The sun. [volume] (New York [N.Y.]) 1833-1916, 1912-08-12
i. S. ORDERS CUBA TO
PAY S5OO,0O0 DEBT
,cinu Follows Excuse Of Gomez
That Government Is With
ont Funds.
loan WAS FOR SANITATION
MONEYS Destined for Public
Works Diverted Into Tn
known Channels.

WASHINGTON. Aug. II. President
,..,pn, nt cuba has been called upon
nyttrtu,'ri States Government to make
., s,rlv settlement of the claims that
have hcrn pending against Cuba for the
! h.- two wears amounting to over $500, 600.
.-oyrs ou' of the Hciliry contracts for
,eo wi'orworks plant and sanitation of
the city of ticnfucgos. For more than
vs,- thorr have been exchanges of COM
u,lrlc1t!on- on this subject and the last
r5,e, drafted recently by the State De-
tartmen,. Gills on President Gomez
, o,nrhttic terms to make settlement
IN accordance with the existing contracts
which we're made under the provisions
,f the treaty for the sanitation OF Cuba.
This latest demand followed the receipt
# a communication from the Cuban
President tha, the Government is without
fund, to make the payment and that an
\ net Of Congress will be necessary for the
aprropriation Of the amount. This state
man, which was somewhat startling to the
Washington authorities. was not wholly
surprising in the face OF rumors that have
reached here for some time that the Gov
eminent machinery of Cuba has been
honeycombrd with graft. Provision for
uavrnont of contracts for Cienfuegos and
other public works was made in the loan
q over $4,000, 900 which Cuba received
from Speyer Bros of New York with the
arnroyal of the United States under
article . of the treaty.
Tie fact that the money obtained on the
sewer loan for this purpose has either
baen expended in other directions or lis
beng withheld. together with numerous
comnlaints that have been reaching the
Washington authorities from time to time
alleging mismana cement: of the Govern
mem funds. has caused IA marked lack
4 confiience in the Gomez Adninistra- =
ion While the State Department assumes
he position of hands off in the political
affair, of Cuba so far as national or local
ela,'ion is concerned. it is certain that
Gomez will be without the moral support
which r." would no doubt much desire
n N ms 'VNIlS tONdEu Teei'ttiOu'
The recent racial instruction in Cuba
,roved irving crisis for the Admins
ration. That situation was closely
watched by the Washington authorities
n as have been other conditions of politica
IL unrest during the last two or three years
but il has been declared that at no time
was there any intention of intervention
on the part of the American Government
The visit Of Secretary Knox to Cuba in
May, when returning from his Centra
and South American tour, was thought
10 lie timely. A number of important
questions we're discussed in pers on be
tween Mr. Knox and President Gomez
ind it was thought that the Reilley claims
would be settled shortly.
For some time il has appeared thai
Gomez was withholding final payment
On the Cienfuegos contracts ON certain
technicalities. Cuba had reserved pay
ient Of Is per cent. Of the Reilley con
tract, which called in full for more thar
81 900 .OoO, until the entire work was com
pleted aud accepted by the Government
Acceptance was made nearly two years
ago. When the Kelley claim was pre-
-snted !, was held that all the work hat
been done and the expense had beer
borne hy the subcontractorS and Cub'
wished To make certain that they woult
he properly cared for. Lately, il seems
the claims have been turned over to thes
slbcontracors. but still excuses wer'
made for not meeting them.
The Rcillov people had laid the matte
'efore the State Department and recently
tie suhCOulraCtorS have come forwart
w'h demands that the United State
to,np"l cuba to uphold its end OF tn
contracts. While the State Department
has not gone in for forcing collection
on cortracural obligations. the Glen
'legos matter was held To be an excep
tion. The cuban Government had ob
famed the Speyer loan with the definit
Understanding that it was to be apple
Wholly 10 The sanitation Of the island
Part, of tins were directed toward i'm
PROPONENTS IA Havana and Santag
and other cities There have been delay
D M h'arJ all of these payments but tn
l'Ai'' r,a.'n Is now the bone OF contention
Na" D." state Department does nc
WISH ainnar IN the position OF holdin
" '.Hh u,or Gomez for the sett lcment {
'"' h''Hoy claims or to prevent his bein
''''"'t ted l' iuiS made known to him
AA'W~' tr,uic terms that the conduct
.'' Ihu administration within the las
X\ 'ai &" $50 Vas fallen far short Of winnin
We '''n"riatiou of this Government.
i"' i'u.Dll situation is being wat che
WIKI i'' q. '-'-t interest Recently ii al
''d''l i'i' t'p,ncz might Withdraw froI
''' "l'"~' tor reelection. hut the appeal
"h'' n. iu, country of Se1Or Eerrir;