Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1900-02-01

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mitted to the Senate his reply to the
resolution of January %, calling for
further information as to his dealings
with the officials Of the National City
Bank Of New York. Secretary Gage
quotes the Senate joint resolution, and
adds that it might be considered as
fully answered by his communication
of January 10th, in reply 10 the Sen
ate's first resolution of inquiry of jan
uary Ord on the same subject He
adds, however, that he will endeavor
to supply to the best Of his ability
whatever may have been lacking in his
first answer.
The secretary then takes up the Sen
ate resolution of January 23d by para
graphs. His reply. in brief, is as fol-
lows:
"a careful search of the department
files does not show any answer to the
letter of A. B. Hepburn, written by
him to me, dated June 5, 1897, mol do
l believe that any answer ever was
made to said letter. Neither do ! re-
call any conversation had with A. B.
Hepburn in reply to such letter. Nor
was there at that time, or now, any
agreement made or expectation Of an
agreement made by the Secretary OF
the Treasury nor any of the officers
Of the treasury department with any
person or persons with reference to the
subject matter of said letter of A. B.
Hepburn. The record transmitted with
my communication Of January 10, 1900,
contains all there is or ever was, SO
far as I know, concerning the said let
ter of A. B. Hepburn"
ut does not appear from any record
Of the treasury department, onr is it
within the recollection of the Secretary
of the Treasury, that the department or
any of its officers had any relations,
either official or private, with the Ma
tional City Bank of New York, within
the period embraced between June 5,
1897, and October 27, 1897, so that there
are no letters, communications, agree
ments, papers and documents in the
possession of the department which
passed between the treasury depart
ment and the National City Bank with
in that period"
The secretary calls attention to the
necessity which arose late in October,
1897, of disposing in some way of the
large sum of money ($5S,44S,223)
which was realized from the settlement
of the Pacific Railway debt without
drawing this money out of active
channels and thus precipitating a fin
ancial disturbance. He refers to his
letter to Mr.. A. B. Hepburn, printed
in full in his first reply, in which he
told Mr.. Hepburn that Mr.. H. w. Can
non. of the Chase National Bank, bad
already been requested ito ascertain
how many banks would qualify as de-
positories to receive a portion of the
$50, 900, 000 of the railway fund, which
was to be disbursed in the redeplm-
ton of government SKIES about Janu-
airy 1st."
The secretary adds: "The National
City Bank could readily qualify by the
deposit Of public bonds to receive a
large amount. 1t was necessary that
there should be in this instance an
original recipient and distributor of
the fund, because one check alone was
drawn, in amount s13. 645, 250. 1t ought
to occur readily to the minds of the
most inexperienced in banking affairs
thai it required an institution OF some
considerable magnitude to handle such
a check.
CAS- shown in the communication of
January 10, 1900, the National City
Bank did not become the original re-
cipient and distributor of this fund,
and that as fast as certain other banks
qualified it Cthe National City Bank
transferred to those institutions as
follows: To the Chase National, ST.
600, 900; to the Hanover National. ST.
600. 900; to the Fifth National, 5000, 900;
to the American Exchange National,
$500, 900; TO the National Bank of the
Republic, $500, 900; to the Seaboard Ma
tional, $500, 900, and TO the Western
National, 81, 900, 900, all of which sums,
together with the amount held by the
National City Bank, secured by de-
posts of bonds of the United States.
were subsequently withdrawn and paid
into the sub-treasury at New York.
1.-The Secretary believes that the ac-
complished by such transaction what
he has taken pains to DO since, namely,
the avoidance of that sort Of disturb
ance in the money market which af-
fects not merely speculative affairs, but
which. as sad experience has too often
demonstrated spreads throughout the
whole commercial and industrial fab
ric, bringing ruin and disaster such as
close the doors Of factories and mills,