The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1900-01-30


Of the treasury today transmitted to
tne senate his reply to the resolution Of
Jan %, calling for further information
as to his realings with the National
City bank Of New York. Secretary
Gage quotes in fun the senate resOlu-
ton and adds that it might be consid-
cred as fully answered by his commu-
nication of Jan. 10, in ys-liy to the sen
ate's first resolution Of inquiry of Jan.
3 on the same subject. lie adds, how
ever, that he viii endeavOr to supply
to the best of his ability, whatever may
have been lacking in his first answer
The secretary then takes UP the senate
resolution Of Jan. 3 by paragraphs.
His reply in brief is as follows:
"G) That the secretary OF the treas
Try be, and he is hereby directed 10
transmit TO the senate copies OF all let
tiers and the substance Of any CONVEX
sation or agreement he may have writ
ten or had with A 3. Hepburn of the
National City bank of New York in re-
ply to a letter from Mr.. Hepburn to
him, dated June 5, 1897
"A careful search of the department
flies does not show any answer to the
letter OF A. 3. Hepburn, written by him
10 me, dated June %, 1887, nor do l be-
lieve that any answer was ever made
10 said letter. Neither do 1 recall any
conversation had with A. B. Hepburn
in reply to such letter. Nor was there
az that time, or now, any agreement
made or expectation Of an agreement to
be made by the secretary Of the treas
ury OF any of the officers of the treas
ury department with any person or per-
sons with reference to the subject mat
ter of said letter of A. b. Hepburn.
All he Knows About Hepburn.
"The record transmitted with my
communication e Jan. 10, 1900, cOntaitls
all there is or ever was so far as I
know, concerning the said letter Of A
b. Hepburn.
"(2) Also copies Of any letters. COM
municauons. agreements or papers and
documents between. the treasury de-
partment and. the National City bank
of New York Within the period embTac-
cd between June 8, 1897, and Oct. p,
1897
1T does not appear from any record
of the treasury department, nor 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 oct p, 1897, so there are no
letters communications, agreements.
papers and documents in the possession
Of the department which passed be-
tween the treasury department and the
National City bank within that pc
rlod"
The secretary calls attention to the
necessity which arose late in October,
1897, of dispOsing in some way Of the
large sum of money (S58, AS, 223) which
was realized from the settlement Of the
Pacific railway debt, without with
drawing this money out of the active
channels and thus precipitating a finan-
cial disturbance.
He refers to his letter to Mr.. A. 3.
Hepburn, printed in full in his first re-
ply. in which he told Mr. Hepburn that
Mr. H. ". Cannon of the Chase Ma
tional bank had already been requested
10 ascertain how many banks would
qualify as repositories to receive "a por-
ton of the 600 Of the railway
fund which was to be disbursed in the
redemption Of government 6s about
Jan. /.
The Bank Could Qualify.
The secretary adds; The National
City hank 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 chick alone was
drawn in the amount OF S13.645, $50. 1t
ought TO occur readily Il the minds of
the most inexperienced in banking af-
fairs that il required an institution of
some considerable magnitude to han
de such a check.
AS shown in the communication of
Jan. 10, 1900, the National City bank
did become the original recipient and
distributor of this fund, and as fast as
certain other banks qualified it (the
National City bank transferred to
those institutions as follows: To the
Chase National bank. $1,000. 900: to the
Hanover National 81 O00. 600. to the
Fifth National, S2000 600. to the Ameri-
can Exchange National, $50O.0OO: to the
National Bank of the Republic, $500, 600:
10 the Seaboard National, $500, 900. and
10 the Western National. 81 zoe 900, all
OF which sums, together with the
amount held by the National City bank,
secured by deposits of bonds of the
United States. were subsequently with
drawn and paid into the sub-treasuTy
at New York"
Averted a Disturbance.
The secretary believes he accom-
plished by such action what he has
taken pains to DO since, namely, the
avoidance Of that sort Of disturbance
IN the money market which affects not
merely speculative affairs, but which
experience has too often demonstrated
spreads throughout the whole CONNER
cial and industrial fabric, bringing
ruin and disaster. such as close the
doors Of fc~C0ries and mills. throw Ia
hor cut Of employment ard invite years
OF business stagna; ion, the like OF
which was Witnessed during the period
1898 10 1897. He says.
Il may add, the sole purpose which
has animated the secretary in these
connections was so to use the banks as
70 secure, preserve and keep the pub
lie moneys without risk or hazard OF
loss ana IN suca form as TO limitations
and requirements of law as would best
conduce TO the preservation and pro-
lection Of the general interests Of the
people"
Section 3 relates to the letters and
kilograms bearing on alleged confer
ence with Mr. Morgan in relation. to
the treasury deposits in the national
bank repositories in New York.
Conference With Morgan.
Secretary Gage replies. There are
no letters, communications. agreement
papers or documents on file in the
treasury department between the secre-
tary OF the treasury or his subordinate
officers oF officials and the officials Of
The National f,ifV hank Of New York