Minister Bowen to the Secretary of State.
Caracas, Venezuela, June 25, 1904.
Sir: I have the honor to inform you that President Castro has decided to make the New York and Bermudez Company pay him an enormous sum of money or to seize its asphalt lake. His intention first became apparent when the newspapers of Caracas a short time [Page 920] ago began to attack the company. The manager of the company, familiar with Venezuelan methods, inquired forthwith of the minister of the interior what was wanted of the company. He was told 50,000,000 bolivars. The newspapers then stopped their fusilade, in order that the manager might ponder the situation coolly and carefully. Finally he asked my advice. I urged him to refuse to be blackmailed, to defend his company in the courts, and to publish the facts, in the case to the world. It seems that President Castro threatens that if the money is not paid an action will be brought in the courts to dispossess the company, and evidence will be forthcoming proving that the company aided the Matos revolution and is using lands for its railway that do not belong to it. An American by the name of Carrier, who was formerly employed by the company and then discharged after he had made himself obnoxious, has been here lately and has supplied President Castro with information about the assistance the company gave to Matos and about the title to the railway lands. Carner’s objects are evidently revenge and profit. The President also has probably some letters that were written by the company’s agent in Trinidad to the revolutionary leader Ducharm, who, when the revolution was suppressed, became friendly with President Castro, and now holds a very remunerative position. I told the manager that if the case goes to the courts no worse punishment can be inflicted on the company for aiding Matos than can be imposed on the thousands of others that supported the hapless chief, and that if the Hamilton concession can not be shown to cover the railway lands the law of prescription must be respected. President Castro in order to complete his work of intimidation has stated lately that he has been assured that the Department of State in Washington will not interfere in this controversy. * * *
I am, sir, etc.,