The times. [volume] (Washington [D.C.]) 1897-1901, 1900-01-09
Mr.. cnge,- rrcdica men,.

According TO the ethics OF the power be
hind the throne. which has ruled this eoun-
try since March 4. 1897. it is an axiom tina
the man who allows himself to be cats
paw. agreeably 20 every consideration O!
good politics and Sound business meth.
DDS" must on occasion expect 10 be utilized
as scapegoat. II is cruel doctrine. hui
the victim has warning in advance that his
interest in current and ultimate results
the risk of actions he is compelled TO taks
and for any pains or penalties that may be
consequent upon them.
In financial circles generally there seems
to be as little doubt. when honest individ-
ual views are confidently expressed, that
Mr.. Lyman ]. Gage has been a catspaw for
the syndicate in control of the AdministTa-
tion in The past much nov he seems
about TO be made scapegoat by the same
inEiuence-or by It's official agent. which is
the same hing II is pointed out with
considerable force that the sudden manner
in which the Secretary OF the Treasury
rushed to the relief Of Wall Street some
time ago. thereby enabling the Admin
istrafion clique twelve hours OF sure
thing" trading on secret knowledge OF
what was about TO happen, was no schema
of his. He had declared. two days before
that he would do nothing. That was on
Monday. But on the succeeding day a fra
ternal delegate arrived from New York.
On "Wednesday morning the oognoscenti
were buying everything in sight. little
after Wednesday noon Mr.. Gage was sum
monee to conference At ; O'Clock his de
cision Was announced. The trick had been
turned. and his culpabiiitr. If any. CON
sisted in his Willingness TO be used in such
a way. and 10 shut his eyes to the grave
responsibilities of the Office he occupies.
That first lessen ought TO have been SUI
ahesent. but it appears to have been lost
upon Dir. Gage. We can appreciate at its
fullest value the quality in Mr. Hanna's
subcrdinstes which appears 10 render them
oblivious OF statutes and innocent Of the
ordinary moral perceptions which might
stand in the way of their devoted and blind
service to the interests of their organize
tiSn: but it is harder to understand how
a man of fair abilities. and good training
and experience as a provincial banker. like
Lyman J. Gage. could. under dictation.
allow himself to be placed in such an atti-
tude Of apparent defiance of specific and
mandatory Law. as ne seems to occupy in
connection with his relations 10 the New
York custom house deal and the Standard
OH Bank.
To the extent that the Treasury scandal
mas developed, Mr.. Gage appears to have
violated the Law which required him TO
deposit the proceeds OF the custom-house
sale in the United States Treasury. and also
the law which made it his duty to adyer-
tise the facts of his deal with the Standard
Oh Bank in some newspaper published in
the National Capital. His own statement.
as it has appeared in the press. is that the
proceeds Of the sale of the custom house In
New York were deposited with the Ma
tional City (Standard oiD Bank" In an
Interview printed in the New York
Herald OF January ., Mr.. Stillman, Presi-
dent of that bank, is quoted as saying:
The very large payment OF the bank. some
three million dollars has been deposited by
the Government with the bank
The trouble with MIR. Gage is that It
would be difficult outside OF any PER
emptory order the Administration may have
Issued to him in the premises. to find the
slightest warrant for making such de-
post. Two general and one specific statu-
tory provisions read as II they forbade
such disposition OF the money. and under
heavy penalties. Section 3s17 Of the Re
rised Statutes says:
''TIe gross amount Of all lnoneys received
from whatever sptrse for The use Of the
United States, except otherwise provided |
fer in the next section, shall be paid by |
the oiicers OF agent receiving the same into |
the Treasury at as early 4 date az possible
The succeeding section. ssls, reads:
'All proceeds o; sales Of old material
Or other property Of any kind shall be deposited |
and covered into tao Treasury as miscellaneous
or applied excep; in consequence Of a subsequent
appropriation made by law"
In the absence of any further instruction |
or mandate as 10 what he should do with |
the money derived from the custom
house sale-in fact, no money appears TO
have passed-it would seem that Mr.. Gage
could not plead Ignorance of his duty in
the premises. But. even IL he could in such
circumstances, he should have found an in
surmcantable obstacle In the Language of
the act passed by Congress TO cover the
very Transaction in connection with which
his alleged teri has arisen. The Fifty fifth
Congress tchapter 337) enacted a law which |
says; The Secretary OF the Treasury Is
hereby directed TO sell the
present custom house property in the city
OF New York and 10 deposit the |
proceeds in the United States Treasury as
miscellaneous receipts" Mr. Gage could
not have been ignorant OF this law when he
effected the sale, nor of the fact that be
Sas personally made responsible for spe-
rsic performance of its terms and condi.
ifons. He must take full responsibility
Tor its violation. IL 1t Was violated. as pub
lie opinion seems 10 be that It was. II
public opinion br correct. then there is
:s.sIe imam slight ground for assuming that