The Press. TUESDAY, FEBRUARY 3, 1903. GERMAN CLAIMS AGAINST VENEZUELA.

Press, Volume LX, Issue 11498, 3 February 1903, Page 4

The Press. TUESDAY, FEBRUARY 3, 1903. GERMAN CLAIMS AGAINST VENEZUELA.

As there is an apparently widespread belief in England and America that England in being dragged at the wheels of Germany in connection with the Venezuelan difficulty, it may be of interest to explain what are the claims on which Germany has taken action. Borne years ago Venezuela wanted to build a railway into the interior. Not having the money it borrowed Home from a German bank, and gave The contract for the railway to a German firm, thus tying more firmly the bond* thast bound it to the lender. As security for the two million loan Venezuela pledged Uβ Customs receipt*, and about three-fourthi of the money was paid over to the railwaybuilders, the Government guaranteeing to pay 7 per cent, on the capital invested in the line, to eet aside a certain turn as interest, and to provide for a unking fund. The railway cost £4,000,000, at least th# German contractors said it did, though, according to Mr Maurice Low, at thu price Venezuelans regard it as the most expensive piece of railroad construction in the world. The Government, however, had pledged itself to pay 7 per cent, on the invested capital, and they had no remedy. Bift though it may be true that " He who goes a-borrowing goes a-sorrowing, 1, when the borrower is a South American Bepublio the lender is apt to be the sorrower. Debts never worry those happy-go-lucky Latin-American peoples. Two year* after the loan was raised Venezuela had torn* fighting on hand, and the pursuit of thia national recreation drove all thoughts of the payment of interest out of mind. The precedent wai too good to be lost eight of, and l no interest has beta paid since, wihile the sinking fund ihas yet to be commenced. Some twelve months ago the overdue interest on tlbe railway bonds Amounted to a quarter- of a million sterling. In the meantime the Republic has had on hand the luxury of a war, and an insurrection approaching in dignity to a civil war, and foreign residents ihave suffered severely in consequence. 'They have been "invited" to grant loons, their property has been commandeered without a. "By your leave," and witlnout even a promise to pay for it come day. their .houses have been devae- \ tated. Many of the sufferers were Germane, and for the damages thus done to her eons Germany requested) the payment of some £80,000, making altogether more than £300,000, which was directly due to Germans. It must be admitted! that if Germany's recent conduct a* * creditor has been somewhat rude, me attitude o! the debtor, Venezuela, has been exasperating to * degree. To requests for payment of these claims come sophistical argusienta, and then a statement that no claims would be conlidered that were more than six months old. Castro Had seized the Presidential cbftir within that time, and he did not pro* poee to pay away good money in settling his predecessors debts. Let the dead post bury its dead. Still unsatisfied, Germany intimated that come attention mutt be paid to her demands. Castro, suddenly wLHng to oblige, offered to refer them to a Venezuelan Commiaion, and straightway appointed the Commission. Germany expressing some doubt aa to the bona fides of these Comnxksionen, the President pointed out the* appeal could subsequently be made to the Supreme Court- As the Venezuelan judges are appointed by the President, and (have been dismissed, and come times thrown into gaol lor offending him, the prospect of impartial treatment at their bande did not enchant the rilainwnt*, while the idea of being paid, if they won their case, in New Government bonds, as Castro promised, was depressing. However, some claims were brought before the Commksion, with the weak that might bt»t» bMt> ejected, Sent van thrown out

without comment, others trare conceded after being reduced almost to the- vanishing point. A German cattle-breeder who had had ottttle valued at £24,000 takeu by the troops, was granted £600. He did not get even that, neither did ti» other claimnate receive say'w/tbtwdtion. They were told that a bill providing for the payments would be f nbniitt«d to the next Congress. Aβ Mr Low remarks, 'There ia t£ways a to-morrow "in Veaexaab." At present, however, she is learning tha* there ie also a "to-day. ,.