The Birmingham age-herald., 1903-02-01
Whole Trouble Arises Over the Question of Preferred
 Creditors
VENEzUELkS CHAMPION
 STILL HOPES FOR PEACE
Unless Something Is Done Within the Next Few Days the Whole Matter May Be Sent to The Hague.
 Sternberg Arrives.

Washington, January 31.-It is learned tonight that Minister Bowen is taking l hopeful view of the situation. The ad- verse reply of the allies to his latest pro- i posal had not been delivered to him up to a late hour. The fact that forty eight hours have now elapsed since any l communication from the allies had reached him, gives rise to the belief that l the powers are carefully considering his position.
 Baron Spek von Sternberg called on i Minister Bowen this evening and consult ed with him for some time AS Minister Bowen did not return the call, but has arranged to do so tomorrow afternoon. the inference Is that no reply will be presented to Minister Bowen before that time.
 It developed today that the answers of the allied powers to Minister Bowen latest proposal arrived here yesterday, but were not immediately presented to the minister,
 Could Not Consent.
 
 allies could not consent that the United States and the other claimant nations re- ceive the same treatment as the block ading powers and that they therefore re- jected in toto MT Bowen's final proposi- tion Knowing the consequences that were to follow the presentation of this answer the representatives of the allies took upon themselves the responsibility of withholding the notes of their gov Of aCafn cabling. urging a retraction of their preferential de- mands. The exchanges are still in pro- press between the Italian, British and German embassies, but there is no evi- dence that the allies intend yielding, 1T they hold out their representatives, must present the joint refusal and the Wasn- i ington negotiations will come to stano- still.
 , Baron Speck von Sternberg. Germany 1 new envoy extraordinary and minister plenipotentiary to the United States, was at his desk bright and early today. and spent two hours in conference with count Quadt who as charge affaires has thus far conducted the Venezuelan negotia- tions for Germany. The German minister was placed in possession of the entire correspondence which has passed between MT Bowen and the allied powers and was advised by the count of the serious
 
 of the last contention of the triple al- liance for preferential treatment in the settlement of their claims. This confer ence ended. the minister called by ap- pointment at the state department and presented his letters of credentials to Secretary Hay and afterward to the Pres ident.
 Outlook Gloomy. From the Write House Baron Sternberg went to the British embassy, where he saw the ambassador. exhibited his ere dentials and immediately launched into active discussion of the negotiations. Baron Sternberg In his calls today found the outlook for relief for the present deadlock exceedingly gloomy, and he has cabled as much to his government.
 Meanwhile Mr. Bowen is biding his l time. He is keeping Caracas informed as l to the progress of events here. and is | councilling patience, hoping that the pow | CTS will yet yield. As a matter of fact. | he has as yet received no intimation from 1 the powers that they are really desirous of settling the Venezuelan dispute at Washington, as the representations of the powers have thus far consisted of coun- ter propositions.
 Two days have now passed without any communication between Minister Bowen and the representatives of the allies. Dur ing a call today of MT. DeMargarie upon Secretary Hay the fact developed that the French charge has received specific in- structions from his government to insist that France shall not be discriminated against In the settlement of the Venezue- Ian claims. Having the personal assuc- ance of MT. Bowen that the French claims shall not be iscriminated against, MT. Margarie refrains at present from o0ff hfff oc ne Io et,. l. sured by Mir. Bowen that the allies re- fuse to permit such treatment to the French claims, as he expects, he will take steps to lodge a formal protest against the proposed discrimination, and In so doing he expects to be joined by the representatives of the other claimant nations here.
 Bowen Explains Percentage.
 Washington, January 31-Minister Bowen when shown the Associated Press dis- patch regarding the explanation given fn Berlin of the apparent hitch in the nego- tiations, said:
 ."All settled foreign claims are covered by the 13 per cent arrangement The 3f per cent proposition now offered refers exclusively to unsettled claims which moi only the blockading powers. but the peaceful powers, are pressing for settle ment. IL IS aDsolutely raise that the 1. per cent arrangement is included in the 30 per cent proposition. The two are dis | tinct
 There has been so much conference discussion and misunderstanding in re- gard to this question of percentage tha, I am willing to make this statement" Fears Renewal of Trouble.
 Paris, January Sl.-The tone of the French press shows that the editorial writers fear there will be renewal of hostilities by the allies in Venezuelan waters as a result of the present com plications. The Temps point out that the worlds chief interest Is to secure an end I to the whole affair. which is beginning | to be viewed as another Maximilliar | blunder" and says:
 "If the naval commanders again fec ] that they are at liberty to take action owing to the failure of the negotiations there will be another incident like that oi | San Carlos"
 | The Journal Debates takes a similar l view and remarks:
 "The multiplication of the delays tendi 1 to confirm the view that the allies ds not sincerely desire settlement of thu trouble"