The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1900-01-08
GAGE MPEACEED.
New York World.)


Charges and specifications against Ly-
man J. Case. secretary Of the treasury:
Charges-That the secretary of the
treasury has violated the following stat
utes of the United States. to-wit:
]. Section SslS. which provides that "aH
proceeds of sales of old material, con-
demn6d stores, supplies or other property
CT any kind shall be deposited ana COW
cred into the treasury as miscellaneous
receipts and shall not be with
drawn or applied except in consequence
Of subsequent appropriation made py
law"
?. Chapter SS7 Of the statutes enacted
by the Bifty-fifth cOngTess-the law pro-
viding for the sale of the New YORK Gus
tom hOuSe-Says that
The secretary of the treasury IS here
by directed TO depOSlt tle
proceeds of the sale in the United
States treasury as miscellaneous re-
ceipts."
Section 36f7 Of the revised statutes says
that the proceeds Of such sales snail be
paid by the officer or agent receiving
the same into the treasury at as early
date as possible
specifcatious-Th United States gov
eminent on July 2 last sold to the Nation
al City bank of New York the old custom
house properly in New York for S3.265,0Oe
The sale was made under provisions of
q
the purchaser of the old custom mouse
should permit the government to con-
tlnue to occupy IL until the new custom
house was completed, the government to
pay as tenant of the old building per
cent upon the purchase price, or about
Sl3B,OD a year. The day after the sale.
James Stlllman, president Of the National
city bank. went to washington, taxing
with him a certified check. drawn on his
own bank, for So 225 Seal but $4,000 Of
the fuil price agreed upon. This check
Mr.. Sullman personally handed to Sec
rotary Gage, who Immediately handed II
back to President Stlllman to be de-
posted without interest in tire National
City bank.
In other words. none Of the three and
a quarter millions Of dollars which the
National City Standard Oil bank paid the
government for the United States custom
house six months ago has ever for one
hour passed out Of the bank control.
The bank has had not only the use of the
money every day since to loan out at in
teresC for its own profit. but it has at
the same time been receiving rent from
the government for the custom house.
The old prOVerb that one cannot eat
cake and keep il is thus set at defiance
for the National City bank owns the Gus
tom house and yet retains the money II
paid for the custom house.
|. Secretary Gage has never turned the
proceeds into the treasury. as required
by section Of chapter S37. under the
terms Of which the sale was made
The $4,000 held back" was for another
purpose. The deeds of the custom house
are still IN the treasury department at
Washington. The title TO the property
has not therefore passed to the National
City bank, and the city of New York
can collect no taxes upon the land, as il
is nOminally government property. al
though the National City bank owns and
receives rent for it. The $4,000 held back
was therefore merely a legal excuse for
not proving the title, and for evading tax
alton.
GAGE PLEADS GUILTY-The secre-
tary Of the treasury in a dictated and au-
thOrized statement made to the Phila-
deiphia North American. owned by John
Wanamaker. an eminent Republican, said:
'-The proceeds Of the sale of the custom
house in New York were deposited with
the National City bank. Ny action was
within the law and the propreieties."
Decisions Of the United States supreme
court and other courts on the law violat-
ed by the secretary Of the treasury:
Twcnty-four years ago the court Of
claims Of the United States decided that
Rational banks which had been DESIGNATED
as repositories Were not and could not
By any subterfuge be considered as the
treasury of the United States, and that
money deposited in item had net been
/ deposited in the treasury of the United
States as required by law.
In 1919 the supreme court of the United
States, through the voice of Chief
Justice Waite affirmed that decision and
laid down law that, up to this time
has never been disputed.
The position assumed" said Chief JUS
uce Waite. is TO our minds wholly IN
tenable. The designated repositories are
INTENDED as places Tor the deposit of the
public moneys Of the United States-that
is TO say. moneys belonging to the United
states. Although deposited with
bank that was designated depository it
was not paid into the treasury"
only last October the supreme court,
voicing its sentiments in an opinion
handed down by Associate Justice Nc
kenna, formerly attOrney-gen of the
United States reaf1Tmed the decision Of
Chief Justice Waite and settled for all
time the status Of the national bank and
the relationship Of the national bank de-
p0sitOry to the treasury Of the United
States.
Justice McKenna declares that the gov
eminent cannot be held responsible for
the money, because. although Ii had been
placed in a regularly designated deposit
DRY, IL could not be held to have been
covered into the United States treasury"
THE PENALTY Secretary Gage has
made himself liable under section $50 Of
the revised statutes. which provides. that:
Eve~y officer or other person charged by
any act Of congress with the safe-keeping
of the public moneys who fails to keep
safely the same. without deposting
in banks, or exchanging for other funds
than as specially allowed by law, shall
be guilty Of embezzlement Of the money
so deposited or exchanged and
shall be imprisoned not less than six
months nor more than ten years, and fined
in a sum equal to the amount so embez-
zled."