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SEPTEMBER 15, 1005
The Commoner.
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A MUDDLE OF HIGH FINANCE
A dispatch to the Chicago Tribune under date
of New York, September 3, follows:
"Close on the announcement of his coming re
tirement from the post of assistant secretary of
state, Francis B. Loomis again is dragged into
the limelight of notoriety by disclosures of the
inner workings of the Orinoco company, limited,
through whose good offices he owes the credit
for his appointment as minister to Venezuela in
1S97. A dispute between the stockholders of the
Orinoco company has brought this alleged fester
to a head. That the public will be regaled by the
inside facts that will be aired in the courts is
unquestioned. One interesting feature of the con
troversy is the making public of the names of
the men behind the organization which has se
cured such big favors in the Orinoco country.
"While the campaign to secure the post for
Mr. Loomis was under way, correspondence of
much import was exchanged between James A.
Radcliffe of Brooklyn, Charles L. Kurtz, then
chairman of the Ohio state republican executive
committee, and Mr. Loomis. This discloses, by
inference at least, that among Mr. Loomis' 'push
ers' an understanding existed as to the exploita
tion of Venezuelan concessions. One reason for
the activity of Mr. Radcliffe and Mr. Kurtz, with
others, on behalf of Mr. Loomis was their inter
est in Venezuelan 'jobs,' existent and prospective.
They desired an American minister at Caracas
who would be friendly. After Mr. Loomis' ap- .
pointment to the Venezuelan mission the ex
ploitation of the Venezuelan projects shaped them
selves under the direction of Ohioans. Mr.
Loomis made a trip up the Orinoco river in a
gunboat, sailing for 125 miles alongside property
which had " been granted by Venezuela to Mr.
Fitzgerald, the original Manoa concessionnaire,
and constituting possessions claimed by the Ori
noco company, limited.
"Thereafter Ohio men became interested in
the Orinoco company. The new company was
formed under the laws of West Virginia and
named the Orinoco corporation. The head
offices were transferred from Fairbault, Minn.,
to Cincinnati. According to evidence elicited at
the Bowen-Loomis inquiry, a friend or two of Mr.
Loomis', including his chief witness on that oc
casion, Rudolph ' Dolge, United States consular
agent at Caracas, became associated with the un
dertaking. Then, also, the project of refunding
the Venezuelan debt, which was, according to
Mr. Radcliffe, an undertaking which he explained
. fully to Mr. Loomis before the latter sailed to
install himself in the American legation at Cara
cas, was taken up by Ohio interests, headed by
Charles R. Meyer of Columbus. A contract was
entered into, it is alleged, between Mr. Loomis
and Mr. Meyer, in connection with the debt re
funding scheme, by which the American minister,
contingent upon resigning from the post, was to
receive one-seventh of $10,000,000 as profit if the
plan went through successfully.
"The matter was satisfactorily explained, to
Secretary Taft. At the time of the Bowen in
vestigation Mr. Loomis admitted that ho had en
deavored to interest American capital in Vene
zuela to strengthen the relations of the two coun
tries and to oppose the machinations of Euro
peans. The present contention between the mi
nority and majority interests in the Orinoco com
pany, limited, was developed by the prominence
recently given to the presence in this city of
Rudolph Dolge, consular agent of the United
States at Caracas. This visit has been the means
also of starting a factional dispute in the com
pany, and drawing attention to the prominent
part that interests identified with it had in fur
thering Mr. Loomis political fortunes. It throws
some interesting lights also upon that remarkable
Venezuelan concession known as the Manoa claim
and recalls to mind its history, romantic and
tragic.
"The presence in this city of Consular Agent
Dolge last -July called attention that gentleman.
It was charged that he had abandoned his post
in Caracas for months at a time to give attention
to the exploitation of the old Orinoco or Manoa
concession in this country. Incidentally attention
was called to the fact that Mr. Dolge was head of
a laundry in Caracas, where he had his consular
office and displayed the coat of arms of the United
States, that he was interested in two newspapers,
which devoted much space to praise and adula
tion of General Castro, who had decorated him
with the order of Bolivar, and that he had been
secretary of the American-Venezuelan mixed com
mission which had made an award to the Orinoco
company; limited, against Venezuela. Moreover,
it was said Mr. Dolge. had overstayed his leave
of absence granted by Mr. Loomis and that he had
been a particularly damaging witness at the in
quiry. "Mr. Dolge admitted the main points in the
allegations, but explained they had been given a
misleading application. It was shown that, ns
consular agent, he was permitted to engage in
business ventures, among which was tho ex
ploitation of the Orinoco concession. There were
calls for Mr. Dolge's removal, and it was said
one object of W. J. Calhoun's visit to Caracas
as special commissioner is to investigate Dolge's
political and business activities. Among those
who became interested deeply in the Dolge affair
were the minority holders of the old Orinoco
company, limited, including persons interested in
the estate of C. C. Fitzgerald, the original con
cessionnaire; James A. Radclifre, who had been
receiver of the old Manoa company, and who
had become interested in the Orinoco company,
limited; and William M. Safford, who had long
been interested in the old concession. It is shown
that Mr. Loomis' connection with the Venezuela
concession holders and hunters started before, ho
was accredited to that country. It was Mr. Saf
ford who interested Chairman Kurtz of the Ohio
republican state committee, ana they, together,
took up the work of assisting Loomis in his can
didacy. Mr. Radcliffe later acted in conjunction
with H. A. Odell, who also was Interested in the
Venezuelan exploitation upon the departure of
Mr. Safford from London.
"A batch of letters exchanged between the
persons mentioned have fallen into the hands
of Philistines and their publication forges a
chain, showing that through a common friend
Radcliffe joined with Kurtz in a general cam
paign in Venezuela for strengthening the old and
procuring new concessions. With Loomis as min
ister the financing was to be done by Kurtz
through Ohio connections and their affiliations.
"Extracts from these letters read:
I have been spoken to by a leading buggy
company of this place (Columbus is the chief
point for that industry) of having an inquiry
made concerning the new minister to Vene
zuela, where, and at Caracas, it is desired by
this certain manufacturer to seek to estab
lish business relations. The thing suggested
to my mind the propriety and importance of
as early an action as possible on our part in
organizing the company proposed to me by
Mr. Safford for the purpose of securing privi-
leges down there. Mr. Kurtz to Mr. Rad
cliffe. I was much pleased with my visit from
the" cabinet minister (sic), who sailed on the
4th inst. Our opportunities for future busi-
. ness are simply unlimited. Mr. Radcliffe to
Mr. Kurtz.
I congratulate my western associates on
Mr. Loomis' appointment, saying that I had
met the gentleman, like him, and knew well
of him through mutual friends. They have
since said I boast of carrying an American
minister in my vest pocket. I hope
some friend will advise Mr. L. of the animus
of such stuff. Mr. Radcliffe to Mr. Kurtz.
I am just in receipt of a letter from my
friend, in which he says he thinks there are
plenty of concessions to be had, but that it '
is almost necessary, he believes, to come
down and look over the field. Mr. Kurtz to
Mr. Radcliffe.
' I trust "our friend" will not make the
mistake of appearing to be interested in con
cessions. The more dignity he brings to the
office the more valuable will its influence be
come to us. He can best serve us by appar-
ent impartial indifference to their enemies.
I believe "our friend" has a bright future.
' My only fear is from errors and inexperience.
I shall be glad when I am in a position to ad
vise him freely. Mr. Radcliffe to Mr. Kurtz.
"But it was all 'love's labor lost' for Rad
cliffe. He says that nothing of a beneficial char
acter to him or his enterprises came out of his
efforts in behalf of Mr. Loomis' candidacy as
minister to Venezuela. To the contrary, in a
short time Ohio became the head and center of
the greatest activity in relation to the financial
undertakings in the South American country. Co
lumbus leaped into prominence as a great finan
cial center for the refunding of the Venezuelan
debt, while the Orinoco company, over the
straightening out of which Mr. Radcliffe and Mr.
Safford had labored for years, passed by some
process, as yet not quite clear, to the Orinoco
corporation, with the chief office at Cincinnati
nnd Ohio interests in the snddlc.
"Of tho history of the Orinoco or Mnnoa con
cession the public has read much during tho last
cightcon years. In 188:t the concession was grant
ed to Cyrenlun C. Fitzgerald, an American, for
the purpose of enlisting American support In
behalf of Venezuela In the event of drastic action
by Groat Britain over the boundary question.
"In 1884 ho assigned tho contract to tho
Manoa company, limited, a New York state cor
poration. Disputes over the boundary followed,
drawing forth from President Cleveland his fa
mous war message. That completely settlod
Groat Britain. The property later wan trans
ferred by the Venezuela authorities to George
Turnhull of Now York and the rights of the Fitz
gerald syndicate were declared rorfeltod. Con
troversies innumerable followed and the right to
the title of the property remain in dispifle until
this day. Radcliffe met one of TurnbtiU's agents
In London in 1889 and thus became interested
in the affair. After a thorough inspection of the
lands Iladcllffe joined forces with tho Fitzgerald
party and succeeded in getting Into the good
graces of President Crospo. Turnhull lot the
concession, which reverted to the original
holders.
"The muddle resulted from this divided action
of the Venezuelan government. On October lfi,
189f, the Orinoco compnny waft organized under
the laws of Wisconsin by a group or western men
headed by Donald Grant of Fairbault, Minn., who
had acquired the majority Interests In tho Manoa
company. On the following dny the Manoa com
pany, limited, was transferred to the Orinoco
company, with the exception of the Imataca Iron
mine and the Pedernales asphalt, mine. On Feb
ruary 4, 1890, still another corporation, desig
nated as the Orinoco Mining company, secretly
was formed In Wisconsin by the same Interests,
and to it the Orinoco company proposed to sell
all its property for 40 per cent of the Orinoco
Mining company's stock. These latter operations
were regarded as inimical to tho interests of the
minority, represented by the Fitzgerald estate,
Mr. Radcliffe and William M. Safford. They In
stituted proceedings to throw the Manoa com
pany, which was the only one recognized by Vene
zuela, into a receivership, .Tamos A. Radcliffe was
nppointed receiver, and eventually the Manoa
company was thrown Into bankruptcy and Its
assets ordered sold by the court.
"The eastern element had had such a bitter
experience with the western majority that it in
Histed, as a feature precedent to everything cine,
upon trusteeing all the American stock so that
tho property could not bo alienated again. Under
this trust agreement, signed on April 6, 1897,
about $24,800,000 of the stock of the Orinoco com
pany, limited, was deposited with the National
Bank of North America, where it remains.
"Despite the existence of the trust agree
ment and the limitations as to the sale and
transfer of the property, the Ohio Interests, ,now
dominant, have formed under the laws of West
Virginia, their Orinoco corporation, In the inter
ests of which Mr. Dolge, consular agent at Cara
cas, has been gravitating back and forth between
Venezuela and this country."
' ENCOURAGING LAWLESSNESS
The Chicago board of trade has by a vote of
two to one repealed a rule which visited expul
sion upon any member guilty of violating the
anti-option law. As pointed out by some of the
members this is an open and direct encourage
ment to lawlessness.
A law prohibiting gambling on the board of
trade Is just as binding as a law prohibiting
gambling at any other place and those who en
courage the violation of the anti-option law r.rc
just as lawless as any other kind of lawbreakers.
It is not often that a commercial body
takes so bold a stand against the enforcement
of law and its action is likely to increase rather
than diminish the sentiment against grain,
gambling.
Labor leaders are not slow to point out the
interesting fact that a larger percentage of the
United States senators than of labor leaders have
been charged with criminal acts.
The suggestion that Mr. Loomis be made
assistant sultan of Sulu is not worth considering.
There is nothing on record to show that any
eminent financiers hold unpaid obligations issued
by the sultan.
A
