The times. [volume] (Washington [D.C.]) 1897-1901, 1900-01-30
Mr.. GAGE AGAIN EXPLAINS
His Business Relations With Ger
tain Bankers in New York.
A Second Reply TO senate Enquiries
Concerning Deposits of Public
Eunds-No Standard OIL Bonds Held
in Trust by the Treasury The
Hepburn Letter Not Answered.

IN trust ny inc treasury - Inc
Hepburn Letter Not Answered.
Secretary Gage submitted TO the Senate
yesterday his reply to the Allen resolu-
ticn of January 23 calling for copies of all
letters and the substance of any conversa-
tions or agreements that may have passed.
occurred, or existed between the Secretary
OF the Treasury and A. b. Hepburn of the
National City Bank of New York. with
reference to recent deposits of public
funds and the sale OF the New York city
custom house property Mr.. Gage intro
duced his answer by citing former reply
TO Senator Aliens somewhat similar reso-
luton Of January 4. and says:
January 10. 1900, l had the honor TO
transmit a communication TO the President
pro tempore of the Senate in reply to Sen
ate resolution of January 4. 1900, which
communication contained full, complete,
and exhaustive statement of the operations
of the Treasury Department under my ad-
ministration with reference to deposits of
public moneys in designated depositaries.
L
of all the correspondence in the posses
sion of this department which passed be-
tween the Treasury Department. or any of
its officers, and the National City Bank and
the Hanover National Bank. of New York
city, as required by the Senate resolution
referred to-"
The Reply.
Secretary Gage then proceeds at once
to reply directly to the second Allen reso-
luton of January 23. and says:
MY reply of January 10, 1900. might well
be reiterated in response to the present
enquiry. for in il are to be found, by reas-
enable and fair research. answers to the
particular enquiries in the resolution now
before me. will, however, proceed to an
swer each and every request in the order
in which ii is made
One. TIat the Secretary Of the Treasury be.
and he is hereby. directed 10 transmit to the
Senate copies Of all letters and the substance Of
any conversation agreement he may have
written or had with A. II. Hepburn, of the Ma
tlcnal City Bank. OF New York, in reply to a
letter from Mr.. Hepburn 10 him, dated June ;,
1857.
"A careful search OF the departme 1t files
does not show any answer to the letter
of A. b. Hepburn. written by him to me.
dated June 5. 1897. nor do believe that
any answer ever was made TO said letter.
Neither do / recall any conversation had
with A B. Hepburn in reply TO such let
ter. Nor was there at that time. or now,
any agreement made or expectation of an
agreement to be made by the Secretary Of
the Treasury or any of the officers of the
Treasury Department with any perscn or
persons with reference to the subject-:nat-
ter OF said letter of A. B. Hepburn.
fal
nication Of January 10, 1900, contains all
there is or ever was. SO far as know, con-
corning the said letter OF A. b. Hepburn.
No Agreement
Two. Also copies of any letters. communica-
tions, agreements, papers and documents between
the Treasury Department and the National City
Bank. Of New York. within the period embraced
between June ). ls97. and October q. 1887.
''It does not appear from any records OF
the Treasury Department, nor Is It vAthin
the recollection of the Secretary of the
Treasury, that the department or any of |
is officers had any relations. either Off /
cial or private, with the National City I
Bank of New York. within the period |
between June 5. 1897. and octo- |
Der q. 1897. so that there are no letters. |
agreements, papers, and |
documents in the possession Of the de- |
partment, which passed between the |
Treasury Department and the National |
City Bank within that period. nor is il /
within my memory that there ever was 1
any conversation With any officer OF the 1
National City Bank. OF New York. or with |
anyone acting on behalf of said bank. CT |
with anyone else. either in public or pri- |
vate life. concerning the affairs OF the said |
bank or its relationship with the Treasury |
ilenaFfrnEuf as 10
whatever concerning the said bank within |
the period named.
About the latter part OF October, 1897, |
AS the records will show. the efforts of the |
present Administration TO accomplish the |
settlement of the Pacific Railroad indebted |
ness were crowned with success. AS shown 4
in ny former communication. the large |
sum OF SIS. .i4s, ,223.75. formerly looked upon |
as a doubtful asset, was realized to the |
In order not to disturb the business Of |
The country by suddenly Withdrawing so |
large an aGount from active use in COM
mercial channels, ! determined to deposit |
a portion Of the proceeds of the Pacife /
settlement in designated deposita-
-ies, as fully explained In my conmunica-
ion of January 10, 1900.
Attention is called to page Gi of Senate
Document No. II. Fifty-sixth Congress,
irst session. where is printed letter from
he Secretary TO a. B. Hepburn.
In reply 10 yours q the 9th instant. will now
ay in reference TO iSe large fund coming from
he Union Pacific road. that few days since I 1
lad personal interview with Mr.. H. W Can
ION regarding the matter, aud at my request he
iss undertaken TO learn how many banks will
lualify TO receive some portion Of this large fluid
" depositing bonds with the Treasury Depart. |
neIff. and from him expect 10 hear in day or |
wO quite in detail. have written him today
nd asked him 10 call uDon Mr. Siillmsn and ex-
'iain verbally what he has undertaken 10 do. In
ny letter 10 him ! suggest that the sum coming
rom the purchasers be paid to some one hank |
md there distributed simultaneously to such other
Il the depostaries as we may advise.
! have expressed preference f1r your institu-
ion as the original recipient and distributor OF |
e fund. In reply to your enquiry. or rather ex-
,tession Of hope that a suitable portion Of the
und will be left with the bank fOr a sufficient
ength OF time TO ofeT reasonable profit 10 cover
he expense IN procuring the necessary bonds to
lualify as a depositsry can only say that. while
We can make no specific promises in that direc-
ion, the purpose VIC have in using depositary |
,anks for the fund. namely, to save distur.
isnce ef the money market, viii induce us to
'ractiee wise discretion in covering the money
n,o the Treasury proper. There probable will be !
70 disbursements from the fund until January
/, when, you know. $50 O0O,OOO will he dis
ursed in redemption Of the outstanding Goreru.
nent skies maturing On that day.
"a reading of the above letter viii show
hat the Secretary Of the Treasury did not
AXE the initiative with any officer OF the
City Bank with reference 10 de-
posting the proceeds of the Union Pacific
settlement in said bank. but Mr.. II. w.
president Of the Chase National
Bank, was requested TO learn how many
,anks would qualify TO receive some por-
~. Il. a~..H