Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-03-21
THE CUANTA MINES
Seized by Venezuela's Presjo
dent.
A POSSIBLE EFFECT
ITALIAN GOVERNMENT MAY
SEND WARsHIPs.
Umpire Ralston's Decision Awarding
Damages to the Company Agains.
the Government.
4 POSSIBLE EFFECT

The recent press despa tches from Cara
cas, Venezuela, telling of international dif-
| hculties likely to arise between Italy and
Venezuela as result of President Castro's
action in seiZing the Guanta mines on the
ground that they have not been operated
according to the terms of the concession,
| have attracted considerable attention to
| the volume entitled Venezuelan Arb!tra-
| tions of 1903" prepared by Mr. Jackson II.
Ralston of this city, late umpire of the
! ltalian-Venezuelan mixed commission,
| which considered the Guanta mines and
other property awards.
| The volume is just now vested with more
| than ordinary Importance as the Italian
government will argue in its endeavor to
| secure justice for the Italian concessions
| aires of the Guanta mines that the award
| OF 439,6I3.l6 bolivars made by Mr. Ralston
| to the company on account of damages and
| oppression, for which the Venezuelan gov
| ernment was held responsible is sufficient
| IN itself to make the seizure of the prooer-
| ties by Castro high handed and unwar-
ranted.
Italy May Send Warships.
1t is not known at present just what the
outcome of the affair will be, but 1t is
understood that the Italian government
contemplates sending warships to Caracas
| TO secure justice for the concessionaires and
| serious international complications may en-
sue. And if they do the United States. as
| is invariably the case when one OF the
South American republics becomes in.
| vowed in dispute with a European power
Will be highly interested party
Ihe Guanta mines are situated about 100
miies from Caracas. the capital of Venezu-
ella, and some twenty miles from Guanta
the seacoast town Of Guanta, which was
the shipping point for the mines A rail-
road connects the mines with Guanta. and
inf f1.aa
sive wbarves and properties.
The concession to the Italian firm of Lam
zoni' Martini d Co. was granted by the
Venezuelan government in 1898, and was
for fifteen years. The territory leased en-
braced $40 kilometers of area If the conn
pany had fulfilled its contracts for the term
of the lease the government was obliged to
extend its concession for ten years more
at the end of which time the lessees obIi,
gated themselves to deliver to the national
government, under inventory and in perfect
state of preservation, all the stock given
by the government, with its improvements.
In his decision on this case Mr.. Ralston
said:
Mr.. Ralston's Decision.
Historically, IT may be noted that on he
night of August 8, 1902, Barcelona was
taken from the government by troops of
the revolution, and the civil authorities
| were named by them; that on November 2g
| 1902, Barcelona was reoccupied by the gov
ernment; that on February IL, 1903 the
government forces retired; on February IL,
1903 the revolutionists took possession of
the town, retaining ii until after a bloody
conflict lasting from April to 10, when
they were elected. In addition there were
many skirmishes in and about Barcelona
within the dates mentioned, and the history
of Guanta was much like that of BARGE
Iona"
The foregoing paragraph is sufficient to
show the difficulties under which the COM
ende9V 9VOriDQ tO 70 ta
concession. 1t may be added, however, that,
as appears from Mr.. Ralston's decision,
much of the property of the concessionaireS
was destroyed, assaults were made upon
Italian workmen and Venezuelan laborers
employed in the mines were interfered with.
There was further interference with the
contract rights of the concessionaires aris-
ing out of the paper blockade and the clos
ing of the port of Guanta, and there were
other injuries of various sorts to the COM
pany's properties. The sum Of $9.064, ,965.34
was claimed. Mr.. Ralston. however, thought
$439.673.16 more just and reasonable an
amount in payment of the damages sus-
tanned Even this was the largest award
made by the mixed commission umpire.
Report of Arbitrators.
Mr. Ralston quotes from a report of arbi.
traitors in claim of employees of the COM
pany against the concessionaires, which re-
cited that .'the political situation of the
country, troubled by many years of con-
Stant ana ceaSeleSS CIVIL wars, rendered IL
impossible to carry on peacefully the work
of the mines Things got worse around
May. 1902 so that the mining properties.
the employees and even the owners were
exposed to very great dangers and threats
by the government troops without any
cause or justification.
On May %, 1902, the regular troops or
Venezuela, without any justification, invad-
ed the mines of Lasi Minas near NaricuaI.
firing on the mining properties. factories
and office buildings and railroad stations.
all belonging to the firm. The members OF
the firm spared effort in defending their
countrymen and employees, as was their
duty as defendants of the men they had en-
gagged, but the political situation was get-
ting rapidly worse, food was scarce and
supplies were not to be had. Banking
transactions were impossible even on usuri-
Gus terms The native laborers all around
NaricuaI caught the panic and fed, that
railroad service was severely crippled and
the work incidental to mining entirely
stopped
IL is considered by those in Washington
familiar with the situation that President
Castro's action in sezing the Guanta mines
on the ground that the company had for
feited it's concession because of failure to
work the mines and keep the railroad to
the port of Guanta in operation was die
tated largely by a desire for revenge
against the company, which had made tho
successful claim for damages and which
received the award of the umpire
Mr.. Ralston in making the award held
that the lnabilty OF the company 10 op-
crate its concession was the fault of the
Venezuelan government, as there had been
constant interference with foreign and na-
tive workmen; paper blockade had closed
the port and the rights of the concession-
aires had been seriously interfered with.
President Castro's Contention.
President Castro. in making the seizure.
contended that the company had not lived
up to the terms of its concession for tho
past four or FIVE years. but the Italian
government. with Mr. Ralston's decision ~
q basis. win undoubtedly be asle to show