The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1902-11-30
IN THE HANDS
OF SHYLOCkS
Venezuela Must Pay Money That
Is Owed Abroad.
SYNDICATE HAS A. SCHEME
PRESIDENT SOUNDED AS TO THE
POSITION OF THIS COUNTRY.

WASHINGTON Nov. 2s.-The ap-
W. pearance in Washington of I.
Seligman. a member of a New
York financial house which. has en-
gagged extensively in international syn
dicates, taken m connection with the
Associated Press dispatches printed
this morning from London relative TO
Venezuelan finances, was viewed in Of
fetal circles here today as indicating
the existence Of a syndicate with the
purpose of floating all Venezuela's
debts and thus averting the imminent
danger that that country now stands In
Of the seizure of her customs houses by
foreign powers. The assumption is That
the prospective syndicate wishes to
ascertain before closing a bargain with
Venezuela whether or not the United
States will insure the meeting by Vele-
zuela of the obligations she would as
sumo In the matter Of repayment of the
loan.
Gould Not Object.
The United States government, it can
be stated on authority, is extremely
DESTROYS that Venezuela settle her trou-
bles with Gr5at Britain, Germany and
other foreign countries without incur
ring the seizure of any Venezuelan
ports. even temporarily For it is real
lied that while the United States could
not consistently object to the seizure
Of Venezuelan customs houses by a for
efgn power as a means of collecting
Just debts, this is regarded as the con-
tingency to be avoided if possible, for
it is realized that serious friction might
follow between the foreigners and the
Nenezuelans, and what at the begin
ming might be declared to be merely
temporary occupation would end by a
claim of permanence of which the
United States must take notice and
which 1t must contest. Therefore, if
any responsible financial body is will
ing to pay off VenezueIa's foreign
claims and so relieve the country of
danger of occupation, such a move
would be welcomed by the state de-
partment.
No Guarantee Will Be Given.
But it is known that the official set
tlement touching the guarantee by the
United States government of the syn
dicate's Venezuelan loan would be IN
favorably considered. The department
of state objects very strongly to giving
any guarantee of this kind, and its of
fetal practice has been to extend to
an American holding foreign bor.ds
such protection as it would accord 10
any OLner c1IlZen, Out allow him to
bear the risk of his own venture, hold
ing that he takes the bonds of a for
eign government subject to the vicis-
STUDIES Of that government and cannot
expect the United States to act as his
collector in the event that his specula-
ton does not turn out as we'll as he eX-
pected.
Mr.. Seligman lost no time in bringing
his business to the attention of the
government, and before noon he ap-
peared at the executive offices with
Senator Hanna and was promptly adj
mitted to the presidents ROOM The
conference did not last long, and when
he came away Mr.. Seligman declined
to. make any statement as to the rea-
son for his call. 1t is understood, how
ever, that he sounded the president
upon the line indicated above and that
the president could not see his way
clear to involve the United States in the
financial difficulties of the American
republics that might follow from the
acceptance of Mr.. Seligman's PROPOSE
ton. 1t may be that the matter will
later take form that viii make it pos
sible for the state department to favor
ably entertain it.
Mr. Seligman tonight said that an
other conference would be held tomor-
row, at which Secretary Hay will be
present, and at its conclusion he would
probably give out a statement