Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-02-22
DIR. PAUL'S STATEMENT
RECENT DECISION OF THE VENE-
ZUELAN COURT.
Two Actions Pending Against the New
York and Bermudez Company
Merits of Case Not Touched.

DR.. Jose de Jesus Paul, who came from
caracas few weeks ago the VeneZue
ian representative on the French-VeneZue-
IAN arbitration commission meeting in this
country, has returned to Washington, and
yesterday called at the State Department,
where he talked with Assistant Secretary
Loomis. DR.. Paul Is also special diplomatic
envoy Of Venezuela to the United States,
and he will present his credentials to Sec
rotary Hay In few days. 1t is regarded
as likely that his mission here will result
| In some sort of agreement on some of
the questions now pending between the
United States and Venezuela. Dr. Paul
holds the Office In Venezuela of vice pres
ident of the high federal court of Venezuela
but with DIR. Carlos Leon, another member
OF the court, temporarily retired from 1t
until the case brought against the New
York and Bermudez Company for alleged
fulfllment Of the terms of its concession
has been disposed of. as they have had
previous professional relations with the
poslte sides of the case and both therefore
desired to refrain from participation in the
case.
In an interview DIR. Paul said:
THE frequent statement made in the
American press that Venezuela has not
been meeting her obligations to foreign
governments is absolutely untrue. IT is
also untrue that Venezuela has diverted
or intends diverting the public funds ap-
plicable to the payment of those debts &C
cording to diplomatic agreements actually
In force. Nor have we any intention of
evading the payments stipulated in the
Washington protocols and the decision of
The Hague. Thirty per cent of the reve-
nues of the customs houses of La Guayra
and Puerto Cabello is punctually applied to
the satisfaction Of these compromises. Up to
the end of last year the thirty per cent
amounted to 100000 bolivars. In 1901
there was an increase Of LOCO, 900 bolvars
over the amount paid in 1903 This money
was paid to the British German and Ital-
ian legations 1t will surprise Americans
to learn that during President Castro's ad-
ministration of affairs in Venezuela the
debt of the country has not been increased
one dollar. but this is true. The debts OF
the country date from the admniStra tons
of former presidents.
LAS to the asphalt cases." continued DR..
Paul, "a few days ago the high federal
court rendered a decision in one of the
cases which was misunderstood and mis-
construed here. 1t was reported that by
that decision the court took the Guanoco
lake from the BermudeZ Company. That
was not the case. In fact the merits of
the principal case were not touched on at
all by that finding. 1t had to do solely
with an appeal taken by the defendant from
the action of the president of the court in
placing an embargo on the asphalt lake,
and appointing receiver to take charge
pending the final outcome of the suit. On
this appeal the president of the court was
upheld by the unanimous decision of his
colleagues on the bench the embargo being
confirmed. That means that the embargo
must stand until the termination Of the
case, although it does not in any way
affect the case itself.
1T has been said that the appointment
of receiver by the court which was
done according to the laws Of Venezuela
will cause the defendants great pecuniary
loss. 1t should be remembered, however
that the receiver is strictly accountable for
every act and all moneys collected to the
high federal court The nature of the suit
made the placing of an embargo necessary.
There two actions pending against the
New York and Bermudez Company, both
brought by the attorney general. of the
nation. The one for annulment of it's con-
cession on the ground of gross violation
of the terms of its concession is in the
high federal court. while the charges
against the same company for alleged COM
plicity in the revolution of Manuel A. Matos
against the legally constituted government
is proceeding in the court of first instance"