Evening star. [volume] (Washington, D.C.) 1854-1972, 1904-01-07
OLD CLAIM PRESSED
MONEY LOANED TO THE VENE-
ZUELAN GOVERNMENT IN 1886.
Repayment With Interest Wanted
Attempt Will Be Made to Act
Through the State Department.
Correspondence of The Evening Star.


SAN JUAN, P. R., December 80, 1908
United States Commissioner Joseph An
derson of San Juan, as attorney for Igna-
clio Da Costa Gomez, will soon ask the fed
eral government to collect for his client
from the government Of Venezuela rec
ognized claim for at least 100000 for
money loaned to Venezuela. Mr.. Gomez.
who is poor man, will try to act through
the State Department, as he Is an Ameri-
can citizen. He was born In Mobile, Ala,
and tells story which Is at least full of
interest
The claimant is son of the late Gabriel
Da Costa Gomez Of st. Thomas, and his
mother was daughter Of ]. H. Moron &
Co, wealthy st. Thomas firm, in which
fgnacfo's father was lartner. Two years
ago. on the death of Gabriel, Ignacio fell
heir to the assets of the Arm The firm
was large dealer in ammunition and
arms. and was banking house, being one
OF the richest institutions Of it's kind in
the West Indies. 1t not only supplied
arms and ammunition on credit to South
countries cash. 1t was in the habit of
trading in this way with Venezuela, and
by such dealings the firm often controlled
political operations in the south and made
and unmade presidents and governments.
Firm Forced Into Bankruptcy.
In 1867 the firm failed and went into
bankruptcy, 1t is said largely by the mis-
take OF one OF it's Representatives who was
travelling collector. Guzman Blanco was
then president Of Venezuela The firm Of
]. H. Moron & Co. had made him presi-
dent by supplying him with money, arms
and ammunition for the purpose of carry
ing on his revolution against the former
occupant. In the year 1868 the firm had
advanced to President Guzman Blanco the
amount Of 100000. and later another sum
which brought the total up to $3.50 1000
Then 1t was that representative Of the
firm. Mr.. Edward H. Moron. an uncle Of
Ignacio Da Costa Gomez of Porto Rico
went to Venezuela to begin to recoup the
capital from the government which II had
created. Those transactions were very
common in those days, and they are also
today, except that they are now manipu-
lated from Wall street instead Of from St
Thomas. It was simply a little lack of
diplomacy on the part of Edward Moron
which prevented the firm from reimburse
ing it's treasury, and which makes Ignacio
poor man, though on paper a millionaire
Mr.. Moron attended ball given by the
president of Venezuela in Caracas, and 1t
was there that he got into serious dis
pute with President Guzman Blanco He
fnsulted the president and told him he was
rascal. The president swore revenge,
and took it out by refusing to pay back
any part of the money loaned by the Mo-
ron firm to his government.
The Moron firm resorted to the dipIo-
matte channels of the Danish government
to secure redress and the collection of
their claim. They secured the recognition
Of the claim by the government of Vene-
zuela. but never realized anything in cash
The blow was greater than the firm could
bear, strong as 1t was supposed to be. and
creditors surrounded the partners and soon
wiped out all their available assets
Ever since then the claim has been in the
course Of settlement through diplomatic
channels through the Offices Of the govern,
ment of Denmark. the claimants being cit
liens OF that country. Nothing was ever
recognition Of the claim.
Claimant an American.
Since the death Of GABRIEL Da Costa Co.
mez, however. the claimant becomes an
American citizen, and it makes 1t possible
to prosecute the claim through the Ameri-
can government, which 1t Is thought may
result more successfully. All the data
have not been secured for the proper pres
entation of the claim. and Lawyer Ander-
son is awaiting such legal proofs and doc
uments from the Danish government, APP
plication having been made for the same
II only moderate rate Of interest IL
charged to the Venezuelan government of
8 per cent for the thtrty-six years which
the money has been in use by the debtor
the interest alone. to say nothing Of the
interest on overdue installments Of inter-
est, would amount to $972,00O. Thus, with
the principal sum, the whole claim, reck-
oning only simple interest, would amount
to 81 ,422,000, which sum or more the Vene-
zuelan government will be usxed TO pay to
Ignacio Da Costa Gomez of Catano with
out further di1atoriness.
It IL said that the government once long
ago offered to pay $4,000 IN full settle
ment OF the claim. but that the Moron frm
refused to accept 1t, as 1t would practically
all 60 to creditors. and with the hope that
the full amount would be wrung out Of
the republic by the Danish authorities.