The Indianapolis journal., 1896-06-16
CARLISLE'S BOND DEALS
SECRETARY PUT THROUGH AN Ex-
ANIMATION BY SENATOR VEST.
Secrets of Administration's Contracts
with the MOrgan-Rothschilds
Syndicate Uncovered.

WASHINGTON, June 15-Secretary Car
Isle was examined under oath to-day by
the Senate committee appointed to invest-
gate recent bond issues. The hearing was
held in the rooms of the Senate committee
on finance Senators Harris, Vest, Wal
thall, Jones of Nevada and Platt being
present. Chairman Harris explained that
the committee had decided to take all the
testimony under oath and did not wish to
make determinations. Mr.. Carlisle re-
sponded that he expected and desired to
be put under oath. Mr.. Vest began the
examination. asking for fuller explanation
of the first bond contract with the Morgan
syndicate. than had been given in Mr.. Car
isles written statement. His main pur-
pose, said Secretary Carlisle, was to pre-
vent the shipments of gold from this coun-
try. Mr.. Vest asked who made the first
suggestion as TO the protective clause In
the bond contract with the Morgan syndi-
cate. The Secretary answered that the first
draft was made in his private Office and
to Mr.. Morgan and Mr.. Francis Lynde
Stetson, after which some changes were
made. This was the Mr. Stetson, the Sec
retary explained in response to inquiries,
who had been the law partner of the Presi-
dent. Mr.. Vest asked why the contract had
been given , to the he's, syndicasei to which MT
of the great emergency existing which
would not permit delay for the usual for
malities of bond sale. There was much
apprehension in financial circles to the
situation, heightened by a visit of Mr.
Curtis to New York. which brought out
the bill sS eae
relating to banking and currency, had been
defeated in the House of Representatives
taken to protect the treasury The con-
tract was closed the day after the Springer
bill whs defeated In the House
You never had negotiations with any
other bankers outside of the Morgan syn
dcate?" asked Mr.. Vest.
There was some inquiry, but no nego-
tiations were opened" said the Secretary
Mr.. Vests question turned to the Graves
bid, which was rejected. the amount of
the Graves Awards, 800. 900 of bonds-being
ator asked why. after the Graves bid was
rejected. the government did not receive
the benefit of the rise which had occurred
benefit going to the Morgan syndicate
under their blanket bid Mr.. Carlisle said
this was matter of opinion, and in his
judgment the Graves bid was nullity,
after which the Morgan 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 IL the
price of the bonds had fallen.
But would the syndicate have taken the
same course If the bonds had fallen?" in
terposed Mr.. Jones.
The Secretary answered that he could
have sne Curtis was
in the afternoon pointedly by Mr.. Vest.
Mr.. Curtis said he had gone to New York
by direction of Mr. Carlisle before the
syndicate bond contract was made to as
certain the temper of the situation He
had visited bankers, officials. etc.
did you expect to get the temper Of
the situation from the bankers? asked
Mr. Vest.
The Assistant Secretary responded that
.ft,l<C H..
first specific instructions from Mr.. Carlisle
were Ito go and see Mr.. Belmont" The
Secretary directed him to see what could
be done to get gold from abroad.
The investigation committee decided TO
begin its session at New York on fhurs-
day. The hearings will be at the Hoffman
Pierpont Morgan. August Belmont and
Francis Lynde Stetson will be examined
and on Friday Mr.. John A. stewart and
was rejected. has also been notified TO ap-
pear on Friday if he desires TO be heard.
Paying the Sugar Bounty Claim.
WASHINGTON, June 15.-The Treasury
Department has nearly completed the pay
ment of beet and maple sugar claims un-
der the bounty appropriation OF S23s.2s9.
and it is expected that warrants covering
the whole amount will have been issued
by July ], when work Will begin on the
s5.0O0.000 appropriation for cane sugar. The
haif-dozen claims which have been In pro-
cess of adjustment during the last several
months will be ready for transmission 10
the auditor for final examination early in
July, when the total amount of the ap-
preparation will be prorated among the
claimants and pGid as rapidly as possible.
1t is expected THAI the percentage OF pay
ments to claimants will be between sixty
i've and seventy. ~ W
Cleveland Lursng Trout.
WASHINGTON, June 15.--The President.
,foI yxxto
missioner Miller has gone on a fishing trip
/ Ia -<>oclaIirnE X scho ha mill n.