Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1902-01-04
GERMANY AND VENEZUELA.
Important Controversy Involving
the Monroe Doctrine.

Important Controversy Involving
the Monroe Doctrine.
AS a general rule, there are two sides
to every controversy. and there seems
to he no valid reason for holding the
present dispute between Germany and
Venezuela as an exception.
Germany's side Of the case. briefly
stated Is that Of creditor who alleges
bad faith on the part of debtor The
claim Is that the government Of Vene-
zuela owes to German subjects sun
dry large sums of money. aggregating
several million dollars. long past due,
payment Of which is now refused.
Venezuelas side Of the case, briefly
stated. Is that these claims are exag-
gerated in amount. and in many cases,
fraudulent in origin.
This immense debt Is made up OF In
IDENTITIES for lapses and injuries al
legged to have been sustained by Ger
man residents and German capitalists
by reason of various revolutions" To-
cal and general: and Of large sums ad-
vanced by a German banking corpora
tion to enable Venezuela to pay a guar
antee Of seven per cent. annually on
the capital invested in a German rail-
way enterprise in that republic, and
also Of outstanding interest on these
various monetary obligations. The
claim is that a former administration
of the Venezuelan government recog-
nized these obligations and agreed to
pay them: but that the present admin
istration refuses to pay them and In
sists upon their re-eXamination and re-
vision.
Such is understood to be the issue.
With respect to the indemnity claims,
even assuming that they are just and
equitable, there appears to be no valid
reason why German subjects should
be considered preferred creditors.
There are numerous claims by citizens
and subjects Of other nations, growing
out of precisely the same conditions,
that are equally good: and, by every
consideration of justice and equity.
should have equal consideration. In
deed to treat them otherwise would in
volve a palpable violation Of public
treaty stipulations.
With respect to the guarantee OF 7
per cent. on the capital invested In the
railway enterprise, the facts are brief
ly these: Some II or Is years ago. In
season of unusual prosperity and over
trading, the Venezuelan government
incautiously agreed to guarantee a re-
turn of per cent. per annum on the
capital necessary to construct and
equip a narrow-gauge railway between
Caracas and La Victoria, provided the
total cost should not exceed 100000 per
mile, and that when open to traffic the
road should fail to earn a dividend OF
per cent. annually to its stockholders
being. for the most part, German sub
jects The claim is that the road cost
over 100000 per mile, and that 1t has
never paid anything over and above ac-
tual expenses hence the demand for
the per cent. guarantee.
In the opinion of experts, the road
could have been easily built and equip
ped for a much less sum than 100000
per mile, and that, as it penetrates one
of the most densely populated and pro-
ductive regions of the republic, and has
short seaport connections at both ends
it ought, under proper management, to
pay a dividend of not less than or II
per cent. One of the connecting roads