Evening star., 1927-03-19
MEN AND MONEY
By W. S. Rukeyser.
iCoryright. 1877

New York shares the optimism re-
fiected in recent dispatches from Mex
leo City that the oil controversy be-
tween the American and Mexican Gov
ernments can be amicably adjusted.
Before tangible steps are taken to
clear up the situation, there is likely
TO be conference between officials of
the foreign-owned oil companies and
representatives of the Mexican admin
istration. Secretary of Interior Ma
rones or possibly President Gales
himself would take a leading part in
such parley, it is thought here. In
view Of the possibility of such meet
ing, oil men here are loath to discuss
the controversy publicly.
If such a conference should be held,
1T would constitute another recognition
on the part of political forces of the
part organized business plays in mod
ern life.
Against the threat of confiscation,
the foreign oil companies have not
been powerless. BY curtailing opera
tons, they cut down revenues to the
Mexican government and employment
for the people. The companies pos
sess further economic weapons in their
pipe lines and tank steamers
Revolution Expensive.
nat GeNOIuIiOn IN an
other sore spot in Latin America, has
been expensive is the testimony of
jeremiah w. jerks, American econo.
mist, director of the National Bank of
Nicaragua, director of the Nicaraguan
Railroad, and umpire of the high com
mission. DR.. jerks is connected with
the faculty of New York University
and Is president of Alexander Hamilton
Institute.
Apart from the intangible disad-
VantaGes of the revolution" DR.. jerks
told me. 1.-The conflict has resulted in a
falling off during 1926 of the earnings
or the National Bank of Nicaragua,
the railroad and the coffee industry,
which is the most important industry
IN the republic. So many men have
been recruited into the armies of both
camps that there has been a shortage
of men to pick the coffee crop. More
over, the continuous movement of
troops by the railroad has disturbed
ordinary transportation service. Fur
thermore, the railroad has fallen back
IN maintenance and repairs.
The outcome of the present political
dispute is by no means certain in my
NINA, but | am inclined to believe
that as long as the United States
packs Diaz, the chances are he will
DE victorious in the long run. In the
meantime, the whole situation seems
endlessly confused to foreigners who
nave been trying to follow the press
accounts. There has been talk of
American oppression of Nicaraguans.
In all my years of contact with that
country, l am still to see or hear any
thing that looks like exploitation. On
the National Bank of Nicaragua direc-
torate, six of the nine directors, since
the repurchase of control by the gov
ernment, have been Nicaraguans,
though the management is still in
charge of Americans with Robert r.
Loree, vice president of the Guaranty
Trust Co. of New York, president.
The Americans participating in the
management of the bank are chiefly
interested in giving sound business
direction to the institution"
Ship Calls Curb RevoIts.
DR.. jerks is a white e-haired veteran
OF the classroom and the world of
practical affairs. He has friendly blue
eyes, a firm jaw and a ruddy com.
pleXion. He is one of a group of
American financial experts who have
frequently been consulted on technical
matters by foreign governments.
His remarks help to answer the |
query, What price revolution?"
incidentally. Victor NJ. Cutter, presi. |
dent of the United Fruit Co, in dis
cussing this subject with me recently, |
said that the more frequent ship serV- |
ice to Latin American ports has |
proved a deterrent to revolutionary |
because foreign vessels |
abstain from making calls at ports in |