify. Major Gen. Ludlow. governor Of
| the department of Havana, has invest
ed the commission with the powers Of
court and will sustain it's action in
Furnishing a refusal to testify.
The Banco Espanola is so intimately
connected with the finances of Ha-
vana as a creditor to the amount of
$500, 900 and as q farmer general If
the principal sources of the citys reve-
nues. that the commission deems 1t
necessary to have a complete account
ing from the bank as to the past tram
sactions and a statement of what it Is
doing now with the city's market dues.
The commission required Senior CAL
bis to present himself for examination,
last Friday. and again. Saturday. but
he sent word that, he was indisposed.
He was then asked to SOME before the
commission. this morning, but he sent
message that he was physically UNI
able to comply. in consequence OF the
exhaustion due to his bank Slabors.
This reply was regarded as unsatisfac-
tory and the preemptory notice for to-
morrow was served upon him.
If he refuses, the only thing that can
prevent an arrest--so member Of the
commission says-will be medical GER
tificate. Should this be produced the
physicians who act for the commission
will be sent to make a physical exam
nation of Senior Galbis OF course IL
he is really i'll the commission will wait
until he RECEIVERS: but il he is malin-
gering and obstinately refuses to tcs-
tify he will be dealt with for contempt
and made an example. Is
The commission expects to have easy
work so far as the other official direc-
tors and employees are concerned. All
will be called upon to make full expla-
nations. Mr.. c. w. Haskins. the expert
accountant. and his assistants will ex.
plore all the books of the bank accessi-
bic. Information has reached the COM
mission that some of the books Of the
bank have strangely disappeared. The
commission considers it 4 public neces-
sity to inquire as to the integrity OF the
first mortgage. $s,OO0.0O0 in per cent.
so year bonds. taken by the bank at 10,
III 1890. and since reduced by SINKING,
fund to $6.721,000. The questions are,
who got the proceeds. how much was
released and whether the bonds in thel:.
entirety are or ought to he chargeabl.
to the city. Later the commission will
go into the $3.5O0.00O Bank OF Com
merce loan and also into the floating
debt amounting to $500. 900.
This enquiry will either establish or
negative the various statements on
connivance and corruption on rhe part
of the Spanish government which de-
posted with the Banco Espanol In sill
yer an amount equal to one third Ut
the so, 900 note issue guaranteed by
the bank. 1t is not clear where the sill
Yer is. The officials of the bank assert
that Spain withdrew 1t; but some note
holders say the silver Is still held by
the bank. orcontend that. IL the bank al.
lowed withdrawal. it Is still respon-
sible for the redemption of the notes. As
the question is one of keen interest to
the business community, the commits
sion proposes to carefully probe It.
The Banco Espanol Is capitalized at
$S,00O.0O0 The amount of deposits il
not known to the commission, but il is
supposed to be at least 81. 900, 900. The
directors are wealthy. Options on the
banks stock were held a few days ago
bys prominent Americans. A good
block of Havana bonds Is held in New
York. First mortgages were quoted on
the local bOurse. today. at s102.
President Mckinley Is understood to
have empowered Mr.. Robert p. Porter m.
arrange for the disbursement OF s. ono O(O
among the Cuban soldiers Mr.. Porter
will probably go with Senior Gonzales de
Quesada to Remedies to meet Gen. Max.
limo Gomez. the persuade the Cuban com.
to disband his forces and
to lend his Influence to the United States
military administration. Mr. Porter and.
Senior De Quesada are comforting, TO-
night, with the governor general.
DR.. Castillo. who returned from Re-.
medfOs, today. after a two days visit.
with Gen. Gomez. says the latter is much
hurt by what he regards as American
neglect of his authority and rights and IL
to advise his soldiers to 60
home penniless. Gomez purposes coming
into the neighbOrhood soon and viii re-
view the Cuban troops at Mar.anO. There
is some doubt whether he and the other.
military chiefs will accept the $3,O00NuO.
no matter what other favorable condi.
lions may be offered.
Mr.. Porter, who, ll Is understood, will
act as the personal representative Of
Mckinley, has been directed 10
learn the best terms that can be made
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