The Providence news. (Providence [R.I.]) 1891-1906, 1896-02-07
SECRET OPENING OF BIDS.
Suggestion of How Morgan Syndicate Sc
cured the Government Bonds.

According to a special dispatch from Wash
ington 10 the Boston journal, a new scandal
clings TO the skirts OF tho Cleveland admins
tration after almost every important step
which IL takes. The latest issue Of bonds
forms no exception to the rule. The narrow
margin ny which the syndicate. headed by j.
Pierpont Morgan. secures the greater portion
OF the new issue was in itself sufficient to ex-
cite suspicion that improper Influences had
teen az work somewhere.
-he fact that the sealed bids were opened at
the treasury dep, rtn6nt before the hour set
for closing all bids is an unfortunate corro-
borative incident that could not but attract
attention. The syndicate headed by John A.
Stewart fled "Wednesday morning a bid pro-
posing TO take SIC. 900 900 OF the now issue Mt
Il0.0,5, and sl0,0 C0. 600 more at a somewhat
lower price.
Sometime later Mr.. Morgan entered q bid
offering 70 take the entire issue, or any part
Of il at fl0.cs78. This left a margin just large
enough TO insure the assignment of the
greater part of the bonds 10 Morgan without
compelling him TO incur very much additional
expense.
During the time between the presentation
Of the Stewart offer and the appearance OF
Morgan's. the committee assigned TO the work
OF scheduling the bids had been steadily Oxen.
ing and caiEloguing them rs they cane in.
Both Morgan and Stewart were close at hand.
The combination of circumstances certainly
gives rise to suspicion. although nobody ven
lures TO impugn the integrity of any one OF
the high officials o. the treasury department
who acted on tho committee. The circular
issued by Secretary Carlisle announced that
sealed bios would too received up TO II o'clock
noon. on Wednesday. February 5.
Never before in tia history of the treasury
department. so far as can be learned tonight,
have sealed lids for any contracts been
opened Il minute before the hour so. at which
the last bid could no received. so scrupulous
havo treasury officials been in this respect
that no suspicion has ever before attached to
any transaction of this kind.
In tho case of the present bond issue. how.
ever, Traditions and precedonts wero thrown
to the wind. Tho committee assigned
10 schedule the bids began their work, not
only hours. but Gays, before the time fixed in
the SecretGry's circular. They were opening
sealed envelopes as carly as Monday, and they
kept steadily at IL from that time until We'd
nesday afternoon.
The excuse offered was tina: the bids were
" NH'N a. ANA NN"A ~ ~ "ptAA
result if the work of opening them did not
begin until l2 o'clock noon on Wednesday.
This was. to say the least, unfortunate.
However far above suspicion the official
members OF the committee may he, it would
be impossible 90 give absolute assurance to the
scores of bidders for bonds that no orc of the
IS clerks employed in tho tahulation was
acknowledgements To nreyent the
aaorafs Of fha oopn,ofstoa from 1aaEtny o,t
Hitherto bids of this Kind have always been
opened in public where all the world could
look on IL it choose. This year the work OF
the committee was done behind shut doors.
not only before the hour set for closing bids,
hut after. All the SURF oundings OF tho trans.
action broaihed of mystery and Of hidden
purpose.
Until the very last minute the treasury
officials intended that the newspaper cor.
respondents should not NO allowed even in the
room adjoining the Office where the bids were
opened. The traditional Cleveland-Cerlisle
policy of secrecy and stealth was pursued
throughout.
1t was hardly surprising. therefore, that the
allotment of a large proportion Of the bonds
having been determined by an almost imper.
cop'tNle margin there should DO whisperipgs
Of secret understandings and underground
communications.
IL will cause the administration considerable
Embarrassment. There was talk today at the
Capitol Of an Investigation by Congress into
tho circumstances surrounding tho offering
and opening OF the bids. II the mutterings OF
discomfort on tho part OF unsuccessful biddara
continue as they have begun, an Investigation
can hardly be avoided.