New-York tribune., 1905-02-17
A COMPLICATED PROBLEM.

One of the difficult and increasingly compl-
Gated problems which often arise in Santo Do
mingo grows out of the violations of con-
tracts and concessions, sometimes innproVldentIy
granted with valuable privileges and eXemp-
tions stipulated for upon grossly inadequate con-
sderations which were burdensOme to the state,
and which not infreqUently disregarded ana
violated by the governing authorities. Citizens
of the United States and of other governments
holding these concessions and contracts appeal
TO their respective governments for active pro-
lection and Intervention Except Tor aroltrary
wrong done or sanctioned by superior author
fty, to persons or to vested property rights, the
United States government, following its tradl-
tional usage in such cases, aims TO go no further
than the mere use of it's good offices. measure
which frequently proves ineffective. On the
other hand, there are governments which do
sometimes take energetic action for the protec-
tion of their subjects in the enforcement or
merely contractual claims, and thereupon Amer
lean concessionaires, supported by powerful in
fuences make loud appeal to the United States
government in similar cases for similar action.
They complain that in the actual posture OF
affairs their valuable properties are practically
cOnfiScated, that American enterprise is par
alyzed and that unless they fully protected.
even by the enforcement of their merely con-
tractual rights. it means the abandonment to
the subjects of other governments of the in
tereSts of American trade and commerce through
the sacrifice of their investments by excessive
taxes imposed in violation of contract, and by
other devices, and the sacrifice of the output of
their mines and other industries and even OF
their railway and shipping interests. which they
have established IN connection Win the eN-
plotation of their concessions Thus the at
tempted solution OF the complex problem by the
ordinary methods of diplomacy reacts injuTi-
ousIy upon the United States government ITSELF
and in measure paralyzes the action of the
Executive in the direction OF a sound and con-
Sistent policy.
The United States government is embarrassed
in it's efforts 10 foster American enterprise and
the growth of our commerce through the culti-
walton of friendly relations with Santo Domingo
by the irritating effects on those relations, and
the consequent injurious influence upon that
commerce, of frequent interventiOns. AS a
method of solution of the complicated problem
arbitration has become nugaIOry inasmuch as.
in the condition OF its finances an award against
the republic is worthless unless its payment is
secured by the pledge of at least some portion
of the customs revenues. This pledge is inef-
fectual without actual delivery over OF the Gus
tom houses TO secure the appropriation of the
pledged revenues to the payment of the award
This situation again reacts njuTiously upon the
relations of the United States with other nations
For when award and such security are
thus obtained as I'm the case of the Santo Do
mingo Improvement Company. some foreign
government complains that the award conflicts
with its rights. a creditor, 10 some portion
of these revenues under an alleged prior pledge;
and still other governments complain that an
award in any considerable sum. secured by
pledges of the customs revenues, is preilIdicial
to the payment of their equally meF1tOrious
claims out of the ordinary revenues and thus
are begotten betweeaf the United
States and other creditor nations because Of the
apparent sacrifice of some of their claims which
may be just may be grossly exaggerated but
which the United States government cannot in
quire into without giving grounds of offence to
other friendly creditor nations Still further
illustra tions might easily be furnished OF the
hopelessnesS of the present situation growing
finances of the Dominican Republic. where for