New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1896-06-19

ON"''N"S
What was your profit in the sale OF the
bonds?" the Senator asked, frowning slightly.
II decline to answer" Mr.. Belmont said smil-
ing pleasantly
That frown deepened on the brow Of Senator
Vest, and he turned to Senators Plat and Wal
thai. who sat near him, with the remark: II
don't like that"
Senator Harris called to the end OF the
tn BILE TO consult. and then Senator Walthall read
a portion OF the resolution of the Senate to let
the witness know that the committee had been
authorized 20 get information as to 1.-The profits
made or To be made by such syndicate or any
person or persons connected with such syndicate
directly or indirectly"
Then Senator Vest renewed the attack by ask
ing: "Will You state what were the profits Of
August Belmont G. Co by the sale OF the bonds?"
II decline to answer
Mr.. Belmont had begun to look serious but he
answered firmly and without the least heslta-
ton.
syndicate? Al decline to answer
QrWill you state to whom the bonds sod?
<A-Ine contracts show thai.
30 whom did You sell the bonds? Al de-
Senator Vest (gravely)-It Is only fair to lie, you
know that we shall report these questions and your
persons interested in the sale OF the bonds excap;
swer
Members Of the committee had another CON
sutauon before other questions were asked.
They had heard that Mr.. Belmont and Mr.. Nor
gan had disagreed about the division of profits
and that Mr.. Belmont had declined invitation
10 take Fart in forming another syndicate at the
beginning of this year when there was talk OF
floating a loan of $1oOOOO0 0O in that way Mr.
Belmont said he had taken no part in the negotia-
tons for the sale Of the 1OlO0oOO0 in bonds but
he declined to answer when he asked II
had been approached on the subject by Mr.. Nor
gan or nSbody else. AS to his motive for help
ing 70 form the syndicate in 1880 he declared that
ii was not SO much to make money out of the eale
of the bonds to relieve the financial situation.
Senator Jones had a short conversation with
Mr.. Belmont apparently with the Intention Of
starting free silver discussion. but the talk was
ruled off the record There are four free-sllver
Senators on the committee. Senator Plat being
the only one Of the five who Is a Republican and
in favor OF the gold standard
PRIVATE LETTER TO MR.. CARLISLE.
Mr.. Belmont said he did not wish to have the
letter which he had written to Secretary Carlisle
before January 80 1880. placed in evidence. as
the letter was the property Of the Secretary and
was intended a private communication.
Mr.. Belmont was allowed to 50. and the COM
mittee took a recess until . p. IN. when Francis
Lynde Stetson, the well-known lawyer Of this
city was sworn as A witness. Mr.. Stctson said
he had been on for S 5p' h H M4FI tn
Washington with Mr.. Morgan. When they ar
rived there Mr. Morgan went TO tn Arlington
Hotel and Mr.. Stetson went to the White House,
where ne remained until midnight. He expected
to see Mr.. Cleveland. but was informed tnat the
President not feeling we'll and he did not
see his former law partner until the following
day. In the morning Of that day Mr. Stetson
and MIR. Morgan went 10 the Treasury Depart
ment where they met Secretary Carlisle. As
sstant Secretary Curtis. Attorney-General Oh
ney and several others
HOW THE CONTRACT WAS DRAWN.
he had assisted in the work Of drawing the con-
tract for the sale OF the bonds 10 the syndicate.
He dictated the first part of the contract, ana
he thought Mr. Curtis dictated the rest Of the
document Mr.. Stetson SAID that h went with
Mr. Morgan 10 see President Cleveland. ana
there was general discussion about the bonds.
Mr. Cleveland was present for short time" IN
the public room when the talk about the bonds
was In progress. MIR. Stetson declared That ne
knew nothing about the negotiations which nad
been made previously. After his return 70 the
city he prepared draft OF a contract between
the syndicate and It's associates. but he ola not
see the contract signed. Having received per
mission TO make personal statement. Mr. Ste'-
said:
desire to that never receysd one penny EN- OF
eervices In connection with the sale OF Government
bonds felt that was performins a p@iriouc du'y
In aiding 10 avert an Impending hn1ncin cIls,s'
There may he difference Of opinion on irai Sun rdr
dered in this matter We're the most valuable s"fy-
ices II has ever been my privilege ID perform lot
my country.
That ended the testimony Of Mr.. stetson,. and
the committee took another recess until william
Graves. who had received permission 10 MAKE
statement In the afternoon. arrived. When MI.
Graves was sworn. he was asked to 50 ahead ana
make his statement in his own way. lie told the
familiar story of his bid for 81 100000 OF the
500 600 900 issue of gold bonds at the beginning
of this year and OF the refusal OF Secretary car
isle to allow him TO get the bonds for his asso-
ciates in the financial speculation which he had
planned to conduct without capital or his own
He declared that the terms OF the allotment or the
bonds had been violated by Secretary Carlisle.
! and that the transfer Of the Si.J'b00o In bonds
/ to the Morgan syndicate was n great injustice.
GRIEVANCE OF WILLIAM GRAVES.
The witness dragged in the names Of Mr..
| Kitchen, q broker Of the NewYork Stock FIX
change: James Irvine. president OF the New York
Equipment Company. at No. 81 Broadway: the
Chase National Bank. the Hanover Bank and the
! New-York Life Insurance Company. Mr. Irvine
| had been introduced to him by Mr. Kitchen. he
said and both had told him that the banks were
ready TO put up the gold for his bonds. Mr..
! Irvine had said to him that Mr.. Morgan mad gent
this message TO one Of the banks: Keep your
hands off that Graves bond. II belongs TO me-
| Mr. Graves said he also had received this al
| legged message from Mr.. Morgan through Mr..
! Irvine: ASK questions; keep quiet and leave
| newspaper men alone and you will be taken care
Of" The witness said he had not received cent
from Mr. Morgan on account or the bonds.
When he was questioned about mandamus pro-
ceedings which he had caused to be started In
! Washington the witness said the suit had been
Withdrawn without his knowledge or Consent at
| the time the lawyers taking the ground that the
suit was barred He ssid he was president Of n
| railroad company which had four miles Of track
| in California
| The committee decided to call as witnesses
some of the persons whom he had named. Sena-
tor Harris announced that the testimony OF Mr..
! Morgan would begin OF 1890 to-day The Scna-
| tors would venture no opinion as to the stand
which Mr. Morgan Will take to-day, but they evil
IDENTIFY EXPECT that he will follow the lead OF MY.
belmont and refuse to tell how much money The
! svndicate made on. Of the bond sale last year.