New-York tribune., 1905-08-09
THE ASPHALT DISPUTE.
Reuieso of Case Decided by the
Venezuelan Court.

A cable dispatch was yesterday received IN this
city confirming the reported decision OF the High
Federal Court of Venezuela against the New-f York
and Bermudez Company, OF the Asphalt trust un-
der which the concession OF the company was ae-
clared annulled- John ID. Lindsay. counsei ior 'ne
New-York and Bernudez lCompany, was said yes
terday to be out OF the city.
Two actions were brought about year ago by
the government of Venezuela against the 'Asphalt
rust-one for forfeiture of ts.coDcession for fail
ure to comply with its terms. and the other Tor
S1ooaoco damages for alleged participation In the
revolution of General Manuel A Maaos against
the government of President Ciprkano Castro. A
few months ago President Arnal, Of the High Fed
eral Court handed down a decision uphoiding the
government in the suit for anrruiment OF the
asphalt company's concession. An appeal was
taken by the company through Dr. Bance its at
torney at Caracas and it is this appear which mas
been decided adversely to the company oy the 1ull
court. The other suit is now proceeding IN the
Court of First Instance.
The vast asphalt deposits which the court mas
declared forfeited by the American company aio
at Guanoco in the eastern part OF Nehezueia- 1t
was said to be the richest lake owned by the New
York and Bermudez company. Ambrose Ho"ard
Garner was appointed receiver of the Guanoco
Lake by the High Federal Court when the SUIT
was begun He has been working the deposit Tor
the account OF the court. and shipping the asphalf
to this country. There be no further appeal
from the courts decision, and the Guanoco Lake
reverts TO the Venezuelan government.
The New-York and Bermudez company has,
through its attorney made every effort to obtain
the intervention the United States In its behalf.
The government of Venezuela has rejected all
propositions arbitration of the asphalt case,
holding that it would improper to interfere with
an action pending before its highest tribunal.
anticipating its decision.
In Mach last, when the Venezuelan situation was
considered acute at Washington. President Castro
sent to The Tribune the following cable message:
do not believe there will he any trouble. and If
she drifts away from right, and
justice. which the strength Of weak nations.
Through all the diplomatic storm that ragged
about him. President Castro remained obdurate.
maintaining that his government was treating the
Asphalt Trust with fairness. Intimations of
treme measures against Venezuela had no effect
on him. At the same time the Venezuelan chief
executive had in Washington two representatives
who did much to place his side of the controversy
in a favorable light.
few weeks ago President Roosevelt appointed
ex-Judge W J. Calhoun special commissioner to
Venezuela to make certain Investigations of which
the asphalt case is understood to be the most i'm
portant Judge Calhoun sailed last Saturday for
Caracas
The concession Just declared annulled was plr-
chased by the New-York and Bermudez company
from Horatio R. Hamilton. who received 1t from
the late President Guznan Blanco. 1t had still four
wears to run. When the concession transferred
the Asphalt Trust bound itself TO develop other IN
dustries beside asphalt in the State of Bermudez,
and dig several canals. Failure 10 carry out these
terms was responsible for the suit brought for the
court also charges to the New-York and Bermudez
company the costs of the litigation.
The High Federal Court Will adjourn on august
Is for month. to give the judges their summer
vacation.