Twice-a-week plain dealer. (Cresco, Howard County, Iowa) 1895-1913, 1896-03-10
A Steal OF ss7o,ooo.

In its latest issue the Silver Knight,
edited by Hon. VIM. NJ. Stewart,
United States senator from Nevada,
clearly shows how, with the co-opera-
ton of the secretary of the treasury,
the Morgan syndicate defrauded the
treasury and the people of the United
States of $370,OOO on the recent bond
loan. After stating that year ago
Pierpont Morgan and his associates
made $l2,0OO,OOO by buying at 1O4a
$62,000,000 worth of bonds actually
worth 1888. Senator Stewart adds:
When it was decided to give the
public goose another plucking this
year, Mr.. Carlisle and his chief could
not muster up the nerve to repeat
the robbery of the previous year in
the same form. Morgan came to
Washington and had an understand
ing and went home and organized
syndicate of banks to buy not $780,,
100000 only, but 5000, 900 of bonds.
He told his friends in printed circu-
lar that they would only have to pay
about the same price as before, 104a.
After he had taken all of this trouble
the president and Mr.. Carlisle went
back on him, and, actuated by fear,
advertised for bids for 300, 900
of bonds. Bids for the whole amount
several times over came in at more
than ITO. Even the Morgan syndicate,
which had been allowed to name their
own price last year and could then
only afford to pay 104aa, now bid over
ITO when forced into competition.
After the bids had been opened and
the awards made by which the
Morgan syndicate bought between
thirty and forty millions, it was
. found that bidders for some millions
had failed to make the first payment
when due. The secretary had re-
served the right to reject any and
all bids. Morgan & Co., could not,
therefore, claim any right to come in
as the next highest bidder and take
what other bidders defaulted upon.
The bonds had meanwhile gone up
rapidly. Mhe gold in the treasury
was abundant for months to come
and there was no need for haste in
selling the few millions not taken by
bidders. Under these circumstances
an honest administration would have
directed the subtreasurer to sell them
from time to time in the open market
where they would command the
market price.
So far from pursuing this course,
the burly form of Pierpont Morgan
made its appearance at the treasury
department, and after a properly
conducted Irritation between him and
the high government officials through
the press, a few days ago the secre-
tary OF treasury, With the presidents
approval, sold him 81, 700, 600 of bonds
at Ito 1-6 on the 10th ult, the very day
in which 81, GOO, 900 of the same bonds
were sold in the open market of New
York at SITE, a clear steal of $780,.
600. 1t was not much. but it served
as a toothsome morsel for the big
financier.
This sort of robbery is now known
in the slang of the stock exchange,
the clearing houses and the financial
columns of the New York daily
papers as financing the treasury
And yet, although the public courts
are daily crowded with petty larceny
thieves, we hear nothing of any pro.
position for the impeachment of any
of the high officials who do these
things.
"Plate sin with gold
Aud the strong lance of justice hurt.
less breaks.
Arm it in rags, a pigmy's straw will
pierce it."