New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-09-01
President States Reasons for
Revoking Contract with Conn.,
pania de los PuertoS de Cuba.
NATION FACED BANKRUPTCY
Gomez Agreement Entered Into
Against Advice of U. S.,
Sharply Criticised by
Present Executive.
rRy Telegraph % Tho rrLhnne !


Washington. Aug. 3i.-The Cuban gov
eminent has issued a pamphlet printed
in English and Spanish. containing thu
decree Of President Menocal rcvckin- the
concession given by hts predecessor. Cen
eral Jose Miguel Gomez. 20 the Companla
de los Puortos De Cuba Tor the dredging
and improvement Of the ports OF cuba.
and In return turning over % the COM
pany the collection Of the port fees. from
which the government secured for itself
a small proportion. This concession was
granted by President Gomez against the
advice OF the United States government
in 1911 and met with strong opposition
from the Cuban people and press o.
whom Il was pronounced a prOiigious
graft. President Menocal IS sending
| broadcast the pamphlet containing his
decree. and also the copy OF details u
the contract between the Havana gov
eminent and the port company 20 jus
tify himself and to prove that the con
/ tract has worked 20 the disadvantage u
| the country
Great pressure was brought on Presi-
dent Menocal 10 induce him 10 recognize
the contract entered into by General
Gomez when he was President. and now
that he has revoked u new din ,ulty
is presented 4 large number % the
shares of the Compania de los Puerios
de cuba were disposed Of In England.
Hints at Prosecutions.
Not only did President Menocal annul
the concession. but he gave warning that
the government would now move to seek
redress for whatever injury has been
done the country by reason Of the Illegal
contrast. He also hints at possible pros
ecutions. President Menocal says on this
point:
The Secretary OF Justice shall proceed,
after examining all the data existing In
the files OF the Secretary OF Agriculture.
Commerce and Labor AMI which the lat
ter with his report and recommendation
shall forward. 10 establish either person
ally or through the State Attorney pur-
suant 10 the provisions under Paragraph
OF Article l02 Of the organic law OF the
executive power the proper proceedings
for the judicial declaration Of the eNpira-
ton or nullity Of the charter Of incOrpor-
alton or deed OF constitution Of the cor
poration entitled Compania de los Puertos
de Cuba. inaSmuch as II has not complied
in its deed Of constitution with the pro-
visions OF the laws in force In Cuba. the
Secretary Of Justicia shall likewise IN due
time and when the Secretary Of Public
Works shall haze reported on the total
cost. up 10 the present, Of the works per-
formed by the Compania de los Puertos
de Cuba, establish the complaints which
may he in order 20 claim in behalf Of the
State the sums which In excess OF the
cost OF said works may have been re-
ceived up 10 the present day by said
company. without prejudice to institute
likewise the proceedings OF any other
kind that may be necessary for the better
defence Of the states rights and for the
prosecution ana punishment OF any crime
that may have been committed In con-
nection with the concession for the dredg-
ing and improvement OF the ports OF
Cuba"
The contract with the Compania de los
Puertos de Cuba called for an expendi-
ture OF 100000 by the company in
pursuance of it's part OF the contract.
Special fees were established of 81
ton for merchandise unloaded from
steam or sailing vessel and % cents
ton for coal unloaded from such vessels.
The company was to enjoy these fees for
a term OF thirty years. This tax for
port improvements. IL was estimated by
T. l.. Huston. president OF the company.
would produce s5s0.0 a year.
The company agreed TO give the gov
eminent 90 per cent OF the income on
tax collections over si,500.000. Mr.
Huston owned a majority Of the shares
and in addition thereto was TO receive
ss25.0oO in first mortgage bonds for his
services rendered the company.
Criticises Gomez Policy.
President Menocal says in his decree:
The President adds his views about the
improvidence of the concession and criti-