The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-03-23
The Venezuela situation.

/
| President CASTRO Of Venezuela is not
disposed to follow the example set by
| President MORALES OF Santo Domingo
| Il his country mus! be put n the hands
Of receiver, he would rather trust
European syndicate than the United
| States Government
1t seems that President CAsTBo's ifs
cal agent, Vice-President VELUTINI, who
is now at Antwerp, has been authorized
to sign a contract by which large guam
tity Of VeneZuela's Government bonds,
amounting in the aggregate to some
SIC, 900 900, now held in Germany, Great
Britain, France, Holland and Belgium,
is to be refunded at per cent, the pay
ment of interest and sinking fund be-
ing guaranteed by the appropriation
OF 50 per cent. Of the duties collected
at seven Venezuelan custom houses, La
Guayra and Puerto Cabello being tenn
porarily excluded from the list. We are
not informed as to what precautions
will be taken by the creditors to assure
compliance with the agreement, but we
take for granted that the seven custom
houses affected will be turned over TO
collectors appointed by the syndicate
representing the European bondholders.
What the gross or net income Of the seven
custom houses affected is we do not
know, and therefore we cannot say just
how long the receiverShip would last but
we observe that the term is roughly
estimated at half a century.
This arrangement, Of course, is not in
compatible with that which was effected
through our interpretation for the purpose
Of relieving certain Venezuelan seaports
from blockade. At that time the Caracas
Government covenanted to set aside 80
per cent. Of the gross revenues Of the
custom houses Of La Guayra and Puerto
Cabello for the purpose Of liquidating
such debts as should be adjudged valid
by the Hague Tribunal. Certain claims
put forward by citizens or subjects Of
England, Germany, Italy, France, Spain,
the Netherlands, Belgium, Sweden,
Mexico and the United States had been
disputed by Venezuela, and the claim
ants, as well as the alleged delin-
quent, agreed to abide by the awards
Of the court Of arbitration. Venezuela,
on the other hand, does not dispute the
validity of the Government bonds, the
conversion Of which is the object Of the
agreement which Vice-President VELU-
TIM is now authorized to make.
AS many of the claims submitted to
the Hague Tribunal have been sub
jected to enormous reductions, it il not
expected that all Of them, when finally
adjusted, will amount to much more than
ten million dollars. In that event they
! should be discharged within a relatively
short period by the appropriation Of one
| third of the gross revenues Of La Guayra
and Puerto Cabello. When these two
custom houses are freed from the lien
named, rs per cent. Of their income is 10
be set apart as additional security for the
payment Of interest and sinking fund
on the Government debt TO be refunded
under the contract concluded by Vice
President VELUIISI with the European
syndicate.
Our national interest in Venezuela's
proposed contract with European bond
/ nOlutlb u ODNlOuh. TOT buCu Cldllnb OF
our citizens as we're submitted under the
protocol TO the Hague Tribunal, the
sums awarded will, Of course, be payable
from the 90per cent Of the gross customs
revenues Of La Guayra and Puerto Ca
bello assigned for the purpose. But'how
shall we obtain a settlement Of new
claims that may arise, including those Of
the New York and Bermudez Asphalt
Company, the seizure Of whose property
has just been pronounced valid by the
highest court Of appeal in Venezuelan As
We have just seen, 30 per cent. Of the
income Of seven Venezuelan custom
houses win have been attached for the
benefit Of other creditors. and the re-
ceipts at La Guayra and Puerto Cabello
are also to be appropriated for an indeh-
mite period, first 70 the extent Of 80 and
then Of Is per cent The remnant Of
those customs revenues viii be needed
20 defray the cost Of VeneZuela's internal
administration. We are estopped from
recouping ourselves by a permanent oc-
oupation Of Venezuelan territory, for.