The evening times., 1900-01-29


officers OF officials and the aficials of the
National City Bank of New York. or e
officials OF the National City Bank and the
Secretary OF the Treasury or his subordi-
mates. liz reference 10 a letter from the
Secretary OF the Treasury to James Suil-
man. President of the National City Bank
of New York, of December - 1897. an
which the Secretary wrote: Il nave Yoais
of the 2Oth instant and note yoHr suggSS-
tions as to a conference with Mr. Morgan
in relation 10 the Treasury deposits in the
natioRsl-bank depOsitaries Of New York,
other than were transmitted vi h my COM
munication TO the President pio tempoTe
of the Senate under date o. January l".
1909. Nor can ii be recalled that there
was ever any conversation had between the
Secretary OF the Treasury and Mir. Still
man, or between the Secretary OF the
Treasury and any other man, concerning
the said letter.
Il transmitted TO the Senate, January 10,
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 l have,
yet, to leave no possible room for uncer-
tainties | have secured from the National
City Bank a copy of the letter of Decem-
Der 20, 1897, from Mr.. Stllman to ne.
The StiIlman Letter.
TIE Stillman letter is as follows:
December %. 1897.
Nv Dear Mr. secretary: In conferring with Mr.
J. r Morgan and Mr.. Schih, 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 months, unless
very considerable portion Of the Government
money now on deposit with the New York banks
6 left here during that time In this connection
know that Mr. Morgan would appreciate having
conference with yOu but is rather loath to go
90 Washington without receiving some intimaiion
from you.
1 vonld suggest therefore ycur sending me q
Telegram upon the receipt OF this il yOUr engage
ments on THURSDAY morning viii permit your see-
ing him al that time, as / think he can arrange
% leave here "Wednesday evening.
In view of his recent stay OF two months in
Europe and tie large Sls per cent loan which he
sud other prominent bankers endeayoring 10
place among investors. l trust an interchange OF
views and information would be mutually agree
JAS sTILLNAN.
The Secretary then goes on to say that
The suggested conference never took place.
A letter from Stillman, dated December %,
1897. in which the purpose of the confer
ence is outlined, is quoted at length. 1t
Says in part:
l feel tha, ought. perhaps. to explain little
IN detail the object sought 10 be accomplished
by the interview mentioned ln my letter OF - I
cent Gate. aud what the CONSENSUS OF UliNipn
here ,pems 10 be- with reference 10 The course 10
be pursued t. the special deposits with hauaS
on account OF The proceeds OF the Union Pacific
Railroad
Aftcr The needs oi the Government are supplied
which. Of course, are paramount t. all other
ol:,-iGtJri0uS-it Is. in the opinion a leading
tuaugigrS. very desirable that much oi The
Iuion Pacific money hc LETT in banks here, where
it viii he available for commercial uses. a. is
ln,-ih. All OF ihe securities OF The Tenrgau-
izaa Irian Pdgif. Railroad must he absorbed and
a>>'uiI5ird hy The public, and at the same tIme
jIc Ny@ Nara Central. Lake Shore, Chicago and
Northwestern Chicago and Rock Island. and
other properties seeking retauGiug of their OIL
legations upon p very low interest basis. Tho
euccc~, of these reorganization plans VIII be %
place those prurgrjiD~ On a frm,r financial foot
inn. with fixed rhar..s materially reduced.
The leading financial interest, iu this city aro
working earnestly and in union go accomplish
tIc .barn results. aud well knowing your pre-
disposition o. aid. within an proper limits w"
wished Jo place htfoye YOU the suhjoe. in tie
same ligEt winch Ue. through daily Uu-iae.s
contact ui.h ,l,ss matters, SIS Il.
since such assumed conference never
took place saws the Secretary, 1t Is not
possible for the Secretary Of the Treasury
TO comply with that portion OF the resolu-
zion on this subject relative to copies OF
letters, etc"
No Record of Conversations.
Regarding that part Of the resolution
aaliis for an. Jurisprudence, tele-
grauhic. or telenhonic. OF otherwise. or
any agreements documents. papers, or con-
yersation with the officials OF the National
city Bank OF New York between the pc
riod embraced from April 2S, 1SsN /
10 June ., 1898; September H. 1895, to Oc- /
iober %. 1885, August 26. 1899. to Decem- |
ber 10. 1899" the report says:
1T has not been the practice Of the Sec 1
Tetaries Of the Treasury TO preserve con- /
Il ha n
however. that in the transaction Of the /
bushes OF this department with the Ma 4
fionai City Bank. or with any other bank, /
no conversation has been had. either by /
telephone or face to face, which has Tad
reference 10 any relations. Official or prl-
rate. otherwise than as fully set forth in
my communication to the Senate dated
January 10. 1909. No agreement past,
present or in contemplation. has ever
been had with the National City Bank 9th
erWse Than is literally set forth in my
communication to the President pro tenn
pore Of the Senate of January 10. 1900"
The report then takes up this clause in
the resolution:
And tho Secretary cf the Treasury is further
directed inform the senate Of the amount q
I fItra States bonds held IN trust hE TAe meas
urr Department for the Standard oil Company. I
al t'n city Of New York. 60 secure Government
deposits for the National City Bank Of New York. /
ana upon what Gates IueNc DoIOH were deei-tIt'i
and the amount thereof now or at any ti-ie - 'd
10y the Government Of the United States iog Jle 4
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
s}ank 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, POP. 205, 206 207,
20S, 21O 211, PIP. and 334 of my communi-
cation of the 10th instant to the President
pro tempore of the Senate.
When coupon bonds are deposited with
the Treasurer as security for deposits, the
title of course, passes to him by the mere
delivery. and they are held by him in trust
for the depositing bank When registered
bonds are thus deposited they. having
been duly assigned TO him, are transferred
on the books of the Register of the Treas
ury. the deposited bonds Cancelled, and
new certificates or bonds issued to the
Treasurer in his name. in trust for the
depositing bank. When such bonds are
surrendered by the Treasurer they are
assigned 10 the depositing bank. New Ger
tiicates may be issued in its name. BY
formal resolution and assignment, that
bank may direct the transfer to any other
institution or person.
THE records show that the Treasurer
has assigned and delivered upon the or
ders of the National City Bank. to four
teen different parties, a total of s.. 1884 00O.
and of these, Sl,914 600 was transferred
10 the Standard Oil Company. The Treas
ury Department has at no time held any
bonds in trust for the Standard Oil Com |