The Birmingham age-herald., 1905-11-13
CHARGE VENEZUELA
 WITH EXTORT|ON Wanted S41O. 700 from the Burmudez Company MRS. CASTRO IMPLICATED Col. Victor M. Backus Was the Man to Whom Suggestion Was
 Made by Man Close
 to Castro.

New York. November 12.-Allegations that high officials in the Venezuelan gov ernment deliberately attempted to extort l from the company the sum of $400,0OO are made in a statement given out today by the New York and Bermudez Asphalt company, in reference to the suit brought by the Venezuelan government for $11,- O00,ooo damages for aiding in the Mates { rebellion.
 ] The means used by those officials ac- cording to the allegation, included black mall, confiscation of the company's prop erty, the manufacture of false testimony, and the making of decrees without regard to law. The allegations made in the state ment are based upon letters which it Is declared were received from A. P. Car ner, now receiver, holding the company's property for the Venezuelan government, but who in 1900 was the company's agent at Caracas, and the representative of Col Victor M. Backus. who was sent to Ven ezuela in 1900 as an independent agent by the asphalt company. The statement con cludes with an exhaustive review of what it describes as "the asphalt company's actual relations to the revolution
 $1o0,o00 Given to Mates.
 In this connection it is explained that Sl0O000 was given to General Matos by the 1 officials of the National Asphalt company | on the generals request. Further sums aggregating $3O,0O0 were paid the revou- tionary leader soon afterward. This money was paid, the statement says, to guarantee protection of the companys property at d time when the territory in which the companys property Is located was in the control of the revolutionists. l The statement maintains that the com- pany at all times observed absolute neu- trality even going to the extent of pay | ing customs duties to both the govern ment and revoutionists, when the GUS i tom houses were controlled by the insur- gents.
 l One of the letters from MT. Garner to | the Bermudez company, dated December %, 1900 quotes MT. Garner as saying: 1 T have received a plump offer from an agent (well-known to be such to the dic- tator), to the effect that he would guar antee to put our case exactly as 1 wanted it. and in such a way as to insure us against any future difficulties in the mat ter of our rights and properties, all for the sum of 00000."
 While things were going on In this way, the statement says the company sent to Venezuela Col. Victor M. Baclxus of h. dianapolis as an independent agent to ascertain as far as possible the true con ditions there.
 Made Offer to Backus.
 Unto this end," the statement says, "Colonel Backus represented himself as the representative of American capitalists | who were seeking investments in Vene- | zuela. One of the fraudulent titles to various parts of the company's property most actively used as club to extort money from the company was La Vene- zuela Colonel Bacl1us entered into ne- gotiations with General Figuera. one of the grantors He later found that Senor Figuera was only a stalking horse for per sons high up. Senor Figuera professed to act not only for himself, but also as the representative of Senor Felipe Arocha. Senor Arocha was a foster brother of Mrs Castro, wife of the President, and resides at Mrafloes, the Presidents palace. On l January l. 1901 Senor Arocha wrote to | Figuera suggesting that Colonel Backus come to Mirafoes for a conference. Colonel Backus then held an interview at the palace with Arocha and Gen. Barret 1 D'Mazaris Mrs. Castros secretary. Dur ing the interview the two latter persons were in constant consultation with Presi- dent Castro, who occupied the adjoining room and who once appeared in the door, way"
 As a result of the conference, the state ment says, the agreement was made whereby Colonel Backus was to pay to Mir Arocha s425O00 for La Venezuela" mine. It continues:
 In Revolutionary Condition.
 ''The execution of the conspiracy to ex- tort money from the company and de- spite 1t had reached this point when General Mates arrived in New York in the summer of 1901. For a long time affairs in Venezuela has been in revo- lutionary condition. The region in which the companys asphalt lake is situated was constantly swept by revolutionary bands and the company was often forced in self-defense to supply food to them | in small qualities, and sometimes to do other services. Prior to General Matos' arrivel in New York, neither the officers of the National Asphalt company, nor the officers of the New York and Ber- mudez Asphalt company had any rela- tions of any kind with him.
 When in New York General Mates called on the officers of the National As phalt company and represented that he had, after much negotiation, united all the parties and forces opposed to Gen eral Castro. Mates asked for a sum of money.
 "The company was confronted with formidable revolutionary movement which would be friendly or hostile according to the company action on General Mates request. The company was also threaten- ed with certain destruction of its rights by General Castro and those conspiring with him for its spoilation. The officers of the National Asphalt company, there fore, decided to give General Mates the amount which he asked.
 The money was paid for the protec- ton of the company's property during the continuance of the revolution, and for the protection of its just rights thereafter in case the revolution succeeded. and with