New-York tribune., 1901-06-01
RERMUDEZ CONTROVERSY.
ONE SIDE OF THE ASPHALT TROUBLES
IN VENEZUELA

Caracas. Venezuela, May Is Speciality the
time this letter reaches New-York the High
Court of Venezuela should be about ready 10
give its decision in the famous asphalt case
For thorough understanding of 1t, history oI
the case is herewith submitted
In September 1888 Guzman Blanco then
President of the United States of Venezuela
made contract with Horatio r. Hamilton
whereby there was given to Hamilton or his
assigns the right to explore and exploit the
natural products of the forests existing on the
wild lands of the State of BermudeZ which has
since been divided into the tates of Barcelona
and Sucre. Bermudez was bounded on the north
by the Caribbean Sea- on the south by the State
of Bolivar, on the east by the Gulf of Paria
and the delta of the Orinoco, and the west
by what formerly the State of Miranda
It's area was about eighty thousand square kilo-
metres and its population about three hundred
thousand
The contract in express terms gives the right
to exploit all the asphalt, and provides for the
payment of a stipulated charge on all the prod
ucts so to be exploited. 1t TO last for twen-
ty-five years, and during that period no similar
concession for the State of Bermudez was to be
granted. This contract was approved BY the
Congress of Venezuela in it's session on June D.
1884 and the act approved by Crespo, who had
then become President. The contract thus be-
came law OI tle lallQ IN OClODeT, lCN' 'Ilc
New-York and Bermudez Company Orga
nized under the laws of the State of New-YOrk,
with capital of $1OOOO0O with view to take
over and carry out the Hamilton contract Ham
ilton duly assigned all his rights and obga-
tionS under the contract. and in December, 1870.
the assignment was approved by the Govern
ment of Venezuela and the company began the
performance of it's obligations. Since that time
the company has been continuously engaged in
the performance of its contracts Its operations.
mOdestly begun, were greatly increased. until
at the present time ii represents a great in
dustry, employing hundreds of workmen and
eXpending large sums of money yearly. The
most valuable asphalt deposit in Venezuela is
situated in the territory covered by the Hamil-
ton contract, |. <. in the parish of Union, Dis
trict Benitez. Section Cumana. now part of the
State of Sucre, about eleven kilometres south
east of the little village of Ciuariquen. When
the New-York and Bermudez Company began
operations on this pitch lake it was in the midst
of an almost impenetrable wilderness and In
country most difficult of exploration, by reason
of the dense forests and the swampy nature OF
the land. The area OF the pitch lake is about
fourteen hundred acres and it is surrounded on
all sides by mangrove trees and swamps Al
though the surface of the pitch lake is covered
in many places with high, wiry grass, the de-
posit is a continuous one. with well defined
though irregular boundaries. and II contains
asphaltum in almost every known form This
deposit has been worked by the New-York and
Bermudez Company from the time OF its dis
coverv The only way at that time known
through a winding Indian trail from the village
of Guariquen. This rough path wound around
the hills and through the forests. without re-
gard 10 distances so that In order 10 reach the
lake by it 1t was necessary actually to traverse
fia nffN-
pany's employees improved the way and de-
veloped out Of 1t a straighter road. by which
the distance was reduced 70 about eleven kilo-
metres.
THE ADJOURNMENT OF A TITLE.
The Hamilton contract gave the company the
exclusive right to exploit this asphalt deposit
for twenty-five years. but IT did not give title
to or ownership of the deposit itself For this
reason A H Garner. the secretary and manag-
ing director OF the company took proceedings
in 1883 under the Venezuelan law for securing
the title TO the deposit. with the result that on
December Of that year there was acquired
under the mining code a defntive title TO the
mine, and on December A. 1SSS. the company
secured by purchase from the government title
10 4 500 hectares. which included the surface OF
the deposit and lands needed for its working.
Early in the work Of development the COM
pany erected house, or rancho, on the roau
from Guariquen. situated on the slope OF the
hill, at the foot OF which the company con-
structed wooden corduroy bridge about twelve
hundred feet in length. over a lagoon leading to
the surface of the lake. For over year the
company exploited the mine by the old Indian
trail TO Guariquen, employing burro trains for
that purpose This was a preliminary step in
order to get the asphalt to market, and thus ac-
curatelv ascertain it's commercial value. Further
expIorations developed the fact that ample water
facilities would he found in the San Juan River,
10 the southwest OF the pitch lake. at a point
on one OF It's tributaries known as the Guanoco
River Here a settlement known as Guanoco
was established works were built a railroad
six miles in length was constructed ana Ihe
necessary docks warehouses and residences
were buiIt and from this place for nearly four
teen years the asphalt business was successfully
carried on without Interference or molestatlon
Machine shops and workmen's cottages abound
and within the last year a large refinery has
been erected the borders OF the lake at an
EXPENSE of 500. 900. where the asphalt is pre-
pared for the markets of the world Electric
lights were introduced in 1906 1t may be OBJ
served that the company has paid not only
the annual tax each hectare of mining land
as required by the new mining code OF Nenez-
uela but has also paid the duty expressed in the
Hamilton contract for all the asphalt exploited.
ATTEMPT TO REVOKE GRANT.
In the winter of 1896 Mr.. Garner whom
the burden of work of the enterprise had fallen.
left Venezuela on account of i'll health Almost
Immediately certain inhabitants of Guarlquen
who resented deeply the removal or the COM
pany's works to GuanocO began to intrigue to
deprive the company of part OF It's land Inc
leader in the enterprise Mateo Guerra
Marcano a lawyer and politician of Carupano.
He with three other Venezuelans, presented
petition to the local authorities of the parish or
Union to explore wild lands for asphalt, ana
three weeks later they triumphantly announced
that they had discovered a mine Of asphalt, the