Evening star. [volume] (Washington, D.C.) 1854-1972, 1894-06-05
BUYING SUGARST0CK
Senator Mcpherson Explains His
Connection With the Street.
HIS SON DID The BUYING
Intimates That Senators Have q
Right to Speculate.
MR. CARLISLE'S TESTIMONY

About the most interesting portion Of the
testimony before the Senate sugar investi-
eating committee. reported to the Senate
yesterday afternoon. was that OF Senator
Mcpherson In regard to his purchase Of
sugar stock.
He said that on the 31st of last December
he owned 800 shares Of Manhattan railroad
stock in New York city. 800 shares Of Jef-
| sey Central railroad stock. 300 shares Of
sugar stock and 500 shares OF Northwestern
All this he transferred to his son. In adj
dition to this, in February. when the House
bill came over to the Senate without q duty
on sugar. his son purchased 500 more shares
Of sugar stock, and intended TO sell all Of
his railroad shares and invest the proceeds
in sugar. The Senator said that he consent
ed to the purchase Of this stock with the
understanding that II the Senate should In
dictate that legislation on sugar was likely,
the stock should be sold On the 10th Of
February his son sold everything he had
The stock Bought.
"On the 22d of February, after selling
everything" continued the Senator, he
wanted to buy the sugar stock back again
He had the money then to pay for IT. He
wanted an investment and / said TO him
that i had some doubt about the propriety
OF his doing It, However. he promised to
get out Of the street and have nothing more
TO do with II, and take his money out en-
tirely, / finally assented to IL, and an or
der was issued to purchase Il. However.
upon reflection we again took up the matter
and discussed IL. and while knew nothing
about the purpose of the committee IN re-
gard TO this matter. as / had no consults-
ton with them upon the question of sugar,
/ said to my son that there We're rumors
afoat that the Senate committee would do
something with respect TO legislation In
sugar. and that did not think he ought to
buy the sugar stock.
He finally concurred with me in that
conclusion, and We resolved that there
should be no sugar stock purchased in any
way, shape or form thereafter: that Il would
be quite as improper. as he and / both
IL would for me. and. inasmuch I had
not transferred the account TO him at the
brokers in New York, because I had not
been able to go to New York TO do IL. II any
stock was purchased IL was simply q pur-
chase for me- because IL would be charged
to my account Although. he had his own
property and was his own master, yet ~
the same time i persuaded him not to do
anything in sugar. h..s
Now. as ] say, the order had been pre-
pared, and among other orders he leay-
other kilograms that were sent out fnad-
Vertently IN some way other, other
through my csrelessness or the csxSlesGn6ue
of servant j ascertained after Uopeea1
days that the telegram had gone. .
This was on the 22d OF February. On
the oath / received a notice that there had
my account on the I'D could not unuere
stand how that could be. and immedia teiy,
the same moment received the notice.
telegraphed 10 New York 20 sell the stock
at once Well. the oath was on Saturday
OF course, IT was a half holiday, and the
notice, or rather my order. got there too
late to do anything. The next day was
Sunday. and early Monday morning IL w~s
II do not know whether I prepared that
telegram not. 1t makes no difference
which one prepared Il because q tele9r.m
sufficient for the order. know ! assented
TO IL at first"
Had Information.
In answer to pressing questions from Mr.
Allen Senator Mcpherson said his son
seemed TO have enough information about
the situation to govern his operations with
out any advice from him. He himself
knew the matter had been talked about
in the finance committee and when asked
IL he did not believe tarir on sugar would
be a necessity he replied. 1T looked "
We had to do IL to get the votes" He had
previously admitted that he was aware
J that II the tariff was placed on sugar II
would Il. crease the value Of the stock.
He prepared partial sugar schedule on
Sunday two days after the inadvertent
| telegram had gone to New York.
Highly Improper.
Mr.. Allen asked the witness rs to his
! ideas of propriety of senatorial spccula-
ton.
Mr.. Mcpherson said that he did not
think IL would be right for a Senator to
speculate In stocks which would be AZ
fected by legislation. and. therefore. he
} had not done so. At the same time. he
thought that his ownership OF stocks would
/, not influence his vote in the least
| Senator Alen-"You would not think 10
, proper for the Judge Of a court to be pecu-
niarily interested in case that was on
trial before him?"
sestor McPherson-"No. sir: I DO not
think that would be a proper thing"
Senator AIlen-'It would be considered
highly improper. would Il notY
| Senator McPhe-son-"fes. sir.
Senator Allen-"Do you think IL would be
any more improper for a Senator who -
legislating for the welfare OF the entire
country and whose mind should be entirely
uninfluenced or unbiased by any private In
terest to have, at that precise time. his
money invested in stocks whose value may
be affected by p the vote ne nay cast
whose mind would be Influenced IL he
had bank stocks o. any other kind OF
stccks-a man who would be infiuencsd -
. | a legislator by such consioerAton-haS no
business at all here"
Mills and Carlisle.
Senator Mills also appeared before the
| committee He denied all knowledge OF the
! reported secret interview Of Secretary Car
Isle on the sugar question. and said that he
and Senators Jones and Vest had prepared
the sugar schedules first reported. and
, he knew nothing of any memorandum for
| ! this schedule from the Secretary. He also
denied all knowledge OF the alleged Sunday
| conference OF the finance committee with
those interested ir securing sugar iegisla-
ton. He said he had never heard OF mem
bers OF the sugar trust being at The Capitol
while he acting a member OF the
finance committee. and that he had never
met any of the members OF the trust. He
then made a statement concerning the let
ter of Introduction. IL was merely a formal
note containing only two or three lines. He
declined TO see Mr.. Havemeyer. Senator Mills
also denied any knowledge OF contributions
to the democratic campaign committee.
Secretary Carlisle's statement, as IL ep-
J pears in the published testimony. 10 not
: materially different from that given to the
press officially the day after he was before
| the committee, but some points are pre-
scented in greater detail His memory does
: not correspond with that OF Senator Jones
as to the time and place that he was asked
to put the sugar schedule into shape. He
denied in emphatic terms that he had ever
made secret call upon the finance ccm-