Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1905-02-17
A MESSAGE.
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Of state is advised So go O00: the estimat.
ed revenues under the Dominican 'manapa-
| ment of custom houses We're 81 .>Io,roO: the
| proposed budget for current a,l,ninistro
| ton was 81 800 01, leaving only S1!0un Ia
| pay foreign and liqudated obligations
ana payments on these latter will amour;
during the ensuing year to 81 100. coo he
sides S9po.,J0 Of arrcaragcs of payn,ents
overdue. amounting in all 10 81 900 It
is therefore Impossible under existing con-
| ditions. which are chronic. and with the
estimated yearly revenues of the republic.
aged approximately $500, coo, to derray the
| ordinary expenses of the government ana
ID meet its obligations
| III" Dominican debt owed to European
| creditors is about $236Ji,"o. and Of this
| sum over $l> od0@0 is more or less formal
| ly recognized. The representatives of En-
rDpraa governments have several times
approached the secretary Of stat" setting
| forth the wrongs and intoIcrabie delays
| to which they have been subjected at the
| hands Of thu successive governments Of
Same Domingo in the collection Of their
just claims and intimatng that unless
the Dominic All government should receive
some assistance from the United States
in the way OF regulating its finances. the
creditor governments i'll Europe woulI Lc
forced to resort to more effective meas
urcs of computation to secure the salts
faction of their claims
ii me Unite d States government de
clnoS to take action and other foreign
governments resort to action to secure
payment Of their claims. the lattor would
'f entitled, according 10 the decision of
m lldSu" tribunal in the Venezuelan
cases, 70 the preferential payment Of their
CAIRNS; and this WuulG absorb an the Do
hnhl'an revenues and would bc a virtual
sacrifice Of American claims ANA interests
III this island
Inc actual situation in the Dominican
rtpu"ilc cannot perhaps be more forciblv
stated that by giving n brief account ar
the ease OF The Santo Domingo Improve
ment &C.
From 1869 to 1897, the Dominican GOV.
eminent issued successive series of
bonds, the majority of which We're in
the hands Of European holders. StIc-
cesSiNe issues bore interest at rates
ranging from % to per cent. ard
with the commissions and other de-
y
market. the government probably did
rot receive over so to 10 per cent. of
their normal value. Other portions Of
the debt We're created by loans, for
Nhlch the government received only
one-half of the amount it was normally
to repay. In 1883 the government in
order to secure the payment of an is
sue Of bonds, applied the custom
houses ana the collection of its customs
duties i'll the hands of bankers of Am
sterdam, Holland. but finally intrust-
ed the collection of its revenues to an
American corporation, the San Domin-
so Improvement Co. The Dominican
government became dissatisfied with
this arm and in 1901, ousted the inn
provement company from its custom
houses and took into its own hands the
collection of its revenues. The company
thereupon appealed to the United
States government. The Dominican
government then sent its minister of
foreign affairs to Washington to negO-
tate Il settlement. He admitted that the
Improvement company had equities
which ought not to be diSregarded, and
at the suggestion of the department of
State the Dominican government and
the Improvement company accordingly
entered into an arrangement for Il set
Element. which was mutually satisfac-
tory TO the parties. A similar arrange
nient was likewise made between the
Dominican government and the Euro
pean bondholders The latter arrange
ment WAS carried into execution by the
Dominican government but its Con-
rangement made with the Improvement |
company and provide for the payment |
of the American claim interest. In this |
state of the case it was evident that n
continuance of thi treatment of the |
American creditors would, if allowed |
to run its course. result in handing |
over the island to European creditors.
The Improvement company and its |
allied companies held, besides bonds. |
certain banking and railway interest |
i'll the island. The Dominican govern |
ment, DESTROYS to own and possess |
these properties, afreed with the com |
panieS that the value of their bonds |
and properties was $4,000, 900 and they |
submitted to arbitration the question |
us to the inStallmentS in which this |
sum should be paid and the security |
that should be given. The Hon. George |
Cray. judge of the United States circuit |
court of appeals and the Hon. Manuel |
De ]. Calvin, both named by the Do |
nlinican republic. and the Hon. John c.. |
Carlisle named by the United States, |
were the arbtrators and rendered their |
award. July II. 1904. BY its terms the |
Dominican government was to pay the
above mentioned sum of 81. 800 900 with |
4 per cent. interest per annum, in |
monthly installments of S37500, begin |
hing with the month of September, |
1905. said award to be secured by the |
customs revenues and port dues of all |
the ports on the northern coast of San
to Domingo. The award further pro-
vides for the appointment of a financial |
agent of the United States. who was
aputhoriZed. in case of failure during |
any month to receive the sum then due.
to enter into possession Of certain Gus
tom houses.
The Dominican government defaulted |
in their payments and i'll virtue OF the |
award ana the authority conferred by |
the Dominican government. and at its