The times. [volume] (Washington [D.C.]) 1897-1901, 1900-01-30

wrote. i nave yours OF the &Vtn luSthut
and note your suggestions as to confer
| ence with Mr.. Morgan in relation to tn,
| Treasury deposits in the national banl
| depositaries of New York.
In this connection Mr.. Gage says:
There are no letters. communications
| agreements papers, or documents on file il
the Treasury Department, between the Sec
cretary of the Treasury or his subordinate
officers or officials and the afficials OF the
National City Bank Of New York. or tht
officials Of the National City Bank and the
Secretary of the Treasury or his subordi-
mates. in reference to letter from the
Secretary OF the Treasury to James Still
man. President of the National City Banl
of New York, of December 81, 1897. II
which the Secretary wrote: 4 have yours
of the goth instant and note your sugges-
tions as TO a conference with Mr.. Morgan
in relation 10 the Treasury deposits in the
nationalbank depositaries Of New York,
other than were transmitted with my CON-
munication to the President pro tempore
of the Senate under date of January 10,
1900. Nor can IL be recalled that there
was ever any conversation had between the
Secretary of the Treasury and Mr.. Still
man. or between the Secretary CT the
Treasury and any other man. concerning
the said letter.
L udISIullleu 10 tue otHdte, JduudIy ~,
1900, copies of all correspondence at my
command, as directed by Senate resolution
of January 4, 1900. and. perhaps. l should
be required to give no more than / have.
yet, TO leave no possible room for uncer-
tainties. | have secured from the National
City Bank copy of the letter of Decem-
Der 20. 1897, from Mr.. Stillman TO me-"
The Stillman letter is as follows:
December co. 1897.
Ny Dear Mr.. Secretary: In conferring with Mr..
J. T. Morgan and Mr.. Schif, Of Messrs. Kuhn,
Loeb Co, today. they both express some con-
Germ as TO the condition Of the money market
during the winter and spring iionths unless a
very considerable portion OF the Government
money deposit with the New York banks
IS left here during that time. In this connection
know that Mr.. Morgan would appreciate having
a conference with you, but is rather loath to g.
to Washington without receiving some intimation
from you.
would suggest therefore, your sending me a
telegram upon the receipt OF this If your engage
ments on Thursday morning will permit your see
ing him at that time. as think he can arrange
to leave here Wednesday evening.
In view OF his recent stay OF two months in
Europe and the large 3k per cent loan which he
and other prominent bankers are endeavoring to
place among investors, l trust an interchange of
views and Information would be mutually agree
able Believe me, yours sincerely.
JAS. sTILINAy.
More in Detail.
The Secretary then goes on to say that
the suggested conference never took place
A letter from Stillman. dated December 90,
1897. in which the purpose of the confer
enee is outlined. is quoted at length. 1t
says In part:
feel that ought, perhaps, to explain little
in detail the objec. sought to he accomplished
by the interview mentioned in my letter of re-
cent date. and what the consensus of opinion
here seems TO be with reference 10 the course to
be pursued as TO the special deposits with banks
on account OF the proceeds Of the Union Pacific
Railroad.
After the needs Of the Government arc supplied
which, OF course, are paramount to all other
oonsiderations-it is, in the opinion OF leading
finsnciers, very desirable that much Of the
Union Pacific money be left in banks here. where
it will be available for commercial uses. as is
possible All OF the securities Of the reorgan-
ized Union Pacific Railroad must I've absorbed and
assimilatcd by the public, and at the same time
the New York Central. Lake Shore. Chicago and
Northwestern, Chicago and Rock Island, and
other properties seeking refunding Of their OBJ
legations upon q very low interest basis The
success tt these reorganization plans Will be 10
place those properties on frmer financial foot
ing. with fixed charges materially reduced.
The lead financial interests in this city are
working H-nestly and in union to accomplish
the abo. results and well knowing your pre-
1Alnio7lkitH W avs within Pt'Pt4
wished to place before you the subject in the
szine light which We. through daily business
contact with these matters. see it.
"Since such assumed conference never
took place" says the Secretary, "it is not
possible for the Secretary of the Treasury
to comply with that portic-. Of the resolu-
ton on this subject relative to copies of
Ietters, etc"
Regarding that part OF TIE resolution
calling for ANY correspondence. tele-
graphic, or telephone. or otherwise. or
any agreements. documents, papers, or con-
with the officials of the National
City Bank, OF New York, between the pc
riod embraced from April 2s, 1898,
TO June =. 1898; September 10. 1898. to 0c-
tober 90. 1888: August &C. 1899, to Decem-
Der l9. lS99." the report says:
1T has not been the practice OF the Sec
retaries of the Treasury to preserve con
yersations. 1t may be said. in general,
however, that in the transaction of the
business of this department with the Ma
tional City Bank. or with any other bank,
no conversation has been had. either by
telephone or face TO face, which has lad
reference to any relations, official or pri-
vate, otherwise than as fully set forth in
my communication to the Senate, dated
January 10. 1900. No agreement past,
present, OF IN tOHleEupldllcu. udS ever
been mad with the National City Bank 9TH
erwise than is literally set forth in my
to the President pro tenn
pore of the Senate of January 10. 1900"
No Standard OIL Ronds Held.
The report then takes up this clause in
the resolution:
And the Secretary Of the Treasury is further
iirected to inform the Senate of the amount Of
United States bonds held in trust by the Treas
Try Department for the Standard OIL Company.
II the city Of New York. to secure Government
deposits for the National City Bank OF New York /
nd upon what dates these bonds were assigned
nd the amount thereof now at any time lAld
" the Government Of the United States for the
standard Oil Company"
The report then continues:
The question indicates misconception. !
induced, no doubt, by the requests found /
in several letters from the National City |
Bank to the Treasurer OF the United |
States for the transfer TO the Standard Oil |
Company and other parties OF certain lots |
Of bonds These requests are found on |
pages III, 19S, 199. 200. 202. 20J. zoe, 207. |
,0S 21O. 2ll, 2i2. and 33i of my communi |
sation OF the 10th instant to the President |
pro tempore of the Senate.
when coupon bonds are deposited with |
he Treasurer as security for deposits. the |
ltle, OF course, passes to him by the mere |
delivery, and they are held by him in trust |
or the depositing bank. When registered |
bonds are thus deposited they having
been duly assigned to him. are transferred |
IN the books of the Register OF the Treas !
Try. the deposited bonds Cancelled, and
new certificates or bonds issued to the
Treasurer, in his name. in trust for The /
iepOsiting bank. When such bonds are
by the Treasurer they are
to the depositing bank. New Ger
iiicates may be issued in its name. BY
ormal resolution and assignment. that
,ank may direct the transfer TO any other