The evening times., 1900-01-11
THURSDAY. JANUARY II, 1870.
Mr. Gnee in D.en Water.


Congress iunal resolutions of enquiry con-
cerniuE his deals with The Standard Oil
Bank and his peculiar course IN connection
with the sale OF the New York Custom
House TO that institution, is now before the
country. As an effort to defend his meth
DDS and actions the document is a dismal
failur As an exposure OF the business
connection between the Administration and
the trust magnates who became its polit-
iCaI creditors in 1896, it is an ahazins sue
cess.
The defence. instead Of afrording the Re
publican leaders in Congress an excuse for
attempting TO smother the scandal, has
simply paralyzed them by its weakness.
amounting to puerilty. To say that il has
made a bad matter worse would be putting
the case mildly. Il has more than justified
the most severe criticisms that have been
spoken or printed r. garding Mr.. Gage and
his conduct in the premises. since the frs
unpleasant bres Jh Of suspicion began TO
faint the national atmosphere. Some OF
the Republican Senators affect a fippant
manner respecting the uncanny business
and say that now the Secretary ias an
But .noy know better Action OF a kind
iEcouvcui mt 10 he Standard Oil Bank and
her Administration elements may indeed
he prevented I'm the House. and Executive
power over that body. of course, can pre-
vent the enactment Of punitive measures
by Congress. Blu, other things are liable
t. happen. and which cannot be rendered
impossible while the Senate stM preserves
most Of the attributes OF an independent
dClibcraJivC organization.
Nothing can prevent a reasonably tuu
discussion of the offence and defence in
the Senate. Administration Senators may
think that they can sit still, take their
medicine. and reply not. neither make WY
faces: but We do not think them able to
sustain such test however much silence
may be the safest response TO unansweT-
able propositions. II they are silent. the
country will be apt to say that silence
gives consent" and the country is not in
a condition Of absolute political arophy
just now. and cannot be safely ignored.
Mr.. Cages best friends end thicL-and-
thin apologists are astonished that he has
not been able to cons .ruct better story
TO cover his course. Accused Of a viola
tiou OF law. made criminal by the Ian
gnage Of the statute. in depositiHg money
outside OF the Treasury which it was man
datory upon him TO cover into the Treas
ury. ne reso. Is TO the pitiable subterfuge
of stating that il has been the established
custom Of Treasury officials. under the
counsel Of their legal advisers. supported
consider moneys on deposit TO the credit
Of the Treasurer Of the United States in
designated repositories as money in the
Treasury"
Unfortunately for Mr.. Gage in making
this sweeping assertion. he has been una
bic to furtify it by any corrobOrative testi-
mony For nearly a week the clerical force
of the Treasury Department has been hunt
ing for precedeuts. and favorable evidence
Of custom. during past Administration. 1t
is quite safe to say that il anything Of the
kind had been found. il would appear in
company with the plea Of defence; but
nothing in the line mentioned appears TO
have been offered. He does not tell us
what one or more OF his predecessors in
Office established" the custom Of consid-
ring money loaned to banks without inter
est, and which they were uotOriOusly loan
ing to the public at interest, az money in
the Treasury within the meaning of law
He leaves ms i'm the dark as 10 the per
sonality of the legal luminaries who have
advised such a conception and practice. and
they have had the sanction OF the
Supreme Court. On the contrary. Mr.
Gage is bound to know that on November
20 last Mr. Justice McKenna. speaking
for the court. rendered an opinion. reaf
hrming an earlier one. that money depos-
tied in designated repositories Of the
United States Is not thereby covered into
the Treasury.
The Secretary attempts to cover his spe-
eifc acts Of Questionable regularity in rela
tion to the Custom House deal. are partfcu-
larly and painfully feeble and pitiful lie
has the assurance to treat the transaction
as if il had been undertaken and effected
under the general act of 1864 whereas he
knows, end Congress and the country know.
that it was subject TO a special act passed
for the specific purpose Of this identical
sale. ana nis duty in the matter was plainly
detailed in the text OF the law He cannot
find any warrant in that authority for his
surprising conduct in selling the proper
y to the Standard Oil Bank. and going
through the form Of accepting a partial
payment Of S3.2i5.OO0. without one cent NJ
th" money ever leaving the vaults of the
bank. Nor can he probably excuse with
mucl success what looks like colIusion he
tween Limself aud the Standard Oil Bank
to deprive le city Of New York Of its lust
right 10 tax realty owned by citizens OF
that municipality. Before the fiction OF
payment was accomplished the bank presi
dent wrote to Mr.. Gage. regarding the
dummy check agreed upon, that the pay
ment' would be made upon the under
standing OF course. that VIC are not to
lie liable for any taxes or water rates upon
the property as long as you remain in pos
session. and the balance Of the fifty thou
sand dollars rclaains unpaid and the deed