North Carolina Newspapers

♦ THE WEATHER TODAY. ♦ t North Carolina: ♦ t FAIR. ; VOL. LIII. NO. 84. Leads all Moptfa Carolina Bailies in Mews and Circulation BUTLER & RUSSELL Their Own Evidence Convict Them of Conduct That Will Forever Damn Them in North Carolina. STARTLING ADMISSIONS The Evidence and Attendant Circumstances Show That These Two Public Officials Knew if They Did Not Inspire the Litigation South Dakota has Commenced Against North Carolina. When Mr. Fabius H. Busbee, attorney of the Southern Railway, as attorney for New York bankers, memorialized the Leg islature of 1901 to set in motion machin ery for testing the validity of certain sec ond mortgage bonds which they held, this I aper declared that underneath that move ment was a deep-seated scheme to se cure the sale of the North Carolina Rail way, as well as to compel the State to ray money which it did not honestly owe. That statement was made upon the au thority of one -of the best informed rail road men in America. It was also stated that, after becoming the vassal of the Southern Railway, Governor Russell was in the scheme which was far reaching and inimical to the true interests of the State of North Carolina. When the State of South Dakota began a suit to compel the State of North Caro lina to pay the bonds, there was a sus picion that there had been collusion be tween certain former North Carolina offi cials and the holders of the bonds. Re cent disclosures confirm that suspicion, and disclose a condition of affairs as disgraceful as any that cursed the State in the days of Radical rule in 1868-’9. Radical rule of that day sought to fasten a dishonest debt upon the people of North Carolina. The Russell Radical rule, of which Butler, Russell and certain South ern Railway lights were the leaders, sought—for sinister, selfish or dishonor able ends. — to compel the State to pay par for certain Western North Carolina railroad bonds which the State had hon orably adjust' d, and compromised morn than twenty-five years ago. Having set tled the State debt r-cn an honest basis, all the creditors, except a few New York bankers who held the W. N. C. R. R. bonds for speculation or to give trouble, accepted the settlement upon the basis prescribed by the Legislature. These New York bankers for twenty-five years have held these bonds “for such a day as thi§.” They may have held them during all these years on their own speculative account, or they may have held them as agents of certain railroad manipulators who wished to hold them to force their own terms unon the State. However that may be, those who really own these bonds have known all these years that they could not in any legal or honorable way en force their payment except by accepting n 'v bonds at the rate of twenty-five cents in the- dollar. After Russell, in spite of all his rant and bluster, confirmed the lease of the North Carolina Railroad, certain Southern Railway folks, in posses sion of the 99-year lease at an absurdly low rental, wished to get the ownership of the North Carolina Railroad, in order to issue stock upon it for three or four times it 3 market value. It would be easy to float *20,000,000 stock on the road upon which only a seven per cent rental on $4,- 0(0.000 is paid. If certain promoters con nected with the Southern Railway could secure the North Carolina road, bound up by a lease so as to prevent bidding by any other railroad, they saw a profit va riously estimated anywhere from five to twelve million dollars in the transac tion. At one time—so Governor Russell swears—it wa3 their purpose to bring a case before the North Carolina Supreme Court for the payment of the bonds upon which South Dakota i 3 now suing the State of North Carolina. Governor Rus sell testifies that this plan was aban doned just before the Legislature of 1901 met. Is their no significance in this tes timony? Mr. Fab Busbee, Southern Rail way lawyer was the attorney when the Supreme Court ordered the payment of money out of the State Treas ury WHICH THE LEGISLATURE SAID SHOULD NOT BE PAID, thereby violat ing the Constitution of North Carolina. If that illegal and unconstitutional payment had been acquiesced in. could not the *arae Supreme Court have overridden the tets of the Legislature, forbidding the payment of the bonds upon which the State cf South Dakota is now suing? If the Investigating Committee appointed by the L.'s ! Mature, headed by Judge Michael The News and Observer. Hoke Justice, U'd not challenged the right of the Supreme Court to order the payment of money which the Legislature had solemnly declared should not be paid —if that protest had not been followed by impeachment proceedings—who believes that the intention of bringing the matter before the Supreme Court would have been abandoned “a little while before the Legislature met in 1901?” The South ern Railway attorney, who appeared in the case when the unconstitutional, ille gal and revolutionary decision was rendered by the Supreme Court that it could by mandamus compel the State Treasurer to pay out money which, by formal act, the Legislature had said should not be paid—the same Southern Railway lawyer was the open attorney (Butler was an attorney also but not known to the public) of the New York litigating bondholders who were virtually driven out of the State courts by threats of impeaching the judges for doing in a very little case exactly what they were going to ask them to do in a very big case. The precedent of paying out money against the prohibition of the Legislature having been settled in the oyster case, the New York bondholders and their attorneys, according to the sworn testimony of ex-Governor Russell —now. if not then, one of their attorneys —were ready to go to the Supreme Court of North Carolina and ask them to give it hem the same mandamus they gave White to compel the Treasurer to pay his outlawed claim. If White could be paid a small claim against the legislative pro hibition, the same ruling would enable the New York bondholders to get a man damus for the payment of interest on their bonds. But for the threat of im peachment, who believes the New York bondholders would have abandoned their intention of asking the Supreme Court to do for them exactly what the court had done for White? Where do the Southern Railway specu lating big men in league with Russell, Butler & Co., come in? They doubtless hold some of the bonds—perhaps most of them —and are behind Schaeffer Brothers partly for that reason. The chief motive has been hinted at. They hope to see the State lose the suit. If it loses the State must pay in the neighborhood of $750,000. It has not a dollar in the State Treasury but a deficit. How will it pay? The Southern Railroad magnates, behind this whole litigation, do believe that, in stead of issuing new bonds, they have enough power to influence the Legislature to sell all the State’s stock in the North Carolina Railroad. They already control most of the private stock or could put their hands on the bulk of it in short or der. If put up for sale, they know that, having secured for the Southern Railway a 99-year lease, no other railroad folks would bid upon the State’s stock. Capi talists would not Sid high because they know the Southern Railway management, having control of the road, could manipu late the stock at will. Therefore they feel sure they could buy it at from 150 to 200. They could at once stock it for from 350 to 400, and pocket the difference. The Governor says the State would not sell this stock, but, If the State should lose the suit, he would call the Legisla ture together in the last extremity and recommend the issue of new 3. 3% or 4 per cent bonds to pay the debt. Very well. The Governor would do that, but he has no veto power. The Legislature is supreme. Every power the Southern Rail way manipulators and speculators could exert would be brought to bear to con vince the people that it would bo better to sell the stock at nearly or quite twice its par value, retire with the big profit, than to hold on to it and issue three quarter of a million dollars of new bonds. The plausible argument, contained in Governor Russell’s message to the Legis lature printed today, and freshly printed yesterday in the Raleigh organ of the ; Southern Railway, is the plausible argu -1 ment that certain Southern Railway | folks, who want to buy the State’s stock. I have been making for some time. Os course some officials will be loud in denying that the Southern Railway is be hind this gigantic attempt to hold up the State. Bur some of the men high up in the councils are behind it, either on their personal account or for the railroad. If unfortunately the State should lose, everybody will see that certain Southern Railway bosses will move heaven and RALEIGH, NORTH CAROLINA, FRIDAY MORNING, DECEMBER 19.1902. earth to secure the sale of the State's sto«k in order to buy the same. They will have the biggest lobby ever seen in North Carolina to carry their end in this matter. The testimony of Russell and Butler, taken together with all the attendant circumstances, clearly establishes the following state of facts: 1. Governor Daniel L. Russell and Uni ted States Senator Marion Butler, hold ing the highest positions of trust in North Carolina, charged by their oaths to protect its every interest, were in consultation and conference with men by whom they were then or afterwards em ployed, who were seeking to compel North Carolina to pay at par with accrued in terest second mortgage bonds which the General Assembly had declared should be (Continued on Third Page.) The Day’s Doings at Wilmington. (Special to the News and Observer.) Wilmington. N. C., Deo. 18.—Cape Fear Division, No. 271, Order of Railway Conductors, have elected officers for the ensuing year as follows: J. M. Walker, C. C.; W. L. Harlow, A. C. C.; T. J. Paye, secretary and treasurer; DeLeon Fillyaw, S. C.; W. J. Turbeville, J. C-; J. O. Hinton, I. S.; J. P. Cutts, O. S.; W. L- Harlow’, correspondent, and C. E. McCulloch, assistant respondent. Congressman Bellamy had as his guests in the city yesterday Senator elect A. C. Lattimer, of South Carolina, and Messrs. J. Widdeman and J. W. Bar ber, wealthy silk and flax manufactur ers of Patterson, N. J. The Northerners were in this section prospecting for a mammoth game preserve, which they propose to establish in the South in the near future. They visited a number of points down the river and will make up their decision as to location of the pre serve upon returning home. FUNERAL OF GEN MOORMAN. It Will Take Place This Afternoon—The Body Lying in Btafe. (By the Associated Press.) New Orleans, Dec. 17. —The funeral ar rangements for General George Moorman, adjutant general of the Confederate Vet erans’ Association, who died suddenly last night, were completed today. This evening the body was taken to Memorial Hall, where it will lie in state guarded by Confederate veterans. The funeral will take place at 3 p. m. tomorrow, from the hall, and all the veterans’ or ganizations have been invited to attend. Rev. A. Gordon Bakewell, a Confederate veterans, will deliver the sermon. Tem porary interment will be in the tomb of the Army of Tennessee in Metairie cemetery, New Orleans. Hearing in the Oambling Cases. (By the Associated Press.) New’ York, Dec. 17. —The hearing of the charge against David Bucklin as being manager of a gambling house at 5 East Forty-fourth street, the Canfield house, was commenced today. Bucklin pleaded not guilty and declined to make reply to the question “What is your business?” Joseph Jacobs, the detective who is said to have gathered evidence against the house, was the first witness. He told how he obtained entrance to the house and played faro and roulette there. Bucklin, he said, received the men who came in and watched the different games. t At the examination of Samuel G. Smith, the alleged door-keeper at 33 West Thirty-third street, Farrell's al leged place, Detective Jacobs testified to having gained access to the place and having gambled there. The Blind Pool Hard Hit. (By the Associated Press.) Chicago, Dec. 17. —Bulls and bears of the Chicago Board of Trade had a sharp and decisive struggle over December corn today. W. W. McCleary & Co. failed to respond to margin calls and the so-called “blind pool,” headed by Thos. A. Cleage, of St. Louis, suffered a severe setback, December corn receded almost six cents during the day and showed a break of about eleven cents since earlier in the month. Mr. McCleary declared that he could pay dollar for dollar and that he prob ably will be ready for business tomorrow. He said that his order to have all his trades closed was forced because of ex cessive calls upon him for margins. French Demand on Peru. (By the Associated Press.) Lima, Peru, Dec. 17. —The French Le gation here, presented to the Peruvian government on November 8, of this year, a claim for $16,071,940, in favor of the Dreyfus Brothers, of Paris, in accordance with the finding of the Lausanne Court of Arbitration. Up to the present time the government has made no presenta tion of the claim, and it is probable that the French Legation tomorrow’ will reit erate its request for a settlement of this claim. The Trust Buyers to Shut Dp (By the Associated Press.) Albany, N. Y., Dec. 17.—Laborers who have been working to put in readiness for resumption the great Breaker Island steel plant, formerly the property of the Troy Steel Company, have been notified that .their services are no longer needed. It is announced tonight that the plant has been purchased by the United States Steel corporation for $1,500,00, and that, in all probability, the works will not be operated. THE HOUSE VBIES TO REDUCE DOTIES On Products ofthe Philippines Brought Here. A FIGHT FOR FREE TRADE Mr. Richardson of Tennessee Leads This —The Senate Committee Will Report Favor ably the Eight Hour Bill as New Amended, (By the Associated Press.) Washington, D. C’., Dec. 18.—The House today passed the bill to reduce the duties ou the products of the Philippine Islands coming into the United States from 755 per cent of the Dingley rates (the pres ent duties) to 25 per cent of those rates. The discussion of the bill was accom panied by considerable maneuvering on the Democratic side to secure test votes upon various amendments designed to lower the tariff barrier still further and a record vote was forced upon a motion to re-commit with instructions to report a bill providing for absolute free trade w’lh the islands. The division upon this proposition was on party lines with the exception of Mr. McCall (Rep., Mass.), who voted with the Democrats. The discussion of the Pure Food bill, which has been made a continuing order until disposed of, was begun. Mr. Tomp kins (Ohio), and Mr. Adamson (Ga.), opened the debate respectively for and against the bill. Mr. Gardner (Mass.), opposed ihe bill. Mr. McCall’s resolution calling on the State Department for the correspondence in the Venezuelan em brcglio was adopted at the beginning of the session. Mr. Hitt (111.), for the Com mittee on Foreign Affairs, reported the DeArmond and McCall resolutions calling upon the Secretary of State for the facts with relation to claims of Great Britain and Germany against Venezuela and gen erally for a statement of the diplomatic situatidn with reference to the Monroe Doctrine. The report recommended that the De- Armond resolution lie upon ’the table, and the McCall resolution which called for all the in the case, be adopted. Mr. Richardson (Term.), asked why Italy and oth?r European countries which were figuring in the controversy \vere not named in the resolution. Mr. Hitt replied that he was advised that the correspondence was similar in each case. The recommendations of the committee were agreed' to. The House tbn went into committee of the whole and took up the consideration of the bill re ported by the Ways and Means Commit tee yesterday, to reduce the duty on ar ticles, the growth and product of the Philippine Archipelago, from 75 per cent of the Dingley rates (the present tariff) to 25 per cent. Mr. Payne explained the bill. The Philippine government, he said, needed revenue and for that reason it was im practicable to totally abolish the duties. Mr. Richardson (Tenn.), said he be lieved any duty was unjust, unconstitu tional and un-American, but he favored, any reduction He gave notice that he wold vote to re-commit the bill with in structions to report it hack amended so as to provide for free trade with the is lands. Mr. McClellan (N. Y.), recalled the fact that General Wright, vice-Governor of the Philippines, in a hearing before the Ways and Means Committee, expressed the opinion that the free importation of Philippine products would best subserve the interests of the islands. Mr. Swanson (Va.), also argued in favor of free trade with the Philippines. The bill was further discussed by Mr. DeArmond (Mo.), Mr. Ball (Tex.), Mr. Crumpacker (Ind.)’, and Mr. Greene (Po). All amendments were voted down in com mittee of the whole. In the House, Mr. Richardson moved to re-commit the bill with instructions to the committee to report it back amended so as to pro vide for free trade between the United States and the islands. The motion was defeated. The Pure Food bill was then taken up. Mr. Adamson (Ga.), opposed it in an extended speech, taking the ground that the States could adequately deal with the situation. Ho said he believed thor oughly in the protection of Ihe public aeainst fraud, but he did not believe in imposing the task upon the Federal gov ernment No one could contend, lie said, that a State could not punish common cheats and swindlers if they deceived in that they sold one thing and delivered another. The Eight Hour Bill. Washington, Dec. 18—The Senate Com mittee ou Education and Labor today agreed ou a favorable report of the House Eight hour bill. The agreement was reached after many hearings and three days of executive sessions. Many amendments have been made. The principal changes in the bill relate to transportation of contract work and the purchase in the open market of goods wanted by the government. The bill makes it specified that all purchases whether articles of materials, shall be shall be exempt. The language relating to the transportation of goods is made more plain and definite than in the House bill. ('Another amendment pro i vides that the act shall not prohibit a workman from engaging in other w ork for an additional two hours after work ing on government work for eight hours. The bill probably will be reported to the ' Senate on Saturday. JUDGES' SALARIES ROT SUBJECT TO TAX Supreme Court Approves At torney General’s Opinion. STAIE OFFICERS EXEMPT This is a Certainty in View of the Opinion Which the Full Court Ratifus and Which it Compliments in the Highest Terms. The judges of the State are not to pay taxes on their salaries. That is the gist of the opinion of At torney General Gilmer, adopted and en dorsed by the Supreme Court of the State, and ordered filed, preserved and pub lished in the Supreme Court Reports'. The court says this opinion settles the matter, and it does. It is not a case which can be carried to the United States Supreme Court, and it has reach ed the fountain head in North Carolina. More than this. While the opinion says definitely that the salaries of the judges of the Supreme Court are not subject to taxation, on the basic ground that these salaries are not to be dimin ished during their continuance in office, it also settles that the salaries of the State officers cannot be taxed. The opin j ion does not say so. but nevertheless that is the effect. The officers affected are the Governor, Lieutenant-Governor, Secretary of State, Auditor, Treasurer,, Superintendent of I Public Instruction and Attorney General, i Ihe Constitution of the State says of the salaries of these officers not alone that they shall not be increased during the time for which they have been elect ed, but also that they' shall not be diminished. Under the ruling of the Su i preme Court, if the matter of the taxa j tion of the salaries of these officers I should come before it. the opinion ren dered would be that these salaries are not subject to taxation. The two letters which are herewith printed, and the opinion of the Attorney General, ratified and endorsed by the Supreme Court, explain fully the matter. On (he nineteenth day of November 1 the following letter was sent to Attorney j General R. D- Gilmer from the Supreme I Court' REQUEST FOR OPINION. “The members of this court have here ! tofore been of opinion that their salaries were not subject to taxation, and for j that reason have not listed them for that I purpose. But the Corporation Commis sion has decided that they are, and has directed the county commissioners to collect the same. And as all the.mem ; bers of this court, and also all the judges : of the Superior courts, are interested in i the question, which would make it em barrassing, if not incompetent for them : to sit upon its hearing, therefore, as you are the legally’ constitute adviser of the government, the court has decided to ask your opinion upon this important ; question. And for that purpose the court ' have requested me to write you this let ! ter, and whatever your opinion may be, l it will be filed for the guidance of the / court in this matter. “Hoping you will favor the court with such opinion, at as early a date as it may suit vour convenience, the court re spectfully awaits the same. Very respectfully, etc., D. M. FURCHES, Chief Justice Supreme Court N. C. OPINION IS RENDERED. Under date.of December 16, Tuesday of this week, the Attorney General sub mitted his opinion to the court. Yester day. December 18, the opinion was hand ed down, accompanied by the following letter, addressed to Col- Thos. S. Kenan, Clerk of the Supreme Court: Dear Sir: I herewith hand y’ou the cor respondence between Attorney General Gilmer and myself with regard to the right of the Legislature to tax the salaries of the judges. And in doing so, I wish to say that it is a full, able and indeed an exhaustive discussion of the subject involved, and in my opinion a correct decision of the question. It has been read to the court sitting in conference and approved without a dissenting voice. It was then ordered by’ the court that the Attorney General’s opinion, together with my letter to him and this letter to you, be filed and pre served among the records of your office, and be published in the 131st volume of the Supreme Court Reports. It was then resolved that the court would consider this opinion of the At torney General as settling the matter therein discussed- to the same extent as if it were the opinion of this court. Very respectfully, D. M. FURCHES, Chief Justice. FULL TEXT OF OPINION. The opinion written by Attorney Gen eral Gilmer is dated December 16, 1902, and addressed to Chief Justice Furches, I reads as follows: ! “I have the honor to acknowledge the receipt of your favor of recent date in 1 which my opinion is asked upon a ques j tion involving the liability of the of fical salaries of the Chief Justice and ! the Associate Justces of the Supreme j Court of this State to taxation. In dis charge of the duty imposed upon me by j section 3363, sub-section 1 of The Code, I j have the honor to submit the following: j The doctrine that the power to tax is ! an essential element of government, and • that the Legislature, in its exercise is limited only by constitutional provis ions, is elementary and fundamental. The power to tax the salary’ of a -State of ficer is admitted, unless there is some provision in the organic law forbidding it. Such a prohibition upon legislative authorty, if any exists, must appear in the Constitution of the State. Section 18, Article 4 of that instrument is on the following words: The General Assembly shall prescribe and regulate the fees, salaries and emol uments of all officers provided for in this article, but the salaries of the judges shall not be diminished during their continuance in office. Section 21 of the Constitution of 1776 provided that the Governor, Justices of the Supreme courts of law and equity * * * shall have adequate salaries during their contin uance in office. Revised Code of North Carolina, p. 16. “In the amended Constitution of 1835, the constitutional provision with refer ence to the salaries of Judicial officers was changed and the following article en acted: ‘The salaries of the judges of the Supreme Court or of the Superior courts, shall not be diminished during their continuance in office.’ Revised Statutes of North Carolina, Vol. 1, page 23. And the same inhibition against dimination appears in the article quoted above from the Constitution adapted in 1868.” Under the Constitution of 1776, it will be observed that the judges were to re ceive “adequate salaries.” “What was an adequate salary?” remarked Attorney General Batchelor, in 1856, in passing upon a question similar to the one sub mitted, “was ex necessitate to be deter mined by the Legislature, which had the power of fixing it As this was a dis cretionary power, that body could declare an “adequate salary” to be any sum it thought proper. This power was liable to aluse, and though it would have bqen a violation of the spirit of the Consti tution to have fixed these salaries at a sum clearly inadequate, yet the Legis lature, being unchecked by any other department of the government in the ex ercise of this discretion could violate at will the spirit of this part of the Con stitution. By it the power of reducing the salaries of the judges during their continuance in office, is taken away. They may be increased, but cannot be dimin ished. But to secure them effectually against diminution, this provision should extend to indirect as well as to direct legislation. The power to lessen these salaries by direct legislation is now nowhere claimed, yet the passage of this act is an assertion by the legislature of the power to diminish ir> and if the Legislature it can be used to any i In its wisuuili it may carry It.” While Attorney Gene his opinion, made no reference to un case of McCulloch vs. State of Mary land, 4 Wheaton, p 316-207, his argument is sustained by the reasoning of Chief Justice Marshall, who delivered the opinion of the court in that case: “that the power to tax involves the power to destroy.” This doctrine is emplified in many cases decided by the Supreme Courts of other jurisdictions, declaring that the Internal revenue acts of the Federal government requiring stamps on processes of State courts are unconsti tutional interferences with their proceed ings. Smith vs. Short, 40 Ala., 385; Craig vs. Dimoc-k, 17 111, 308; Warren vs. Paul, 33 In., 276; Fifield vs. Close, 15 Mich., 505; Walton vs. Bryenth, Howards Practice Reports, 357; Jones vs. Keep, 19 Wis-, 390; Bunipass vs, Taggart, 26 Ark., 398; Forcherner vs. Holly. 14 Fla., 279; Latham vs. Smith, 45 111., 29; Wallace vs. Craven, 34 Ind., 534; Pargond vs. Richardson, 30 La. An., 1286; Sarrow vs. Elder, 48 Tenn., 633; Carpenter vs. Snell ing, 97 Mass., 452: Davis vs- Richardson, 45 Mass., 499. The principle announced in McCulloch vs. the State of Maryland, supra, has been affirmed by the Supreme Court of this State. In King vs. Hunter, 65 N. C., at pp. 612-613, Reade, J., says: “It has been considered how far an office or an officer, may be taxed. And it has been considered as settled that the State has no power to tax an officer of the United States, or vice versa, because ‘the power to tax includes the power to destroy’ as was said by Chief Justice Marshall in McCulloch vs. State of Maryland. 4 Wheaton, p. 207. And if a State were alowwed to tax a United States officer one dollar, it might tax him to the full amount of his salary, and thus ‘arrest alsl the measures of the government.' And so the United States cannot tax a State officer for the same reason.” Upon a similar principle the Federal courts have held that the United States government cannot tax the income of State officials. The case of the Llnited States vs. Ritchie, Federal cases. Kook 27, case 16,168. involved the right of the Federal government to tax the income of the State’s attorney for the County of Fred rick, in the State of Maryland. The court held that “the United States has no more right to tax these agencies than the State government has to tax the means and agencies to carry on the Fed eral government.” In Day vs. Buffing ton, Federal Cases, Book 7, case 3675, Clifford, Circuit Justice, held that ‘‘the salary of a judge of the Court of Record, ayable out of the Treasury of a State, is not legally taxable as income under the internal revenue laws of the United States.” This ruling was affirmed by the Supreme Court of the United States. 78 U. C„ 113. In Freedman vs. Seigle, Federal Cases, Book 9. case 5080, it was held that “the United States Court impose a tax on the salary of a judge of a Superior Court of the City of New York by imposing a tax upon such salary as the income of such judgo.” In Dobbins vs. Commissioners of Erie County, 16 Peters’, at page 450, Mr. Jus tice Wayne, speaking for the Supreme Court of the LTnited States, says: “Does not a tax by a State upon the office, diminishing the recompense, conflict with (Continued on Page Five.) X THE WEATHER TO-DAY.} ♦ Forßatolgb; ♦ f FAIR. I PRICK FIVE CENTS. CASTRO HASCLOTHED BOWEN WITH FULL POWERS, It is Believed That the Crisis in Venezuela is Now Past. BOWEN IS NOW WAITING He Must Obtain the Consent of the State De partment Before Entering Upon the Task of Effecting a SeUlemen*, Assuming Titat the Allied Pew rs Will Raise no Obj c iens. (By the Associated Press.) Washington, I). C., Dec. 18. —President Castro has clothed Minister Bowen with powers to effect a settlement with Great Britain, Germany and Italy. Mr. Bowen simply awaits the consent of the State Department to assume this task, as suming that the nations named are will ing that he should undertake this work. It is believed that the critical phase of the Venezuelan difficulty is passed. Whether the consent of the govern ments mentioned can be obtained, will, it is believed here, depend entirely upon the sufficiency of any guarantee that can be given for the faithful discharge by President Castro of any obligations he may assume as the result of Mr. Bowens efforts. The allies feel that they must be assured against the consequences of another revolution and the repudiation by the President who may follow Castro in his undertakings. The effort to in duce the United States government to act as guarantor, it is safe to say, will not succeed, and it Is beginning to ap f bnrp ic Ijl/olv fn commission, appointed to receive Venezuelao easterns and, retting upnr* tii,' Ver n »,v. .a at, disbur 1 rem.dn ig the poweis tat’ i. The government of Prance has now entered the field as an active party in interest in the Venezuelan trouble. The French government has, through its Am bassador and charges and Ministers, served notice upon the governments of Great Britain, Germany and Italy, and as information has told Secretary Hay that any provision made for the settle ment of the claims against Venezuela must recognize the pre-eminence of the French claims. The French government received assurance from the other gov ernments named any arrangements woulil provide for the security of the French interests in the Venezuelan customs. WILL NOT 00 Tu VENEZUELA. No Concentration of a Larg® American Naval Fore® at 1 a Guan a. (By the Associated Press.) Washington, Dec. 18.—The Navy De partment contributed the most import ant development in the Venezuelan situa tion over night in the form of a cable gram from Admiral Dewey, announcing the proposed itinerary of the vessels or his fleet during the Christmas holidays. It is clearly seen that the plan provides for no undue concentration of ships along the Venezuelan coast and so prudently and advisedly have its details been drawn up that Secretary Moody, today cabled to the Admiral the Department’s ap proval of his orders. This will set at rest the rumors that the United States contemplate complicating the Venezue lan situation by dispatching a large naval force to La Guaira as an offset to the allied fleet. Admiral Dewey’s cablegram, dated San Juan, December 11, follows: ‘‘Proposed itinerary of vessels for Christmas holidays: Kearsarge, Ala bama, Massachusetts, lowa, Scorpion, to Trinidad; Illinois, Indiana, Hist, to St. Thomas; Texas, to Pointe-a-Pitre; Chi cago, Newary, Eagle, to Curacao; San Francisco, Albany, Wasp, to Mayaguez; Cincinnati, Atlanta. Prairie, tugs and torpedo boats to San Juan; Culgoa, to Mayaguez and San Juan; Olympia, Nash ville and Machias to St. Kitts; Detroit, to Antigua; Mayflower and Vixen to Porto Rican waters and vicinity, and the Dolphin to Antigua and vicinity.” In reply Secretary Moody sent the fol lowing cablegram; “Carry out proposed itinerary. Merry Christmas.” GERMANY DEMANDS APOLOGY. Unwilling to Arbitrate, Her Refaaal May be Accompanied by Fresh Suggestions. (By the Associated Press.) Berlin, Dec. 18—Aside from the finan cial claims mentioned in her ultimatum, Germany expects some form of apology from Venezuela for the diplomatic in sults which the Foreign Office says are more serious and more gross than those of which Great Britain complains. The Foreign Office is again calling attention to the suspicions in tho United States lest Germany effect a landing in Vene zuela. It says a refutation of such sus picions ought to be perceived in t ht» slender forces at the disposition of Ger many. There are scarcely three hundred men who could be spared from vho (Continued on Page Five.)