The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1900-01-29
GENERAL DENIAL.
Secretary Gage Replies to the
Senate Resolution
Asking Information Concerning
His Relations
WITH MONEY KINGS.
Says He Did Not Reply to the
Hepburn Letter,
And Did Not Meet J. P. Morgan
in Philadelphia.

Washington, Jan. 29.-The secretary
of the treasury today transmitted to
the senate his reply to the resolution
of January %, calling for further in
formation as to his dealings with the
officials of the National City bank of
New York, Secretary Gage quotes in
full the senate resolution and adds that
It might be considered as fully an
swered by his communication of Janu-
airy 10 in reply to the senate's first res
olution of inquiry of January on the
same subject. He adds, however, that
he will endeavor TO supply to the best
of his ability whatever may have been
lacking in his first answer.
The secretary then takes up the SEN
ate resolution of January % by para
graphs. His reply in brief is as fol-
lows:
-' L. That the secretary OF the treas
ury be and he is hereby directed to
transmit to the senate copies of all
letters and the substance OF any. con-
versation or agreement he may have
written or had with A. B. Hepburn of
the National City bank of New York,
| in reply to a letter from Mr.. Hepburn
| to him, dated June s. 1897 A careful
search of the department files does not
show any answer to the letter of A.
B. Hepburn, written by him to me,
| dated June 25, 1897, nor do 1 b -lieve
| that any answer was ever made to said
! letter. Neither do 1 recall any conver-
SatiOn had with A. B. Hepburn in re-
| ply to such letter.
Nor was there at that time, or now,
any agreement made, or expectation of
| an agreement to be made, by the sec
| retary of the treasury or any of the Off
GERS of the treasury department with
nPrSOnG with reference
I to the Subject-matter of said letter of
| A. B. Hepburn.
1.-THE record transmitted with my
communication of January 10, 1900,
| contains all there is, ever was, so
| far as 1 know, concerning the said let
| ter of A. B. Hepburn.
| Also copies of any letters, commu-
| nications, agreements, papers and doc
urnents between the treasury depart
| ment and the National City bank of
| New York, within the period embraced
| between June 3, 1897, and October 27,
| 1897
/ st 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 it's 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 October q, 1897, so that there
| are no letters, communications, agree
| rnentS. papers and documents IN the pos
| session of the department which passed
| between the treasury department and
the National City bank within that
| period"
| The secretary calls attention to the
| necessity which arose late in October,
| 1887 of disposing in some way of the
| large sum Of money ($58, ,44S, ,220 which
was realized from the settlement of
| the Pacific railway debt without draw
| ing this money out of active channels
| nd nr6ciDif1fine financial dis
| turbance.
| He refers to his letter to Mr.. a. B.
| Hepburn, printed in full in his first re-
| ply, in which he told Mr.. Hepburn that
| Mr. H. w. Cannon of the Chase Ma
! tional bank had already been requested
Ito ascertain how many banks would
| qualify as repositories to receive a por-
| ton of the $50, 900 600 of the railway
| fund which was to be disburSed in the
| redemption of government skies about
| January l..
| The secretary adds: THE National
| CITY bank could readily qualify by the
| large amount. It was necessary that
! there should be in this instance an or
| iginal recipient, and distributor of the
| fund because one check alone was
| drawn in amount $13. .685, $50. 1t ought
| to occur readily to the minds of the
| most Inexperienced in banking affairs,
| that 1t required an institution of some
| considerable magnitude to handle such
| a check.
"As shown in the communication Of
| January 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:
| ITO the Chase National $4,000, 600; to
the Hanover National s., 900, 600; to the
! Fifth National $500. 900; to the Ameri-
| can Exchange National $500 900; to the
| National Bank of the Republic $500,0O0;
to the Seaboard National S5O0,OOO; and
the Western National 81 100000 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 withdrawn
| and paid into the sub-treasury at New
| York The secretary believes that he
accepted by such transaction 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.
| as sad experience has too often demon
| strated spreads throughout the whole
| commercial and industrial fabric, bring
ing ruin and disaster such as closes the
doors of factories and mills, throw la
Dor out of employment and invite years
| of business stagnatiOn the like of which
was witnessed during the period 1898
TO 1897.
I may add the sole purpose which
has animated in these connections was
so TO use the banks as to secure, pre-
serve anu Keep tllS- pubic moneys WILL
| out risk or hazard of loss and in such
form within the limitations and re-
quirements of law, as would best con-
duee to the preservation and protection
of the general interests of the people. ,
/ Section 4 relates to the request for
letters and kilograms bearing on al
| legged conference with Mr. Morgan in
relation to the treasury deposits in the
National bank repositories in New
| York
| Secretary Gage replies:
There are no letters. communica-