The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-12-21
Seizure OF ships Carrying the vene-
zueIan Flag Begun at Once, to the
Surprise of the Owners.
GERMAN FIRM A SUFFERER
OWNED THE CAL o OF THE FIRST
PRIZE TAKE, YESTERDAY.
Commercial Panic at Caracas When
Was Made-British Ship Ashore.

WASHINGTON, Dec. 2O.-It is now al
most certain that the Venezuelan dispute
will be arbitrated. but the method of
procedure and who the arbiter will be have
not yet been determined. President Roose-
Welt has proposed to the allied powers that
the dispute be submitted to the arbitra-
tion OF The Hague tribunal The powers
have replied with counter proposal that
President Roosevelt himself arbitrate the
issues. The President does not wish to act
as arbitrator In this dispute, for as such IL
Is felt here he would be at once Judge. jury
and constable and would be under moral
obligation TO execute his own Judgment
The President feels that a reference TO
The Hague tribunal would vastly
strengthen the cause of arbitration. Still.
rather than see the present dispute proceed
10 extremes IL is probable the President will
reluctantly assume the duties OF arbitra-
tor. 1t Is fully realized that any decision
rendered by him in that capacity would be
sure TO bring him the enmity OF one or the
other parties to the controversy, and this
fact was pointed out to the President early
In the week by leading senator who had
been called into consultation. Nevertheless
TO prevent bloodshed and the destruction Of
property and interference with great com
merciai interests that would result in loss
1t is believed the President would assume
the charge providing his own view cannot
prevail.
PROTOCOL NECESSARY.
II an agreement is reached on arbitra-
tion, the procedure would be for Mr.. Bow
en-. representing Venezuela as a plenipoten-
tiary, to sign with the representatives of
the allies a protocol stating that the case
Is to be submitted to arbitration; that Ven
ezuela admits the right of diplomatic in
tervention in behalf OF a claimant a prin-
ciple she has always resisted, and that the
details Of the arbitration shall be arranged
IN a formal treaty which she pledges her
self to sign. This treaty will provide i'm
the greatest detail for the security of for
eign interests against vexatious and extor-
tionate Interference on the part of the Ven
ezuelan government hereafter, and will in
sure the administration of exact Justice in
the settlement OF claims and especially will
IT relieve foreign residents OF Venezuela
from forced loans and persecution in times
of revolutions.
The status of the arbitration negotiations
at the clase of the official day, as disclosed
at the state Department, was that the
powers were waiting for an answer from
the President to their proposals that he
himself undertake to arbitrate the yene-
zuelan difficulty. The Presidents answer
can only be guessed at. for the officials de-
cline to express any opinion of their own.
However, IL Is believed TO be a safe predic-
tion that he will renew his suggestion that
the case be submitted to The Hague tri-
bunal, adding TO the argument he has al
ready produced the fact that the United
States, having claims of its own against
Venezuela &c the amount of about slOo. 900.
Is a party in interest. and it would be un-
fair TO put the President In the position of
having to arhitrate his own claim For
their part, the powers bring against The
Hague proposition the argument that Pres
fdent Castro would feel lightly bound by
any decision by that tribunal, but would
be certain TO heed a Judgment rendered by
the President.
NO BACKWARD STEP
IL is said at the State Department that
no matter how these two propositions are
disposed on there will be no backward ster
and that an agreement OF some kind which
will bring about a peaceable settlement OF
the Venezuelan troubles will result from
the present negotiations. or course, IL the
President should accept the charge which
as already stated, he would do only as a
last resort IL is understood the actual. bur.
densome work OF arbitrating the claims
would not be undertaken by him personally
but probably would be. as is customary ir
such cases. 'confided TO one OF the thorough.
ly efficient and trained assistant secretaries
OF the department.
AT the German embassy tonight, denial
emphatic and authoritative. was given e
the various reports in circulation that Ger.
many is anxious to acquire Margarita islane
and will work to this end In any settlement
that may be agreed upon. Germany. IL wa.
said. has never for instant held de.
signs on Margarita island or any otheI
Venezuelan territory. Her effort through
out has been merely TO obtain satisfaction
for the claims pending against the Caracas
| government and for indignities committed
against German citizens This position was
| made plain To the State Department by tn.
| German ambassador. MIR. Won HoIleben
last year. and the Washington authoritie,
accepted then and accept now In Goot