Manchester Democrat. [volume] (Manchester, Iowa) 1875-1930, 1900-01-24
GAGE AND STANDARD on BANK.

0So- o.S~ e.
GAGE AND STANDARD OIL BANK.
On July Inst the government sold
to the Standard Oil National City Bank
the old Custom House property mt Wall
and William streets for S3,.265.0G0. The
sale was made under provisions of II
special act of Congress providing that
the purchaser of the old Custom House
should permit the government TO CON
tinue to occupy it until the new Gus
tom-House was ready for occupancy
the government to pay rs tenant of the
old building 4 per cent. upon the pur-
chase price, or about S130,GoO a year.
The day after the sale james Stil!man,
President of the National City Bank
went to Washington. taking with him
certified check, drawn on his own
bank, for $3,225. 350-;ll but S4OGG0 of
the full price agreed upon. This check
Mr.. Stillman personally handed to Sec
rotary Gage, who Immediately handed
1t back to President Stillman to be de-
posted without interest in the National
City Bank.
In other words, none of the three and
quarter millions of dollars which the
National City Standard Oil Bank paid
the government for the United States
Custom-House SIX months ago has ever
for one hour passed out of the bank s
control. The bank has had not only
the use of the money every day since
to loan out at interest for its own profit,
but 1t has at the same time been receiv
ing rent from the government for the
Custom-House. The old proverb that
one cannot eat Il cake and keep ii is
thus set at defiance. for the National
City Bank owns the Custom-il House and
yet retains the money it paid for the
Custom-House.
Secretary Gage has never turned the
proceedings into the Treasury, as re-
CURED by section of chapter 337, I'M
der the terms of which the sale was
made.
The $4,000 "held back was for an
other purpose. The deeds of the Gus
tom-House are still in the Treasury
Department at Washington. The title
to the property has not therefore pass
ed to the National City Bank, and the
city of New York can collect no taxes
upon the land, as 1t is nominally gov
eminent property, although the Ma
tioml City Bank owns and receives
rent for it. The $4,000 held back was
therefore merely a legal excuse for not
proving the title, and for evading taxa
ton.
The law authorizing the sale of this
property was as follows:
Chapter No. 337, Section No. 4-That
the Secretary of the Treasury is here
by authorized and directed to sell at
public or private sale. to the highest
bidder, after due advertisement, but for
not less than $3,0OO,OOO the present
Custom House property in the city Of
New York, bounded by Wall, William
and Hanover streets and Exchange
place, and to deposit the proceeds of
the sale, after the payment of the usual
incidental expenses, in the United
States Treasury as miscellaneous re-
ceipts derived from the sale of govern
ment property.
Section 3,617. Revised Statutes-The
gross amount of all moneys received
from whatever source for the use of
the United States, except as otherwise
provided for in the next section, shall
be paid by the officer or agent receiving
the same into the Treasury at as early
date as possible.
3,61S, Revised Statutes-All proceeds
of sales of old material, condemned
stores, supplies or other property of any
kind shall be deposited and covered into
the Treasury as miscellaneous receipts
on account of proceeds of government
property" and shall not be Withdrawn
or applied except in consequence of a
subsequent appropriation made by law.
These facts are admitted by Secretary
Cages subordinates as to the deposit
of the check in the National City Bank
The only defense is first by Supervis-
ing Architect Taylor of the Treasury
that the money was covered into the
Treasury" in the language of the law,
when 1t was placed in the government
depository, the Standard OIL Bank.
Chief Daskan, of the public money
division, said vouchers showing the
money had been received by the gov
eminent We're in his possession.
"The money" said he, very likely
was never covered into the Treasury,
but deposited in some one of the gov
eminent depository banks"
He did not know why the property
was still being recorded as in the gov
ernments possession and thus kept off
the city tax books. Chat" he said,
"was not the governments business.
1t was for the New York Tax Depart
ment."
Four transactions of the government
with the National City Bank have net
ted the favored Institution these prof
its:
PROFITS
Profit on Union Pacihc-Payments
of S33, 100000 In part distributed
among the United States depos
tories by National City Bank,
but the greater part retained by
the. National City Bank on de
Profit on .;ananelng" tie payment ~
of the S20,000,000 Indemnity to
Profit n1nu on Custom House Deai.in. 'VV00o
terest ON $3.265, 900 for $50 days,
at 8 per cent. S96,3s7; rent from
United States Treasury Depart
ment for $50 days Mt 4 per cent.
$84.224: city taxes saved for $50
days, $4,000 .....:............. 196561