Office of deposits and consignments, current account of the Supreme Drafts on the office of deposits and consignments, decree law No. 6913, discounted as follows: Banco Italiano___. Banco Internacional_ Banco Popular del Perú.... Banco Alemán Transatlántico___ The National City Bank of New York... Anglo South American Bank.... The Royal Bank of Canada_ Drafts on the collection department of the office of deposits and consignments, in anticipation of tax collections_--. 1, 511, 633 2, 100, 000 900, 000 600, 000 600, 000 600,000 600, 000 600, 000 6, 000, 000 4, 121, 993 600, 091 833, 333 916, 666 333, 333 166, 667 216, 667 216, 667 216, 667 216, 667 83, 333 Bank loans authorized by law No. 6745: Banco del Perú y Londres_. Banco Italiano Banco Internacional Banco Popular del Perú.. Banco Alemán Transatlántico_. National City Bank of New York. Anglo South American Bank.. Royal Bank of Canada_ Savings Bank of Lima___ Bank of Peru and London, loan of June 1, 1930__ The Royal Bank of Canada, loan for the construction of the Avenida Banco Italiano, current account. Banco Italiano, notes of the Peruvian Steamship & Dock Co. of International Petroleum Co.: 3,200,000 53, 713 6, 585 2,241, 836 97, 383 1, 500, 000 493 1, 500, 493 Loan of Dec. 30, 1930_. Interest thereon Supe Dock Administration Co--- Cerro Azul Dock Construction Co.: 42, 074 Construction Co. for the Pisco-Castrovirreyna Railroad (estimated) 1,673, 164 Construction account---- Current account Tambo de Mora Dock Construction Co., current account. Fiscal Warehouse Administration Co‒‒‒‒ Credits not passed upon by the board of audit and review.. 610, 071 108, 254 718, 325 56, 771 185, 330 365, 140 1, 870, 691 17, 217 Balances due on budgets previous to the 1930 budget-- Dollars 324, 624 50, 456 50, 179 4, 169 104, 804 Balances due on budgets previous to the 1930 budget. 1,500 45,000 46,500 Soles 5,057, 441 TESTIMONY OF FREDERICK J. LISMAN, INVESTMENT BANKER, NEW YORK, N. Y. (The witness was duly sworn by the chairman of the committee.) Senator JOHNSON. Please state your full name and occupation. Mr. LISMAN. Frederick J. Lisman; investment banker. Senator JOHNSON. How long have you been engaged in that business? Mr. LISMAN. Over 40 years. Senator JOHNSON. Where? Mr. LISMAN. In New York City. Senator JOHNSON. Is anybody associated with you? Mr. LISMAN. I was formerly the head of the firm of F. J. Lisman & Co., which went out of business on December 31, 1930. Senator JOHNSON. Now you are by yourself? Mr. LISMAN. Now I am semiretired. Senator JOHNSON. The firm of which you were a member was in existence for a number of years? Mr. LISMAN. Yes. It was in existence with different partners for some thirty and odd years. Senator JOHNSON. Have you a list of the loans that you made or that you floated for South America? Mr. LISMAN. I got up a list hurriedly of all the loans we floated. I could not respond promptly, because I did not get the wire until 2 o'clock on Saturday, and our books and records are in storage and very much disarranged as they would be under the circumstances. Our partners are scattered, and I really have not informed myself as fully as I would like to; but I came in response to a wire to appear here this morning. I understand that another one was sent late in the afternoon, which I did not receive. I want to say that the report is made subject to a good many corrections. Of course, the gross earnings do not mean anything. The expenses are pretty heavy. Senator JOHNSON. I will ask that this statement which has just been handed to me be made a part of the record. The CHAIRMAN. It will be so recorded. (The statement referred to and submitted by the witness is here printed in full, as follows:) From the above should be deducted commissions paid on account of secondary marketing as well as overhead expenses running during the period at from $40,000 to $60,000 per month. Senator JOHNSON. Are any of those flotations defaulted? Mr. LISMAN. Yes. There is one Czechoslovakia loan which was defaulted some four years ago, and settlement was made subsequently. The CHAIRMAN. Settlement was made on what basis? Mr. LISMAN. Forty-eight cents on the dollar. The CHAIRMAN. Did they pay cash, 48 cents on the dollar? The CHAIRMAN. How much was the loan? Mr. LISMAN. It was a $4,000,000 loan. The CHAIRMAN. When was it made? Mr. LISMAN. In 1925. The CHAIRMAN. When did it default? Mr. LISMAN. It defaulted late in 1926. That is a long story. There was some misrepresentation and the auditors did not catch certain things, and so on. Senator JOHNSON. I notice the first of these loans is Salvador. Senator JOHNSON. What was the rate of interest on that loan? Senator JOHNSON. And the amount was $8,000,000? Mr. LISMAN. Six million. Senator JOHNSON. I think it is $8,000,000 here. Mr. LISMAN. It is $8,000,000, but it should be $6,000,000. That is an error. Senator JOHNSON. The gross profit on it was $800,000? Senator JOHNSON. Purchase price 90, and the sale 100? Mr. LISMAN. Yes, sir. I should amend that. I understand that the Salvador Government only quoted 88, but we did not buy these bonds from the Salvador Government. Senator JOHNSON. From whom did you buy them? Mr. LISMAN. I either bought them from Miner C. Keith or the International Railways of Central America, I forget which. It was some eight years ago. Senator JOHNSON. The bonds are paying you interest? Mr. LISMAN. Yes, and 4 per cent sinking fund. Senator JOHNSON. Has there been a revolutionary Government in Salvador? Mr. LISMAN. Yes. Senator JOHNSON. And the revolutionary Government has continued to pay. Mr. LISMAN. Yes. I should amend that by saying that before the revolutionary Government came into power the funds were accumulated already to pay the January coupons, but since the 1st of January the collector has begun collecting money due the bondholders in accordance with the contracts. The CHAIRMAN. January of what year? Mr. LISMAN. Since the 1st of January of this year; and the Salvador Government has given assurances that they will not interfere with the collection. Senator JOHNSON. The revolution has not affected these securities? Mr. LISMAN. It has not. Senator JOHNSON. Has the State Department consulted you regarding your views as to the revolutionary Government? |