The Detroit times., 1912-09-20
LINK CANDIDATE FOR
SENATE WITH LAND DEAL

half the net revenue from the dock
age fees at Truxillo,r the ocean term
mus of the road, q
The undesirability OF having men
In the senate who might vote their
pocketbooks in speculative enterprises
affecting Central American republics
is shown by the history OF the treat
les negotiated by Secretary Knox
with Honduras and Nicaragua.
Before the Honduran treaty Was
negotiated, J. p. Morgan A. Co..
through Its London house. bought In
a large proportion OF the comparative
ly worthless Honduran securities
which had been kicking around the
garrets OF Europe for years. These
were turned over to holding con-
cerneand a circular was issued prom
ising payment of "15 pounds, In re-
spect of each houndred pound and un-
paid interest coupons IL and when
an arrangement satisfactory TO
Messrs. J. r. Morgan &Co. is con-
cluded between the United States Of
America and the republic of Hon
duras for the settlement of the debt
OF which the deposited securities form
part"
This circular was sent out early In
1910. II did not become public until
a year or so later, after our state de-
partment had ratified q treaty with
Honduras which evidently was sat
isfactory to ]. p. Morgan & Co." The
influence OF the state department and
OF the president was brought to bear
heavily on the senate during two ses'
sions of congress past to secnre the
ratification OF this treaty, and one
similar TO il affecting Nicaragua. The
financial arrangement proposed By
Morgan q Co. is summed up by Hen
ry M. Hyde. who made careful In
yestigation OF the matter. as follows:
Honduras gets its debts paid and
stands pledged to spend three million
two hundred thousand dollars In Inn
proving it's transportation system al
the Morgan syndicate may direct. In
return its hands are tied for forty
years. Until 1851. or during the life
Of the bond. its revenues, Its custom
houses. its railroads and wharyes are
to be turned over to men elected o.
approved by the fiscal agent Of the
loan-with the army and navy OF the
United States behind him. The presi
dent OF the United States shall ap
prove the selection OF the collector
general OF customs, and the govern
ment Of the United States shall 'af
ford him such protection as IL shall
deem necessary. During all this time
the rate OF import or export duties
shall not be changed without the per
mission OF the government Of the
United States"
In this connection 1t is significant
that as recently as September Is, an
official note prepared by Huntington
Wilson, acting for Secretary Knox
has been sent to Nicaragua. serving
notice on Central American Republics
that the United States viii use the
army and navy In preventing any rev
olutions which are calculated to dis
turb the Investments Of j. p. Morgan
q Co. These are not the exact words
but such is the effect Of the note.
The pressure which in the past, has
been brought to bear for the senate's
support of this dollar diplomacy
policy in dealing with the Central
American Republics, shows why infiu-
ences like the Morgan group" like
TO have men like A. G. Shallenberger
in that branch of congress-. and why
the people should send the other kind
like George w. Norris.