The Birmingham age-herald., 1907-07-28
Government Sends Reply to
 Note of Secreia1ROot
SHREND MOVE OF CASTRO
President of Venezuela Takes Advant- age of the Expression of Ameri- can Principles by the Repre-
 sentatlVes at The Hague.

Caracas, Venezuela, Thursday, July 25, via Wilemstedt, Curacao. July 27.-The foreign offices yesterday handed over to the American minister. W. w. Russell, the answer of the Venezuelan government to the second note of Secretary Root regard ing the arbitration of five American claims. The government persists in It's refusal to arbitrate the claims in ques- ton.
 Washington, D. O., July 27.-The state department officials were not surprised to be notified of the second refusal of President Castro to submit to arbitration the claims of American individuals against the government of Venezuela. Some time ago MT. Russell. the Russian minister at Caracas, was instructed to proceed with the presentation of the cases which had been carefully prepared In Washington and taken by the minister to Caracas when he returned to that capital from this country last spring. Though the state de- partment has not been officially advised of this last action on the part of the Venezuelan foreign office, it was acquaint- ed with the failure of the first effort made by MT. Russell several months ago to se- cure consideration for these claims
 The Five Claims.
 The five claims which formed the basis of the present negotiations are those of Alfred Felix Jaurett; the Orinoco corpora ton; the Orinoco Steamship company; the New York and Bermuda Asphalt company and the United States and Venezuelan company, otherwise known as the Critch- field concession. It Is 175t possible to es- innate with exact accuracy the date of these claims Burrett fixes his damages at s5o,oOo, because he was expelled from Venezuela and deprived of a profitable and fourishing business The Orinoco Steamship company with its subordinate company, the Manoa corporation, made claim to large concessions covering iron mines, asphalt privileges, and hardwood concessions. The Orinoco Steamship com pany claimed exclusive rights of naviga- tion of branches of the Orinoco river which were not otherwise restored by the Venezuelan government. The New York and Burmuda asphalt concession was based upon the right of the company to take asphalt from Felicidad lake and Is among the oldest and best known of the claims pending against the Venezuelan government.
 The United States and Venezuelan com pany claims to have been deprived of the right to mine asphalt and to operate q narrow guage railroad about fifteen miles long, running from the coast into the interior of the country. Naturally the damages sustained by these corpora tions while nominally running up into the millions of dollars, cannot be defi- nitey stated and would require patient worK on the part of the arbitrators to adjust.
 Castro Is shrewd.
 It is believed here that in rejecting for the second time the United States proposition to arbitrate the claims, the VeneZeulan government Is seeking to take advantage of the fact that The Hague conference Is just fbout to em- barK upon the consideration of the fa- nous Drago doctrine. involving the right of a state to forcibly collect debts due by another to it's citizens. Castro, prob ably presuming that the United States, an ardent advocate of that doctrine, would scarcely care to weaken its ar- gument at The Hague by threatening a display of force now to collect these pending claims. It Is pointed out that this Is 0 Mexican conception of the United States in reference to the Drago doctrine, which in substance is that force may be used in case a debtor named refuses to submit a case to arbitration or any fair means of settlement. The state department will probably make no forward move in this matter until it has received from Minister Russell the full text of the Venezuelan communication declining his proposition.
 The late John Hay expressed himself in no uncertain terms regarding these claims Writing to MT. Bowen then min ister of the United States at Caracas, unaer date of March 10, 1905, MT. Hay sad: "The attitude of the Venezuelan gov ernment toward the government of the United States and toward the interests or its citizens who have suffered grave ana frequent wrongs arbitrarily commit ted by the government of Venezuela requires that justice could now be fully done for all. If Venezuela declines to consent to an arbitration insuring the rendition of complete justice to these injured parties, the government of the United States may be regretfully com pelled to take such measures as 1t may find necessary to effect complete redress without resort to arbitration"
 
 DELAY WILL BE FATAL