New-York tribune., 1907-06-05
DOMINICANS WAVERING
NAY REPUDIATE CLAIMS
.Sh05ciRg Unzoillingness to Abide bv
Terms of Treaty.
Iron The Tribune R,rea,, !

washington, June 4.-Santo Domingo Is show
ing a disposition TO repudiate the settlement of
certain adjudicated claims which are in effect
part Of the treaty recently ratified and her
course causes anxiety to officials in Washington
although the State Department hopes and he
ijeyes that a satisfactory solution of the diff
cllties VIII be found. The Dominican Congress
ratified the treaty without amendment and TIE
convention, having been signed by the President
Of the United States, is now in Santo Domingo
where It has been sent for the signature of the
President Of the Dominican Republic
But the treaty is based a settlement of
santo Domngo's debts. which is referred to in
the preamble as follows:
And whereas. The Dominican government has
now effected a conditional adjustment and set
tIemeut Of said debts and claims under which
ell It's foreign creditors have agreed to accent
about Sl2,4OI,OO0 for debts and claims amount
ing 70 about S2LlS4,OOO Of nominal face
yalue aud the holders OF internal debts or
claims about S2.02S, ,25S nominal or face value
have azE-ed accept about S635 S27 therefor
and tie remaining holders of internal debts or
claims on the same basis as the assets already
given viii receive about $2400000 therefor,
which sum the Dominican government has fixed
and determined as the amount which it Will pay
10 such remaining debt holders, making the total
payments under such adjustment and settle
ment. including interest as adjusted and claims
not yet Iquidated, amount to not more than
about S17,eo0,OOO,
IMPROVEMENT COMPANY's CLAIM
Now, however. the Dominican Congress evInces
a disposition repudiate this adjustment and
settlement of the Indebtedness of the Re-
public and an unwillingness TO negotiate
the loan Of S20O00O00 referred TO in the
next para graph of the treaty. and seems de-
terIaired tc negotiate q loan Of not to
exceed S1O.O0O0O0 or theresbouts- Moreover,
one OF the claims which the Dominican Congress
purposes to eliminate from the liquidation is
pany, which was on motion Of the United
States made the subject Of arbitration IN 1904,
having been adjudicated by Judge George Gray,
Manuel de J. Galvan and John G. Carlisle, who
rendered their decision on July Il. 1904. The
decision Of the arbitrators gave TO the improve
uenr company award OF S4.5O0,OOO. with in
teTest at per cent, and assigned security
therefor the port dues OF sll the ports on the
northern coast Of Santo Domingo. This award
has never been paid because the pressure of
European creditors and the bankrupt condition
Of the Dominican Republic led the United States
10 enter into the protocol signed February
4 1903 which after numerous vicissitudes, was
made the basis Of the treaty just ratified.
Under these circumstances the proposition Of
the Dominican Congress to defer payment OF this
the largest American creditor, and again to sub
ject the claim Of the Improvement company 10
some new form Of tribunal. cannot be enter
tained by the United States. There are, more
over other claims which have been formally ad-
judicated, the immediate payment OF which
Santo Domingo now proposes to evade or defer
Altogether the conduct of the Dominican Con-
gress is wholly at variance with the spirit OF
the treaty, for II is the clear and express pur-
pose Of the Dominican convention to make ar
rsngements whereby all OF Santo Domingo's
creditors. foreign and internal. shall be paid
with the proceeds Of the loan referred TO in its
preamble. such loan to be paid by the segrega-
tan of a stated percentage Of the customs re-
cefr1- Of the republic, while the treaty further
provides that until the whole amount OF the
proposed loan shall be paid the Indebtedness Of
sanro Domingo shall not be increased except
by previous agreement between the Dominican
government and the United States"
We're the terms and the spirit Of the treaty
honestly observed, there would come time, not
more than fifty years hence, when the proposed
loan would be paid in full, and Santo Domingo
would be absolutely free Of debt, while 1t has
al along been the assumption Of this govern
meut that after period Of fifty years Of honest
administration OF her customs revenues, and
free from the discoprag cement of accumulated
Indebtedness. the republic would go forward on
q course Of rectitude and prosperity such as it
has never known.
THE KUHN-LOEB AGREEMENT.
A
santo Domingo which cannot but occasion anx-
iety here IS that while there is now in existence
an agreement between the Dominican Republic
and Kuhn. Loeb & Co, whereby that company
IS 70 advance TO the republic 100000. taking
IN return bonds bearing per cent interest, this
contract was entered into when the money mar
ket was easier than now. and > per cent ap-
Ieared more attractive. We're this agreement
20 he abrogated, it is questionable whether it
could be replaced with equally favorable con-
tract. Secretary Root has called the attention
Of the Dominican government 10 this phase Of
fhe situation, although the presentation Of ar
guments which represent only sound business
sense appears to have little force with the
Dominican Congress.
It is-ssserted at the State Department that the
Dominican treaty is in perfectly satisfactory
form and that the return Of the signed copy is
daily expected, and this assertion cannot be
gainsaid, but there is considerable question as
to the value of the convention, even when duly
ratified and signed, if the Dominican Congress
repudiates the arrangement on which il is based
IL is true that the convention provides that
this agreement shall take effect after its ap-
proval by the Senate Of the United States and
the Congress OF the Dominican Republic" And
there is in the minds Of some members of The
Committee Foreign Relations some Que--
uon 10 whether the United States could not
compel the Dominican Republic 10 live up 10 the
terms of the agreement, including those con-
tanned in the preamble; but this government
"ould be unwilling to exert force TO compel an
honest compliance with the terms Of the agree
nent, even should IL be determined that the con-
Fention vested such right In the United States
NO MOVE YET IN COAL, ROAm SJTTTQ