The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1902-12-13
German and British Are Threat
ening to Bonbard
Puerto CabaIIo
VENEZUELA HAS ASKED
U. 5, FOR ARBITRATION
VIII Be Difficult Question for Amer
lea, as Affairs Have Gone Too
Far for Peaceful Settlement.
Situation Is Critical.

London, December ia dispatch
to the Daily Mall from Wilemsted,
Curacao, December II, says that the
foreiun residents of Puerto cabello
are taking refuge on board the Ger
man cruiser VIneta and the British
cruiser ArIadne, and that these vessels
are threatening to lombard the port
~ ONDON, December 12.-As re-
O suit of the announcement that
- Venezuela has asked United
States Minister Bowen to act as arbitra-
tor in the controversy with Great Britain
and Germany, Senior Schetborgh, Venez-
uelan consul here, tonight made a state
ment to a representative of the Associ-
ated Press.
Senior Schetborgh is the only represent
tatiye of the Venezuelan government in
London, and he has been acting In con-
cert with the members OF President cas-
tro's secret delegation, whose action IN
Rome, Paris, Amsterdam and London
would form. In the event Of arbitration
an important part in Venezuela's case
Senior Schetborgh said:
There being no longer any necessity
of secrecy with regard to the methods
adopted by Venezuela to effect settle
ment of all the foreign claims against
that country, the following facts may be
published:
about six months ago President Cas-
tro sent special ENJOYS to different Eu-
ropean cities entrusted with confiden-
f.r tfa oh n g.
certain the state OF feeling Of the for
eign creditors of the Venezuelan republic,
and to try and arrive at a basis of agree
ment for the consolidation and unification
OF all VeneEuela's foreign debt, including
the diplomatic claims. The envoy who
came to London WAS instructed to asso-
ciate himself with me. the other ENJOYS
were engaged in connection with other
claims against Venezuela, especially those
of Spain, France and italy. After consid-
erable negotiating in London and on the
continent a suggested plan OF settle
ment was arrived at. Subsequently the
firm of ]. & w. SeIigman & Co. of New
York, and one of the leading French
banking concerns, promised tentatively
to support the plan. In brief these docu-
ments provided as the executive is in
spired by an earnest desire of coming to
final settlement with all of Venez-
uela's foreign creditors for this consolida-
ton of all debts and claims into unified
loan, not exceeding S.00o,OoO. to be known
as the Venezuelan unified per cent
loan of 1907
Bank to BE Established.
.In conjunction with this plan, an in
ternational bank under European con-
troll was to be established and interest on
the loan was to be guaranteed by the
hxy is
bank were to be installer in all custom
houses and were Themselves to collect
the interest on the loan. If at any time
the customs receipts proved insufficient
to meet this interest, the government un-
dertook to make good any deficiency out
of the revenues.
.It was considered essential to learn
the attitude of the United States. While
final steps were being taken the crisis
became actue. An unofficial effort was
then made to gain the good offices Of the
United States in order to procure for
Venezuela an extension Of time. The
final arrangements were cabled from
London to President Castro and was
ready for the presentation to the foreign
office, when news of the ultatimatium
was received
"This plan by no means has been given
up although of course, negotiations to
this end at present ARE at q standstill
Unless matters go to further extremities
In Venezuela, a settlement upon such
basis as the foregoing is still possible.
The British and German creditors of
Venezuela must eventually rely upon
some financial arrangement as the only
method of getting their money.
Dispatches Published.
The foreign office has published two OF
Minister Bowens dispatches which were
L. o+aI Ix.f2 "a 6QnATtmant al
Washington to Ambassador Herbert and
which were received by the foreign office
last night Those dispatches relate TO the
attack upon the German legation at
Caracas and give Mr.. Bowen's steps to
obtain the release of the fifty-four Ger
man and British subjects arrested In
Caracas and the announcement that all
the persons apprehended had been re-
leased.
Mr.. Bowens first telegram Is dated
Caracas December 10. and is as follows:
1.-THE German legation was attacked last
night by q mob. l went at once to the
governor and obtained police protection
for the German and British legations and
the promise that no further attacks py
mobs would be made.
az visited the police station this morn
ing and talked with all the prisoners who
number fifty-four in all-forty-four Ger
man and ten British. Some of these pris-
oners were so poor that I had to give
them money to buy food,and four of them
were i'll. I expect to get them liberated
within an hour.
"All British and German subjects In
Venezuela, understand. were arrested
last evening I shall see the president ana
urge him to release them today"
The second dispatch is dated Caracas
December IL, and says;
.sIsle president informs me that he has
released all the German and British sub
iecta who Wera arreated."