The San Francisco call., 1910-06-26
stone WOULD END
NICARAGUA AFFAIRS
Senator Suggests That Syndi-
cate Is Seeking to Exploit
Finances of Country
Committee Is Directed to Inquire
into Charges Against
Former Official

WASHINGTON. June 25.-In the SEN
ate today Stone said that lie had been
informed that a syndicate had been or
ganized in the United States to exploit
the finances of Nicaragua. and that the
syndicate had been represented in
Washington by former high official
OF the state department.
stone said that there was no sound
reason why the United States should
not establish diplomatic relations with
Madriz. The idea of this government
protecting Americans at Bluelelds, the
senator riGiculed, declaring that the
only Americans there were engaged in
doubtful enterprises or were ad-
VenturerS.
stones statement followed his intro
duction of 4 resolution directing the
committee on foreign relations to make
general investigation AS 70 the re-
letions between the United States and
Nicaragua.
ADVANCES FOR REBELS
7 am informed. and i,ss.lined to be-
lieVe. said Stone. that j-he principal
American interests eoncerned in this
controversy relate to advances made
by certain Americans on Q speculative
basis to the revolutionary forces under
point, the interest OF a syndicate of
American financiers and bankers, or
ganized or professionally organized. as
! am advised. with A view to- exploiting
and funding the public debs, of Nicar-
aqua and other Central American
countries. somewhat on the line upon
which the debt of Santo Domingo was
managed and disposed Of"
Chairman Cullom Of the committee
on foreign relations said the secre-
tary Of state had made fun and sat.
1sfact0ry explanation TO the commit.
tee. Cullom announced his disbelief
that any one connected with the state
department had been guilty of any
wrong doing. The resolution was re-
ferred to the committee on foreign re3
lations.
KNOX DISCREDITS STORM
Secretary Knox declared that he
knew Of the existence of no such syn5i-
cate as that mentioned by Stone. and
was certain that no such proposit[to
had ever been laid before him. or eyean
discussed. It might be q good tnialg
for Nicaragua if the finances were
placed on a sound basis, but he bad
never given any thought TO that sab
ject. he said.
It has been suggested that the sehla-
tor had in mind proposition broao o;hed
by President Taft in his Pittsburg
speech and referred to by Secretary
Knox in his recent speech at the Cni-
versity Of Pennsylvania at Philadel-
phia looking 10 a readjustment of the
debt of Honduras. and that he had
fallen into error on that account.
Ship Violates Neutrality
WASHINGTON, June 25.-Dr Saliva
dor Csstrillo,' Estrada's representative
here. today demanded of Secretary
Knox that the commander of American
warships in Nicarag7lan waters be in
structed to intercept the Colum bia.
which cleared from New Orleans FRI
day. and TO seize the munitions of war
which il is alleged TO be carrying, con-
signed to Julian Irias, the Madriz COM
mander.
II is alleged in the demand that the
Columbia carries, particularly. three
high power gasoline launches intended
TO augment the equipment of the
steamer Venus, which is now in Mica
raguan waters equipped as a cruiser.
Doctor Castrillo's note asserts that
the state department has already rec
ognized the sailing of the Venus as a
violation Of the neutrality laws, and
that II carried an expedition in an 'un-
lawful and clandestine manner"