Evening star., 1898-09-30
Ex-Secretary Carlisle's Protest at
the Treasury.
CLIENTS SUBSCRIBED TO TIE WAR LOAN
Comparatively Few Were Awarded
Securities.
LEGAL ACTION THREATENED

Legal complications were threatened at
| the Treasury Department today by ex-Sec-
| retary Carlisle, and exactly what will be
the outcome cannot be predicted today.
| All that can be learned is that Mr.. Car
| isle has been retained by clients of the
| North American Trust Company of New
| York to represent them In the matter of
| bids for the war bonds issued by the gov
| eminent, and that he called at the Treas
! ury Department today for a conference
with Assistant Secretary Vanderlip, Secre-
! tary Gage being out of the city.
| The story can be better understood when
| 1t is stated that the North American Trust
| Company forwarded subscriptions of clients
| for a large amount of the war bonds-esti-
mated between S5.ooo00O and $4,000 900
| The company claimed that none of the sub
scriptions was for itself, but represented
| clients of all kinds, possessing small and
! large amounts of money. In the main, it
| Is understood, the company claimed that
the subscribers We're for small amounts
such as would be likely to be awarded
| DondS Ihe public well understands that
the policy of the treasury, approved by all
administration officials, was to award sub
| scrlptlons to the purchasers of small
| amounts first and later to the subscribers
for large amounts,
! 1t was found that the subscribers for $500
and less would absorb about 500 900 Oel of
the bonds. The remaining s1Uoooou00 was
| 10 be divided among subscribers above that
amount While all the bonds nav, not been
sent out, no subscriber for over 81 600 was
awarded bond. The number of subscrib-
ers for amounts between $500 and 5000
was sufficient to absorb the remaining
| S1u0.OOO,OOO.
| The policy of the department was TO
| award all subscriptions as far as possible
| to individual subscribers, SO as to place the
| bonds among the people of the country 1t
was announced early that Subscriptions
from banking institutions for large
amounts would not be considered unless it
could be shown that they represented
| clients Of those institutions
Nhen the time came to award the bonds
| the treasury officials began to examine into
the subscriptions, and found hundreds of
| instances of institutions using fictitious
| names to secure bonds. Subscriptions of
| this kind We're thrown out
| An examination was made of the epor-
| nous subscription of clients of the North
| American Trust Company, and treasury
| oncials decided that they could not awar!
subscriptions to all of the people named as
! subscribers. The officials decline to saw bv
! what process they weeded out the sub
| scr1ptions sent in by the big New York
company. At any rate, less than $1,000, 800
IN bonds were awarded to the clients OF
| the company These awards were in small
| amounts. and to persons who We're believed
! to have desired to make bona fide sub
ScriptionS.
| 1t is supposed that the clients claim that
! they have not been treated fairly, and that
| subscriptions were thrown out which were
| bona fide and that the bonds asked for
| were not for the company.
| Whatever the claim of the clients. Sec
| retary Carlisle endeavored today to i'm
| press upon treasury officials the fact that
| unless he could get what his people believe
| they are entitled to he will bring action
| against the treasury
| Exactly what course he may take in the
| courts is not known, as treasury officials
| refuse to discuss any point in the case ex-
cept to say that they are willing to stand
| by what they have done
Similar subscriptions were made by other
| large concerns in the country. One of
| these was by the Armour company of Chi
| cago. Because a question was raised as to
| the bona fide character of all their SUBJ
| Scribers the Armour company withdrew en-
| tirely the subscription which had been
made.