New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-06-19
Committee Will Investigate
Activities of American
Bankers.
WILL INQUIRE HOW
THEY GOT CONTROL
Bryan and Nicaragua's Attorney
Heard on Effect of Conven.
ton Provisions.

Washington. June 1s.-A sweeping IN.
vestigation Of the relations between the
Nicaraguan government and American
bankers interested in that republic and
the part the American State Department,
may have played in Nicaraguan AFFAIR
probably will be undertaken soon by The
Senate Foreign Relations Committee. Be.
fore the committee consents to the pro.
posed treaty with Nicaragua II is prae
tically certain that II will use every
means I'm it's power to obtain all possible
information bearing on the treaty and
what ii means.
Secretary Bryan and Charles A. Doug.
las, attorney for the Nicaraguan govern.
ment, were before the committee :or
several hours to-day discussing this
treaty, which would give the United
States interoceanic canal rights and naval
bases in exchange for 10000 and the
practical establishment Of a protectOrate
over the Central American country.
+ Mr.. Bryan said that American bankers
owned 81 per cent of the stock Of the
Nicaraguan Railway, and that the other
~ per cent was hypothecated for T.0o9-
600 TO the same bankers, and was in
danger Of being sold under foreclosure
proceedings. lie said part of the S.0oo-
600 might be used 10 prevent such fore :
closure and allow Nicaragua to retain a
large interest in her railroad. Mr.. Bryan
also said that the same bankers con-
trolled 81 per cent of the stock Of the
NicaraotIan National Bank.
These two statements were heard with
interest by members of the committee,
and It's members are said to be eager
to learn how Nicaragua turned over her
railroad and her national bank TO Ameri-
can inanciers Interest was also shown
in the question OF whether most OF the
s., 600 00G is to get into the Nicaragua
treasury or 80 to politicians and others.
Mr.. Douglass declared he believed the
money would get to the Nicaraguan gov
eminent.
Mr.. Douglass explained that the people
of Nicaragua desired the ratification OF
the treaty to prevent further revolutions
and establish a permanent and stable
government. lie agreed that IL would
tend to preserve In power for the present
at least the administration now in office.
Senator Smith, OF Michigan, a member
Of the committee. who already has pro-
| posed an investigation OF this matter,
issued tonight a statement declaring that
| the payroll of Nicaragua was filled with
Americans, and intimating that political
intrigue by banking interests had figured
/ in putting the present Nicaraguan gov
! eminent in power.
Brown Bros. G. Co and j. w. Sels-
man & Co., who, with Speyer & Co., were
mentioned in the resolution introduced by
Senator Smith. of Michigan, in the
/ United States Senate directing the Com
mittee on Foreign Relations TO inquire
into certain transactions between the re-
| public of Nicaragua and the bankers,
sent TO Chairman Shively yesterday a let
| ter taking up in detail the various
charges made.
The preamble OF Senator Smiths reso-
( lutions made certain positive statements,
every one Of which, so far as 1t relates
to them, the bankers said. were incor-
rect. Their letter, in conclusion, said:
Generally speaking the bankers have
not only not brought reproach upon the
American government, as charged. but.
on the contrary, they have, without com
/ pensation, put through in Nicaragua
creditable piece OF constructive financing.
THEY have aided Nicaragua to adjust
it's foreign debt at a reduced rate Of in
terest; they have assisted Nicaragua IN
settling. its disordered currency; they have
/ aided Nicaragua i'm improving the collcc-
, ton of it's custom revenues, which have
/ largely increased i'm consequence: they
! have greatly improved the condition and
/ operation of the railroad OF Nicaragua.
! For the purpose of making the above pos
/ slle they have loaned large sums TO
| Nicaragua from time TO time and hayo
purchased 81 per cent OF the stock of its
1 national railroad and 81 per cent Of its
national bank The bankers have received
no dividends on the shares, either OF tho
/ railroad or the bank, and neither enter
/ prise is at present in d condition TO de-
clare dividends"