The Washington herald., 1908-04-01
VENEZUELA BLAMED
President Sends Correspond
ence to the Senate.
WOULD BAR HER EXPORTS
Senators Would Use
Embargo TO Bring Recalcitrant
Castro to Terms-Loomis Wanted
show of Force TO Back Up Effort
10 Protect Asphalt Company.

President Roosevelt sent TO the Senate
yesterday mass OF correspondence and
documentary evidence relating to the
pending claims Of the United States
against Venezuela
will meet to-day, - Is expected that
consideration will be gI,,- he matter.
1t is the purpose OF the Administrations IS
supporters in the Senate TO press for the
adoption of a joint resolution granting
authority TO the President TO place an
additional duty on Venezuelan products
and to close American ports to Venezuelan
goods IL the additional duties are not
effective in the intent TO compel Ven
zsela TO agree to arbitrate the pending
claims.
The five cases to which the documents
relate are those of the Orinoco Steamship
Company. the Orinoco Corporation, Albert
F. Jaurett. the New York and Bermudez
Company. and the United States and
Venezuela Company The most impor-
tant Of t.:ese is the claim OF the New
York and Dermudez Company. a subordi-
nate concern Of the American Asphalt
Company. and the bulk of the correspond
ence relates 10 its difficulties with the
Venezuelan government. which dispos-
sessed il Of its holdings.
LOOmis Asked for ships.
The diplomatic correspondence relating
10 the New York and Bermudez Com
panys case was begun back In 1900. On
| December 26 OF that year, Francis B.
Loomis. then Minister 70 Venezuela. was
telegraphing Secretary Of State Hay that
a gunboat was necessary 70 protect the
company's property.
mo reasonable doubt" he cabled, "of
conspiracy here 10 deprive this company
Of lake, meaning the asphalt lake which
the company then held 1t seems 70 be
a clear case Of lootng and nullifying
vested interests" said Mr.. Loomis. and
he added: appearance Of imposing naval
force will doubtless. bring Venezuelan
government 10 reason"
Secretary Hay telegraphed Mr.. Loomis
10 urgently request" but subsequently
TO '-peremptorily demand" a stay OF the
/ proceedings OF the Venezuelan Govern
ment concerning the asphalt lake until
| the matter could be investigated. Ven
ezuela refused 10 comply
A few weeks later Mr. LOomls wrote 70
Mr.. Hay that the opposition to the com
pany was because its property holdings
| here suggest large possibilities for profit
10 certain adventurous and not over
scrupuIous spirits, who are always on the
alert for plumber"
Cruisers Left at Crisis.
A little later Mr.. LOomis Informed the
State Department that he thought the
| departure Of the cruisers Hartford and
| Buffalo al the moment he presented Mr..
Hays peremptory demand was unfortu-
nate. There was much correspondence at
4 that time. Venezuela insisting that the
constitution of the republic provided for
an adjustment Of the case through the
courts. The talk about the constitution
is all bosh." said Mr.. Loomis. III rs used
/ as a convenience"
The asphalt lake was seized and the
/ Venezuelan courts decided against the
company. President Castro placed a re-
ceiver In charge. In October, 1905, three
! months after Mr. Root became Secretary
Of State Mr.. Root undertook z reopen
the case, which had been closed since
| Venezuela refused 10 regard IL IS a dip
| lomatic matter. He sent a telegram tc
/ Minister at Caracas. containing instrUc-
tions to adopt a friendly and eoncuiatory
attitude.
Our desire for the friendship and kind
| ly feeling Of Venezuela IS sincere and
strong" he said We have taken so
much trouble and devoted so much effort
as friend Of Venezuela. especially under
the administrations Of President CIeve-
land and President Roosevelt that we are
very reluctant TO yield TO the idea that
any conditions between US cannot be set
tied through diplomatic channels. You
will confer with the government In that
] spirit Ascertain IL they viii not
meet us half way in friendly and practi-
cal effort TO reach substantial justice"
Efforts at Settlement Fail.
Negotiations between President Castro
and the New York and Bermudez Com
pany were begun as a result Of this ef-
fort. but did not result satisfactorily.
Subsequently Mr.. Root proposed arbi-
tration Of the Bermudez and other
claims. but Venezuela declined. Then
Mr. Root proposed that each claim be
arbitrated separately. On March Is, 1908.
Mr.. Root received a telegram from Min
lister Russell, IN which he said that
Venezuela refrains from considering for
the present the question OF arbitration,
because I have not refuted the argu-
ments in notes OF July and September
20. in which notes Venezuela plainly
stated grounds for refusing to arbitrate.'
This information was conveyed to Mr..
Russell by the Venezuelan minister Of
foreign affairs. who said in a note:
LAS the cases referred to cannot be
I
among those which call for diplomatic
action, the government of Venezuela
would view it with satisfaction IL the
government of the United States would
consider this question as closed, the
parties interested always having the
right of recourse TO the tribunals Of jus
tice of the republic should they deem
! fit
VenezueIa Stands Pat.
This was a polite refusal Of the efforts
Of the United States to obtain arbitration.
and ended the correspondence between
the two governments. The correspond
ence shows that this government insisted
upon a revision Of the arbitration award
in the case of the Orinoeo Steamship
Company, but Venezuela refused.
| One OF the documents is a long report
made by w. j. Calhoun. who was sent
| TO Venezuela as a special commissioner
to investigate the New York and Ber-
'mudez case.
Mr.. Calhoun went 10 Venezuela at the
request of President Roosevelt in 1906, and
made thorough investigation Of the dis
pute between the New York and Bermu-
dez Company and the government Of
Venezuela His conclusions are as fol-
| lows:
/
Il. The Venezuelan government, on the
main issue as made and on the evidence
| fufrOdupnd fp U-haf e coIIaS FL a~o-...-