The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1896-06-16
CARLISLE AND BONDS.
SECRETARY APPEARS BEFORE THE
COMMITTEE
Tells the Story why and How the
Late Bonds Were Issued-Other In
teresting Testimony.

Carlisle was examined under oath to-
day by the senate committee appoint
ed to investigate the recent bond is
sue. The hearing was held in the
rooms of the senate committee on
finance, Senators Harris, Waltham,
Jones and Platt being present. Chair
man Harris explained that the COM
nittee had decided to take all the tes-
timony under oath, and did not wish
to make Determinations.
Mr.. Carlisle responded that he ex-
pected and desired to be put under
OATH
Mr.. Vest began the examination,
asking for a fuller explanation OF the
first bond contract with the Morgan
syndicate that had been given in Mr..
Carlisle's written statement.
MY main purpose, said Secretary
Carlisle, was to
PREVENT SHIPMENTS OF GOLD
from this country Mr.. Vest asked
who made the first suggestion as to
the protective clause in the bond con-
tract with the Morgan syndicate. The
secretary answered that the first draft
was made in his private Office and then
taken to an adjoining room and shown
to Mr. Morgan and Mr.. Francis Lynde
Stetson, after which some changes
were made. This was the Mr.. Stetson,
the secretary explained in response 10
an inquiry who had been law part
ner of the president
Mr.. Vest asked why the contract had
been given to the syndicate. to which
Mr.. Carlisle replied with lengthy ex-
TO-, E aTf1a q x
listing, which would noe permit de-
lay for tine usual formation of bond
sale.
You never had negotiations with
any other bankers outside of the Nor
gan syndicate?" asked Mr.. Vest.
There was some inquiry, but no ne
gotiations were opened" said the sec
rotary Carlisle went on to explain
that the president was kept apprised
of all phases of the negotiations.
One of Vests questions referred to
the time of the presidents informa-
ton compared with that of Mr.. Bel
mont, to which the secretary said ehat
the presidents message, giving 1nfor-
nation to congress as to the close OF
the bond transaction, was sent at noon,
while Mr. Belmont did not reach Wash
ingltoq until pm. To Vests question
sorted to at a later date, when an
earlier sale was by private contract.
Mr.. Carlisle said the first move was
due entirely to
EMERGENCIES EXISTING
and to disturbing reports which were
without a shadow of foundation, and
That the government had long con-
templated bond issue.
Vests questions turned to Graves
bid. which was rejected, the amount
of Graves award, S4,500,000 of bonds,
being given to the Morgan syndicate.
The senator asked why after Graves
bid was rejected, the government did
rot receive the benefit of the rise
which had occurred in the price OF
bonds instead of the benefit going to
the Morgan syndicate under their
blanket bid Mr. Carlisle said this was
a matter of opinion, and in his opinion
Graves bid was a nullity, after which
Morgan's bid, which was the next
highest, took the bonds. His acton
he said, was taken after consulting the
! law officers of the government. He
would have taken the same course il
the price of bonds had fallen.
rs 1t not a fact" asked Vest, "that
because the syndicate had carried out
. Tie protective CLAUSE YOU were III
clined to favor them?"
Not in the least declared the sec.
rotary, emphatically. Il am not con-
scious of any such feeling
: But you and the president were
pleased with the manner in which the
protective clause had been carried
out?" inquired Mr.. Vest.
/ Yes, but 1 am not conscious of the
remotest feeling in favor of the re
suit"
f! One of Mr.. Walthalps questions
brought out a statement from Carlisle
as to the critical condition of thu
treasury at the time the syndicate con
tract was made; the fact was he sale
that the treasury had reached a poin
where there were gold certificates out
! standing while it had no gold coin tx
meet He had never stated that fac
before.
L suppose you never contemplated
paying in silver?'' inquired Vest.
The secretary replied that the pres
ent policy of paying in gold had beer
/ followed so long that he did not con
slider it expedient to depart from it il
times Of emergency
Plat inquired as to current reports
that Carlisle at one time had con
templated
n
but that it had come to the ears of tn
president, who said it must not b
done.
Carlisle said he had heard of thes
rumorS and the statement that tn
president had overruled him had no
a word of truth in it. The secretar
read the authorized statements of tn
president and himself showing tina
they were agreed on maintaining tn
credit of the government by gold pay
ments. He referred incidentally t
some talk with Vest as to silver pay
ments
Don't you remember" said Vest,
that IN that conversation with me 20
said that in the event of reaching tn
limit of the gold reserve you had on
remedy available, namely, to use tn
option to pay IN silver and that 20
would do it If it was not for the prc
vision as to maintaining the parity ?
Carlisle said he thought this vie7
as to parity expressed his views, a
though he could not recall the exac
conversation.
Then at that time pursued Yes
you did not claim that gold pay
ments were in pursuance of the polio
| established by Secretary Foster?
DO you remember another CONVEX
sation" continued Vest, lin which yo
told me that you had
SEEN THE PRESIDENT
and that he felt that when the holdt
of greenbacks demanded gold he we
| entitled TO it?"
Il recall no such conversation
answered the secretary.
"Andi that continued Vest, che (tI
president) had called a cabinet NEE
ing for next morning."
Carlisle said it would be no violi