AN AMERICAN OPINION OF CASTRO.

Dominion, Volume 1, Issue 247, 11 July 1908, Page 5

AN AMERICAN OPINION OF CASTRO.

Corporations have no souls is an axiom of tho common law. • Sovereignties, as exemplified in Cipriauo Castro, President of Venezuela, have (says an American paper) no gratitude, lie has perpetrated acts of oppression and injustice against our citizens 60 gross as to surpass belief. To tho protests of our Government ho is insolently indifferent. The case of the _ United States and Venezuela Company against Venezuela is a clear case of spoliation by Venezuela without justification or excuse. Summarised briefly, tho facts are: In 1900 some American gentlemen interested in paving matters sought in Venezuela an asphalt deposit. At a place called Inciarte, their representative found a splendid asphalt lako. He contracted' to purchase the mine from tho owners, and applied to Castro for a concession to build a railway freo from taxes. On April 20, 1901, on payment of 50,000 bolivars and the promise to build a railroad, etc., which at the end of fifty years would revert to Venezuela, a concession was granted as prayed for, which was to bo oxernpt from all national taxoa and contributions, including import and export, duties. The company thereupon became Active. - The road was built through forests, swamps, and almost impenetrable jungles, and with almost insuperable difficulty, until finally a connection was made between mine and navigablo water. ■ "It is a story of American grit, indomitable pluck, and triumphant success," says Mr. R. Floyd Clarke in tho "North American Review" for April.

Manufacturing operations were bogun in August, 1902, and continued up to January 20, 1905. Over 600,000d01. wero spent in tho purchase of tho mine and tho development of tho property. The enterprise is worth not less than 1,500,000d01. During 1904 the company earned a net profit of 84,119.57d01., or over's| per cent, on its. total capitalisation. • . On July 22, 1904, Castro, through his receiver, seized the plant and property of the New. York and Berniudez Company. Since that date Venezuela has been selling asphalt to the United States, and from the revenuo so derived sdol. a ton goes to the receiver,' and the to an unnamed beneficiary. Previous to this transaction tho company wa3 a competitor of tho United States ahd Venezuela Company. With Castro operating the Bermudoz Company, this competition was undesirable. Hence, by' executive decree on Juno 21, 190f, a duty of i bolivars (80 cents) was levied on every ton of asphalt exported, and' a 3 per cent, tax on the cross product of the mine. Those were enforced against the United States and Venezuela Company, and for the 3 per cent, tax purposes the asphalt was valued at 20dol. a ton. In addition duties wore levied against tho company's imports and Castro held tho latter at tho Custom houso.

■ The company protested, and, finding this unavailing, offerod to pay under protest, but this was refused, and the answer given that any grievance must ho determined by the Venezuelan Courts. So, in January, 1905, tho Company closed its works and applied to the State Department at Washington for redress. Castro's action is repudiation of his written concessions. The Company is abundantly fortified with documentary evidenco of right and title. "Under ench circumstances," says the writor, "is tho American Government to stand by and allow its citizens to bo thus despoiled without action?" Venezuela masquerades under a constitution, but is in truth a military dictatorship moulded and wielded by ono man of passionato character and sordid aims. Congress, thcreforo, should insist that tho Executive enforce upon Venezuela the arbitration of the claims herein, even though to secure such arbitration tho use of a "mailed fist" should be required. Every principle of right and justice and every consideration of Eolf-respect demand tho arbitration—compulsory, if necessary—of those claims.