The sun., 1896-06-20
pEFFER'S BOND INQUIRY.
y. n MORGAN IESTIFTEs ABOUT
TIE BOND SALE OF 1893.

Senators Vest and Joncs Would Use Bu,,ion
TO Redeem Gold Certificates or Import
Coin by Cabie-Mr. Morgan and John A.
stewart Refuse to Testify About PROFITS.
The hvo United states Senators Sitting in A
pnrlorot tho Hoffman House yesterday learned
all ABOUT tho purchase of Government bonds
hero In New York, except what Lnnrobard pes
for, under whose resolution they nro acting
wanted them to find out namely, what profits
the purchasers tNnd what purchasers) made on
tho ponds. bankers and bank presidents with
the samo nffabllity and directness with which
they had told tho committee how Govern
ment loans are made and Government bonds
bought refused to testify about their private
haslhcss The Scared and walstcoatless veterans
oil tho Capitol could not see what right Mr. Nor
gan and Mr.. Stewart, any moro than Mr. Bel
mont had to dispose OF their property without
telling the Senate what they made out Of tho
transaction; but with consistent unanimty the
bankers declined. and were so bold that they
uid not oven drop their eyes when the Senator
from Missouri repeated the question In voco
TO beat tho steam rock drill that was talking
hard over at the Worth House.
It was just 1880 O'Clock, tho time fxed for
his examination, when ]. Pierpont Morgan on
tered the committees room. but not all the Sem
ators were there, and the committee was not
ready to 20 on with its work. Mr.. Morgan was
not recognized by the members present, and
was Obliged to introduce himself to Senator
Harris, who presented him to the Others Fa-
therly Senator Walthall. with the mellifluous
tones OF q Methodist preacher at picnic, called
MIR. MorHan's attention to the heat and Missls-
sippi, and Mr.. Morgan started the day In agree
ment on one point.
When the Senators had all come In and Mr.,
Morgan had been sworn Senator Vest began in
o double e-edged voice:
"Mr. Morgan. kindly state your business"
Mr. Morgan contemplated Mr. Vest for
moment and thcn answered briefly, thanking"
In reply to Mr.. Vests question as to what was
his first connection with the sale OF bonds
In 1894, 1898. or 1896, Mr.. Morgan said that
there was no transaction In the bonds under in
vestigation in 1894 that he kncsv OF. 1T was
IN 1895" he said. MIR. Vest explained the scope
of the investigation. which includes the bond
sales of three years, but the examination went
on with reference to the sale OF 1898.
1t was on Jan. 80, 1895, l think" Mr.. Morgan
said.
Mr.. Vest-who first approached your A.
Assistant Secretary Curtis. here In this city, at
the Sub-Treasury.
Q.-What occurred between you and Mr.
CurtisP
Mr.. Morgan suggested that he be allowed 10
20 on and tell his story In direct order. and,
there being no objection, he did so. He said In
substance:
Il am not quite certain as to the date. but I
think thatit was on Jan. 80 that received a
note from Mr. Curtis saying that he would be
glad to see me at the Sub-Treasury. On that
morning. before that, had received a cable
from my London office saying that the Roth
schilds had called there and said that Mr.. Bel
mont had cabled them OF the necessities of the
United States Government in its requirement. Of
gold and suggesting that tho Rothschilds
should act with them and with Mr.. Belmont and
myself in New York with q view to ccompl!sh-
ing something In the matter.
While was waiting to go to see Mr.. Curtis,
Mr.. Belmont came In. He had received sim
iar cable. l told him that 1t was agreeable to
me to act as suggested. and he proposed that we
60 together to meet Mr.. Curtis. We did. We
went to the Sub-Treasury and had an hours
interview with him. He stated the situation so
far as the Treasury was concerned, aad said that
the Government desired to make such nego-
tiation would secure the necessary gold for
the Treasury.
told him that. in my opinion. as affairs had
gone 20 far and the crisis had arrived and there
was such a feeling Of anxiety in the public mind,
It would be impossible to secure gold by public
advertisement Further. that in my opinion
unless negotiations could be made for gold on
the other side it would be useless. That so far
as my own advices were concerned I was frank
to say that thought 1t very doubtful whether
attempt a; negotiation was essential.
he asked 4 we would be prepared to under
Treasury requested it. sod him felt bound
10 do so. and that would prepare to proceed
day. and tia that he could take i to WssMnngson
and let me know whether 1t was agreeable TO
the President and Secretary.
. That lnemorandum provided for private
contract as essentia! and that IL must be un-
cessful such contrast would be made.
Mr.. Curtis returned to Washington. In tho
mean time; affairs here W were @ cu!mipating very
ofgo!d were drawn from the Treasury that day
and sent to the steamers for shi hipment TO Europe.
That left between 100000 and SIS .0OO. 900 OF
gold coin in the Treasury available. During Fri
day it began 10 be bruited around that the Gov
eEnment was in negotiation with Mr.. Belmont and
ourselves for gold, whereupon the parties who
had shipped gold withdrew 1t from the steamer RS
treasury. It is fair to say that W from mt this time
forward until the completion OF our entire con;
any gold was shipped abroad.
Mr.. Curtis returned from Washington on
the following morning. aud were given 10
understand that the basis proposed by mo was
agreeable % the Treasury and that we were 20
nothing had been said as to price. II was not a
question Uf price. but Of snccess In the mean
the general opinion mere was that bonds could
be negotiated at about a 3be Der cent. basis.
turned we had fecoiyed apthority s from London
to make contract for S5O.O00000. but stipu-
that R9 tEa shsf
replied that with an option in hand they would
try 20 obtain an additional $50, 100000. They
then stipulated that the price should be 3A per
cent, net To tho Goycrnment, stating that with
tho refusal which they had received from the
principal houses in Europe to participate ir the
contract they could not undertake an issue In
that market at n lower rate than 3A. To this
price they adhered to the end.
'All this information was given to Mr. Curtis,
and he returned to Washington on Saturday
night tu lay the matter before the Secretary OF
the Treasury. Neithor Mr.. Belmont nor
doubted for moment that the terms would be
satisfactory that the business prac cally
settled, when on Monday morning we received
letter from the Secretary saying that IL had
been decided to abandon the negotiations.
knowing MS did. the inevitable result OF Q
aniatinns nrce1 "l 'g NJ Rsmmnt tn oa
at once 20 Washington, and said that
would communicate with the department,
ble on reaching my Office. ! learned that after.
noon that the issue was to have been offered by
public advertisement. / urged the Secretary In