Venezuelan Version of Basis of Germany's Claims
(Copyright, 1902, by J, I. Diaz Hnrcenns.)
IHE attempt at Intimidation of
Venezuela on tho part of dor
many, becauso of tho Krupp
compnny's claim, will not, In my
opinion, mean war between tho
two countries. It will not mean a solzuro of
any territory In South America by German
forces. It will not mean nny conflict be
tween tho United States and Germany over
tho Monroe doctrine.
There has been a great deal printed as
to tho Justice of tho German claims, as
to Germany's resolution to enforco them
and as to Venezuela's Inability to pay anil
Its powcrlessncss to resent German en
croachment. The Justice of tho German
claim, now for the first time coming be
fore tho world In Its truo light, resolves
Itself Into tho Injustice of nn extremely
iuestlonnblo case of railway financiering,
with bribery and corruption at tho bottom
of It originally.
Let us look at Venezuela's sldu of tho
question. Tho two most Importnnt cities
of Venezuela are Valenzln and Caracas,
tho capital. They aro separated by a dis
tance, of 100 miles by rail, a six hours'
journey. Tho population of Caracas some
dozen years ago was 100,000 people; that of
Valenzla was CO.000. Hctwccn them lay a
country filled with herds of grazing cat
tle, which wcro shipped abroad from tho
port of Caracas.
I'll I r I'lc III Attract flcrinniiN.
Itojas Paul, In 1SS8, had been elected to
tho presidency of Venezuela nfter tho re
tirement from ofllco of Guzman Hlnnco. The
attention of German merchants, for a num
ber of years, had been very closely fixed
upon Venezuela, becauso of tho wealth of
Its natural resources, and becauso tho
trado In Maracatbo and La Guayra coffco
was a thing well worth having. Tho com
mercial world of Germany, having fixed Its
oyes upon tho Venezuelan trade, put Its
hands thcro afterward, and now It has most
of tho trado In Its pocket. After tho mer
chants, camo tho nnnnclers. Whllo I'nul
was president tho projectors of tho rail
way company, bearing tho snmo nntno ns
tho great cannon making establishment In
Germany, appronched tho Venezuelan gov
ernment with n proposition for tho con
nection, by rail, of tho two lnrgo cities
of tho country. Venezuela, filled with
natural resources and anxiously allvo to
tho necessity for speedy transportation,
welcomed tho proposition gladly.
Within four years tho people of Vcno
ztie'a enw In operation, between Caracas
and Vnlenzla, a well-equipped modern rail
way, carrying passengers and freight at
rates which the public found acceptable,
and serving nit tho purposes required of a
modern, first-clans, well-planned road. It
looked ns If German enterprise, German
financo and German thoroughners wcro real
blessings to tho people of Venezuela.
What tho country nt large did not know
was tho manner In which the railway con
cession had been obtained and tho Shylock
terms on which tho road had been con
structed and equipped. With every Horn
of expense Included, tho cost of the cntlro
project could not havo been moro than
$7,000,000. From the city of Caracas, for a
dlstanco of eight miles, tho country was
mountainous, nnd It was necessary that scv
oral tunnels bo built, nut, beyond that, alt
tho way to Valenzla, tho rnuto lay through
coffco plantations and nlong savannahs, as
level as a board. All tho railway company
had to do was put down Its rails and run
Its trains.
HiiklN of ICmiiiii'n Claim.
Tho proposition which tho Krupp com
pany laid beforo tho Venezuelan congress
was that tho republic of Venezuela guar
antee to pay, Irrespective of nny returns
from tho road which went Into tho hands
of tho rallwny promoters nn annual sub
sidy of 7 per cont on tho capital Btock. Tho
stock was to bo Issued on the legltlmnto
basis of tho actual cost of construction.
Tha rato of subsidy was so high, on tho
ono hand, nnd was so eagerly coveted by
tho Germans, on tho other, that they mado
overy possible effort to secure Iho conces
sion. Now, n sulwldy of 7 per cent, clear on nn
nctual Investment would havo seemed a
Golconda to tho modern Spaniard or
Frenchman, n trust of magnificent propor
tions to nn English Investor nnd a Klon
dike to nn American. As for tho Germans,
they mndo tho nstuto reflection that 7 per
cent on n real Investment of $7,000,000 was
not half ns gocd as 7 per cent on $15,000,0U0.
So they Issued capital stock to tho amount
of $15,000,000.
Tho republic, for Its part, made tho ex
tortionate subsidy a national debt. Crespo
was In power when tho Krupp company, In
1S92, Immediately upon tho completion of
tho road, mado tho staggering demand for
a payment of $1,0."0,000, In quarterly In
stallments. He declared It was plain rob
bery, and, nt that time, there was sotno
llttlo talk on tho part of tho Germans
about Venezuela's reluctance, to pay Us
debts, Tho npprchcnslon of what a refusal
to comply with tho terms of tho agree
ment might menn to Venezuela In Interna
tional finance Induced Crespo to go on with
tho payment. Hut embodied In tho nntlonnl
debt as they were, tho surplus In tho trens
sury frequently fell short. All tho govern
ment had It gave until tho arrearages
amounted to tho $2,000,000 Germany now
seeks to collect. The demand for full pay
ment of nil arrears wns mado eight months
ago, when tho country was In tho throes
of several revolutions, nnd President
Castro found his resources fully tnxed to
repress them. There was absolutely
no money adequate for tho pay
ment of $2,000,000. Hut Gcnernl Castro,
llko General Crespo, nbhorrcd the Idea of
nny chargo of repudiation of debts. Ho
endeavored to convince tho Krupp com
pany that Venezuela would discharge Its
obligations. And, whon government troops
hnd to bo transported In tho course of tho
disturbances, ho used tho Caracas mil
way and paid tho transportation charges
In cash, When tho revolutionists toro up
tho tracks ho paid the damages In cash.
And he, llko Crespo, undertook to pay as
much of tho guaranty subsidy ns was pos.
slblo at tho first opportunity the nuances
of Venezuela could afford,
l-'rancr Hum .similar Claim,
It lins happened Hint a enso analogous to
that of tho Krupp company has brought a
French claim up for settlement between
Venezuela and Franco. Tho Orinoco ltlvor
company, holding a contract with Ven
ezuela for tho navigation of the Orinoco
nnd tho exploitation of tho rubber belt,
claimed damages to tho amount of $100,
000 by reason of tho political disturbances.
Tho river company put Its claim Into tho
hands of tho French minister of foreign
affairs for collection. Ho Investigated tha
caso and camo to tho conclusion tho claim
was n Just ono. On tho part of tho govern
ment of Frnnco, theroforo, ho addressed n
request to tho government of Venoznoln
for n court of arbitration. Tho determina
tion of tho character of tho court Is In
course of adjustment. Frnnco desires that
(he Judges of tho court bo neither Ven
ezuelans nor French In nationality. Vcn
ozucla, becauso of tho essentially South
American conditions surrounding tho
claim, desires tho court to bo composed
exclusively of Venezuelans, Tho two gov
ernments nro now engnged nmlcnbly In
discussing the formation of tho court nnd
tho claim will ultimately bo heard and
satisfied according to International Inw.
Venezuela does not refuse to pay tho tier
man claim. Hut tho republic doc refuse
to bo bullied Into payment by the German
empire. Tho dlsputo will bo settled In
either of two ways. One wny Is for the
German government to accept General
Castro's engagement to pay part of tho
$2,000,000 within tho next few months, nnd
lo pay tho ,rcwt as speedily as
tho condition of the treasury will
allow. Tho other Is to Insist on pay
inent nt onco nnd to endeavor to eollecl
by force. It Is true, Germany could seize
nnd hold nny Venezuelan port preferably
that of I.a Guayra. Hut tho seizure of I.n
Guayra would mean that German troops
must keep tho peace of tho territory they
occupy, and that tho Venezuelan govern
ment Is under no responsibility for their
protection. Tho mountains aro only COO
feet from tho Bcashoro. Tito inoutntncers
hnvo n nasty hnblt of coming- down with
rlllrs, In groups of a dozen, nt night. Ger
many would 11 Mil Itself Involved In ti
guerrilla warfare which would place tho
city practically In u slate of siege. As a
nation, Germany would feel little appre
hension of n wnr with Venezuela, although
It might bo well to rcmomber that Spain
neidnl 200,000 men to hold Cuba, and Kng
laud has already used 300,000 men to secure
a grip on South Africa.
Hut what Gertnnny has alrendy shown
evldenco of remembering Is that tho 700,000
bags of Maracalbo and Lit Guayra coffco nre
hnndled by tho German commercial houses.
It cannot nffortl to peril Its entire trnde
with Venezuela for a claim that can, by
no possibility, remain mora than half Just.
Tho most serious outcomo of tho trouble
that need bo looked for nt nny tlmo Is a
naval demonstration off tho const.
J. I. DIAZ HARCENAS,
Venezuelan Consul nt Philadelphia.
Kidnaping of a Lincoln Street by a Railroad Company
a
m
m
m
WIIEIIE THE TRACK CONNECTS WITH THE YARD LINES-Photo by a Staff Artist.
PUTTING DOWN THE TRACKS PAST THE HOMES OF THE PEOPLE-Photo by a Stnff Artist.
Episodes and Incidents in the Lives of Noted People
D
IR. VV. H. MILDURN. tho blind
chaplain of tho senate, thinks he
may fairly lay claim to tho title
of "grandfather of tho house."
Ho cntored tho service of that
body ten years beforo John Sherman of Ohio
and Justin S. Morrill of Vermont, who were
termed "fathors of tho house." Mr. Mil
burn was first elected chaplain of congress
In 1845, being tbon a resident of Illinois,
nnd hailing from tho congressional district
represented by Lincoln.
When Joseph Medlll was editor of tho
Chicago Trlbuno ho wns asked by n young
man who hnd been sent by him on a special
newspaper mission, to put his autograph
in tho young man's collection, nnd "somo
sultablo Bcntlmcnts to go with it," sug
gested tho correspondent. Tho following,
duly credited to Emerson, was written abovo
tho autograph: "Facts nro tho horror of
tho intellectual domain." Tho correspond
ent had failed In his mission to obtain tho
information which Mr. Medlll considered
importnnt.
Senator Pcttus, who will be 80 years old
in July, scorns to employ n watchmaker
when his tlmopleco gets out of order, but
does his own tinkering. Two days ago his
watch stopped whllo tho senate was In ses
sion. Mr. Pettus pulled his spectacles down
on hU nose, tool: tho works out of the caso
and. begnn looking for tho trouble With
a pin ho poked around among tho wheels
until tho machinery 'started up again and
everything seemed to his liking. Then bo
placed tho works back in the caso. Senator
McEnery wnB nn Interested spectator and
occasionally mndo, suggestions ns to tho
best method of procedure
It is proposed in Indianapolis to erect a
monument to Levi Coffin, "who," says tho
Indianapolis Journal, "during tho stirring
times immediately preceding the outbreak
of tho civil war was at the head of tho
organization in Indiana that conducted tho
famous underground railroad through tho
medium of which hundreds of black refu
gees mado their way from tho slavery of,
tho south to tho liberty of tho north. Tho
movement haa revived Interest In tho llfo
of Mr. Collin, nnd particularly In that period
of his career devoted to tho asslstanco of
tho southern negroes on their wny north
ward. Whllo Levi Collin was n resident of
Newport ho aheltorcd for soveral days Eliza
Harris of 'Undo Tom's Cabin' fame, and
It wns ho who guvo tho report of her cross
ing tho Icebound river to Harriot Bcccher
Stowe. Tho man who, near Ripley, as
sisted Eliza up tho Indiana bank of the
river was ono of Coffin's assistants nnd con
federates, and, only n fow months ago, died
In the homo which first sholtorfid tho es
caping slavo after her perilous crossing
of tho Icefloe. Although Mr. Cofnn died in
his home near Cincinnati, In 1877, the move
ment now on foot Is to have tho monument
orectcd to his memory In this city."
General Harrison C. Hobart, a distin
guished cltlzon of Wisconsin and last sur
vivor of the flvo daring men who planned
tho tunnel cscapo from Llbby prison during
the civil war, died InBt Sunday, aged 82.
Tho story of the cscapo of a number of
prisoners from Libby Is a mattor of Inter
esting history, and had been told In a
pamphlet Issued by General Hobart later In
llfo.
At that tlmo there wero no exchanges of
prisoners and tho men In Llbby planned to
gain tholr freedom. A few of the dnrlng
and rcsourcoful lcadors finally hit upon the
plan of digging a tunnel. Tho scheme was
confided to twenty-flvo men, who could bo
trusted not to talk, and the work wns be
gun. A tablo knife, chisel and spittoon
wero the tools. But two persons could work
at the same time. Ono would enter tho
holo with tho "tools" and n small tallow
candle, dragging tho spittoon after him
with a bit of string. The other would fnu
nlr into tho pnssngo with his hat and with
nnothcr string would draw out tho spittoon
when loaded and conceal the dirt bonenth
straw nnd rubbish of tho celtnr.
Each morning tho working party would
carefully replace tho bricks In tho llreplace
whero tho tunnel started and rcmovo all
ovldenco of tho work. Through a mistake
of tho "cnglnoers" of the tunnel tho
schomo nearly failed, for tho first opening
on tho outsldo was within ten feot of some
sentinels. This was plugged up and tho
work continued.
After thirty days tho holo was completed,
tho twenty-flvo men In tho plan wero mar
shaled under command of General Hobart
nnd nt 7 o'clock on tho evening of Fobru
nry 9, 1864, tho men began crawling through
tho hole. In order to bowlldcr tho guards n
dancing party with music was extemporized
in tho room. Ono by ono the men emerged
from tho holo, passed tho sentinels and
mingled with tho crowds on tho streots.
Tho subsequent perils of thceo men, some
of whom reached tho union lines in safety,
pursued by cavalry and bloodhounds, form
ono of tho moat picturesque and thrilling
chapters in tho history of tho civil war.
After the original twenty-flvo men had es
caped through tholr tunnel thoy wero given
ono hour's start by the remaining prison
ers, whon thcro was a wild scramblo for
liberty.
Ono hundred nnd nine men passed out
through tho holo that night, of whom flfty
Bovcn eventually reached tho union lines,
tho othors being recaptured or dying of pri
vations whllo hiding in tho swamps.
Judgo Alfred Sleekier, justlco of tho su
premo court of tho Stato of Now York, was
born a poor lad on tho East Sldo, bis
father having died when ho was 6 years old.
Ho Bccurcd work In n law ofllce, whero ho
mndo his start, and when still a mere boy
becamo president of tho Literary Society
of tho Cooper Union nnd In Its debates
broadened his education.
Captain Frnnk Schocffel, who commanded
tho detachment which recently repulsed a
largo forco of bnlomcn nnd who was
wounded, is a horo of Pelt In nnd a fighter
of noto among tho gallant men-at-arms of
tho "Fighting Ninth."
It was Company C of tho samo regiment
that was surprised whllo at breakfast at
Halangnn, Samar, Soptombcr 29, last, and
fought with baro fists tho 300 ferocious bolo
men who surprised them,
Cnptnln Schooffol's record figured prom
inently in tho investigation of tho hazing
of Cadet Hooz' at West Point. That episode
brought out tho fact that ho was tho only
graduato of West Point who had whlppod
overy upper class man ngalnst him whllo. n
endot nt tho military academy.
During his four years at West Point Cadot
Schocffel whipped with his fists a whole
class of thirty men.
Ono dny flvo mon wore pitted ngalnst
Schocffel at onco. Tho bout lasted twonty
six rounds. At tho end thoy wero all tired
by Schoeffol.
Captain Schocffcl's. war record is In ac
cord with his 'school-day achlovomcnts and
his showing In tho engngemont In the Phil
ippines Is no Bttrprlso to his friends.
At San Juan ho was one of tha first up tho
hill. In tho relief of tho Pekln logatlon
Captain Schocffel was in tho van of tho
dash of the Ninth, which cost that regi
ment Its commander and many bravo mon.
In this attack his daring won him distinc
tion nnd a Chlneso bullet.
There ought to bo Joy In tho heart of tho
king of Slam, observes the Washington Post.
Ho wants to come to tho United States as
tho guest of tho nation, which means that
tho good people would havo lo pay tho
royal bills. If tho proposition now before
congress to Invito his raynl majesty should
hecomo a law, tho king could put a tlmo
lock on his purso whon ho reached San
Francisco nnd hold It there until ho set flail
for homo.
And thcro ought to ho Joy In tho royal
henrt becauso tho first step toward Inviting
him has been taken. Tho Biib-commltteo
of tho committee on foreign relations, which
has had tha mattor under consideration,
hns decided to report favorably. If tho
king has a sonso of humor nnd If ho has
not ho ought to cultivate It before ho comes
to tho United Stntes ho will laugh nt the
reason which has actuated this favorable
action.
"Tho king's son," said William Alden
Smith, tho chalrmnn of tho sub-commlttoo.'
"has shown himself to bo n liberal spendor.
Ho blew In $30,000 on tho Tcndorloln In
Now York. If tho old mnn Is llko him I
think ho ought to bo invited."
Mrs. Jesslo nenton Fremont, wlfo of tho
"Pathfinder," Oonornl John C. Fremont, Is
stjll living at tho ngo of 77, In tho pretty
cnttngo In Los Angeles, tho gift of tho
women of California. During tho early part
of Queen Victoria's rolgn she visited Eng
Innd nnd wns presented to tho queon nnd
Trlnco Albert, and sho has known person
ally every president since Jackson.
"Tho fenturos of tho human faco," said
Mark Twain tho other dny, "can readily bo
compelled Into n knleldnscopo of contor
tions, running the gamut from tho expres
sion of Intenso dollght to tho expression of
excruciating agony. You will novor wholly
rcallzo this, however, until you have the
opportunity of watching a humorist In the
throes of turning out a 'sldo-iplltter.' "
