New-York tribune., 1902-08-07
PLOT OF HERICAN CAPITAL
lists SUSPECTED.
BELIEF THAT FINANCIEES WHO OP-
POSED RECIPROCITY HAVE \ PLAN
TO FASTEN THEIR GRIP ON
THE ISLAND. \
THE ISLAND.
Try TELEGRAPH To THE THrHrSE.I

inspired the opposition in Congress to defer
enactment of the legislation needed to enable
the President to negotiate a reciprocity treaty
with that government There is disposition
here to doubt either the necessity or the wisdom
Of the movement in the Cuban Congress to float
a loan OF the proportions mentioned There is
serious doubt. however. of the ability Of the
Cuban government to contract debt OF such
dimensions. AT the same time il is recognized
highly probable that the men in the Congress
of the United States who were responsible.
through their opposition to Cuban reciprocity.
for the present pressing needs Of the fnsular
government perfectly aware of the re-
quremeuts of the situation in the island and
that they deliberately lent their great infu-
ence to the causes which conspired to defeat
President RoOseveIt's urgent recommendation
for authority TO negotiate a reciprocal CONNER
cial arrangement
The prediction is freely made in Washington
that if the Congress of this country authorizes
the loan proposed by the Cubans the bonds VIII
be bought by the group of fnanCiers in New
York which caused the lawmakers at the last
session to reject the Presidents recommended
ton. In other words, it S strongly suspected
that the proposed loan is an essential part OF
the plan devised by American capitalists to get
a secure and lasting grip Cuba and that
but for this general plan reciprocity would not
have been defeated 1t is suggested that 1t will
be we'll to investigate closely the influences
which will be quietly arTayed the next sea-
sion Of Congress in favor Of sanctioning ths
Cuban loan. and as further evidence Of the
matured scheme the part Of group OF
United States fnanciers TO get control Of the
business of the island it will repay effort to
watch carefully the working out of this game
of loot. 1t is conceded on all sides here that
Cuba ce mot afford TO assume SO heavy debt
as that called for in the loan proposition, and
that Congress should exercise its undoubted
right to interfere with IT'S negotiations IN
less the lawmakers of this country by some
formal action give their assent to the loan, it
is generally agreed that it will be practically
impossible to float it. 1t is well understood
that without the formal sanction of Congress.
which would be tantamount TO an endorsements
of the debt. it would be next to impossible to
sell the bonds at anything like their face value.
FRIENDS OF CUBA wATCHFUL@
While all this financial scheming is going oa
in New-York it is considered as highly proba-
bic that the President and the other friends OF
Cuba are keeping themselves informed and that
they will prepared meet and checkmats
every effort place the -nsuIar government
under the ruInous obligations implied by the
proposed loan and that to this end they will
oppose to the bitter end the sanctioning by
Congress of the debt sought to be placed upon
the new republic
American enterprise" the explanation
given by a former official of the United States
in cuba for the surprisingly large figures Of the
proposed Cuban loan The same official pointed
out to-day that no law has yet been passed
creating such a loan. but that the Camara. on
House of Representatives, has one proposition
and the Senate another under consideration.
Ultimately they will have a conference COM
nittee as is the practice in the United States
Congress. and will agree the legislation.
Since both legislative bodies are figuring on
total or S;}J. 100000 $tO0O0.O0O. their minor
points of difference do not seem to be important.
The explanation given of American enter
prise is that the euteTprising representatives
of American syndicates persuading ths
members of the Cuban Congress TO put the
figures so high. Since the Washington authorf-
ties have been advised of the activity of these
financial geniuses. they are surprised at the
moderation shown by them in not getting the
amount fixed at S5O.OOO.0OO- II will not tend
TO make the loan popular when it is known in
cuba that one reliance Of the financial syn
dicates for their security is in helping to
get the republic into condition of debt. whics
will be a strong factor in forcing annexation.
They have assumed that the United States
would guarantee the loan by sanctionfng it.
and il is said. have represented 70 the Cuban
Congress that there need be no doubts this
point.
sYNDICATE'S WORK IN HAVANA
The circumstances. as related in advices re-
oeived in Washington. are that in the last
weeks of the American military occupation a
strong effort was made to secure the approval
of the United States for an Havana municipal
loan of $4,000. 900 provide for the sewerags
and paving of the city and incidental purposes
A wear ago an American syndicate would have
secured the placing of this loan except for its
own greed General Wood was anxious TO have
the work DONE at least begun. in his ad-
ministration and so was Secretary Root. The
contractors and capitalists combined among
themselves so that there would he only bid.
and then placed their figures at S14.OO0.O0o.
which was 81. .0O0 900 more than the upset price
which General Wood and the military engineers
thought reasonable In consequence the bid
was rejected. and months passed before an
other one was made and accepted at reasonable
figures While the contract for paving and
sewerinG Havana was let, the months of delay
made il impossible to secure satisfactory
basis for the municipal loan which was to pro-
vide for the work So the American authority
ended with this matter hanging in the air
The fnanciers who had been interested in
placing the municipal loan changed their plans
as soon as the Cuban Republic came into
power They say that il would not he possible
to negotiate both a municipal and NATIONAL.
island. loan. and they dropped the former as
being the less feasible. and also as carrying
the lesser amount. For more than Two months
they have been engaged in laying the OASIS TOT
the Cuban Republic loan which Is now enSag-
ing the attention of the congress Row Iar
they have assumed 10 speak LOT Jhe govern
ment of the United States is not known, out
any statements on their part have lacked du-
thority Whether or not they have gone so Iar
that II viii he necessary for President RooSe-
rolIt[ m