Mr. GELPI. Nothing whatever; that is about all I know about the transaction. Mr. BARBRICK. This is, then, a correct version of what you know? Mr. GELPI. To the best of my knowledge; yes, sir. Mr. BARBRICK. Are you perfectly willing to give it as a statement under oath? Mr. GELPI. Yes, sir; perfectly willing. Mr. BARBRICK. Are you also willing to assist in furnishing any other information or aid that you may be able to give? Mr. GELPI. In any way whatever. Mr. BARBRICK. You have no reason to conceal anything? Mr. GELPI. Not a thing. Mr. BARBRICK. This business came to you through the natural course of business? Mr. GELPI. Through the natural course of business; that is correct. THURSDAY, JANUARY 9, 1913. ST. CHARLES HOTEL, The subcommittee met at 5.30 o'clock p. m. Present: Senator Smith of Michigan (chairman). Present also: Mr. Fenton R. McCreery. TESTIMONY OF FRANK G. OTIS. Frank G. Otis, being first duly sworn by the chairman, testified as follows: Senator SMITH. What is your full name? Mr. ОTIS. Frank G. Otis. Senator SMITH. Your residence? Mr. OTIS. New Orleans, La. Senator SMITH. What is your business? Mr. OTIS. Second vice president of the Otis Manufacturing Co. Senator SMITH. Mr. Otis, along about the forepart of May, 1911, did you pay a draft drawn to the order of Fernando Freje for $30,000 in gold? Mr. ОTIS. My company did. I, personally, did not; Mr. H. A. Otis was president, and he did; he was authorized to do so. Senator SMITH. Who drew this draft on you? Mr. OTIS. Mr. Teofilo Bernardo, for Romano & Co. Mr. ОTIS. Yes; two letters. Senator SMITH. Have you a copy of the letter? Mr. OTIS. Yes, sir. [Witness here produces letters and hands same to Senator Smith.] Senator SMITH. Is this the letter, dated Flores, May 4, 1911, and written in Spanish and translated into English? Mr. OTIS. Yes, sir. Senator SMITH. Will you file this letter with the committee? Mr. OTIS. I can give you a copy of it; I will be glad to do that. This is one of our office records. Senator SMITH. Do you want the English copy? Mr. OTIS. No; you can have the English, and I will be glad to give you a copy of the Spanish, too, if you care to have it. Senator SMITH. The English translation will be placed in the record. It is as follows: Messrs. OTIS MANUFACTURING CO., [Translation.] New Orleans, La. FLORES, May 4, 1911. DEAR FRIENDS: Taking advantage of my stay in this place, I have arranged with the mutual friend, Mr. Manuel S. Otero, 1,500 tons of round wood for you, and the preference on the remaining of his production, which will be about another 1,500 tons. Therefore, we agreed to put to his disposition the amount of $30,000 gold. The said gentleman will state to whom to deliver same for his account, in draft or under another form. I am writing San Juan Bautista, giving an account of this operation, and trust that from there they will confirm the contents of this letter. I beg to remain, As ever, your friend, TEOFILO BERNARDO. Senator SMITH. Did you receive a further letter from him on the same subject dated Flores, May 5, 1911? Mr. OTIS. No, sir; that is from Otero. Senator SMITH. Did you receive a further letter on the same subject, dated Flores, May 5, 1911? Mr. OTIS. Yes, sir. Senator SMITH. From Manuel S. Otero? Mr. OTIS. Yes, sir. Senator SMITH. Is this a copy of that letter translated into English? Mr. OTIS. Yes, sir. Senator SMITH. The translation will be placed in the record. It is as follows: Messrs. Oris MANUFACTURING Co., [Translation.] New Orleans, La. FLORES, May 5, 1911. GENTLEMEN: As you will note by the inclosed letter of Mr. Teofile Bernardo, manager of the firm of our mutual friends, Messrs. Romano & Co., Sucrs. of Tabasco, I have sold to him for you 1,500 tons of wood, and I have given you the preference for the remaining of my production of this year. Therefore, kindly deliver, or put to the disposition of Mr. Fernando Freje, who will present this letter to you, as well as the letter of Mr. Teofilo Bernardo, the amount of $30,000 gold. Hoping to have your favorable reply, I am As ever, your friend, MANUEL S. OTERO. Senator SMITH. Upon receipt of this letter did you pay the draft? Mr. OTIS. No, sir; we wired Messrs. Romano & Co., San Juan Bautista, asking them if they had actually made a contract with Mr. Otero, and upon receipt of their reply, we paid the draft. Senator SMITH. Teofilo Bernardo lives where? Mr. ОTIS. He lives at San Juan Bautista, but at the time he was inspecting Mr. Otero's camps, which are located in Peten, Guatemala. Senator SMITH. Upon receiving assurances that a contract had been made, you paid this money to Fernando Freje? Mr. OTIS. Yes, sir. Senator SMITH. By check? Mr. Oris. By two checks. [Witness hands Senator Smith the checks referred to.] Senator SMITH. Are these the checks which you hand me? Senator Smith orders copies of the two checks placed on record. [Copy of check of Metropolitan Bank of New Orleans, La.] OTIS MANUFACTURING Co., New Orleans, U. S. A., June 2, 1911. Pay to the order of Fernando Freje $15,000. OTIS MANUFACTURING CO. Indorsement on back of check: This check is accepted in payment of the following accounts: Romano y Cia. Manuel S. Otero contract. If not found correct, please return for deposit. F. FREJE. [Copy of check of the Hibernia Bank & Trust Co., New Orleans.] OTIS MANUFACTURING CO.. Pay to the order of Fernando Freje $15,000. OTIS MANUFACTURING CO. Indorsement on back of check: This check is accepted in payment of the following accounts: Romano y Cia. Manuel S. Otero contract. If not found correct, please return for deposit. Senator SMITH. Did you require any identification? F. I'REJE. Mr. OTIS. Not outside of having letters, and our taking up the matter with San Juan Bautista by wire. We had authority from San Juan Bautista. Senator SMITH. Do you know what was done with this money? Mr. OTIS. No, sir. Senator SMITH. Nor why it was paid to Mr. Frieje? Mr. OTIS. No, sir. Senator SMITH. Nor what disposition he made of it? Senator SMITH. Had you ever had any dealings with him before of any kind? Mr. OTIS. No, sir; not to my knowledge. Senator SMITH. The payment of this money was in the regular course of your business with a mahogany export concern? Mr. Oris. Yes, sir. Senator SMITH. You did not regard the transaction as unusual? Mr. OTIS. No, sir. Senator SMITH. Mr. Frieje testified yesterday that this money, $30,000 in gold, was turned over by him immediately on receipt of it from your company to Pino Suarez; has that ever come to your knowledge before? Mr. OTIS. I have heard rumors; yes, sir. Senator SMITH. But you had nothing to do with that? Senator SMITH. You know who he is? Mr. OTIS. Vice president of Mexico. Senator SMITH. At that time making his headquarters here? Senator SMITH. If the records show whether this money was to be used for the furtherance of the revolutionary plans of Pino Suarez, you have no knowledge? Mr. OTIS. No, sir. Senator SMITH. You did not concern yourself about it? Mr. OTIS. No, sir. Senator SMITH. And your concern has had no dealings with him at all? Mr. OTIS. No, sir. Senator SMITH. Nor with Gustave Madero? Mr. OTIS. No, sir. Senator SMITH. Nor anyone representing the revolutionary parties in Mexico? Mr. OTIS. No, sir. Senator SMITH. Do you do business in Mexico? Mr. OTIS. Yes, sir. Senator SMITH. With whom? Mr. OTIS. With Romano & Co., our agents. We also do business with Mr. Manuel S. Otero. Senator SMITH. You have not concerned yourselves about the revolution in any way? Mr. OTIS. No, sir. Senator SMITH. Nor any member of your company so far as you know? Mr. OTIS. No, sir. Senator SMITH. Have you ever been asked to make a loan to other revolutionary parties there? Mr. Oris. No, sir. Senator SMITH. Have you been subjected to any export duty, an unusual duty? Mr. OTIS. We pay export duty regularly the same as we have paid for the last 40 years. Senator SMITH. But no other charges or demands have been made upon you? Mr. OTIS. No, sir. If there is any other information in our pos session of any kind which you desire, we would be glad to supply it, and the books of the company are open to your inspection if you wish to make it. At 5 o'clock p. m. the subcommittee adjourned. |