The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1900-01-18
FAVORITIsM AND TRICKERY
PROVEN.

PROVEN.
: The conspiracy Of silence which has
been maintained by the imperialist press
pm the subject of the discoveries effect
Ing Secretary Gage In his relations with
pertain favored New York banks does
hot promise to be particularly success
tul. Already few Of the more RESPONSE
BILE of the Republican papers of the
eountry have cautiously expressed their
Condemnation of the adoption Of the
Bpoils system as an influence controll-
Ing the United States treasury in its
Dealings with the banks The two letters
reproduced in these columns have evoked
expressions of disgust and hostility In
financial circles. In addition, the ar
Cangement made by the secretary with
the Standard Oil bank, which enabled
That institution to withhold for a week
the payments due to the government
hrising from the Central Pacific railroad
eettlement, is being examined in It's diff
ferent bearings The Withholding Of these
moneys was avowedly for the purpose
lie the fund in It's call loan transactions.
Ehe only theory upon which any such
transaction could have been carried out
Is that the treasury may, with entire pro-
priety, protect a private banking institu-
Zion in it's operations with its creditors
pn the pretext that disturbed condition
of the money market required such &C
lion.
Another transaction which, however,
does not seem yet to have evoked the
condemnation which it merits is the one
whereby the moneys paid In the transfer
Of the custom house site to the Citizens
National bank was mere paper trans
action, in which the purchase price, If
hver withdrawn from the purchasing
bank, was at once redeposited. The Sec
retary of the treasury has been unable
TO furnish legal warrant whatever for
this transaction, and the claim which he
trumped up in his attempted defense,
that United States depository, under
the law, was to be regarded as branch
of the United States treasury has fallen
TO the ground by the weight of its own
absurdity.
Now If the consideration that the board
Of directors of given banking institu-
lion had contributed largely to the cam
paign funds of the administration can
be advanced as a reason for continuing
that banking institution as a United
afac will
priety be advanced as reason why i'm
proper favors should be extended by the
United States treasury to the bank in
question. That the particular favors of
the withholding of those Central Pacific
moneys and the redeposit Of the pur-
chase price of the custom house site were
plainly improper admits of no discussion.
The charge Of favoritlsm against Secre-
kary Gage, If 1t were not sustained by
nnother scintilla Of proof is thus estab-
lished beyond all peradventure.
Aside from all this there must be taken
bto account the very questionable trans
potion which, on Its face. was convey
Rnce Of property to the United States,
but which, in fact, by the Withholding
pr $4,000 of the purchase price. was a
here dishonest scheme to save the bank
from payment of It's legal obligations in
taxes and otherwise, as the actual owner
pr the proper in question If the transac-
bon had been completed, as it appears
10 have been on its face. but was not in
fact, then the custom house property
would become the possession of
the bank and would be liable
TO the state for taxes and otherwise,
while with that $4,000 withheld it still
remained the property of the United
Etates government, and consequently ex-
smpt from taxation. To this transac-
Hon Secretary Gage, in his administration
Df the financial concerns of the govern
ment. gave his sanction, thus not only
Further sustaining the charge of favorit-
Ism, but calling into existence transac-
zion which was fraud upon the mu-
nicipaI government of New York and
upon the government of the state of New
York
Congress has undertaken the investiga-
bon Of certain Of these questions and