The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1896-06-18
CARLISLE EXAMINED.
Questioned by Senate Bond Is
sue Investigators.
SENATOR VEST MADE THE QUERIES.
The Secretary Said That the Great Emer-
gency Caused the First Deal with the
Morgan syndicate-why He Did Not
Pay In Silver.

WASHINGTON, June 16.- Secretary
Carlisle has been examined under oath
by the senate committee appointed to
investigate recent bond issues The
hearing was held in the rooms of the
senate committee on finance, Senators
Harris, Vest, Walthall, Jones (Nev.)
and Platt being present.
Mr.. Vest began the examination, ask
ing for fuller explanation of the first
bond contract with the Morgan syndi-
cate than had been given in Mr.. Car
isles written statement. His main
purpose, Secretary Carlisle said, was to
prevent the shipments of gold from this
country. Mr.. Vest asked who made the
first suggestion as to the protective
clause in the bond contract 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 i'll re-
sponse to inquiries, who had been the
law partner of the president. Mr.. Vest
asked why the contract had been given
to the syndicate, to which Mr. Carlisle
replied with lengthy explanation of
the great emergency existing which
would not permit a delay for the usual
formalities of bond sale.
Mr.. Vests question turned to the
Graves bid which was rejected, the
amount of the Graves award-$4, 500,-
0J0 of bonds-being given to the Nor
gan syndicate. The senator asked why.
after the Graves bid was rejected, the
government did not receive the benefit
of the rise which had occurred in the
price of the bonds, instead of the bene-
fit going to the Morgan syndicate under
their "blanket bid"
Mr.. Carlisle said this was a matter of
opinion and in his Judgment the Graves
bid was nullity, after which the Nor
gan bid, which was the next highest,
took the bonds. His action, he said,
was taken after consulting the law
officers of the government. He would
have taken the same course II the price
of the bonds had fallen.
The secretary declared that his course
| throughout all the bond issues proceeded
without reference to what the syndicate
desired or would do. He and the presi.
dent were in perfect accord throughout
all the transactions.
One of Mr.. Vests questions referred
to the time of the presidents informa'
tion as compared with that of Mr.. Bel.
mont, to which the secretary said that
the presidents message giving infor'
ton to congress as to the close OF the
bond transaction was sent at noon
while Mr.. Belmont did not reach Wash
ington until p. IN.
To Mr.. Vests question as to why 9
public bond sale was resorted to at 6
later date when the early sale was by
private contract Mr.. Carlisle said the
first move was due entirely to the exin
gencies existing.
The fact was, he said, that the treas
ury had reached the point where there
We're gold certificates outstanding foI
which it had no gold to meet them. III,
had never stated this fact before.
81 suppose you never contemplated
paying in silver" inquired Mr.. Vest.
The secretary replied that the presen
policy Of paying in gold had been fol
lowed so long that he did not eonside
it expedient to deport from it at a tim
of emergency.