Evening star., 1915-01-15
F|NANC|ER HEARD
IN SULLIVAN CASE
Tells of National City Bank
Handling Loan to Santo
Domingo.
CHARGES AFFECT RECORD
OF AMERICAN MINISTER
Letter From Secretary Bryan Intro.
duced, Showing Interest in Dis
tribution of Office Patronage.

tributi0n of Office Patronage.
NEW YORK, January 15.-Roger l..
Farnham OF the National City Bank OF
New York, which handled a one-mii-
lion-five dollar 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 'hc
fitness Of James NJ. Sullivan to holo
his position as American minister 10
the republic
The National City Bank. it was testi-
fed, was represented in negotiating
the loan by Santiago Micheiena'
Santo Domingo banker, whose institu-
tion was depositary of the customs
funds of the republic until they were
transferred, at the instance of Sullivan,
IT is alleged, to the Blanco Nacionai.
Michelena was not in favor with
Secretary of State Bryan, it was testi-
tied. because Mr.. Bryan was obsessed
with the idea that he represented the
money trust"
Mr.. Farnham' Testimony.
Farnham began his testimony by say
ing that the National City Bank had no
interest in Santo Domingo in any way,
other than in lending $1.500,000 to the
government two years ago. This loan
by arrangement with the United States
State and War departments was being
paid off at the rate of 100000 month
out of the government customs re-
ceipts.
MIR. Farnham said he knew only by
hearsay of the reputation of the Banco
NacionaI and the Jarvis interests con-
trolling IT, and that he had no relations
with Sullivan.
lie said that Sir Alexander Baird,
representing English capitalists in the
promotion of the Samana railroad IN
the republic, had approached the Ma
tional City Bank, seeking hnanclal aiu'
but that the bank had declined to In
terest itself in the road. The only re-
lations the bank had with Michelena,
he said. was to ask him to present the
bank proposition to the government.
Farnham denied that there We're any
plans contemplated by the bank to ex-
ploit the island in any way
1t was Secretary of State Knox VINO
had approved the loan. the witness
said Knox cabled the bank proposal
TO the then American minister. who
presented it to the Dominican govern
ment. A copy went to Mlchelena Ihe
minister and Michelena reported tnat
the government favored their PROPOSE
tion in preference to propositions of
other bankers.
Decline Jarvis Proposition.
Farnham said he had met Samuel N.
Jarvis and that Jarvis had proposed
that his interests and those of the Ma
tional City Bank be pooled in negoti-
ating the loan. The witness added he
had declined to consider the PROPOSE
ton.
F'arnham said he had met Walker W.
Wick, instigator OF the present investi-
cation, shortly after Wick had been
appointed receiver general. Wick had
not in any way made representations
to him either for or against the Ranco
Nacional or any other institution, ne
said. He had sought an interview with
Wick, he continued, in connection with
the question of the depositary of the
customs receipts, out Of which the
banks. notes were being paid.
We wanted to know where the funds
were going, said the witness.
influence of Interests Alleged.
Testimony in which it was asserted
that changes made by the Washington
administration in the personnel of this
governments official colony in the
Dominican Republic were due to the
influence of interests seeking to ex-
plot the finances of the country was
heard yesterday.
Secretary Bryan was accused of lend.
ing ear in appointing Sullivan to the
Samuel VI. Jarvis coterie of New York
finauciers who controlled the Banco Ma
cional at Santo Domingo, alleged to
have been an institution without stand
ing on the island, and which sought
70 obtain for its Golfers the deposit
of the customs duties, the collection of
" hch is administered by the United
a f,yh her nyY,an mt fun
William l.. Pulliam, receiver general
of the customs at Santo Domingo dur
ing the Taft administration. testified
that F. J. K. Mitchell. president of the
Banco Nacional. had caused II to be
published in a Dominican newspaper
that NJ. r. =. Doyle, head of the de-
partment of Latin American affairs in
the State Department, had been re-
moved on complaint of Mitchell, and
that Mitchell had subsequently, said to
him: IL told you SO. Therell be sew
eral other changes and they'll extend
to Santo Domingo.
In June. 1913, Mitchell came TO him
a gain, he said, and told him that Rus
sell. American minister under Taft,
was not returning.
HE told me-" the witness testified
That if 1 was good guesser he'd tell
me the name of the next minister 1t
ends with an n, he said.
Interested for Democrats.
That Secretary Bryan at that time
had "A high opinion of Mr.. Sullivan was
evidenced by a letter placed on record
while Puliiam was testifying. by Wal
ker w Wick, VINO succeeded Tulliam
as receiver general and who. after his
removal, instigated the present investi-
cation.
The letter. addressed to Wick under
dat. of August 20, 1913, was fol-
lows:
Now that you have arrived and have
acquainted yourself with the situation
can YOU let me know what positions
YOU have at your disposal with which
10 reward deserving democrats. When
ever you desire n suggestion from me
in regard TO man for any place down
there call on me.
You have had enough experience in
politics to know how valuable workers
arc when the campaign is on and how
difficult it is to find suitable rewards
for the deserving. I do not know to
what extent a knowledge of the Span
I..n .Jp for ,l,,,