Evening star., 1907-07-28
CASTRO, OBDURATE,
DEf|ES UNCLE SAM
Venezuela Refuses to Arbitrate
American Claims.
DECISION NOT A SURPRISE
Five Claims Involved Aggregate a
Large Amount.
RELIES ON THE DRAGO DOCTRINE
Caracas Believes That the United
States Will Not Attempt Col
lection by Force.

to arbitratc the five American
claims that have been pending
against her for years. These claims
aggregate large amount, though
Just how much would be difficult
tC decide. The refusal was no
great surprise to the State Depart
ment. which had expected some
such answer 1t is believed that
Venezuela relies on the fact that
the United States is an advocate
OF the Drago doctrine before The
Hague. and will not prejudice its
case there by attempting to collect
the claims by force.
CARACAS Venezuela Thursday, July %,
via Willemstad Curacao. July 27.-The for
eign office yesterday handed over to the
American minister, W. w. Russell, the
| answer OF the Venezuelan government to
| the second note from Secretary Root re-
garding the arbitration of five American
| claims
The government persists in it's refusal to
arbitrate the claims in question The reply
is lengthy document and answers in de-
| tail the arguments advanced by Mr. Root
The opinion is held here in some quarters
that this answer may lead TO the severing
| Of diplomatic relations between Nenezuela
and the United States
| The late John Hay expressed himself in
no uncertain terms in the matter of these
claims. Writing to Mr.. Bowen, then min
| lister of the United States at Caracas,
under date of March 10, 1905, Mr.. Hay said:
| Secretary Hays Words.
| The attitude of the Venezuelan govern
| ment toward the government of the United
| States and toward the interests of it's citi-
zens who have suffered so grave and fire.
nuent wrongs arbitrarily committed by the
| government of Venezuela requires that tus-
| tice should now be fully done, once for all
| If the government OF Venezuela finally de-
clines to consent to an impartial arbitration
! nsuring the rendition of complete Justice
to these injured parties, the government Of
the United States may he regretfulIy com
PEELED to take such measures as il may
find necessary TO effect complete redress
Was No Surprise.
The state Department officials We're not
surprised 10 be Informed of the second re-
fusal Of President Castro to submit TO ar
| E.tration the claims of certain American
corporations and individuals against the
government Of Venezuela Some time ago
Mr.. Russell. the American minister at
caracas, was instructed to proceed with the
I on pf ha
carefully prepared in Washington and TAX
! IN ny the minister to Caracas when he re-
! turned to that capital from this country
Last spring. Though the State Department
has not yet been officially advised of this
! last action on the part Of the Vene.
zue!aa foreign office. /. vas acquainted
with the failure Of the first effort made
! by Mr.. Russell several months ago 10 Sc
cure consideration for these claims.
Size of the Claims.
The n" claims which formed the basis o.
the present negotiation are those Of AL
berto Felix Jaurett, the Ornoco CORPORA.
ton, the Orinoco Steamship Company. tn,
New York and Burmudez Asphalt Com
pany, and the United States and Venczue.
la Company, otherwise known as the
'ritchfeld concession. 1t is not posstblt
l" estimate with accuracy the total OF these
claims. Jaurett fixes lis damages at $50
rp, because he was expelled from Vene.
zuc!I and deprived Of profitable and
hoArishng business. The Orinoco Steam
sap Company. with its subordinate com
| pahN. IN" Mano5 corporation made claim
| 10 large concessions covering iron mines
asphalt privileges and hard wood conces-
! Siois The OTinOco Steamship Comuan,
ciaimed exclusive rights of navigation Of
oiahrRGs OF the Orinoco river, which weri
otherwlsc bestowed by the Venezuelan gov
. | Crnment. eo'
II;e Ne" York and Bermutlez asniaIt con.
'fssloh was based upon the right OF the
roiPaiS 10 take asphalt, from la FeNcidad
lake ana Is among the oldest end has4
known of the claims pending aeains. 80
Venezuelan government. The United S,.tne
! and Venezuela Company claims to -.
been deprived or the right TO mine asphalt
and 70 operate Il Earrow-sauge railroad
about fifteen miles long running from the
coast into the interior of the country. Maj.
! uraily the deinaScS sustained by these cor
porations, while nonnal.y running up into
the millions of dollars. cannot be definitely
stated and would require patient work on
| the part OF arbitrators to adjust.
The Drago Doctrine.
II is believed here that u rejecting 70,
, the second tine the United States PROPOSE
tion to arbtrate these claims the Nece
Zuclan government IS seeking TO take ad
vantage of the fact that The Hague con
; ference is just about 10 embark upon The
= consideration of the famous Draco doctrine
I involving the right Of a state To forc!SiS
collect DEBTS dI" by another 10 its cit zenS
President Castro Is probably presuminl
t tnat the United States. as an ardent at:vu
n | cate or that doctrine. would scarcely car,
[ to weaken It's argument at Tke Iague b,
J, threatening dispay of f"rco row 10 col
! lect these pending claims. IL :s ua'OtaI ON
= that this is q mistaken conc-piion Of ~,
a position OF the United States IN refcrrucf
r to the DraSo doctrine. which. in subs; ;al,ee,
r is that force may be used in case n de IT,;
. | nation refuses 10 submit 4 case to .,rl,;ir,
j | tion or to any fair means of settlement
j However, the State Department prohabi,
s VIII make no forward move IN this matte,
: | until II has received from Minister Russo /
o the full text of the Venezuelan commur!ca
uon declining his proposition.