New-York tribune., 1900-01-30
ME. GAGE REPLIES AGAIN.
RELATIONS WITH NATIONAL CITY BANK
EXPLAINED TO THE SENATE.

EXPLAINED TO THE SENATE.
Washington, Jan. 29-The Secretary of the Treas
ury today transmitted to the Senate his reply to
the resolution of January g. calling for further IN
formation as to his dealings with the on1cials OF
the National City Bank of New-York. Secretary
Gage quotes full the Senate resolution, and ADDS
that It might be considered as fully answered oy
his communication of January 10 in reply to the
Senate's first resolution of inquiry of January on
the same subject. He adds, however that ne VIII
endeavor supply to the best of his AFFINITY What-
ever may have been lacking this first answer
He then takes up the resolution Of January % oy
paragraphs. His reply is in substance as fohows'
"One-That the Secretary of the Treasury be-
and he is hereby directed to transmit TO the sen @
copies of all letters and the substance OF any
conversation agreement he may have written or or
had with A. B. Hepburn. Of the NationaII Cey 6arR
to him, dated June 5 1891
A careful search of the Department hIes does not
shown any answer to the letter OF a; o61 R P d I
written by him to me, dated June o. Io'., noi & W 10
ter Neither do / recall any conversation had had with with
B Hepburn in reply 10 @ such rement made or
expectation of an agreement to be made by the
of the treasury Department with any person or
persons with reference to the subject matter OF
The record Transmitted with my communication
of January TO- 1900 contains all there Is or ever
was, so far I know, concerning the said letter
of A. B. Hepburn. -.
tions agreements. papers and documents between
the Treasury Department and the National City
between June 5. 1897 and october 81. 1871
1t does appear from any record of the Treas
of the secretery Of the Treasury that the Depart
ofciai or private with the National city Bank OF
o7 within the psTGS p 1907 eo tSst there are
no letters, communications, agreements papers ana
%Sob nassed beween the treasury
and the National City Bank within that period.
The Secretary calls attention to the necessity
which arose late in October. 1897, Of dsposing in
oof
which was realized from the settlement Of the Pa
cnc Railway debt without drawing this money out
of active channels, and thus precipitating hnan-
clal disturbance. He refers to his letter to A. B.
Hepburn, printed IN full in his first reply in which
he told Mr. Hepburn that H w. Cannon, Of the
Chase National Bank, had already been requested
ito ascertain how many banks would qualify as
repositories to receive portion Of the $3OOOOOOO
of the railway fund which to be disbursed in
the redemption of Government skies about January
l." The Secretary adds:
The National City Bank could readily qualify by
shs deposit . Sf P9ee 99nfs % 70 eeeefe b R
this instance original recipient and distributor
amount $13645250 1t ought to occur readily to the
thai Il "a raonred On institution Of some considerable
magnitude to handle such check.
TO AVOID DISASTER TO BUSINESS.
AS shown in the communication of January 10.
original recipient and distributor of this fund. and
as Ias & as Bsn ransrred to those nsu
tfons as follows: TO the Chase National 81 600 OOO
National 5000 OOO to the American Exchange Ma
Gna 909 70 the the BanR OF 6o she @
and to the Western National, S,000OO0; All Of
National City Bank, secured by deposits Of bonds
of the United States, were subsequently WlthdraWn
Secretary believes that he accomplished by such
namely the avoidance of that sort of disturbance
in the money market which affects not merely
has too often Demonstrated spreads throughout the
whole commercial and INDUSTRIAL fabric bringing
and disaster such as close the doors of fac
tories and mills, throw labor out of employment
which was witnessed during the period 1893 to 1897
may add the sole @ purpose Wneh has al animated ted
the banks to secure. preserve and keep the public
form within the limitations and requirements of law
as would best conduce to the pressryation and pro-
Section 81 relates to the request for letters and
dispatches bearing alleged conference with
Mr.. Morgan in relation to the Treasury deposits in
the National bank repositories In New-York.' Sec
retary Gage replies;
ments, papers documents file in the Treasury
Department between the Secretary of the Treas
oficials of the National City Bank Of NeWNYork
SecreaH of the rreasry or his bank ana the
reference to letter from the Secretary of the
ionai City Bank OF New-York of Deoember 9a ne "a a
1897, in which the Secretary wrote II have yours
a conferenss with Mr. N Morgan in relation to the
i National
tories of New-York," other than were transmitted
with my Communication to the President pro tenn
pore of the Senate under date of January 10 1900
Nor it be recalled that there was ever any
conversation had between the Secretary OF the
Treasury and Mr.. Stillman, between the Secre-
tary of the Treasury and other men, concerning
the said letter.
The fourth section of the Senate inquiry is
quoted as follows:
And the Secretary of the TREASURY is further
directed to transmit to the Senate copies of any
letters, agreements, communications papers doc
uments or other information in his possession or
in the possession of the Treasury Department re-
specttng the conference between the Secretary OF
the Treasury and James Stillman president of the
York. and any other person persons with whom
he conferred in Philadelphia, as mentioned in his
letter to James Stillman, president the National
City Bank, of New-York of December q, 1897. and
also whether not the conference resulted in any
agreement or understanding in regard to deposit
ing Government moneys in the National bank de-
posories in the city of New-York; whether or not
any record was kept in the Treasury Department
of telephone telegraphic communications be-
tween the Secretary of the Treasury his sub
ordinate officers and the officials of the National
agreement and understanding arrived at by
means of these telephone telegraphic or other
communications
NO CONFERENCE IN PHILADELPHIA
To this the Secretary replies:
1t should be a sufficient answer to all that is re-
quested on the subject of this conference between