The morning news. [volume] (Savannah, Ga.) 1887-1900, 1900-01-17
SECRETARY GAGE UNDER FIRE.
SALE OF NEW YORK CUSTOM HOUSE
FURNISHED THE TEXT.


Urgent Deficiency Bill, Mr.. Rich-
nrdson Charged That Secretary
Gage. Hnd violated the Letter OF
the Law-Fnvors shown the Ma
tiOnaI city Bank.
Washington. Jan. l6.-The urgent de-
| fciency appropriation bill was taken up
in the House to-day.
| II was the general expectation that "a
would open up "A stormy debate upon the
question OF expansion in view of the largo
army and navy items it contains. but tho
members only became very much ems
crossed Inc a discussion Of an item oe
$4,000 for rural free delivery. in which
all are personally interested, and the subs
ject Of expansion was barely touched
upon.
The last hour of the debate was enllvs
| ened with an attack by Mr. Richardson.
the minority leader, upon the Secretary
OF the Treasury for his course in connec-
tlon with the sale OF the New York cus-
tom house. Mr. Hopkins of Illinois
ohampioned the secretary. 1
Mr.. Cannon was asked by Mr.. Loud Of
| California about the item of $4,000 fos
rural free delivery and replied that $780,
900 had been appropriated for the present
| fiscal year, though he frankly confessed 10
| did not meet with his entire approval.
| The department had no right to create
| condition which necessitated defics
| iency appropriation. He should vote for
the appropriation but he should fail iu
/ his duty did he not call attention to the
maladmlnistration OF the department
Mr.. McRae Of Arkansas made a general
plea for economy. The revenue of the
| treasury would not exceed 5000 900 900, whila
the treasury estimates aggregated y7ss,-
OO0.oOo
Messrs. Loud Of California. Livingston oa
Georgia and Griggs of Georgia we're among
| those who supported the rural free dellv-
| cry.
Question of Expansion.
Mr.. Ball OF Texas first introduced In
the debate the question of expansion. He
| had read extracts from the Declaration
of Independence, and others from speeches
of James. Wilson of Pennsylvania in the
constitutional convention, and of Abraham
Lincoln at Gettysburg. 1t was a long
step, said he, from the conceptions Of the
government portrayed in these utterances
to the declarations of the spokesmen oE
the present administration He vigorous
| ly assailed the recent speech Of Senator
| Beveridge of Indiana.
! MIR. Davis Of Florida Said he deplored
the spirit OF expansion which had taken
| possession of a portion of the people. YET
not for all the world would he Withhold
from our soldiers all the moral and mate .
rial support they needed. If the war taxes
were necessary TO support them, he said,
| let the measure stand MIR. Davis was
| applauded by the Republicans.
Criticised Secretary Gage.
| Mr.. Richardson OF Tennessee beautlful-
| ly reviewed the appropriations for the mill
| itary establishment, showing that in Tins
| of peace the appropriations for II. with tho
| deficiency provided in this bill, reached
| S121 10000 He then proceeded 20 criticisa
| the transactions OF Secretary Gage In tha
| matter of the sale of the New York GUS
tom house to the National City Bank OF
! New York.
1t had been charged, said Mr.. Richards
/ SON. that the Secretary of the Treasury
| had violated the law and was subject to-
| impeachment. Mr.. Richardson said he did
not go to that length, but he desired to
| call attention to the transactions relative
to the sale of the old custom house in
| New York.
The Secretary OF the Treasury, he said,
| lad certainly violated the strict letter ok
| the law Because the proceeds OF the sale
had been deposited in the National City
| Bank which had purchased the property.
| some of the papers, he said had charged
| that the secretary was technically guilty
| of embezzement and had cited decision
| of the Supreme Court made last Novem-
| ber. Amid the confusion that ensued Mr.
| Richardson finally made the House un-
| derstand that he did not agree with this
view. He expressed the opinion that the
secretary had perfect right to deposit
| the money in a government depository
| such as the National City Bank then wsss
| But he desired to go beyond that. This
| custom house was sold to the bank July
3. 1899, for 1926. 900. Just before the sale
| June 50 the secretary received a letter
| from A. y. Hepburn from which he quot-
| ed this abstract:
| N'Of course this bank is very strong and
| II you take the pains to look at the list
OF directors you will see we have great
| claims on account OF what was done in
| 1896"
Favors shown the Bank.
| Mr. Richardson then read a list of soms
| government deposits in this bank at va
rious times to show that for six months
It had the use of an average Of $l0O0O0O0
| Of government money. Was that due to
the contributions made by the directors
| to the campaign fund of 96? he inquired.
| Turning again TO the sale of the custom
| house he showed how the bank had de-
posted 50, 600 in bonds in the treasury,
| and then instead of paying the purchase
| money out the treasury had simply had
| transferred the purchase price to the gov
| ernments account In the bank. But not
| the whole purchase price was transferred.
| 1t was only S3.2l5,00O, leaving pitifu S0,
| 900 unpaid. Al the same time 1t leased
the property to the government at the
rate of $4,000 year What had the gov
eminent got out of the transaction2 A
| paper credit of S3,2l5O00 and the privilege
Of paying $4,000 year rent What had
| the bank got2 The rent, the use OF
| the purchase money which II loan
| ed, according to newspaper reports,
at enormous rates. and by Withholding the
| last $4,000 10 prevent the title from pass
| ing exemption from taxation upon ths
| property Il had purchased,
81 leave Il TO any honest-minded man.
| said Mr. Richardson. ''if that Is dealing
| fairly with the trust money of the United
| States?" Democratic applause).
nafeuded NV HonIxlus.