The Washington herald., 1909-06-28
Department of State Is Not
Overly Pleased.
REPUBLIC GETS STIFF NOTE
New Administration Behind I'm Pay
ments to COntractOrs-Object Is
Made TO Exchange of Land with
English Railways COmPany-Amer-
tcan Manufacturers Overlooked.

the State Department has recently sent
stin note 10 Cuba concerning several
things in which this government is inter-
ested. which are not being handled by
the Cuban government 10 the satisfaction
Of the United States.
The State Department declines 10 dis
cuss the matter. which is one Of cOnSid-
cradle importance. as it practically con-
stitutes a warning to the island republic
While these representations have been
made to the government IN Havana. OFF,
cials here do not believe the new repub-
lie is tottering TO a downfall. On the
contrary, II is believed that with a
proper amount Of care President Gomez
can make his administration successful
The note 10 Cuba deals with four sub
jects-the Oliver rOad-building contract,
the Mckinney -Rokeby contract for paw
ing and sewering Havana, the PROPOSE
tion for an exchange Of property between
the United Railways OF Havana. an Eng
lish concern. and the Cuban government.
and the construction OF certain public
buildings by the company. and. fourth.
the purchase Of arms for the Cuban
army in France and Europe without Civ
ing American manufacturers an OppOr-
tunity TO participate in the contract. D..
Behind I'm Payments.
The Cubans are behind IN the payments
10 the Oliver company. which is con-
structiag road from san CristobaI TO
Pinar del Rio, the capital or the province
Of that name. and another road near
Manzanillo. in the province Of Santiago.
The contract is held BY William ]. Oliver.
OF Knoxville. Tenn. The Cuban govern
ment has been backward in making the
prescribed monthly settlements, and re-
Gently Mr.. Oliver made a personal pro-
test 10 President Taft Il was the second
time he found 1t necessary to call upon
this government for action in the matter
The McGivney- -ROkeby contract for paw
ing and sewering Havana was let by
Gov. MagoOn after il had been pending
several years. Work was begun IN the
outskirts OF Havana last year. but has
not progressed satisfactorily Gov. Ma
gOon furnished by decree authority which
made II possible for the new government
70 Issue bonds 10 the extent Of Sl6.o000o0
Tor this sewering and paving. The decree
provided that the bonds be issued II the
ordinary revenues Of the government were
not large enough 10 cover ordinary ex-
penses and the extraordinary expenses OF
The concern which has the contract Is /
dissatisfied. and has made complaint. al
though the new Cuban budget provides
for an appropriation OF Sl.5OO.o0O for the
first years work.
Some months ago. shortly after the re-
establishment OF the republic. the United
Railways OF Havana made an interesting
proposition for the exchange or valuable
lands and the construction by the com
pany for the government OF a palace for
the President and other public buildings.
The United Railways now has a tract
Of land In the heart OF the city known as
Villanueva- Il contains a passenger sta
ton. The government owns what IS
known as the Arsenal. a valuable prop
erty on the bay. which was used by the
American Quartermaster and commissary
departments during the last intervention
II also contains the department OF public
works.
The company wanted 10 exchange the
ViIlanueva tract for the arsenal and
bin was introduced in the Cuban Con-
gress TO this effect The bill provided
that the valuation Of the Villanueva prop
erty be fixed al $50 per square meter and
that OF the arsenal at half that sum.
This would leave a balance IN favor OF
the government
The bin provided also that certain
wharves. not 10 cost more than 81 10000
should be built from the governments
balance. This IS as far as the bin went.
but there was more 10 the railway com
Dany's proposition. and 10 this last detail
the State Department has objected IN
such terms that the whole project VIII
probably fail. The company proposed 10
build on the Villanueva land a Presiden-
tial palace and other government build
ings 70 cost S6.500.OO
WOuId Lift Burden.
The company would accept the govern
ment's notes at 6 per cent and would
thus relieve the government OF the burden
OF financing the construction OF the build
ings The State Department holds that
in effect this would constitute a foreign
loan. and by treaty Cuba cannot contest
q foreign loan without the permission Of
the United States