The Birmingham age-herald., 1912-05-17
Committee Hears First Evidence of S0-Called
 Trusts Activities
AIDED BRAZIL TO
 LIMIT THE OUTPUT
Herman Sielckeu Tells Committee That Four Million Bags of Cof- fee Is Now Being Held
 Off the Market

Washington, May 16-The first illus traitor of the activities of the so-ealled money trust given to the House investi- gating committee today was testimony that three New York banking instltu- tions-the National city bank, ]. Pier pont Morgan X Co. and the First Ma tionaI bank, lent financial assistance to the government of Brazil to limit the output of coffee and maintain prices of coffee at profitable figure for the benefit of Brazilian planters and Ameri- can and European coffee dealers.
 This testimony came from Herman sielcken of the New York firm of Crossman & sielcken, large dealers in green coffee. MT Sielcken was on the stand more than three hours and his testimony was the first oral informa- ion given to the committee.
 MT sielcken attributed to the Ma tonal city bank a patriotic move for it's investment. He regarded the loan by the bank as of great benefit to the United States and said the bank made the loan reluctantly to exploit Ameri can trade with South America.
 Mildly Excited
 Mir Sielcken was mildly excited at several points of his testimony. He questioned the proprety of the com mittee going into Brazil's pffairs and as for his own participation, challenged the Attorney General of the United States and all the attorneys of the country to discover any illegality in | his actions as a coffee merchant. The witness said that unless some thing had been done to help the plant CTS of Brazil there might have been a revolutions The price of coffee had gone so low because of over production that the Brazilian government en- couraged planters to diversity their crops He said that while a tax had been put on the planting of coffee the Brazilian government and the state of Sac Pauio had not tried to prohibit the planting.
 sWhich would have been .he worse, lrevolutfon in Sac Paulo or for tho con sumcrs of this country to pay mush more for all of their coffee?" asked Samuel untermyer counsel for the eon- mittee.
 You would have had To pay that anyhow" said MT Sielcken. He argued that coffee would be still higher If the valorization scheme had not been put into operation.
 Reads Statistics Mir. Untermyer read from tables to show that the production Of coffee TOT 1 several years amounted to but 6,o00,000 bags and that 1t sold at from 1ae to To a pound. Now the production was IT, ! 900 900 bags and the price was between 13c and lie a pound This was ac- lcomplished by withholding from the market the surplus supply of coffee, he said.
 MT. sielcken testified that there were 100000 bags of coffee now being held out of the market by the Yalorlzatlon committee of seven, of which he IS a member. Of that amount sO0OOo bags were in warehouses of the New 4ork | Dock company, he said
 "Wouldn't the price of coffee go down if this were put on the market?' asked Representative Byrnes.
 | NO, if would have no effect on the market" said Mir. Sielcken.
 The big loan by which the valorization scheme was fioated was 100000 pounds | sterling English. German, French and | Belgian bankers took 13.OoooO0 of 1t through J II. Schroeder of London, who sold 10 the National City bank 2,ooO,Wo pounds sterling This amount was pro- rated between the Morgan bank. the Na- tlonal City and the First National MT. Sielcken made statement to the committee attribnting to the National City 1 bank display of patriotism and an earnest desire to encourage the commerce 1 of the United States with South America Was All Patriotism | s"They wanted to see our flag thcre.' | he said
 "DId Schroeder of London have the | same patriotic motive to place the Amer a lcan flag in South American waters?" asked MT. Untermeyer. Did the Fre1ch. the German and the Belgian bankers have the same motlve?
 | "Of course not.s answered Mr. Sielcken, l but 1t Is none of the business of the United States to pry into these matters | What if England or some other country would come over to us and go into the south and try 10 find out how the price | of cotton is kept up? We would throw them out
 T suppose this committee has got tho | impression from it's counsel that this ] valorization scheme has put up the price | Of coffee said Mir Slelcken. The irs- pression Is created that the financing or | this plan was at the expense of the | American consumers. I read of coffee | trust There is nothing that resembles a coffee trust in the United States or in Europe My opinion is that the price of coffee is not affected by the valorization | scheme at all.
 Mir. sielcken's testimony was heard at l this time out of the order originally planned by Edgar H Farrar and Mr. Untermyer. counsel for the committee, in | order to permit Mir. Sielcken to go to l Europe Chairman Pujo announced at the conclusion of The hearing that the future course of the committee would be de- termined by counsel and that no other witnesses were to be called immediately ----s.------
 Vessel Captured
 Rome May 16.--The Italian destroy CTS Nernbo and Aquilone today captured q vessel laden with arms and ammu- lnition in the vicinity of Porto Secore lon the Turkish Island of I.ipso, near the smyrna coast. Admiral Viale in ihis official report Of the occurrence Photographed to the minister of marine says the garrison and the civil author