The evening herald. [volume] (Shenandoah, Pa.) 1891-1966, 1896-06-20

The Banker Before the Bond In
vestigating Committee.
HIS ACTION WHOLLY PATRIOTIC.

No other object in View Than to Prevent
Panic and Save the Credit of the Coun-
try-Deolines to Tell What His Profits
Were.
New YORK, June "a u. Pierpont Nor
gan appeared yesterday before the senate
bond investigation COMMITTEES. When the
inquisition reached the period of the bond
issue of last year Mr.. Morgan told of his
consultation with Assistant Secretary
Curtis on the occasion of that officials
first visit to New York Mr.. Curtis, said
Mr.. Morgan, seemed to realize the immi-
nence Of u financial crisis, and asked him
If he would undertake to float a loan. Mr..
Morgan continued:
Il told Mr. Curtis that I felt bound to
do so. had prepared "A memorandum of
private contract to be submitted to the
president and Secretary Carlisle for APP
prevail Mr. Curtis returned to Washing
ton, and in the meantime affairs here were
eliminating rapidly. Nearly s6,OOO,OOO in
gold was shipped to Europe the day fol-
lowing Mr.. Curtis return to Washington,
leaving less than SlOOOO,OOO of the gold re-
serve available. A day or two later, when
it became whispered about that Mr.. Bel
mont and my firm were about to take up
loan, the outward flow of gold stopped
almost Immediately, and it is only fair to
say that confidence was largely restored"
In these preliminary negotiations the
understanding was that the syndicate
should pay 315 per cent. premium for the
bonds, but few days latec letter was
received from Secretary Carlisle, saying
that it had been decided to abandon
negotiations This necessitated Mr.. Bel
mOnt's visit to Washington, and at the
same time Mr.. Morgan wrote TO Secretary
Carlisle, saying "that in view of what we
had already done, we We're entitled to some
consideration at his hands. Our request
for delay was granted, and the next week
Mr.. Belmont, Mr.. Stetson and | went to
Washington and saw the president, Secre-
tary Carlisle and Attorney General Olney."
Mr.. Morgan then stated the conditions
of the contract under which the syndicate
took the bonds, no facts not already known
being given.
Mr.. Morgan declined to say what the
profits of the transaction were, on the
ground that after the bonds came into the
possession of the syndicate the public in
terest in them ceased No one connected
with the government, he added, was inter-
ested with the syndicate directly or indi-
rectly.
To Senator Platt Mr. Morgan reiterated
that he had no object in doing what he
did in the matter of the bond loan except
to prevent a panic and save the credit of
the country He thought that the govern
ment could not have made better terms
than those made with his syndicate.
Conrad N. Jordan, assistant United
States treasurer in this city, was asked
about the alleged tender made by William
Graves. The tender, he said, was irreg-
ular. "Mr Graves came to me and said
IF you do so and so l Will do so and so. =
1t was all talk, and l declined to deal with
him"
did anybody else see you about Mr.
| Graves bid?"
"Yes, the Messrs. Laidlaw also a repre-
sentative of the firm of Laidenburg THAI
man & Co. The representative Of the lat
ter firm offered a proper tender provided
| they could have the bonds indorsed di-
rectly to them. Graves bid was signed
Graves and Associates 1t seems he had
no associates. 1t was all talk and no
money was rendered"
Mr.. Graves, who was again present and
sat directly back of Mr. Jordan, asked
leave to interrogate Mr.. Jordan. Permis-
sion was granted Graves then asked Mr..
| Jordan whether it was not true that he
had asked to make his order for the bonds
Special one, as had been done in other
cases, Mr.. Jordan admitted that this
might be so, but that his (Graveso tender
was not regular.
Cashier II. G. Chaplin, of the Third Ma
tional bank Of this city, against which
bank Mr. Graves made the accusation that
bonds had been awarded ON Il temporary
receipt, made plain that Mr.. Graves
charges were unfounded, ana deliied the
conspiracy in toto. James T. Woodward
president of the Hanover National bank
of this city, against which institution
Graves had also made charges of conspir-
acy riddled the charges
Graves was recalled and Senator Harris
interrogated him rather sharply, He
evaded direct answers for time and
finally admitted that there were certain
Irregularities to his tender
Several other witnesses denied Graves
charges, and the general opinion expressed
is that he was talking through his hat. 4"
IL,