The labor world. [volume] (Duluth, Minn.) 1896-current, 1908-05-23
PEOPLE Of VENEZUELA
RIGHT IN CONTENTION
Ashphalt Trust Clearly Repudi-
ated Contract With South
Americans.
CONTRACT SHOULD GOVERN
Drastic Measures for the Enforce
ment of Illegal Claims is not
Justifiable.

Justifiable.
NEW YORK, May 20.-In editorial
consideration Of possible Intervention
by the United States In the matter Of
claims by American companies
against Venezuela, stress has been
laid by many writer's on the tenor Of
contracts upon which the concessions
involved were based. The binding
nature of these contracts was forcibly
set forth In the brief filed with the
senate committee on foreign relations
by Hon. John w. Foster, who was
secretary Of state under President
Harrison.
Mr.. Fosters Argument.
Mr.. Foster first shows that all
Venezuelan officials are by the con-
stttution of Venezuela prohibited from
exacting any contract Of public in
terest that does not contain provision
for settlement by the Venezuelan
courts, Of all disputes and contro-
versies arising under the contract in
question. Under this constitutional
provision the following clause was in
serted in the contract that authorized
the New York and Bernudez COM
pany to exploit the ashphalt: lake in
the state Of Bermudez.
Article II. Doubts and contro-
versies TO- which this contract may
er{Vy ~@0a ohon HAH HHv,$ hA ri
bunals of the republic (of Venezuela)
in conformity with it's laws
In another clause 1t is stipulated
that "the want of compliance with
any Of the conditions herein set forth
hnnuls defacto the present contract"
Question Of Right.
The question Of the right Of relief
from the stipulation Of this contract
and others like it has been more than
once adjudicated by international tri-.
bunals. Under the treaty Of 1886,
based on such contract claim was
presented before the United States
and Venezuelan Claims Commission.
In overruling 1t, the umpire, Hon.
John V. I. Findley, Of Baltimore, said:
'Venezuela certainly had right to
insert the clause cited in the con-
tract, and the concessionaries had an
equal right to decline the concession
on such terms. When they made their
contract they knew exactly what they
were doing and with whom they were
contracting. They agreed
that their whole case whatever 1t
might be, should be finally disposed
Of by the domestic tribunals Of that
country.
Have they any standing before this
commission? We have no right to
make a contract which the parties
themselves did not make"
The claim was accordingly rejected.
In the decision Of Mr.. c.. A. H.
Marge, appointed by the Dutch gov
ernment as umpire Of the Hague Tri-
bunal to hear the claims of the ORR
noco company and the Orinoco
Steamship company, reference is
made to the British governments de-
claration that diplomatic Intervention
cannot be invoked , until claimants
have exhausted all their ordinary le-
gal remedies in the local courts. Mr..
Darge concludes:
1T must be concluded that the art
ACIe VI tuS SOAlI1dClS QuOl0u. OlSaO OieS
the contracting parties to base a
claim on this contract before any
other tribunal than that which they
have freely and deliberately chosen.
Parties have contracted them
selves out Of any interpretation Of
the contract and out Of any jude-
rnent about the ground for damages
for reason Of the contract except by
the judges designed by the contract.
The commission cannot allow these
claims"
Departments Former Rulings.
Thus the department of state, in
urging the claims now before the SEN
ate, is not only disregarding the ex-
press stipulation of contracts volun-
tarily entered into by the claimants,
but Is taking a position diametrically
opposed to the decisions of arbitra
tton commissioners to which our gov
eminent was a party and by which
in good morals it should be bound.
Should congress listen to the claim
ants whose cases are now before the
Benate, and authorize any drastic
measure for the enforcement of these
claims, such action would be an as
Bault not only upon the sovereipntv
md jurisprudence Of Venezuela, but
Df the other Independent Latin Ameri-
can states. This could NOT fail ,,