Evening star., 1931-12-19
FURTHER j. s. AID
ABROAD FAVORED
Mitchell Tells Senate Inquiry
Rebellion Might Result
From German Pressure.
BY the Associated Press.

BY the Associated Press.
An American banker told the Senate
Finance Committee today this country
very likely would conclude it wise to
make some further extension or adjust
ment Of European debts.
Charles E. Mitchell. chairman of the
board of the National City Bank, ex-
pressed the opinion it would cause re-
oel!lon to force Germany to 60 through
WIN her debt payments.
asked about the possibility of Europe
pelng able to start paying again at the
end OF the moratorium. he agreed with
a questloner that lit would be a miracle
u there was sudden change by which
Europe could resume payments"
Mitchell said the original plan was
70 pay the debts by the generation that
created them, but the period had been
changed from 35 to IS years and now
German youths face the prospect of
paying on them for generations.
I am not preaching a doctrine of
cancellation. Mitchell said. 4 am
mercy trying to develop the psychology
Ct the people"
Senator Reed, Republican, of Penn
= wanna. asked why future generations
II America should bear the burden
while those who started the war go
-coc-iree?"
1T is unanswerable." Mitchell said
AT the conclusion of his testimony,
the committee took up the moratorium
resolution IN executive session.
S13,0OO,0G0 12-Year Profit.
Earlier. Mitchell had told of his COM
rany making S13,OOOOOO of profits in
IGrelgn bond transactions in the last
u years.
Mitchell gave the figure in testifyine
in the resumption of the committee 5
inquiry into the handling of foreign
securities in this country. He said. how
ever, 1t did not represent clear profit,
but that general overhead expenses
should be deducted from it.
The figure was given in reply to a
question from Senator johnson, Repub-
hcan, OF California. a moratorium op-
ponent, who sponsored the inquiry.
johnson announced the next. wit
nesses would be representatives of
Kuhn, Loeb g. Co., Dillon Read g.
Co. and the Chase National Bank, who
will be called Monday.
Mitchell said the profit was made on
issues totallng S1071 ,955 900 which
have been floated since 1919 This did
not include Cuban and Canadian is
sues.
Nitrate Company Issue.
johnson questioned Mitchell about
an issue of $32,000,000 for the Lauters
Nitrate Co., Ltd, of England and Chile.
The gross profit, Mitchell said, weS
81 100000 and the National Citys profit
$500 900.
1T was practically a million gross
profit" johnson said
Yes" Mitchell replied
That was profit to your institu-
ton alone?"
Yes" the banker replied
johnson charged Mitchell with trying
to minimize" the profits, but the
banker denied he was.
Senator Harrison. Democrat. of Mis-
Slsslppi, brought out from Mitchell that
the National City Co. had loaned money
to the American I. G.. (dye concern)
a subsidiary of the German I. G.
Harrison asked if any of that money
had found its way into Russia.
II am not sure Mitchell replied, but
l believe So"
Il had understood it was in the
neighborhcod of S4o0, 100000" Harrison
said.
Il don't know" Mitchell replied "I
can't say some Of the money has not
found itself in smaller amounts in
Russia. 1t may have"
Mitchell said no European loans
through his company had been de-
faulted.