The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1896-06-18
SECRETARY CARLISLE BEFORE
THE SENATE BOND INVESTI-
CATION COMMITTEE.
NEGOTIATIONS WITH The SYNDICATE
Inquired Into, With Senator Vest the
Chief Interrogator-Th Contract
With the Syndicate Was Due to
the Emergency Existing

: | S"tC thN ItNthl bOIlll lSSutss hC lllS
was held in the room of the senate com
mittee on finance, Senators Harris, Vest
Waltham, Jones of Nevada and Plat be-
ing present. Chairman Hagris explain,
ed that the committee had decided to take
all the testimony under oath and did not
wish to make any determinations
Mr.. Carlisle responded that he expected
and desired to be put under oath.
Senator Vest began the investigation
by asking for Il more full explanation of
the first bond contract with the Nlogan
syndicate than had been given in
CarliSles written statement. His main
purpose, said Mr. Carlisle, was to pre-
vent shipments of gold from this country.
Mr.. Vest asked who made the first sug-
gcstion 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 Morgan and Francis Lynde
StetSon, after which some changes were
made. ms was the Stetson, the secre-
tary explained i'll response to enquiries,
| ''''' 'NN' =" INV l'''llhNl VI tHC plcSl-
dent.
MIR. Vest asked why the contract had
been given to the syndicate, to which Mr..
Carlisle replied with legthy explanation
that the great emergency existing would
not permit delay for the usual formali-
ties of bond sale There was much op-
position i'll financial circles to the situation
which was heightened by visit of Mr..
Curtis to New York, which brought out
/ TSTlD MOI Il
! however, until the Springer bill. so-caled.
relating to banking and currency had
been defeated in the house of represent
tatlves, that it became evident that steps
must be taken to protect the treasury
The contract was closed the day Springer
was defeated in the house.
You never had negotiations with other
bankers outside of the Morgan syndi
cateW asked Mr. Vest
| There was some inquiry, but no nego-
tiations opened" said the secretary. Mr.
dent kept apprsed of all the phases of
the negotiations.
one OF Mr.. Vests questions referred to
the time of the presidents information
rs compared to that of Belmont, to which
the secretary said the presidents mes
sage giving information to congress as to
the close of the bond transaction was
sent at noon while Belmont did not reach
| Washington until p. m.
To Mr.. Vests question as to why pub
lie bond sale was resorted to at Il later
date when the early sale was by private
contract, Mr. Carlisle said the first move
was due entirely to the emergencies eX-
listing, and to disturbing reports which
were without shadow of foundation
that the government had long contcmplat-
ed Il bond issue.
Mr.. Vests questioning turned TO
Graves bid. which was rejected, tho
amount of Graves award. $500 900 of
bonds. being given the Morgan syndicate,
The senator asked WHY after Graves hid
was rejected the government did not 20.
ceive the benefit Of the rise which occnr-
red in the price of bonds instead of the
hnnefit GOING to tho Nor~,n s,nd;ooto
Mr., Carlisle said This was y n mntter If
opinion and in his judgement thn Graves
gan bid. which was tho NEXT highest fool,
the bonds. His action, he said, was
taken after consulting law officers of thn
government He w9uld have toEen tho
same course if the price of the bonds had
/ fallen.
but would the syndicate have tokon
the same course if the bonds had Fallen >"
| internosed Jones.
The secretary answered tbot his courco
would have proceeded without refernnce
to what the svndicote wond or wonId
NOT do He believed bownror that ;f
| the nrice of thn bonds had fo,lon 10
could have comnelled tbo NIorgon s,,nd;.
cate TO take them s'" y hui
SIS if not fact" asked yost .tbo+
becouse the svndicote had corriod 'n n"t
the nrotective clause Won, u.orn i io Wo,
to favor Them" "'''''e"
"Not in the leost" doc,orod +bo sooro-
tary. emnhoticollv 81 am not cnnscinrs
of such feel;ng NV N''o '0"'
But Won and the nresidon+ uoro
'nleosed with tho monno,, IN Which ~,
protective ciousa had hnon na rival nio n,t ~,
| incurred Vest.
Eyes. but 7 am NOT conscious of +bo
remOtest feeling in favor of tba svndi-
cate, ~ 'N''
Senator Waltball of Nississnni wont
into questioning how the negdtiotions
with the syndicate had been initiotnd
Mr.. Carlisle said talk had been had with
many persons as to the possibilities Of
furnishing gold in case of emergencv
and injuries were made abroad
One of Waltball's questions brouobt
out the statement from Carlisle as 70
the critical condition of the treasury nj
the time the syndicate contract was
made. The fact was, he said, the treas
| ury had roo cbod +bo ,,o;nt Whom III