The copper country evening news. [volume] (Calumet, Mich.) 18??-1907, 1896-06-17

lie Asks for Fuller Explanation of the
First Bond Deal with the Morgan syndi-
cate, and the Head Of the Treasury DE
partment Tells of the circumstance
Vest Appears To he Surprised at What
lie Hears-Curtis Called ON Bankers.
WASHINGTON, June l7.-Secretary Car
Isle was examined under oath Monday by
the senate committee appointed TO invcs-
tigate recent bond issues. The hearing
was held in the rooms OF the senate COM
mittee on finance, Senators Harris, Vest,
Walthall. Jones (Neyada), and Platt be-
ing present. Harris explained that the
committee had decided TO take oil testi-
mony under oath and did not wish To
make Determinations Mr. Carlisle re-
sponded that he expected and desired to be-
put under oath.
Vest began the examination, asking for
fuller explanation of the first bond contract
with the Morgan syndicate than had been
given In Mr. Carlisle's written statement.
His main purpose, Secretary Carlisle said,
was to prevent the shipments of gold from
this country Mr.. Vest asked who made
the first suggestion as TO the protective
clause in the contract with the Morgan
syndicate The secretary answered that
the first draft was made in his private of
flee and then taken to an adjoining room
and shown To Mr. Morgan and Mr.. Fran
els Lynde Stetson. after which some
changes were made. This was the MIR.
Stetson, the secretary explained in re
sqonse To inquiries who had been the law
partner of the president
Great Emergency Existed.
Mr. Vest asked why the contract had
been given to the syndicate, To which Mr..
Carlisle replied with lengthy explana-
ton of the great emergency existing, which
would not permit delay for the usual
formalties of a bond sale.
You never had negotiations with any
other bankers outside of the Morgan syn
dicateg" asked Mr.. Vest
"There was some inquiry but no nego-
| tiations were opened, said the secre-
| tary
Mr.. Carlisle went on to explain that the
president was kept advised of all
| the phases of the negotiations. One
| of Mr. Vests questions referred 20
| the time of the presidents infor-
nation as compared to that OF Mr.. Bel
| mont. 10 which the secretary said that the
| presidents message giving information
| TO congress as To the close OF the bond
| transaction was sent at noon, while Mr..
| Belmont did not reach Washington until
len. IN. Mr.. Walthall of Mississippi went
/ into the question of how the negotiation
/ with the syndicate had been initiated
| The secretary impression was that IL had
been initiated on visit of Mr. Belmont.
/ At the same time Mr.. Carlisle added, talks
had been had with many persons as to the
possibilities of furnishing gold in case of
an emergency, and inquiries had been
| made abroad.
Critical Condition Of the Treasury.
One of Walthall squcstions brought out
| a statement from Carlisle as To the criti-
cal condition of the treasury at the time
the syndicate contract was made. The
fact was. ne said that the treasury had
reached the point where there were gold
certificates outstanding which IL had no
gold TO meet He had never stated this
fact before
Il suppose you never contemplated pay
ing in silver?'' inquired Mr.. Vest.
The secretary replied that the present
policy of paying in gold had been follow
ed so long that he did not consider II ex-
pedient TO depart from il at a time of
emergency Mr. Platt inquired as to cur
rent reports that Mr.. Carlisle at one time
had contemplated paying in silver, but
that ''it had come TO the ears of the
president, who said il must not be done.
| Mr. Carlisle said he had heard of these
reports. and the statement that the presl-
dent had overruled him had not n word of
truth in H.
Curtis Called on Bankers.
| Assistant Secretary Curtis was exam
ined rapidly and pointedly by Vest. Mr..
Curtis said he had gone to New York by
direction of Carlisle before the syndicate
bond contract was mnde 10 ascertain the
temper of the situation He had visited
bankers, officials, etc.
did you expect 10 get the temper of
the situation from the bankers asked
| Vest
| The assistant secretary responded thal
he had talked with men at the clubs and
with Mr. Fairchid and Mr. Stewart. His
first specific instructions from MIR Car
Isle were to go and see Mr.. Belmont
| The secretary directed him to see what
| could be done To get gold from abroad
but authorized no proposition to be made.
Mr.. Belmont showed him unfavorable
cablcgrams from Europe. Mr.. Vest
questions indicated surprise that Mr.. Bel
mont should know Of the treasury's need
of gold and should be negotiating with
Europe before Mr.. Curtis arrived.