The Princeton union. [volume] (Princeton, Minn.) 1876-1976, 1896-06-18
THAT DoND CONTRACT.
Secretary Carlisle Testifies DefOr,
the InYestigatinEC Committee

Secretary Carlisle Testffes Before
the Investigating Committee.
Washington, June 15.-Secretary Car
Isle was examined under oath to-day by.
the senate committee appointed to investi-
gate recent bond sales The examination.
was held in the rooms of the committee on.
finance, Senators Harris, Walthall, Jones'.
Of Nevada, and Plat, being present
Mr.. Vest began the examination, asking.
for fuller account Of the first bond con-
tract with the Morgan syndicate that had
been given in Mr.. Carlisle's written state
ment. His main purpose, Secretary Car
Isle 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 an
swered that the first draft was made in,
his private Office and then taken to an adj
Joining room and shown to Mr. Morgan and
Francis Lynde Stetson, after which some
changes were made. This was the Mr..
Stetson, the secretary explained in response
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 exist
Ing which would not permit a delay for the
usual formalities. There was much appre-
hension in financial circles as to the situa-
ton, heightened by visit of Mr.. Curtis Of
New York, who brought out many news
paper conjectures. 1t was when the
Springer bill, so-called, pertaining to bank
ing and currency, had been defeated in the
house. OF representatives that it became
positively necessary to take steps to pro-
tect the treasury. The contract was closed
the day after the Springer bill was de-
feated in the house.
"You never had negotiations with any
other bankers outside Of the Morgan syn
dicate?" asked Mr.. Vest.
''There was some inquiry, but no nego-
tiations were opened said the secretary.
MI. Carlisle went on to explain that the
president was kept apprised of all the
phases of the negotiations One of Mr.
Vests questions referred to the time Of
the presidents information as compared
with that of Mr.. Belmont, to which the
secretary said that the presidents message
giving information to congress as to the
close of the bond transaction was sent at
noon. while Mr.. Belmont did not reach
Washington until 2 p. m. To Mr.. Vests
question as to why a public bond was re-
sorted to at a later date, when the early
sale was made by private contract, Mr..
Carlisle said the first move was.
listing and to the disturbing reports
which were without a shadow of
foundation, that the government had long
contemplated bond issue.
In reply to questions, Mr.. Carlisle said
that after the Graves bid had been rejected
the government acted on legal advice in
awarding the bonds to the rext highest bid
der, and that there was no deposition to,
favor the Morgan syndicate
After further examination Mr.. Carlisle.
was excused and the committee took a re-
cess until 2:3O o'clock, when Assistant Sec-
rotary Curtis was examined. He testified
regarding his visit to New York to negoti-
ate for bonds.
The Investigating committee decided to-.
De Degin Its sessions at New York Thursday.
The hearings will be at the Hoffman house
ana Will be public. Thursday j. Pierpont
morgan, August Belmont and Francis L.
Stetson will be examined, and Friday John.
"A. stewart and Treasurer Jordan. Mr..
graves, whose bid was rejected, has also.
peen notlhed to appear Friday if he de-
sires to be heard