The Washington herald., 1908-04-01

tratiOn' suit, was entitled TO a Judgment
Of forfeiture or cancellation OF the Ham
ilton contract, because the Bermudez
company had not performed the obli6a-
ton by II assumed, 20 explore and ex-
pioit the natural products Of the forests
and uncultlvated lands in the state OF
Bermudez, and because the company did
not plead or prove any release from such
obligation or any excuse or justification
for such nonperfornance.
Holds SequestratiOn UnJustihed.
80 The sequestration OF the company's
property as an incident 20 the adjudiea-
ton OF the cancellation Of the HamiisS&
contract was not justified.
"3. The assessment or damages against
the Bsrmudez company for the breach Of
the Hamilton contract was made without
the companys having a hearing and
without any sufficient evidence OF the ex-
istenoe of the facts upon which the as
sessment is based.
Il The land title Of the Bermudez Com
pany gives 1t the fee Of the lands de-
scrihed. for which il actually paid a
money consideration 70 the government
The mining title was acquired under the
mining laws OF the country. and vested
in the company the exclusive possession
and right Of operation for a term OF nine
ty-nine years. These titles were ignored
in the sequestratiOn proceedings. and
the continued possession OF the property
By the government is in contravention
thereof"
History OF the Case.
Mr.. Calhoun's report begins the investi-
CATION by tracing the history Of the dis
pute from the concession obtained from
the Venezuelan government in September.
1883. by Horatio r. Hamilton. q citizen
Of the United States. who got authority
from Gen. GuZman Blanco. then Presl-
dent OF Venezuela. Tor the exclusive ex-
ploitation of asphalt and the natural
products OF the forests on the wild or
public lands in the state OF Bermudez.
Hamilton sold his concession 20 the New
York and Bermudez Company. which
was incorporated under the laws Of New
York on October "a, 1885, by Ambrose H.
Garner, Thomas Il. Thomas, and William
h. Thomas with capital stock of 81
100000. AT first Hamilton was managing
director OF the company, but he was sue
ceeded IN 1887 by Garner. Soon after the
latter took charge the exploitation Of
timber and the natural products of the
forests was abandoned, and the company
confined its efforts TO the production Of
asphalt.
Helped MntOs Revelation.
After detailing the successive steps in
the sequestration proceedings. Mr.. Cal
houn says further that on September %.
1904, the Venezuelan government began a
civil suit against the New York and Ber-
mudez Company to recover damages for
the damage caused by the alleged action
of the company in giving financial aid 10
the revolution of 1901. which was led by
Gen. Matos.
Discussing this point. Mr.. Calhoun said
that Gen. Avery D. Andrews, second vice
president of the National Asphalt Com
pany. in 1901. practically admitted that in
the summer 1901 Gen. MatOs arrived in
New York and called upon the officers
OF the National Asphalt Company; and
after disclosing his plans and stating that
all the discordant elements of Venezuela
opposed to the existing government were
united and under his control, he solicited
a contribution from the company in aid
Of his revolutionary plans. The officers
Of the company. the report continues.
feeling that the Bermudez Company had
been the victim OF a conspiracy on the
part OF the government OF Venezuela.
gave Gen. Matos 100000 and subsequently
made him two additional payments OF
$4,000, the total aggregating $l90000.
Forfeiture Held just.
Mr.. Calhoun says: 'Tt seems to me
that. so far as the main issue is concern
ed, upon the whole record the govern
ment was entitled to judgment decIar-
ing the Hamilton contract forfeited for
the nonperformance Of obligations therein
contained, the defendant company offer
ing no sufficient excuse or justification
for such nonperformance."
Discussing the seizure Of the Bermu1ez
Company's property. Mr. Calhoun says:
This was a seizure which went far be-
yond the authority of the code; and
tract advanced by the government was
not only unnecessary, but harsh. oppreS-
sive, and unjustihable"
The report concludes: Without ex-
tending the discussion further. the fact
remains that the company's right under
these titles has never been passed upon.
The government Of Venezuela has seized
and still holds the property as an Incl
dent to the forfeiture OF the Hamilton
contract. In so doing the government ig-
nored titles which 1t had previously
granted. and the validity Of those titles
remains to be adjudicated.