The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-01-14
LOAN HELD Up
FOR OIL GRANT,
SAYS JOHNSON
Senator Tries to Tie Up
Colombian Credit With
Oil Firms.
LANDS WORTH 2 BILLION
Companies Controlled by
Mellon, Morgan Got
Concession.
BY PAUL r. MALLON
United Press staff Correspondent

WASHINGTON, Jan. 14-Sena-
tor johnson (Rep., CALI Strove to-
day to trace out connection be-
tween granting by New York bank
ers of a 100000 credit to Colon
bia and valuation by the Colombian
government of a two billion dollar
oil concession now said to be in the
hands of Mellon and Morgan in
tereStS.
johnson brought out:
That a similar credit had been
held up previously until British
mining claim had been settled
by Colombia.
That President Olaya Of Colombia
had told the American minister,
and he, in turn, the state depart
ment, that he could not understand
why the credit was held up; that
he had treated Americans well; and
that the oil concession had been
granted.
Credit Follows Concession
That after this word was trans
mitted to the state department, Sec
rotary of State Stimson, and other
state department representatives
met with bankers in New York and
Stimson urged that the credit be
extended.
That ten days after the oil con-
cession was granted the 100000
credit was given to Colombia.
Freeman Matthews Of the Latin
American division of the state de-
partment, who testified to the ne
gotiations, stoutly maintained, how
ever, that it was entirely coinci-
dence, and that the oil concession
was in no way involved in the mat
ter of the credit.
The concession is that known as
the Barco concession to 100000 acres
of Colombian oil lands, said by some
to be the richest in the world, and
tentatively valued at two billion
dollars. The concession originally
was granted to a General Barco Of
Colombia.
Gulf Oil, Carib Get Control
Testimony today was that it was
believed now to be controlled rs per
cent by the Gulf Oil Company, and
Is per cent by the Carib syndicate.
Gulf Oil, it was said, supposedly is
controlled by Secretary of the
Treasury Mellon and associates, and
the Carib syndicate by j. P. Morgan
& Co.
When Matthews refused to pro-
duce correspondence on the sub
ject with the American legation to
Colombia, johnson directed him to
have it at the hearing at 2 p. M,
intimating action if he failed.
Evidence to show that the COM
merce department considers itself
promoter and propaganda for
South American business also was
introduced today.
Johnson Reads Letter
Senator johnson produced a let
ter written to Oliver Townsend,
former commercial attache at Lima,
Peru, by Thomas A. Taylor, assist
ant director in the commerce de-
partment, purporting to set forth
the departments views.
Taylor's letter, in part, read as
follows:
Right in this connection Peru-
Wan trade) I should like to en-
phasize that the spirit of the
bureau follows the spirit of Ameri-
can business, which is to make sales
in spite of difficulties, or to find
ways of doing seemingly impossible
things.
GAS officials, we should be encour-
aging whenever possible and dis
couraging only in the last extremity.
1--WE are builders, promoters, even
propagandists, although never to
such an extent that we fail to rec
noniZa and mint oft difficulties .