The times. [volume] (Washington [D.C.]) 1897-1901, 1900-01-17
CRITICISM OF Mr.. GAGE
Mr.. Richardson's Expose of the
Custom mHeuse Property Sale.
The Minority Leader Questions the
Relation, of the Secretary OF the
Treasury With the National sitS
Bank of New York "A shrcwd
Transnction-Scvcre Dealt With.

During the debate on the Urgent De-
ficiency bill in the House yesterday. Mr.
Richardson, leader Of the minority, seized
q favorable opportunity for attacking the
Administration, and delivered himself OF
a rebuke to the Secretary OF the
Treasury in the matter of that official
dealings with the National City Bank OF
New York, and particularly the sale OF the
New York custom house property. Mr.
Richardson undertook to show that this
transaction was skillfully arranged riece
of fnancering, wherein the National City
Bank achieved certain rare advantages;
that after having effected a purchase OF tse
custom house property the hank had been
permitted to deposit bonds 10 secure
s3.st5 600 of the purchase price. thus get
ting free use of the money: that ssO.oo0
of the stipulated purchase price had
been withheld for the purpose Of
forcing the Government to pay taxes on
the property for an indefinite period. and
finally that all this was the indirect r. suit
of political obligations due certain oilers
OF the bank from the Administration. The
Government still occupies the custom house
property. and as matter OF rental Mr..
Gage has agreed TO pay the bank per cent
on the purchase price SO long as the United
States remains a tenant. This Furnished
Mr.. Richardson with another lever 10 his
argument. and when he had concluded Mr.
Hopkins of Illinois was the only Repub-
lican prepared to make show OF defence
for the Secretary of the Treasury.
This was tine first really spirited detate
of the session. The Urgent Deficiency bill
item under discussion was the proposed ap-
preparation for free rural mail delivery, and
the latitude allowed for debate gave MI.
Richardson the chance he wanted. He ad-
dressed himself to his subject with much
vigor. and spoke as follows:
81 want to emphasize for a moment some
thing Of the expense made necessary by
the condition OF affairs brought about by
the Republican legislation in order TO
maintain the military establishment oi
this country for the present fiscal year
As 1 understand. this appropriation bill
carries deficiency of the military estab-
Iishment of s47. 7.sO2, ,032.ei. Now, of course.
to this deficiency should be added an
amount already heretofore legislated and
expended, which / understand to be s15.-
"a. .Sl1. The two sums when added to-
gether make the enormous total of Sl21,-
000. 600 in round numbers. to be absolutely
necessary, in the opinion OF the Commit
tee on Appropriations, and not controyert-
ed IL seems. by any gentleman on the
floor on either side of the House. The
enormous sum of sl2i, ,eo0.Co0 is said TO be
necessary FOR the maintenance OF the mil
itary establishment OF this country in
time of peace. Now. whittier are we drift
ing. Mr.. Chairman? II We are to spend
one hundred and forty odd million dollars
year by year for pensions, and IL by rea-
son of the policy OF the Republican party
we are to spend s12i. 100000 to meet the
military expense of this Government. ]
only want 40 call attention to thai fact.
The Attacks ON Mr.. Gage.
Il also want to speak upon another mat
ter. and shall not address myself further
TO the items in this bill. II is well known
to The House and TO the country that re-
Gently the management OF the Treasury of
the United States has been challenged by
some OF the great papers and by many of
the people OF this country. Now, l am not
inclined TO join in wanton attack upon
public officers. l believe as a general
thing public officers Of either party are in
clincd 10 be and usually are honest. So,
say. / would not join in a wanton attack
upon the Secretary OF the Treasury or
any other officer clothed with great pub
lie trust. But certain facts have devel-
oped. certain information has been sent to
Congress. and l deem it not out of the
way TO call the attention OF this House
and the attention OF the country 10 some
OF these facts.
Tine matter to which ] call attention
specifically is the conduct of the Secretary
OF the Treasury in reference to the sale
III the custom house property in the city
OF New York. 1t is well known 10 us that
resolution of enquiry was sent
10 the Secretary of the Treasury and GER
tain information called for The answer
to that resolution, which covered only a
few lines, was a document covering 34s
printed. pages. Il may have been neces-
sary FOR the Secretary OF the Treasury
to have made his answer in this way to
have covered 1t UP in this great record,
but 1t seems TO me that he could have
made a plain and simple answer to The
enquiries which we're propounded. With
out so much of language But inasmuch
as the matter has been followed up by a
gentleman on this floor by the introduc-
tion OF a further resolution OF enquiry.
do not intend to enter into a discussion
while that resolution is pending before
one OF the committees of the House: !
do no, intend to enter into a discussion
OF what might be discovered by that in
vestigation If one is ordered. or what is
developed by the answer of the Secretary
OF the Treasury as to that part of the Teso-
luton OF enquiry which relates 10 the
OF the public moneys and tha
depositing Of the internal revenue receipts
in the national banks of this country.
But this one feature 10 which ] pro-
pose to devote a few moments Is answer
ed fully by the Secretary of the Treas
,t,A ~ u IL.
house in the city OF New York Inasmuch
as his answer covers this action upon his
part i take 1t that possibly it would not
be Decessary to further investigate that
one item or matter. Therefore il is legft-
innate now to comment upon the action
Of the Secretary OF the Treasury in refer
enoe to it. / am willing TO have the adj
mission made for the purposes OF this
that the Secretary of the Treas
1ry has not violated the strict letter OF the
law In handling the proceeds of the sale
Of that custom house property. II may
not be known to every gentleman, but he
sold that property on July 2, 1899, by au-
thorify OF an act of Congress. The law
which authorized him 10 make the sale
provided minimum price at which the
property should be sold, and ths; mini
mum was s3,e00.000 The property was
sold on the Sd day OF July for s.. es5. 900.
II is charged that he is guilty OF having
this money, technically. under
section $40 of the Revised Statutes
because according to his own statement
be did not deposit the money in the Treas
nry OF the United States. The contention
Is that depositing this money-assum-
Ing that he did deposit it in a United !
States depository in the city OF New York, |
,ne Of the national banks OF that city