The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1933-10-25
Police Arrest Workers forViolatng Jim Crow Laet
State Dept, Chase
Observation-Disclosures
$9,OOO,OOO Robbery
CONTINUED FROM PAGE oNI

warned him that he must put his
house in order financially" said;
"That, of course, could only be
done by making compromise with
his 'Machado's' political enemies,
and naturally the only way he Ma
chado' could do that was to make
some concessions, but the result of
which would be that Cuba would pre-
sent a uniform front rather than to
have the security holders made ner-
vous by not knowing when, it at all,
the present government would be
thrown out Of power. The Presi-
dent admitted all this"
The letter also disclosed James
conviction that Jose Obregon, SON
in-law of Machado, then employed
by Havana Chase at $4,000 a year,
was, from any business standpoint,
perfectly useless" but that they
might as well keep him since where
the rub comes in is that if we did
not pay him his salary the Presi-
dent would have to give him an
allowance. and, in times as hard as
these, it would be fairly difficult to
co."
RObs Fund
The letter showed. thirdly, that
Bruce at this time knew that the
Cuban pension fund of $12,0o0,00
had been re-'reduced" by Machado
to 100000 and this his procedure
which, it is we'll known, Machado
followed, provide the blood and iron,
the bullets, arinored autos and pri-
vate assassins of his terror-gravely
concerned both Bruce and the U. s.
Department of State. AS Ferdinand
Pecora, counsel for the committee,
chewed his big cigar through the
reading of the document, amazement
spread over the face of everyone in
the magnificent hearing room. The
most general second reaction, how
ever, was not indignation, but big
bursts of laughter, the press, the
Senators, even the bankers them
selves. laughed again and again at
the drollery of this complete, spec
tacular explanation OF just how
things were in Cuba.
Taken as whole, the document
was a factual primer of banker die
tatorship in Havana.
Personal Loans
Personal loans to Machado, plans
for financing Machado's public
works" program, a gargantuan graft
which Pecora has cited as violating
the Sacrosanct Platt Amendment, a
1oo,, Of com mn 70 do T,o,rodor -,
later was to take Machado's place
as the Wall Street agent in Havana
all these and more were discussed
with brutal franknesS in this docu-
ment reporting ostensibly the prog
res OF the Rockefeller banking bust
ness in Cuba.
"In this connection James com
planned against one Henry Catlin, an
electric bond and share official, who
was also member of Havana
Chase's Advisory Committee, saying
HE runs in and out of the palace
(of Machado) every little while and
is trying to get his own taxes re-
duced and would be delighted to
play the lay bountiful with the
funds of the Chase Bank" which
Of course, was the last thing Chase
would allow.
Some of the rare passages in the
document follow in self-explanatory
order:
1.-THE interests of the president
CMachado): The presidents per-
sonal loan is now $130,000 and he
promised to pay it off within 30 days
should doubt very much whether
he does this. The loan Of Mestrie
Machado is now about $45,000 I'M
secured. We had proposition from
them stating that they would pay
this off if we would loan them $145,-
600 on Cuban internal Government
bonds at market value without
margin. We decided we would rather
take our chances on losing $45,0 0C
than on putting up an additional
100000, so that item remains the
same.
'You are familiar, Of course, with
the transaction by which Sheriff.
and Rosenthal (other Chase officers)
collected 100000 from Cespedes
The collection was really the best
single thing that has been done for
the bank this year.
ITO touch for a moment on Obre-
gon CMachado's son-in-law), as we
know, from any business standpoint
he is perfectly useless. He has
neither any ability for banking nor
has he the slightest ability in nego-
tiating, which was something which
We thought it might be possible to
build him up to do. From what ]
could gather. Joe has very little
standing with the president. 1t
would seem to me that the best thing
to do at the moment would be to
let things go on as they are. 4.
Rosenthal is very much concerned
because he says that when he goes
off on his vacation, that If Obregon
is the next in charge, he will make
all the bad loans all over again.
"He is not threatening to resign,
but is very scared that he is going
to be fired. This is naturally, of
course, the best way to have him
as he can do the least harm.
Referring to the financing Ito the
government of huge loans) I saw the
(American Ambassador and he
thought that the renewal should be
for 60 days.
New Taxes
Il told him that we had thought
that a renewal for go days would be
undignified and the same had bet
ter be for six months-in accordance
with the yiehac of tho ,,racid,pt