The sun., 1902-12-04
CAN VENEZUELA PAY?
the View In London-Negotiations BY
J. l. ". Seiiynian 4 Co.
'peeid Cable Despatch

Special Cable Despatch TO THE SUN.
LONDON. Dec. 3.--Where is the secret
Venezuelan commission'" is the quest ion
that Is interesting London financiers; but
nobody replies.
Three years ago, Arthur Hertford. an
American, came to London with proposals
to purchase the Ecuadorian debt. Mr.. Hert-
ford entertained at the Savoy Hotel select
p rty Of half dozen prominent South Ameri-
can financiers and holders Of South Ameri.
can bonds Mr. Seligman was present at
the dinner. which developed a proposal
that Messrs. Seligman and Hertford
taken over the Venezuelan debt, which 1t
was proposed TO remodel in one compre-
henslve unification scheme, Mr.. Hertford
holding concession from the President
Of Venezuela to do 30.
II was then suggested that Mr.. Hertford
would he able TO obtain a British or Ameri-
can guarantee. After this a revo'u ion
broke out and the whole scheme collapsed
The correspondent OF THE Sun has now
interviewed one Of the gentlemen who was
present at the dinner mentioned, and he
may reasonably be described as an authori-
tative fnancier on London and South Ameri-
can money matters. He said;
Il know nothing Of this mysterious CON-
mission. and do not believe II is here. I
have a personal code with the smartest
agent In Caracas. He has not sent me a
word. 1t Is almost impossible to believe
that this important commission could have
left Caracas unknown to him. / can state
that the Foreign Once Ia ignorant Of the
presence OF any commission. and rs coon 8 IA
they hear Of 1t they are likely to drop me
an un, m 'al hint
1T ia my opinion that this talk concerns
rival to the unifcation scheme exploited
by Mr.. Selgman three years ago, but what
In going TO induce the British or United
States Government to guarantee a now
issue? My idea is that IL ia out Of the ques-
ton, and the British and German bond
holders to the extent of t5, 10000 must
look after themselves without a Govern
ment guarantee.
Il don't see where Venezuela is going TO
get money to pay it's debts. but with a salts
factory proposal it might ISSUE new unifca-
ton bonds. for which il would have to paw
a tremendous price, What know is being
done is that the British and German Cow
ernmcnts are determined to go to extreme
lengths TO obtain satisfaction of the claims
anu tllty Will S'Iitl NdltHIS, IL
This will not be interfered with by the Wash
ington Government. who have obtained
satisfactory Ang nglo-German assurances that
they have no intention to annex Venezuelan
property after the payments are made.
With regard TO the commission. l am
prepared 10 wager , to | that there is none
here"
Az the Office Of j. & W Scligman 4 Co.
bankers, IL was stated Yesterday hv a repre-
sentative of the firm that it had been re-
uuested by some European interests to act
for them in msking an arrangement for
;he settlement of the claims against Nene-
zuela
Nothing definite. however, has been
arrived at - said this representative. we
do not understand how II Is that the news
papers got the idea that the firm wished
the United States Government to guarant ec
the Venezuelan loan or the interest on the
Venezuelan loan. No proposition Of this
sort had been made by the firm to the United
States Government"
II was learned definitely las. night that
the European interests which asked j. h "
Seliguan & Co to act for them made thei'
request through the London house of Seliy-
man 4 Co, which is now in negotiation
with committees. both German and Eng
'i'h. representing the holders of Venezuelan
obligat ions.