The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-05-22
CRISIS IN ASPHALT DISPUTE.
NEW YORK AND BERMUDEZ con-
CESSION ANNULLED.

THIS Government IL Likely u Renew the
Demand on Castro 70 submit the DDS.
pute TO Arbitration and in Case OF
= Refusal 70 Take Independent Action.
WASHINGTON. May N.-The decision OF
the High Federal Court OF Venezuela tne
highest judicial tribunal In that country
made at Caracas yesterday, annuilng cne
concession OF the New York and BerInudez
Asphalt Company. and ordering that COM
pany to pay the Government damages
sustained by the alleged comphoity OF
the company in the Matos revolution
will probably bring quick results from
the United States Government, Whion mas
been waiting to take action only until the
case had been finally disposed OF IN tne
Venezuelan courts
In response to the various demands OF
the State Department, whose officials hold
that there has been denial OF justice to
the asphalt company, President Castro has
always replied that he would not arbitrate
ANYTHING until the case had passed through
his courts in the proper manner.
Holding the position it does, 1t is not
likely that this Government will engage Ia
controversy with President Castro much
longer. 1t is openly asserted that the
ratience Of President Roosevelt and otter
officers of the Government has long teen
exhausted at the attitude of the Venezuelan
Executive, and there is every possibility
Of a renewal Of demands upon him. 1t is
unlikely, however that any action will be
taFen until the present phase OF Nene-
zuelan affairs the Bowen-Lo case has
cen settled.
The first step to lie taken will be an in
yestigation Of the merits of the case which
fas lust teen ended by the decision OF the
Ugh Federal Court If it is found that there
tas reen denial Of justice, and this is ex-
reoted by Government officers here who
Rave no faith in Venezuelan courts and who
III ink that Castro runs them to suit himself,
Terreeentatio tons will be at once made to
President Castro. These, it is said. will
consist Of renewal OF the demand LOT ar
itration by trt unal.
The last communication to the Venezuelan
Government concerning the asphalt case
was demand for arbitration, with threat
e foroible action If it was not granted.
The Government here has done nothing
to carry out the threat implied in this COM
m,nicatcn. which amounted to an ultima
tum. Since then the State Department
has merely been waiting for decision Of
the Federal Court at Caracas. waiting to
see what the outcome would be- and then
Castro would have no excuse for prolorg-
ing the negotiations.
The State Department has had no con-
frmation or details Ct the decision Of the
High Federal Court. but it is expected that
Mr.. Hutchinson. (harge d'Afraircs Of the
American Legation at Caracas, will make
report tomorrow.
Prof. John Bassett Moore Of New York.
who represents the New York and Ber-
mudez company, has made repeated repre-
A.Nt~ A@ h. Strt1 npL-
ing that the Government take hand in
the case on the ground that there has been
q denial of Justice President Castro has
had the concession annulled on the ground
that the asphalt company had failed to
lived up to that part Of its contract pro,
viding for the construction Of canal and
the dredging of a river. These provisions
were made in the original contract between
Horatio Hamilton and the Venezuelan
Government. signed in 1888 The New
York and Bermudez company obtained .he
concession from Hamilton.
The asphalt company, 1t Is understood,
has in its possession letters from officers
Of the Venezuelan Government, written
before the present suit was brought, which
ssid that h. the >, comra'ny was fu II its
letter from A. n. Gamer now the Vene.
y,ean Governments receiver Of the asphalt
r roperty, but then with the New York
and Bermudez Company. in which Mr.,
Garner declares that the contract was
being fulfilled. These and many other
G" mmunica tons have been submitted to
the State Department.
The representatives Of the ASPHALT COM
rarv have claimed that the whole pro-
cect.ing in the Venezuelan courts is a trav-
esty on justice The United States Govern
rent has approa ched Venezuela half
dc zen times on the matter Herbert W.
Bowen, until recently Minister to vene-
zncla. at one time asked the State re-
rartment to send washirs to Venezuela.
u was EXPLAINED tonight by Venezuelan
authorities here that the asphalt company
has the right to file an arreal with the
High Court from the decision which has
Just been handed down by it's president.
The judicial system in Venezuela, it ia
explained is peculiar. In this case the
president of the court individually made
the decision, which, If an appeal be taken
within five days. must be confirmed by
a majority. Of the other members of the
court in order to become effective. How
ever. there ia a general BELIEF in admins
ira ton circles that no prospect exists that
any change in the decision will be made il
an appeal is taken by the asphalt company
within the prescribed time