Evening star., 1932-01-24
'BARCO OIL FIGHT +"
WILL Be RENEWED
Johnson to Press Demand
for Data as Probe Re-
opens Tomorrow.
BY the Associated Press

BY the Associated Press.
Another clash between senatorial
authority and diplomatic reserve is due
tomorrow, when the Senate Finance
Committee reneWS its investigation into
foreign securities.
Senator johnson of California has
announced he will stand on his insist
ance to give publicity to State Depart
ment documents concerning the Colom-
bian Barco oil concession. Secretary
Stimson steadfastly insists he will re-
veal their contents only in confidence.
Since the opening of the Johnson in
quiry last month. much has been re-
vealed OF allegedly irregular tactics in
the flotation of Peruvian loans. Charges
have been made to prove the same in
regard to financing for Colombia Bo-
livia, Chile and other Latin American
countries.
In Bolivia's case national toes were
stepped on, and the Bolivian minister,
DR. Luis Abelli was quick to protest
against the investigation as injurious
to his country's credit abroad.
Protest Made by Haiti.
Protests were heard from Minister
Bellegarde of Haiti. who said the testi-
mony given at the inquiry had damaged
the honor of all Latin American gov
ernments which had contracted loans
in the United States Particularly did
this apply to his own country, he said.
On the other hand, Ambassador
Miguel Cruchaga of Chile requested the
committee to extend its investigation to
loans to Chile and cabled his govern
ment for information desired by Sem
ator johnson. This is expected to be
given to the committee tomorrow.
After some preliminary inquiries
touching on bond issues to Bolivia CO.
lombia and some smaller republics,
Senator johnson and the committee got
their teeth into the investigation when
American bankers involved in Peruvian
loans Of 1927 and 1923 testified they
had paid $415,000 in commissions to
Juan Leguia, son of the depoSed PreSi-
dent of Peru.
These commissions, described by
Johnson as "bribeS," were Juans share
in profits on loans totaling 100000
900 floated for Peru in New York by
the j. & W. Seligman Co.
The Leguias, father and son, will
soon be tried by the Peruvian govern
ment on charges of treason and illegal
enrichment. No evidence has been
shown here involving the former Presi-
dent in the payment of commissions.
Senator Johnson versus the National
City Co., an affiliate of the National
City Bank of New York, was the next
verbal battle. The company's loans
to Colombia provided the issue.
The Californian tomorrow will con-
tinue his efforts to prove the connec-
ton of the State Department in deals
wherein the National City Co. and its
British and French banking colleagues
were reluctant in June, 1880, to pay
to Colombia the final $4,000 900 INSTALL
ment of contracted s20000000 loan.
The money was paid on time, and
Johnson has been trying to prove the
State Department. allied with PreSi-
dent Olaya, brought official pressure on
the bankers to make them pay.
He also seeks to prove the Colombian
government granted the Barco Gil land
concession to the uncontrolled
Gulf Oil Co. and the Carib Syndicate,
a Morgan interest, only after being ad-
vised to do so by American Government
officials.
VIII Probe Chilean Financing
1t is the correspondence on this sub
ject which johnson is eager to pub
lish and Stimson would shield from
public knowledge. f.4, -sE ,-r
Next, the Californian will probe into
Chilean financing. emphasizing his in
tentionS to learn what American capital,
if any, was diverted into, the coSach
$500, 100000 Chilean nitrate monopoly.
The investigation, almost one-man
show. has brought out time after time
how American capital was poured into
Latin America only now to be frozen
up in defaulted securities. Johnson
says he wants to use the findings OF
the present inquiry as the basis for
future legislation to protect American
bond holders.
In the past year and half Peru,
Bolivia, Chile Brazil and Uruguay have
defaulted in interest payments on gov
ernment bonds. Millions have been
lost to American investors and Sena-
tor johnson says he does not want it
to happen again.