Evening star. [volume] (Washington, D.C.) 1854-1972, 1902-02-08
OF GREM STRATEGIC VALUE
SENATE > COMMITTEES REPORT ON
DANISH WEST INDIES.
Secretary Seward Offered $7.50O,000
foroThems which Was Declined
COneessions to BE Protected.


ate committee on foreign relations of the
treatyffer the cession of the islands of the
Danish West Indies was accompanied by a
written statement made by that committee
to the Senate This report shows that dur
ing the year 1900 the islands exported to
the United States sugar. molasses and dis
titled spirits, amounting to S56S, $40, and that
during the same period the expectation
from the United States amounted to S624,-
oh The annexation of the islands was
sought by the United States years ago, and
as far back as 1867 Denmark declined to
sell the islands for S5,e00 600, but made
proposition to part with them for S15,0Go,-
900: Secretary, Seward offered $I,30a,009,
which was declined. He afterward agreed
to pay that amount for the islands of St.
Thomas and St John, but the trade fell
through because of complication which
arose. At that time Denmark insisted that
the consent of the people of the islands
should be formally given before the sale
should be contaminated, and when the
vote was taken there were only % out of
total of over 1,290 ballots against the ces-
$40 SION; When the treaty was returned to
the Senate of the United States it was tied
up there for two years, and ultimately
Ialied of ratification.
OF Strategic Importance.
Continuing the report says:
These islands, together with Porto Rico
are OF great Importance in a strategic way,
whether the strategy be military or COM
Inercial ST. Thomas is the natural point of
call for all European trade bound to the
west Indies, Central America or northern
south America. These isl lnds, together
win forto Rico, form the northeastern cor
iier OF the Caribbean sea, and of great
Importance in connection with the Ameri-
can 1sthmus, where canal will be con-
structed between the Atlantic and the Pa
CHIC. They are of first Importance in con-
nectlon with our relations to the region of
the Or1noco and the Amazon and with our
control of the Windward Passage. In view
OF the isthmian canal and European settle
nents In South America every additional
value
Explaining the provision in the treaty for
continuing the pensions to retired local
auhctlonar1es 1t is stated that the total
amount required annually for this purpose
Will not exceed $1,000.
To Protect Concessions.
Explanation Also is made of the pledses
OF this government to protect the conces-
sions of the Danish government to the ST.
Thomas Floating Dock Company, the West
Indian Panama Telegraph Company and
the st. CroiX Sugar Company, mentioned in
the treaty the Observation-Disclosures
WITH reference to the floating dock COM
pany 1t is stated that the effect of the
treaty provision Is to secure the company
IN the enjoyment OF its franchise until 1918
ana 1t is further explained that the COM
pany Is not Subsidized by the Danish or the
lnsulaf treasury, but that services are rem
oered BY the company to the government
and paid for, according to the approved
schedule. The explanation is added that
the Department of State is advised by the
Navy Department that the floating dock
is equipped tDi perform all required services
land THAT the1pse Of its facilities will be Of
practical advantage to the navy.
With reference to the telegraph company
1t Is stated that this is an English cor
poratfon and that the obligation to it is in
the nature ef, a subsidy of 81 900 per year
for the nextesfye years. With the excep-
tion Of this subsidy the situation of the
company in the islands is the same as that
OF the telegraph companies holding con-
cessions in Porto Rico and Cuba during the
life Of the grant.
" ~. The Sugar Company. /
Explanation is made Of the relationship
OF Denmark to the sugar company, to the
effect that Denmark originally made loan
or 1.414,1S4 crowns at a stipulated interest
to this company. The interest not having
been paid, after twenty years the Danish
government took possession of.the property
and assumed all obligations growing out
of this relationship. The object of the clos
ing provision OF article I of the treaty is
to discharge the insular treasury and the
government of the United States from all
liability by reason of the non-payment of
the guaranteed interest It is understood
to be the purpose of the Danish govern
ment to put itself in position to wind up
the affairs of this company as soon as pos
sible. An explicit assurance is given that
mo responsibility or obligation of any
kind rests on the government of the United
States or on the insular treasury in con-
nection with the ST. Croix Sugar Company"