New-York tribune., 1910-06-26
STONES GRAVE CHARGE
Senator Says Syndicate Is Ready
to Exploit Nicaragua.
INVESTIGATION DEMANDED
Secretary Knox Denies Knowl-
edge of Capitalists Represent
ed by Former Official.

Washington, June 23.-In the Senate
to-day Senator Stone stated that he had
been Informed that a syndicate had been
organized in the United States to ex-
ploit the finances of Nicaragua and
that the syndicate had been represented
in Washington by a former high official
of the State Department.
Senator Stones statement followed his
introduction of resolution directing the
Committee on Foreign Relations 10 make
q general investigation as to the rela-
tions between the United States and
Nicaragua.
The resolution would inquire into the
question whether the property rights or
lives of citizens of the United States had
been in Jeopardy in Nicaragua, and
especially 'to ascertain whether any
effort has been made by persons repre-
senting financial interests in the United
States to refund or otherwise control the
adjustment of the debt Of Nicaragua or
OF claims against the government OF
Nicaragua, and if so, in what manner
and to what extent any such efforts
have been made and carried on
II have looked into this affair with
care, and I want to say that I have
found numerous things which to me are
most astounding said Mr.. Stone
among others I have discovered that
the government of DIR. Madri1 maintains
the customary diplomatic relations with
practically every government Of the
world except the United States. and I
am unable to discover any sound reason
why this government should not estab-
lish such relations"
interests of Americans.
Referring to the contention that this
government was protecting American
interests in Nicaragua, Mr.. Stone said
that the chief interests Of American cft1-
zens We're those of Americans living In
who were concerned In enter
only Ame:- In citizens to be protected
were adventurers who cast their fort
unes with the revolutionary army under
General Estrada.
$50 far as I am concerned" said Mr..
Stone, 'I am inclined to believe the
principal American interests concerned
in this controversy relate 20 speculative
advances made by certain Americans on
q speculative basis to the revolutionary
forces under General Estrada; and still
more to the point, the interest of syn
dicate of American financiers and bank
ers. organized or Professionally organ
lied, as am advised, with a view to ex-
plotting and funding the public debt of
and other Central American
somewhat on the line upon
which the debt of Santo Domingo was
and disposed of.
MY information is-and / have every
reason to believe that information well
the State Department is the representa-
tive in Washington of that syndicate.
If this story be really true-and I fear
there is too much truth IN it for the good
Of our country-then there are millions
n it for somebody
Mr.. Stone said his remarks and his
resolutions were meant as a mere sug-
yestion. If they were not acted upon,
he said, he would take the matter up
gain
In a brief response Chairman .CuHom
If the Committee on Foreign Relations
said the Secretary of State had made
full and satisfactory explanation to the
committee. Mr.. Cullom announced his
belief that no one connected with the
State Department had been guilty of
my wrengdoing. The resolution was re-
erred to the Committee on Foreign Re-
ations.