Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-06-26
SPOIL Of NICARAGUA
Senator Stone duplicates Ex-
State Department Official.
PLOT TO PLUMBER NATION
Tells of Syndicate to Exploit
Finances Of Republic.
KNOX DENIES ALL KNOWLEDGE
Thinks It Might Be a Good Thing
for Country, But Believes Stone
Is Misinformed.
PLOT TO PLUMBER NATION
KNOX DENIES ALL KNOWLEDGE

In the Senate yesterday Senator Stone
asserted that ne had been informed that
a syndicate had been organized in the
United States to exploit the finances OF
Nicaragua, and that syndicate had been
represented in Washington by a former
high Official Of the State Department.
In brief response Chairman CulIom
of the committee on foreign relations
said the Secretary of State had made
a full and satisfactory explanation. to
the committee. Mr.. Cullom announced
his disbelief that any one connected with
the State Department had been guilty Of
any wrongdoing.
Knox Not in Secret.
The attention Of Secretary Knox was
drawn to the statement made by Senator
Stone. The Secretary promptly declared
he knew OF the existence OF no such syn.
dictate, and was certain that no such
proposition had ever been laid before him
or even discussed.
he hazarded the opinion. If the finances
were placed on a sound basis. He had
never given any thought to that subject
1t has been suggested that Senator
Stone had in mind a proposition broac he6
by President Taft in his Pittsburg speech
and referred to by Secretary Knox ir
his recent speech at the University OF
Pennsylvania looking to a readjustmen,
of the debt OF Honduras, and that he had
fallen into error on that account.
Senator Stones Charge.
Senator Stones statement wss made ir
the course Of brief speech following his
Introduction Of resolution directing the
committee on foreign relations to make
a general investigation as to the relations
between the United States and the gov.
eminent OF Nicaragua
The resolution would direct special in
erty rights or ives Of citizens Of the
United States had been in Jeopardy in
Nicaragua, and especially "to ascertain
whether any effort has been made b.
persons representing financial interests
in the United States to refund or other.
wise control the adjustment Of the deb,
OF Nicaragua or Of claims against the
government Of Nicaragua, and IL So In
what manner and to what extent any
such effort has been made and carried
on
Had Asked for Information.
Mr. Stone called attention to the fac.
that May "a last he had presented q
resolution directing the Secretary OF
State to send full Information concerning
our Nicaraguan relations to the Senate
That resolution had been referred to the
committee on foreign relations. he said
and, with his consent. had remained
there.
He said he had not insisted upon any
reply because of the delicate work. in
which the government was engaged in
connection with the little republic. He
had been assured, he said, that the trou-
bles between this government and Mica
ragua would be satisfactorily adjusted at
an early date.
81 have looked into this affair with
care. l want to say that I have found
astounding" said Mr.. Stone. Among
others. have discovered that the govern
ment of Dr. Madriz maintains the Gus
tomary diplomatic relations with practi-
cally every government Of the world ex-
cept the United States. I am unable to
eminent should not establish such rela-
TONS"
Fling at American Interests.
Referring to the contention that this
government was protecting American in
terests, Mar. Stone said that the chief in
terest Of American citizens were those Of
Americans located at Bluehelds. who were
concerned in enterprises Of doubtful char
acter. while the only American citizens to
be protected were adventures who had
cast their fortunes with the revolutionary
army under Gen. Estrada.
SO far as / am informed" said Mr..
Stone, Il am inclined to believe the prin-
cipal American interests concerned in this
controversy relate to speculative advances
made by certain Americans on a specu-
lative basis to the revolutionary forces
under Gen. Estrada and, still more to the
point. the interest of a syndicate of
American hnancfers and bankers. organ
lied, or Professionally organized, as l am
advised. with a view to exploiting and
funding the public debt of Nicaragua and
other Central American countries some
what on the line upon which the debt of
Santo Domingo was managed and dis
posed of.
Ex-oMcial Implicated.
my information Island / have every
reason to believe the information is we'll
founded-that a former high Official of
the State Department Is the representa-
tive In Washington Of that syndicate II
this story be really true-and fear there
Is too much truth in 1t for the good OF
our country-then there are millions In 1t
for somebody"
Mr.. Stone said his remarks and his
resolutions were meant as a mere sug-
gestion. II they were not acted upon.
he said, he would take the matter up
again.
The resolution was referred to the COM
mittee on foreign relations.