The Washington herald., 1914-06-20
To INVESTIGATE
NICARAGUAL0ANS
Senator Smiths Charge Of
Fraud Has Joined the
Issue in Senate.
DUE TO CALL BANKERS
Meanwhile Pending Treaty Will Be
Held Up Until Matter
Is Sifted.
~ JOSEPH p. ANNIN.

An Investigation into the Incidents IN
connection with the interest of the United
States to the internal affairs Of Nicara-
qua virtually is assumed as the result Of
q sensational charge made in the Senate
yesterday by Senator William Alden
Smith Of Michigan.
Speaking in reply to a telegram from
Brown Bros & Co. and J. & w. Selfeman
& Co., New York bankers. whose Mica
raguan loans are protected In the pending
treaty, Senator Smith declared with some
dramatic emphasis that the loan was in
the main fraudulent"
Alleges n Fraud.
'The only answer I desire to make to
thatfelegram Is this:
standing in my place. and with my
RESPONSIBILITIES as an American Senator,
/ aIlege that the Indebtedness now sought
to be validated is in the main fraudulent
and pugft not to receive the approval or
the American government"
The telegram was q sweeping denial OF
all charges made against the bankers In
the preamble Of Senator Smiths resolp-
ton, calling for an Investigation INTO
the conditions and circumstances leading
up to the Nicaragua treaty negotiations.
The telegram disclaimed. on the part
of the bankers who signed II, any con-
nection with Speyer 4 Co. in Nicaraguan
AFFAIRS. denied they had made any proft,
and offered to submit their books to the
Senate.
As senator Smith declared yesterday.
the telegram "squarely joins the issue.
Referring to the incident later, Senator
stone, chairman Of the Foreign Relations
Committee, to which Senator Smiths
resolution was referred. said:
NAV show Books.
They the bankers) may be given an
opportunity to show their books of
course, I cannot say what the committee
will do. All 1 can say Is that the bank
ers may be given an opportunity to
show their books"
The telegram was sent to Senator
o'Gorman. Of New York. Senator O'Gor-
man sent IL to the desk to be read. Re-
plying Senator Smith said:
II introduced the resolution to which
this telegram refers after very careful
consideration and a thorough investiga-
ton into Nicaraguan affairs, so far as
they are controlled and directed by the
bankers who sent this telegram to the
Senator from New York / have no dis
position at all to enter into any con-
troversy with these gentlemen concern
ing the subject about which they have
advised the Senate. ] will say. how
ever. that the Indebtedness of the Re
public of Nicaragua, founded from time
to time. and made the basis for super
vision by Brown Brothers and Selig-
man, reflects no credit upon this govern
ment upon the Republic OF Nicaragua or
upon the bankers having this matter in
charge"
To Meet Monday.
The Foreign Relations Committee will
meet again Monday. Secretary of State
Bryan probably will be present to ex-
plain further the Nicaragua and Co
lombia treaties. At that time 1t IL be-
lieved the committee will discuss at
length the proposal for an investigation
made by Senator Smith into the Mica
raguan fiscal affairs. The belief is gen.
eral that some sort Of an investigation
will be ordered as result.
Today a subcommittee. composed of
Senators Williams, Hitchcock. and
Smith, will consider the nomination of
Boaz Long to be United States Minister
to Salvador. Senator Smith is making
a fight against Long, on the grounds of
an alleged friendliness between Long and
the United Fruit Company.