Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-01-20
WILL SCALE CLAIMS
Creditors of SantO Domingo
Consent to a Big Cut.
MONEY TO BE FORTHCOMING
Kuhn. Loeb & Co. Will Advance
s2o,OoO,oOo.
NEW TREATY TO BE NEGOTIATED
This Country Relieved From All Re
sponsibility, but Americans Will
Continue to Collect Customs.
lew TREATY TO BE NEGOTIATED
BY WILLIAM E. CURTIS

Written Tor Ihe star anu 'ne Nhie"e'
Herald
There has been very important change
in the Santo Domingo situation during the
last few days which necessitates the nego-
tiation of a new treaty to take the place
Of that now pending before the Senate COM
1nittee on foreign relations. Mr.. Neiasquez
finance minister of Santo Domingo, assisted
by DR. Jacob H. Ho1ander of Johns Hop
kins University, who has been acting as
diplomatic agent and financial expert Tor
the United States in Santo Domingo for
several months. has succeeded in making
an amicable settlement of both the foreign
and domestic debts, and the banking house
Of Kuhn. Loeb & Co. of New York has
agreed to finance the scheme.
All of the foreign bondholders and other
creditors of Santo Domingo. representing
total Of So, 900 ,O00 in claims have agreed to
scale them down to s1T00ooo0 and Kuhn,
Loeb & Co. will loan that government go
100000 in Az per cent thlrty-year ponas'
which the creditors agree to accept in pay
ment of all outstanding Obligations Oh the
Dominican republic. This settlement Will
be made by Kuhn Loeb x Co., and leaves
balance of 100000 cash, which Will oe
retained as the nucleus of sinking fund
to redeem them they mature. This is the
result of several months negotiations and
relieves the government of the United
States of all responsibility of the distribu-
ton of the revenues which have already
been collected by it's agents, or may be col
lected in the future and the adjustment of
the conflicting claims of the subjects OF haIf
dozen European nations.
Relieved of Responsibility. -.
We have nothing to do with the loan ex-
cept that it has been made upon the .condL-
ton that we continue to exercise a super
vision over the collection of the customs
revenues The foreign creditors were un-
willing TO scale down their claims aud &C
cept the new bonds unless such a guaran-
tee was given them. but the President and
Secretary Root declined to go any farther
than to nominate american citizens to han
die the money. We do not assume any fur,
Their responsibility. We do not agree to send
fleet or troops or undertake to preserve
the peace sustain the present admins
tration in power. The old treaty provided
for the arbitrary settlement of the debts Of
Santo Domingo by the United States. 1t
also provided that should furnish that
government with the machinery to collect
the revenues for that purpose, and that
there should be no change i'll the tariff du-
ties without our consent.
The settlement OF the debt by Kuhn, Loeb
& Co. relieves US from great deal of this
responsibility and necessitates the negotia
ton OF new treaty. The text has been
agreed up by Secretary Root and the min
lister Of Santo Domingo and Mr.. Dawson,
until recently our minister to that republic,
sailed for San Domingo day before yes
terday to secure the signature of Acting
President Caceres. He will return imme-
diately so that the new convention may be
laid before the Senate for action before
the close Of the present session. MIR. Daw
son was recently appointed minister to Co
lombia and Mr.. FentOn MCCreary, now sec
Rotary OF embassy at the City of Mexico,
was appointed in his place, but the latter
has not Yet been relieved of his present
duties, and Mr.. Dawson, who has been in
Washington preparing for his departure to
his new post, hurried down to Santo
Domingo on this important errand. Upon
his return he will proceed to Bogota.
Extra Session May Be Necessary.
In his speech at the banquet of the for
eign commerce convention at the Arlington
Hotel the other night the President an
nOunced that he would bc compelled to call
an extra session of the Senate after March
4 unless the treaty with Santo Domingo
was ratified. Secretary Root said the same
thing to the committee on foreign relations
the other day. He explained that unless
the United States government was willing
10 guarantee supervision over the collec-
tion Of the revenue as protection to for
eigu bondhoders some European power
would be asked to do so. This, he declared,
could not be permitted, but the new treaty
would be Invested Of all the features that
had been objected to by the Senate and re-
lIeye the United States of the appearance
Of exercising q protectorate over our rest
less ueighbor.
our feet, which has been lying in santo
Dominican waters FOR two years or more,
Commander FuiG4m. and a small gunboat
called Don Juan dc Austria are all the yes
sells We have left down there, and they are
not doing guard duty, hut are remaining
simply 10 be available in the event thai the
American citizens should require protection.
For several months we have done nothing
to maintain the government of Acting Presi-
dent CaCeres.
Collector Of Customs.
Hereafter he VIII have to take care of
States toward Santo Domingo will be
limited 10 the nomination OF American citi-
zens as collectors Of customs at the chief
ports OF the Dominican republic They are
TO collect the duties and pay % per cent of
their receipts to Kuhn, Loeb & Co.
for the interest and sinking fund of the
new loan. and 40 per cent to the secretary
of the treasury at Santo Domingo City. This
arrangement is the same at present,
and Col. Cotton. the collector at Santo
Domingo, has on deposit in the banks of
New York more than 100000. which can
be applied to that purpose. He has also
turned over TO the local government 40 per
cent OF the customs, which is more than
IL has ever received before, because, until
now. collectors have not always been able
TO distinguish between the public and their
private funds. This money mas been dis
bursed among the soldiers, policemen and
other employees of the government on the
regular pay days, which is gratifying
innovation. and the most effective influence
that could be devised to insure their 10y
ally TO the present administration. Here
tofore II has been the habit of the higher
officials to help themselves To tire public
revenues so far as their necessities re-
quired, and expend the remainder for arms
and ammunition to defend their claims
upon their Offices AS the army is the main
dependence of the administration which
happens to be in power one would suppose
that the president would be wise enough to
have 1t well fed and paid promptly but.
strange to say, that has not been the case
until recently.
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