The Montgomery advertiser., 1908-08-20

ernment late in 1885. Although har- rassed by countless revolutions and having part in many adventures. the New York and Bermudez Company l remained in possession of the property acquired by the Hamilton contract un- til the seizure by the Venezuelan gov ernment in 1eo4.
 The property involved consists of a deposit of asphalt known as Bermudez Lake, In eastern Venezuela. The Ham ilton contract of 1883 was a concession for the exploitation of the asphalt for q period of twenty-five years. The contract of 1888 vested in the com pany for ninety-nine years the exelu- sive property in the asphalt deposit and the fee simple ownership of the land surrounding and Including the lake. about twelve miles square.
 Tn June. 1904. the Venezuelan gov ernment demanded of the New York and Bermudez Company the immediate | payment of s1o o.000, ,00O, or else the pay ment of s2.oo0.o 900 and the surrender of I It's property. The alternative was pre- scented in the form of a threat to sue | the company for the annullment of the Hamilton concession, for damages for failure to perform it's obligations. and for aiding the Matos revolution. The company refused to accade to the
 
 for adjustment, but the company said there was nothing to adjust" There upon suit against the company for an- nullment of the concession vas brought in the Venezuelan federal courts and a receiver was appointed. The receiver named was an American formerly con- nected with the New York and Bermh- deg Company. He took possession of the Bermudez Lake property on July N~N bx operating the mines and shipping as- phalt to the United States, where it is sold In competition with the asphalt Of the so-called trust" of which the New York and Bermudez Company is an integral part.
 It Is claimed that the conspiracy to despolI the New York and Bermudez Company began seven years before the actual seizure. According to the com pany's friends. the scheme was laid in 1887, when four venezuelans "discov- cred" an asphalt deposit on the very lands already owned by the company. This discovery" led to the format ton of company under the name of "La Felieidad." That was in the day of President crespo. He annulled the fa- nous Hamilton concession by decree, but permitted the company to retain mining rights. This controversy rag ed for a time. Crespo was succeeded by Andrade. under whose rule the Crespo decree was declared null and void as being an usurpation. Andrade was overthrown by Castro and the present regime began with the New fork and Bermudes Company in pos- session.
 Soon after Castro became the su- preme head of the government he af- firmed the rights of the company. and solemnly declared that 1t had perform ed its obligations under its contract, and It's rights must be respected. That was in July. 1900. Six months later Castro. according to the agents of the company, had changed front and was attempting to extort S400,000 from the company by selling" it property to which 1t already had a clear title. Then began another long series of law suits, ending In the annullment of the Ham, ilton contract in 1905.
 Castro had hardly found himself in office before he had to face a reyolu- tion. This movement. beginning in 1901, was led by General Matos and was finally crushed In the spring of 1903. To the financial support of Gen eral Matos, the New York and Ber- mudez Company contributed, accord ing to It's own admission. sI45,000. The company claims that this contribution was made under duress, and was forci- biy levied by Matos The other side as- severates with great detail that the Matos revolution was initiated InspIr- ed. and organized by the New York and Bermudez Company and was di- reeted from the offices of that corpora tion in New York.
 The company protests with great vehemenee that the seizure of It's prop erty was not the result of the aid 1t gave to the Matos revolution. As A matter Of fact, the suit under which the seizure was made was brought in July and the case based upon the revo- luton was not begun until the follow ing september. It Is true, however, that the Matos revolution matter was mentioned in the original demand for $lOOOO'OOO presented to the company in June. It Is also true that this fi- naneial support given to the Matos revolution is the chief diplomatic and legal asset possessed by President Cas- tro in his controversy with the eompa- ny.
 But whatever the fault of the com pany, it remains fact that the seques- tration and operation of the asphalt mines by receiver is based altogeth- CT upon the action of a Venezuelan Court in annulling the Hamilton con cesslon. The two other titles possess ed by the company, especially that ac- qulred under the contract of 1888 give the company rights which are being Ignored.
 The United States government. there fore, has been insisting for two years that this whole controversy be submit ted to international arbitration, The demand for submission was made with emphasis in February of last year. and repeated in vain at various times until the suspension of all diplomatic reIa- tions between the two countries In making this demand Mir. Root used the following language: Although this government (the United Statesl is certain of its position and declares that the company (The New York and Der mudez Company has been done a great injustice. this government is notwithstanding willing to submit the whole matter on It's merits to an iTn- partial and competent tribunal, to the end that the rights of the company may be investigated and its losses es- tablished by others who are not parties to the litigation"
 To this portion of Mir Roots demands the Venezuelan government replied by declaring that 1t had been forced to take steps against the asphalt compa- ny to protect itself against revolu- tionary acts committed by that com pany. and designed to overthrow the Venezuelan government altogether. And there the matter rests. to this good day.
 But the asphalt war goes on. If there Is a report in some newspaper that praaldAnt haa