The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1896-06-16

/ Nnc uESl SUGGESTION as 10 the pfONcCNlNt
clause in the bond contract with IN,
I Morgan syndicate. The secretary ans
wered that the first draft was made II
/ his private office and then taken TO "a
I adjoining room and shown 10 Mr Nor
I gan and Mr.. Francis Lynde StetsOn
after which. some changes were made
( This was the Mr.. Stetson, the secretary
| explained in response TO inquiries. wha
! had been the law partner OF the presi-
dent
Mr.. Vest asked why the contract had
been given 10 syndicate. TO which Mr.
Carlisle replied with a lengthy explana
ton Of the great emergency existing
which would not permit the delay Tor
the usual formalities of a bond sale
You never had negotiated with any
other bankers outside OF the Morgan
syndicate?" asked Mr.. Vest. There
was some inquiry. but no negotiations
were opened" said the secretary Mr.
Carlisle went on TO explain that the
president was kept appraised OF all
phases of the negotiations. one OF Mr.
Vests questions referred to the time Of
the presidents information as compared
with that of Mr.. Belmont, 10 which the
secretary said that the presidents mes
sage giving information 20 congress as
10 the close Of the bond transaction
was sent at noon, while Mr. Belmont
did not reach Washington until p. IN
To Mr.. Vests question as to why a pub
lie bond sale was resOrted 20 az a later
date when the early sale was by private
contract. Mr.. Carlisle said that the frs,
move was due entirely to emergencies
existing and TO disturbing reports which
We're without a shadow of foundation,
that the government had long cOntem-
plated a bond issue.
The secretary replied that the present
policy was for paying in gold. Car
Isle said il would be no violation OF
cabinet confidence TO say that the ques-
ton had never came up Ut a cabinet
meeaing.
After further examination Carlisle
was excused and the committee took a
recess until 2:30. when Assistant Sec
rotary Curtis was examined rapidly and
pointedly by Mr.. Vest. Curtis said he
had gone to New York by direction of
Carlisle before the syndicate bond con-
tract was made. to ascertain the temper
of the situation. He had visited bank
ers, officials. etc, este.
Did you expect to get the temper OF
the situation from the bankers?'' ask
ed Mr.. Vest
The assistant secretary respOnded
that he had talked with men at clubs
and with Mr.. Fairchild and Mr. Stewart |
His first specific instruction from Mr.
Carlisle was: Go and see Mr.. Bel
mont"
The secretary desired him 10 Sc what !
could be do3e 10 get gold from abroad |
but authorized no proposition to be |
made
Mr.. Belmont showed him unfayorable |
sablegrams from Europe.
MI. vests ueStions indicated surprise |
hat Mr.. Belmont should be negotiat- !
ng with Europe before Curtis had AZ
lived Subsequent testimony showed /
hat Belmont's view vas Dessirnistic as
% getting gold abroad Morgan prom
sed 10 do the best he could At later
meeting at MOngan's house arranged by
telephone message between New York
ma Washington, two gentlemen told
i'm he could get gold abroad and sell
ifty millions Of bonds there at 81.
meaning the interest rate) There was
10 definite proposition
Vests question turned 10 the Graves
id, which was rejected. the amount os
raves award. $500, coo, being given
o the Morgan syndicate. The senator
sked why. after Graves bid was re- I
ected. the government did not receive
he benefit Of the rise which h..d occur
cd in the price Of bonds. tnsread Of the
enefft going % Pc. organ ---.l sie.ltr I
nder the co. set bid" Il
Mr. Carlisle aid taD was n matter 81,
pinion auI IN his Judesne1s G-ev.-s' I
Id was a nudity, after ..a.cl tne Nor /
an BID, which was rne next highest. |
Dok the bonds. His acton. ~ said.
-as taken after consulting the kaw Of !
GERS OF the government He would
ave taken the same course II the pri- /
- OF bonds had fallen
as u not a fac" asked Vest. 'fha; 4
ecause the syndicate had carried out
~ protective clause. you were inclined
, favor them ?" :
Not in the least declared She $500
Lry emphaticsily. lam not conscious
any such feeling"
"But you and the presideTrt we're
eased win the manner in which the :
-otecuve clause had been carried outZ-'
quined Mr. Vest
Yes. bur ] am not conscious % the
notes feeling ia tlselr favor result
&" 2
One of Mr.. Ws'thalTs questions d.
ought out me statenent from Carlisle :
20 the critical condition % Ere treas =
= a the t4me the syndicate coutEact
as made The fact vas. Dc said fhat ! -
p treasury had resoa@d a point WDere !.
ere were gold certificates outstanding :.
? watch Il rad no gold oosn % me- :.
en- He bad never ssa..d th,s fact :.
fore
Il suppose you never con.ernpIs:ed >.
wing in silver Inquired Fest. :.
L Wss uudsrvroa-5 Tat AZ C4rllfo
'u!d TELEPHONE Morgan from tee rrea-
y a. 2 O'Clock ueTt GAP as O. uflsesn-r
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