New Britain herald., 1915-01-15
RECEIVED DIPLOMATS
 IN HIS UNDERSH|RT
fngdShman Tells of Personal Habits
 Of Minister Sullivan.

New York, Jan. 15.-Roger L. which handled a $1,50O,000 loan to the Dominican Republic, was the first witness today before Senator-elect Phelan of California at the continual tion of the inquiry to determine the fitness of James M. Sullivan, Ameri- can minister to the republic. The National City Bank, it has been testified, was represented in nego- tiating the loan by Santiago Michel ena, a Santo Domingo banker, whose institution was depository of the cus- toms funds of the republic until they were transferred. at the instance of Sullivan it is alleged, to the Banco Nacional
 Bryan Against Michclcna
 Michelena was not in favor with i Secretary of State Bryan, it was tes- ! tfled because MT. Bryan was ob- sessed with the idea that Michelena represented the money trust
 Farnham began his testimony by saying that the National City bank 1 had no interest in Santo Domingo in any way, other than in lending $1-
 5o0,0OO to the government two years l ago This loan by arrangement with { the United States state and war de- 1 partments was being paid off a the 1 rate of S30,000 a month out of the 1 government customs receipts. No Relations With Sullivan. Farnham said he knew only by hearsay of the reputation of inc | Eanco Nacional and the Jarvis inter ests controlling it, and that he had no relations with Sullivan. He said that Sir Alexander Baird, representing ! English capitalists, in the promotion or the Samana railroad in the repub- lie, had approached the National City tslnk, seeking financial aid but that the bank had declined to interest it. sell in the road. The only relations the bank had with Michelena, he said, was to ask him to present the bank proposition to the government. Farnham denied that there were any plans contemplated by the bank to exploit the island in any way. Knox Approved Loan.
 It was Sec. of State Knox who ap- proved the loan, the witness said Knox cabled the bank proposal to the then American minister, who pre- sented it to the Dominican govern ment. A copy went to Michelena The minister and Michelena reported that the government favored their proposition in preference to proposi- tions of other bankers.
 There has been talk of the exist ence of a money trust in New York" said Commissioner Phelan. What do you know about that?'
 Question Not Answered.
 "The National City bank does not know that a money trust exists" re- marked Charles H. Strong. the com
 m1ssioner's attorney. The witness smiled and the question was not answered.
 Farnham said he had met Samuel posed that his interests and those of the National City bank be pooled in negotiating the loan.
 The witness added he had declined to consider the proposition.
 Met Walker With Wick.
 Farnham said he had met Walker with Wick, instigator of the present investigation, shortly after Wick was appointed receiver general Wick had not in any way made representations to him either for or against the Banco Nacional or any other institution, he said. He had sought an interview with Wick, he continued, in connec- tlOn with the question of the deposi- tory of the customs receipts out of which the banks notes were being paid.
 We wanted to know where the