Washington standard. [volume] (Olympia, Wash. Territory) 1860-1921, 1900-01-12
W'ashin9ton Standard
OILY uPIt. WASH.
EElDAl EVENING, JANUARY T., 1900.
Unscrupulous Gage.

Secretary Gage finds himself in an
exceedingly unpleasant position from
a Congressional inquiry which has al
ready disclosed the fact that a charge
o: taNoritci,m for the National City
Bank al New York has been sustained
NJ the expense OF gros, violations OF
law.
See 3,GlN Revised Statutes make it
obligatory on the part of fiscal officers
- pay the proceeds OF sale OF govern
ment property into the Treasury OF
the United states. 1t seems that when
the government sold the old custom
house property in New York, July ID
1899, to the National City Bank, for
$S,2G2000, the purchase money was
not paid into the Treasury, but re.
manned in the vaults OF the National
City Bank, as Il deposit and subject to
its use at all times, while the bank be-
S't4l 4iIiiiotIatNiy tOeOIICSt itlltdI run
the government for use OF the custom.
house property.
The profits OF this unique transact
ton for the bank are thus summed up
by the World: Interest $50 days at G
per cent. on $3,265,OOO, $96,337; rent
for custom-housc property, same pc
Rod, $Gi, 241-making a total of $780,
jGl.
But this is not the sum total of the
Infamous deal. The title to the realty
for which the bank collected rents was
not passed to it, but remained in the
government, to enable the bank to
escape the municipal tax levy, amount
ing to $4,000 more, or a grand total Of
profit aggregating nearly 100000,
without the placing of a single cent by
the favored institution.
1t is true that Secretary Gage had
to violate the law to do this, but it is
likewise true that he has unhesitating-
ly done SO, for he admits the fact, and
endeavors to excuse his action under
a subtle Interpretation of the statute
which its text does not justify.
A simple statement of the facts is
sufficient to establish the view that no
law was ever framed which would
leave loop-holes for such reprehensible
conduct. But we have the opinion of
the highest court as we'll as common
sense to condemn him.
Twenty-four years ago the Court of
Claims of the United States decided
that national 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 depos.
tied in them had not been deposited"
in the Treasury of the United States
rs required by law.
In 1879 the Supreme Court of the
United States, through the voice of
Chief Justice Waite, affirmed that de-
cision and laid down a law that, up to
this time, has never been disputed.
"The position assumed" said Chief
Justice Waite, ais to our minds who'll
ly untenable. The designated deposi-
tories are intended as places for 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 McKenna, formerly Attorney
General of the United States, reaf-
firmed the decision of Chief Justice
Waite and settled for all time the
status of the national bank and the re-
lationship OF the national bank depos-
itory to the Treasury of the United
States.
Justice McKenna declares that the
government cannot be held responsible
for the money, because, although it
had been placed in regularly desig.
mated depository, it could not be held
to have been covered into the United
States Treasury"