Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1903-02-04
#istel1aneu,ls geading.
"LOAN WAS ONLY PAPER"

"LOAN WAS ONLY PAPER"
Ex-Mfnister Of Venezuela Charges
Germans Bled Nation.
"A former minister Of finance for Ven-
ezuela has visited your correspondent
to throw light on the loan Of the Dis
conto Gesellschaft, the German bank
ing house, as the main subject, and
also on the German ultimatum and the
aggressions of the Kaisers government
against this republic.
He showed the original contract with
the Disconto Gesellschaft in connection
with other documents. After they had
been examined and read the visitor
said:
Every one in the United States and
in Europe generally believes that Ger
man capitalists, through the Disconto
Gesellschraft, lent 50,O00,000 francs
(about $4,000, ,00O) cash to Venezuela.
This statement, which has been spread
by Germany, is false. The loan, which
was raised by Gen. Crespo when he
was president of Venezuela, was large
ly fictitious, through the Machiavel-
liam operations Of its instigator, Senior
Bruzual Sierra, who was the Venezue-
Ian minister of finance in 1896 and was
at that same time the legal counsel
for the Disconto Gesellschaft and the
German railway.
"The loan was only that Of paper.
The script was given to several rail.
way companies in consideration Of the
release Of an agreement previously
made by the Venezuelan government to
guarantee the payment Of interest on
the railway securities for 80 years and
in payment Of the interest due on the
securities for only five years previous.
This loan was, therefore, conversion
Of uncertain future liabilities and not
a money transaction. The German rail-
way received 2,7OO,0OO bolivars (about
$54O,O00) as a concession; the Barquisi-
meto railroad, 2,5OO,OOO (about s5OO,OOO;)
the Carenero railroad, 100000 (about
s26O,OOO;) the Guanta railroad, 100000
(about sSO,0OO;) the English Central
Road, 100000 (about $300,OO0;) the
German slaughter house, 100000
(about sSOO,OOO,) and other interests,
$780, 900 (about $7S0,00O.)
"You see that up to the present the
Disconto Gesellschaft has not f1nanc-
ed one cent. Moreover, the institu-
ton foresaw the drift Of events, and
its contract with Venezuela, dated
April Is, 1896, says: In no case what
soever shall the Disconto Gesellschaft
be obliged to give cash for script deliv-
cred to the companies This proves
that the Disconto Gesellschaft only
represented Intermediates and handed
them script, not cash.
Notwithstanding this fact the Dis
conto Gesellschaft took for its commits
sion-article Of the contract says:
1.-The Disconto Gesellschaft is to ray
itself g. commission on the loan and all
expenses Of the mission'-the sum OF
francs ($2.0OO,0O0.) This sum
was collected by the Disconto Gesells-
chaft. For what? To print script
as the Disconto Gesellschaft neither
assumed responsibility nor guaranteed
the payment Of interest. Shylock is
not only Shakespearean character,
but resides also in the River Spree.
1--WE will now turn to another vital
point. The German government as
serts that the payments Of the inter-
est were always refused, and that the
indebtedness has never been paid.
Have the Germans used all resources?
No, as article 18 Of the contract shows:
1.-The coupons due the Disconso
Gesellschaft for the loan shall be re-
ceived at par, their equivalent In geld,
for duties in all custom houses Of the
republic
"I can assert that never has the Ger
man legation presented one coupon IN
payment Of duties.
"In all this affair, as in the diplomat
ic action lately witnessed, the work Of
the anu iCSdI"ho A'e~S
been surrounded by mystery. 1t was
not clean business, as 100000 francs
(about s1,OOO,OOO of script was found
on the estate Of President Crespo.
Senior Bruzual Sierra also received 4OO,-
900 francs (about $SO,0OO) in SCRIPT for
his share. 1 personally, as well as
every one who was in touch with the
Of us shared In the
Genmar Panama.
"And it is this bank, the Disconto
Gesellschaft, which did not disburse
one cent nor risk anything, which lead
the compaign against its accomplices.
1t was robbery against the Venezuelan
nation, of which we all were instiga-
tors and in which the board Of the
Disconto Gesellschaft had been active
I'm New York a similar scandal
would have lodged them in Sing Sing
Caracas letter to Baltimore Sun.