The times. [volume] (Washington [D.C.]) 1897-1901, 1901-01-05

The controversy over the possession of
the pitch lake deposits in Venezuela. at
first regarded as unimportaut have de-
veloped into a serious diplomatic incl
dent that may make radical difference
in the relations between Venezuela and
the United States. Advices received at
the State Department yesterday indicate
that a clash of arms between American
citizens and Venezuelan soldiers may
come at any time. An attempt by the
authorities of the Republic to dispossess
the New York and Bermudez Company of
part of It's interests in the Department
of sucre viii probably be forcibly resist
ed by the ccmpany's employees.
In an effort to avert bloodshed and Sc
rious diplomatic difficulties, the United
States Government has served notice on
Venezuela that it must not take any hos
tile steps to secure possession of prop
erty held by tie New York and Bermudez
Company until an opportunity has been
given to obtain settlement of the dis
pute through the courts or by some other
peaceable measure. The earnestness OF
the Government in the matter is attested
and Buffalo and the gunboat Scorpion to
station at La Guayra, the port of
Caracas, Yenezuela's capital. This con-
centration of a squadron at La Guayra
is a radical departure from the intention
of the Government to have only one YES
sci there.
The State Departments adyices came
from Francis B. Loomis, the United
a
Department officials are reticent as to
the details of his report enough infcrma-
tion was obtained yesterday to justify
the assertion that Mr.. Loomis regards
the situation as extremely threatening.
The Venezuelan authorities have made
preparations to forcibly dispossess the
representatives of the New York and
Bermudez Company from the pitch lake
known as La Feiicidad. and the company's
representatives. have determined to resist
any such attempt. 1t is said that one
hundred Americans. all armed. are ready
TO fight for what they consider their
rights. The department now knows that
telegram received from Mr.. Loomis On
Wednesday, which was not clearly
phrased. was intended to convey the in
formation that a conflict at arms be-
tween the Venezuelan soldiers and the
employees OF the company had been Lar-
rowIy averted
Now comes the news that the danger Is
as great as before. Nobody here is will
ing to predict what the outcome of blood
shed would be, but the officials admit
that any attempt by Venezuela to lse
force to dispossess the New York and
BermudeZ Company would be an affront
TO the United States in view of the notice
served that the American Government
could not afford to overlook. This Gov
eminent has virtually protested against
neighbor, holding that an impartial judi
cial body must pass upon the contep ions
of the parties TO the dispute
Briefly. the story of the trouble is this:
In 1895 Venezuela granted a concession 10
the New York and Bermudez Company. an
American corporation, and a branch of
the National Asphalt Company TO exploit
the pitch lakes in the Department Of Ber-
mudez. now the Department Of Sucre, in
that country. Recently Venezuela grant
ed concession to the Feiicidad Company.
another American concern 10 exploit The
pitch lake known as La Felicidad, in hat
department. The New York and Bermu-
deg Company claimed that its right to ex-
plot pitch lakes in the Department of
Sucre was exclusive. and produced its
concession to prove that assertion. After
controversy the case was referred 10
the Venezuelan courts for adjudication
but no decision has been rendered. Mean
while the Venezuelan Minister of he In
terror attempted to dispossess the COM
pany OF the Felicidad lake. presumably as
the first step in the process of transfer
ring it to the other American syndicate.
1t is this attempt which the New York
and I5,srmudez Company threatens to re-
sist by force of arms and which has
caused the United States TO warn Vene-
zuela of the serious consequences which |
might follow a resort to hostilities Min
lister LOOMS has been instructed to i'm |
press the Federal authorities at caracas l
with the serious views held in Washing
ton, and to urge a postponement Of any
action against the New York and Bermu-
dee Company until there has been a de-
cision in the matter by some impartial |
body.
C. NJ. Warner and other represen tatiyes |
Of the rival company, whose claim is known !
as La Felicidad'' concession. have been |
at the State Department, and had a hear
ing before the Solicitor. Senator Penrose |
was present. The representatives also saw /
the President. and made a statement of |
their side Of the case to him
Gen. I'd V. Greene OF New York who is |
at the Head OF tha Asphalt Trust, and !