The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-10-31

bonds" There seems 10 be no question
that these were issued unlawfully, and
il may be necessary for the present
administration to take steps for their
proper legalization. The story involves
that evanescent gentleman Don MANUEL
SrLvIERA, nov a fugitive from justice in
Venezuela.
When it was fully known that Cuba
intended to pay her soldiers OF the rev.
olutiOn of 1895 a group Of spectators
got busy" Among those engaged in
the enterprise we're men Of standing
in Cuban affairs, and Americans and
foreigners well known in banking circles.
Agents were set to work to buy up claims.
Various pretexts were uted TO induce
the veterans to sell their claims, and
various prices were paid, from 20 cents
on the dollar upward. To facilitate the
enterprise and to insure the Investments
made by the SPECTATORS the Govern
ment was induced to open a registry Office,
where a list Of allowed claims was kept
and a legal record Of transfers could
be made. The total amount of claims
awarded by the commission appointed
for the purpose was given by President
PALMA, in his message of November,
1904, as $50, 76S, A28.33. This sum in itself
constituted an outrageous robbery OF the
Cuban taxpayers. but il was recognized
by the authorities. 1t is estimated that
at least three-ffths Of the claims were
bought up by the spectators.
The loan of SIS, OOo, 900 was effected for
the purpose of liquidating one-half Of
the alleged obligation. The sale Of the
bonds gave Cuba a net sum Of ssl ST.
1886. SO, or 3,l77, $3.50. So more than was
needed for the proposed payment. The
balance was turned in to the treasury.
Out Of this first payment the spectators
got back all they had paid for the claims
purchased by them and cleared a usurious
margin of profit besides. In addition to
that they held claims for the remaining
so per cent. Of the award. They wanted
that so per cent, which was clear vel
vet" Mr.. SILvIERA and his associates
held some Of the claims and he had a
considerable pull with the Cuban Con-
gress. He is said TO have obtained from
the specializing gang a corruption fund
reported to have been nearly $500, 900.
In his message of November, 1904,
President PALMA argued at length the
unwisdom, ifnot the im~possibility, of any
early payment of the second half of the
army claims. Yet less than a year later
he signed a bill, unlawfully passed, for
its full payment. The point of the ille-
Cality of the bill is entirely clear. Cuba's
Constitution article LIN, clause 81 de-
clares that in contracting loans the Con-
gress shall be under the obligation OF
deciding what permanent shall
be necessary for the interest and re-
demption thereof" The bill passed by
the Cuban House on July 81. 1905, and by
the Senate on August 10, 1905, makes no
provision whatever for permanent reve-
nues" or for any other means of paying
the sO-called interior debt" except a
general provision that " in every ordinary
budget the sum which Congress may
decide to devote to the amortization of
the bonds will be stated"
The point of illegality appears again in
the fact that the same clause in the Cuban
Constitution declares that all action re-
lating to loans shall require two-thirds
of the vote of the total number Of the
members Of each colegislative body"
When this bill passed the House only
thirty-one ont of sixty members were
present, a bare quorum, and only a
majority of those present voted for the
bill. When it passed the Senate only
sixteen of the twenty-four members were
present. Only twelve voted for it.
The status of such a bill is obvious, but
it provided for a payment Of about
SIS, OOO, 900 in cash from the Cuban Treas
ury and the issuance of about Sl4, 600, 900
in bonds, which were called an interior
loan" because Of a notion that they would
thus be exempt from the provisions of
Article ii. Of the Platt Amendment.
This ingenious and utterly ~disgraceful
transaction accounts for a goodly part Of
the money which ought to be either in
the Cuban Treasury or in the pockets
OF Cuba's taxpayers. The remainder Of
the misused funds is less easily &C.
counted for, but it is rather more than
probable that Special Auditor TERRELL
and his force will strike the trail Of some
Of it in the course Of their labors.