The daily morning journal and courier. [volume] (New Haven, Conn.) 1894-1907, 1905-01-23
UNITED STATES TAKES
HOLD OF SAN DOMINGO
(
TO ADMINIsTER FISoALAFFAI
or REPUBEIC.

With the Consent Of the Dominican
Gorernment--seyeraI OF the Great
Powers Wanted This Country to Act
or Allow Them to-TerritoriaI In
tegrity Of the Country Assured.
Washington, Jan. 22-After a consult
alton with Secretary Hay the following
statement regarding the situation in
santo Domingo was issued BY Assistant
Secretary Loomis to-day:
THE Dominican republic. after more
consideration Of existing conditions, has
formally and freely invited the govern
nlent of the United States to assist it in
the administration of its customs reve-
rlues and to aid it iii establishing its fis-
cal system upon a firm and businesslike
basis.
1 The government of the United
States, having been explicitly, repeat
edly and emphatically informed BY
more than one Of the great powers that
It ought either to try to evolve some or
der out Of the financial chaos in the Do
minican republic or assent to certain
European creditors of that republic do
ing this. and to the administration Of
the Dominican custom houses by that,
supported by their Warships. has deem
ed IT advisable, in view Of the unfortu-.
nate financial conditions in Santo Do
mingo, which for the last ten years
have been rapidly growing worse, to.
accept the invitation Of the Dominican
government, and. therefore representa-
tives Of this government and of Santo
Domingo have signed memorandum
OF a proposed agreement looking to the
American control of the fiscal affairs.
upon the request and with the consent
#of the Dominican government.
The United States proposes to guar
antee the territorial integrity Of the Do
minican republic
u Is not the purpose of this govern
ment to( assume protectorate over
Santo Domingo OF to interfere with or
participate iii Its demoestic affairs any
further than the collection Of its Gus
toms revenues, the necessary revision
of its tariff laws and the adjustment,
through properly constituted tribunals
or commissions of It's foreign claims
and Its economic and fiscal organization
on sound basis. N y % 55l,ss
President Morales has signed a de-
cree, which will be published To-day, iii
which the government of the United
States is officially asked to take full
charge OF all the Dominican custom
houses; to name all the employees, and
to collect all the revenues, forty-five
per. cent of which are to be returned to-
the Dominican government for its cur
rent expenses. The balance is to be
used TO meet the interest charges on
the bonded Indebtedness and other OBJ
legations of the republic, Any surplus
will be turned over to the Dominican
government, The obligations represent
ing the bonded Indebtedness are large
" owned BY foreign creditors
THE government of the United States
does not guarantee the debts of Santo
Domingo or agree to provide for the
payment Of them, but only promises to
try to 50 organize and adjust the fiscal
administration of the country that in
time their liquidation may be accom-.
pIished automatically and on a basis Of
equity towards all creditors.
TT is believed that if the Dominican
bursed all legitimate claims against the
republic will be ultimately satisfied.
TN this connection ii may be added
that under the award Of the tribunal Of
arbitration Of July IA, 1904, between the
United States and Santo Domingo, In
the sum Of about s4 100000, the United
States was given the right eventually
to take possession Of the four principal
ports on the northern side Of the island.
and under the award the fiscal agent
appointed BY the United states>is now
in possession Of the important custom
houses at Puerto Plata. The unfortu-
nate financial condition of Santo Do
n1ingo more than once in the last de-.
cade has brought to the United States
government questions fraught with inn
minent peril The government of the
United States could not with due self
respect, allow the impression to deepen
ard gain currency that the Monroe doc
trine can be used as a shield by Ameri-
can republics to deny justice to other
governments Many foreign claims are
just beyond peradyenture. and, being
held by citizens Of various governments,
the problem became increasingly more
difficult as to how these claims could
be satisfied, under existing conditions,
with fair treatment towards all. In
some respects still more embarrassing
feature of the situation has been that
the Dominican government has been
compelled by force to pay grossly exor-
bitant claims, and the question has
arisen whether the United States should
interposeS in such, cases. Such interpo-
sition has never tbeen resorted to per-
haps but once in our history. .a
Another deplorable feature of the
financial situation@ia Santo Domingo is
that her revenues have been. crippled
by granting, for a. song. valuable con-
cessions which were exempted, by stip-
ulation, from all taxation. Her inter-
ests have compelled the Dominican gov
ernment to disregard these promises of
exemption from taxation, and this has
resulted in numerous and increasing
appeals to the department Of state to
interfere. >"~ ~~
'The Dominican government itself
reached the conclusion that its only
hope of escape from bankruptcy was