Evening star. [volume] (Washington, D.C.) 1854-1972, 1932-01-14
OIL GRANT GIVEN
MELLON INTERESTS
BEFORE LOAN CITED
Echo of Barco Concession
and Colombia Credit Nego-
Nations Heard at Capitol.
SECRET INSTRUCTIONS
DEMANDED BY JOHNSON
Refuses Private View of State De-
partment Files-Infuence Laid
to Secretary by Patman.
ny the Associated Press.

ny the Associated Press.
The name of Secretary Mellon was
linked today with testimony involving
the granting of an oil concession by
Colombia TO an American concern i'm
rnediately before large loan was made
by American bankers to that country.
While the Senate Finance Committee
was seeking information from the State
Department which might tie the two
transactions together, Representative
Patman in his impeachment efforts was
charging the Treasury Secretary had a
hand in influencing the loan.
The concession was granted to the
Mellon-owned Gulf Oil Co.
Testimony before the Senate Com
nittee already has brought out that the
State Department sought to influence
American bankers to make the loan to
Colombia
1t was told today that the Barco Oil
concession was granted to the South
American Petroleum Co., in which the
Gulf Oil Co. is largely interested on
June 20, 1881, and that the loan was
made on June 80.
Johnson Demands Documents.
The demand that the State Depart
ment make public secret instructions
sent its representatives while Ameri-
Colombia was made today by Senator
johnson of California. 1t came while
department officials were explaining to
the Senate Committee the details OF its
activities In behalf of the loan.
johnson pointed out that about the
same time the loan was made, the Gulf
on Co. received concession from the
Colombian government involving 50O,-
900 acres of what johnson said had
been described as the most valuable
oil lands in the world"
Assistant Secretary of State Francis
White told johnson he might see the
documents privately, but the Senator
refused and demanded that they be
produced this afternoon.
Patman, a Texas Democrat, in bring
ing his charges against Mellon. quoted
a letter from South American saying
President Olaya Herrera OF Colombia
had announced publicly Mellon would
assist in the credit extension If pc
troleum difficulties were settled.
Communications Denied.
'In the conversation, the President
of Colombia spoke about the situation
of his country, to which MIR. Mellon
said that if he would arrange the pc
troleum business difficulties in Colombia
that Colombia would develop itself into
a much better credit condition, letting
him understand that he in turn would
help Colombia in coming out OF the
crisis it was going through" the letter
said
In view of his position as Secretary
pf the Treasury and his connection with
the Gulf Oil Co." Patman said, II
foreign country has granted them a
special concession you can see where
the Secretary of the Treasury could re-
ciprocate the favor"
He withheld the name Of the author
of the letter.
Trade Letter Presented.
At the outset of today's Finance Com
uittee hearing a letter from the
Commerce Department to an American
commercial attache at Lima, Peru, tell
ing him to "be encouraging whenever
possible" was presented to the com
mittee.
The letter was submitted by Oliver
Townsend, former attache at Lima, who
received it from Thomas R. Taylor, as
sistant director of the Bureau OF For
eign and Domestic Commerce.
I'VE are builders, promoters, even
propagandists," Taylor wrote.
1T is my impression" he said, that
you are over alarmed about temporary
trade condition that has slowed up bust
mess, but should not preclude all con-
sideration of American sales to Peru. "
Another part Of the letter written on
May 26, 1927, after TOWNSEND SAID ne
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