The Birmingham age-herald., 1905-02-17
PRESIDENT TELLS
 WHAT HE WANTS
(cont.nued from First Paae.l


 
 engaged in agriculture commerce and transportation in competition with the subjects and citizens of other states"
 Owes About $22, ,o0o, ,ooo.
 Incorporated in the message Is a final statement showing that the Dominican about s22000,0O0 and that SIS, 100000 of this amount is recognized. The President dis cusses at length the negotiations that have been placed looking to the collection of these debts and says that as foreign governments were put off from time to time they became inopportunate in pressing their unsatisfied demands.
 Case of Improvement Company.
 Continuing, the President says
 ''The actual situation in the Dominican government perhaps cannot be more forcibly stated than by giving a brief ac- count of the case of the San Domingo Improvement company.
 From 1869 to 1897 the Dominican gov ernment issued successive series of bonds the majority of which were in the hands of European holders. Successive issues bore interest at rates ranging from 2& to per cent. and what with com- missions and other deductions and the heavy discount in the market the gov- ernment probably did not receive over 30 to 75 per cent of their nominal value Other portions of the debt were created by loans. for which the government re- ceived only one-half of the amount it was nomnally to repay, and these obliga- tions bore interest at the rate of l to 2 per cent a month on their face some of them compounded monthly.
 'The improvidence of the government and it's financial management was due to it's weakness. to it's impaired credit and to it's pecunary needs, occasioned by frequent insurrections and revolutionary changes, and by it's inability to col lect it's revenues.
 Pleased With Amsterdam Bankers.
 ''In 1888 the government, in order to se- cure the payment of an issue of bonds, placed the custom houses and the col- lection of it's customs duties, which are substantially the only revenues of the re- public, in the hands of the Westendorps. bankers, of Amsterdam, Holland. But the national debt continued to grow and the nation finally entrusted the collec- tion of its revenues to an American cor poration. the San Domingo Improvement company, which was to take over the bonds of the Westindorps. The Dominican government finally became dissatisfied, with this arrangement, and in 1891 busted the Improvement company from It's cus- tom houses and took into it's hands the collections of its revenues. The company thereupon appealed to the United States government to maintain them in their position, but their request was refused The Dominican government then sent it's minister of foreign affairs to Wash ington to negotiate a settlement. He ad- mitted that the improvement company had Qunfttaa vr 0lQht ,1n n hQ 6igrn- garded, and the department of state sug- gested that the Dominican government and the improvement company should effect. by private negotiation, satisfae- tory settlement between them. They ac- cordingy entered into an arrangement for settlement, which was mutually sat- isfactory to the parties. A similar arr engagement for a settlement was likewise made between the Dominican government and the European bondholders. The latter arrangement was carried into execution by the Dominican government, and pay ments were made toward the liquidation of the bonds held by the European hold CTS The Dominican congress refused to ratify the similar arrangement made with the Improvement company, and the gov ernment refused to provide for the pay ment of the American claimants. In this state of the company it was evident that a continuance of this treatment of the American creditors and its repetition m other cases would, if allowed to run it's course, result in handing over the island to European creditors, and in time would result in serious controversies between the United States and other governments unless they deliberately and finally abandon it's interests in the land.
 Had Interests In Island.
 ssThe frnnrovement cornpany and it's allied companies held, besides, certain