Evening star., 1933-10-21
PRESIDENT BEHIND
FOREIGN BOND UNIT
Citizens Organized in Private
Effort to Crystalline Ameri.
can Holders.

OrR6QlZdLlOu Ol u COAllIIleoCC VI PA-
vate citizens to make an unofficial at
tempt to recover part of the billions
invested by American citizens in for
eign securities now in default was begun
Yesterday by President Roosevelt. While
carefully separating the Government
from the impending negotiations, Mr.
Roosevelt put the services OF the State
and Treasury Departments to the use
Of the special committee Of distin-
guished citizens in getting organized.
The attempt to bring together the
thousands of scattered holders OF for
eign securities was an outgrowth of the
investigation by Senator johnson, Re-
publican, of California into foreign
bond sales in this country.
More than $2,000,O00,0O0 in foreign
securities now held by American in
vestors are in default or in arrears on
interest payments.
Fifteen Attend Meeting.
Philip Lafollette, former Governor of
Wisconsin, and Frank o. Lowden,
former Governor of Illinois, were among
the Is men who met yesterday at the
request of the President to organize for
the protection of American holders OF
securities.
The others attending the conference
were Laird Bell of Chicago, Hendon
Chubb of New York City, W. L. Clayton
of Houston, John Ccwles of Des Moines,
Herman Ekern, former attorney general
of Wisconsin; Ernest M. Hopkins, presi-
dent of Dartmouth College; Mills B.
Lane of Savannah, Orrin K. McMurray,
dean of the University Of California
Law School; Roland S. Morris, former
Ambassador to Japan; Thomas D.
Thacher, former solicitor general; j. c.
Traphagen of New York City and
Quincy Wright of the University of
Chicago.
Those who were unable to attend the
meeting, but who will have place in
the new organization, are former Secre-
tary OF the Navy Adams, former Sec
retary of War Baker and former Am
Text of Statement.
The text of a statement released by
the President after the organization con-
ference follow:
1.-The President today conferred with
q group of persons invited to Washing
ton to seek creation of an organization
for the protection of American holders
of foreign securities. Those attending
the conference we're: Laird Bell OF
Chicago Hendon Chubb Of New York,
w. L. Clayton of Texas, John Towles,
publisher, Des Moines Register and
ney general of Wisconsin; Ernest M.
Hopkins, president, Dartmouth College;
Phillip La Toilette, former Governor of
Wisconsin; Mills B. Lane, Savannah.
Ga: Frank o. Lawder, former Governor
Of Illinois: Orrin K. McMurray, dean.
law school, University of California:
Roland S. Morrison, former American
Ambassador to Japan; Thomas D.
Thacher, solicitor general during the
Hoover administration: J. c. Traphagen,
New York City, and Quincy Wright,
professor, international law, University
Of Chicago.
"In addition, Messrs. Charles Francis
Adams, former Secretary of the Navy;
Newton D. Baker. former Secretary of
War: J. Ruben Clark, jr, former Am
bassador to Mexico, and others who
have been asked to share in this work
were unable to be present at this meet
ing Their help is expected, however.
The following letters were received from
Mr.. Baker and Mr. Clark.
ct will be happy to cooperate in
the organization of the American Bond
holders Protective Committee under
such conditions as meet with your ap-
proval. Unhappily I cannot come to
Washington for Friday of this week,
but I appreciate the kindness Of your
letter of October 13 inviting me.
'(Signed) NEWTON D. BAKER,
Clark's Letter.
"The letter from ]. Ruben Clark, jr..
follows: I beg to acknowledge receipt
OF the letter signed by yourself, the
Secretary of State, the Secretary Of the
Treasury and the chairman of the
T. do COy,y,oiccinr which
YOU invite me to come to Washington
to Join with a number of other gentle
men in discussing with you the creation
of an adequate and disinterested organ
ization for the protection OF holders OF
American foreign securities. I regret
to say that engagements long since
made will prevent my appearance at
the conference you mention. However.
I hope you will allow me to say l
heartily approve of the suggestion to
organize such an association. I have
been urging such move Tor years.
To me there are three ways such an
association could be of value: l. 1t
could provide more adequate protection
than now exists for the interest Of
American holders of foreign bonds.
2. It could relieve the Department. OF
State of burdens and responsibilities
which oftimes come at inconvenient Pc
RODS when other national interests pre-
vent the exercise of legitimate in
terest and influence in behalf Of such
bondholders. 3. The association could
10 function as to promote good rela-
tions among nations by co-ordinattng
and harmonizing in peaceful and CO.
operative way the interest of bondhold-
ers and the debtor states. Its work in
this respect could be of incalculable
value. You may count upon my full
est support of the work of organizing
an association for these purposes.