New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-05-17
MONEY DEVIL CHASE
STARTS WITH COFFEE
House Committee Hears Amer'-
can Money Aided BrazlFs
VaIorization Scheme.
FOREIGN BANKS CONCERNED
Witness Tells of French, German
and New York Concerns
Making Up a Loan OF
E15.000,000.
lFrom The Tribune Bureau J

ltrom The Tribune Bureau
Washington. May 16.--With the first Wit
ress challenging tho right ~ the committee
''to mix M with Brazifs affairs the House
Committee on Banking and Currency Zoe
gan its belated investigation Of the money
trust to-day The committee las author
lied by the House last February to chase
the money devil to its lair. II caught the
scent TO-DAY iu Brazil in an effort to show
that American capital aided that country
IN its coffee valorZdtion scheme.
In introducing Herman Sielcken. large
coffee importer. to the committee. Chairman
Puto explained that this phase Of the con-
troyersy had been taken ny first, because
Mr.. Sielcken desired to sail for Europe.
The beginning Of the general Investigation
viii probably be delayed for several days.
Mr.. Sielcken and samuel Untermyer at
torpey for the committee. disagreed fire.
quontly as TO the connection between
Rrazirs coffee valorization and the money
trust" The witness acknowledged that the
National city Bank. Of New York. had
taken % 600. 900 of E15.o00 600 loan ne
eotiatcd for Brazil in 1908. He testified
that the entire loan was handled by John
Henry Schroeder & Co. Of London, who APP
american banks. lie acted as the Ameri-
can agent and the National City Bank
!aiSed the amount stated.
Mr. Sielcken said ne understood tine firm
of J. F. Morgan d co. and the First Ma
tional Bank of New York were interested
with the National city Bank, but he mad
no knowledge of how the loan was divided
among the three institutions.
Calls Motive Patriotic.
Nil Sielcken attributed TO the National
City Eank a patriotic motive for its m
vestment lie regarded the loan by the
bank as of great benefit TO the United
States, and said the bank made the loan
reluctantly to exploit American trade with
South America
MIR Sinlckcn was mildly excited at several
points of his testimony. lie questioned the
propriety of the committee going into Bra
zil's affairs. and for his own participation
challenged the Attorney General. or the
United States. and all the attorneys OF the
country To discover any illegalty in his ac-
lions as a coffee merchant
MY business has been pricd into by the
Attorney General and by grand Jures ana !
nv connection with this valorizatlOh pan
has been criticised directly and indirectly
Nv the counsel for this committee Sdiu
Mr.. Sielcken. with some heat.
The witness said that unless somethihs
had been done TO help the planters Vi
Brazil there might have been revolution
The price Of coffee had gone so 10" !
through overproductiOn that the BraziIlaH
government exercised It's right 10 ehcouI
age planters to diversity their crops. ne
said that While a tax had been put Oh the
I'll 60
mcnt and the State of Sac Paulo had ho'
tried to prohibit the planting.
Which would have been the worst: reNo-
luton in Sac Pauo or for the consumers
Of this country to pay much more for all
" their coffee" asked Mr.. Untermyer
You would have had to pay that any !
how said Mr.. Sielcken. who argued that
coffee would be still higher if the valoriza- |
lion scheme had not been put into opera
tion.
More Coffee Higher Cost
Mr.. Untermyer read from tables TO show
that the production Of coffee tof seVeral
vearS amounted 10 only 6v"oWp bags anu
that il sold at from 62 10 { cents q p"uhu,
Now the production was l40oo@ bags ana
the price was between Il and II cents
pound This he said. was accomplished
by Withholding from tie mdrhet inc S"
plus supply Of coffee.
Mr. Sielcken testified that i,oo'"' rags
Of c-cffee were now hcing held ont of the
market by the valorization committee ''
seven. Of which he VAS member. OF that
amount 900ooo bags were in warehouses OF
tho New York Dock Company.
Would not the price 81 coffee 20 down !
n This were put on the market asked |
Representative Byrnes
80. It would have no effect on the
market" said Mr.. Sielcken.
When Nj Sielcken credited 30 tho Ma (
t'onaI civ Bank a display " patriotism )
srd an earnest desire to encourage The |
..,,rmerre ~ tho United States with Soajh /
AMei,oo Nj. Untcrmver asked.
Did Schrodor. Of London. have the same
,,,riotic motive to place the American iaS }
in South American waters: Do me frehch' :
,he German and the Beiciau bankers have |
the same mohy":
..1r ccpree not" answered Nh Sielck"u /,
hut it ia uoro 81 N" business Of the
United states 10 pvr into these natter
Whit II England or come other countf' /
,,,.,jd come over 10 MS and 90 ITO the (
south and Try to find out how the price /
NJ cotton i- kert mp W would thro !
them ont.
' s,inroee thi. committec has got the |
,,,,,rAssiou from it's counsel th7t This /
,alcvjzatior scheme has put ~ the price !
If coffee" Continued Mr.. Sielcken The }
irnpression e created that the financing Of
This plan vas IT the expense Of the Amer /
can consumers. I read Of coffee trust /
There is nothing that resembles coffee /,
trust In the United states or in Europe /
Nv opinion Is that the price Of coffee Is !
not affected by the valorization scheme At
all
Chairman Puio announced that the future |
course OF the committee would be deter !