Cosach Credit

High in the Andes, Chile and the Brothers Guggenheim are in business together digging nitrates from a vast arid plain. Their company, Cosach, was a major political issue in Chile last autumn and the Brothers Guggenheim were threatened with eviction (TIME, Sept. 14; Nov. 23). Last week smiling new President Juan Esteban Montero ignored a previous commission's philippic which demanded Cosach's dissolution,, and issued through his Minister of Finance a favorable report. Cosach was glad to hear it. The company needed money and could not get it while the inquiry in Chile was under way, its monopoly threatened. Last week credit was forthcoming from three syndicates. Five million pounds (about $17,000,000) was advanced by J. Henry Schroder & Co., J. P. Morgan & Co., the Rothschilds and Baring Bros. Twelve million dollars more came from National City Bank of New York and Central Hanover Bank & Trust Co.; $4,500,000 more from Bankers Trust Co. and Guaranty Trust Co. Solomon R. Guggenheim and his able new partner Medley G. B. Whelpley, president of American Express Bank & Trust Co. until its dissolution last month, were to sail for Chile this week to confer with government officials on changes in Co-sach's corporate structure.

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