The broad ax. [volume] (Salt Lake City, Utah) 1895-19??, 1900-01-13
THE LAW VIOLATED.
SECRETARY OF TREAsURY'S
ASTOUNDING DEALINGS.
Secretary Gage and the standard OIL
Bsak-The Facts and the Law Re-
speeting an UspreosdehIed Favor
from the Government

/
the old custom-house property at Wal
and William streets for $3.265, 900. TIT
sale was made under provisions OF |
special act Of congress providing tina
the purchaser of the old custom
house should permit the government
to continue to occupy it until the new
custom-house was ready for occu
pancy, the government to pay a.
tenant of the old building per cent
upon the purchase price. or about
$780, 900 year. The day after the sale
James Stillman, president Of the Ma
tionaI City bank, went to Washington
taking with him a certified check
drawn on his own bank. for So, 225 .35C
all but $4,000 of the full price
agreed upon. This check Mr.. Still
man personally handed to Secretary
Gage, who Immediately handed IL back
! to President Stillman to be deposited
without interest in the National City
bank. says the New York World.
In other words. none Of the three
and a 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 banks 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 receiving rent from the gov
eminent fof the custom-house- The
old proverb that one cannot eat a cake
and keep IL is thus set at defiance,
for the National City bank owns the
custom-house and yet retains the mon
ey it paid for the custom-house.
Secretary Gage has never turned the
proceeds into the treasury. as required
by section 4 of chapter S37, under the
terms Of which the sale was made.
The $4,000 held bacx" was for an
other purpose. The deeds of the Gus
tom-house are still in the treasury de-
partment at Washington. The title to
the property has not therefore passed
to the National City bank. and the
city Of New York can collect no taxes
upon the land, as it is nominaIly gov
eminent property. although the Ma
tional City bank owns and receives
rent for It. The $4,000 held back was
therefore merely legal excuse for not
proving the title and for evading tax
alton.
The Law which Was Violated
The law authorizing the sale Of this
property was as follows:
Chapter No. 337, section No. 4:
That the secretary OF the treasury Is
hereby authorized and directed to sell
at public or private sale, to the high
est bidder. after due advertisement,
but for not less than 5000 900, the
present eustom-house property in the
city Of iSew York, bounded by Wall,
William and Hanover streets and Ex-
change place. and to deposit the pro-
ceeds of the sale, after the payment OF
the usual incidental expenses, in the
United States treasury as miscellane-
Gus receipts derived from the sale Of
government property"
Two General Lave which Apply.
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 ofiicer or agent receiv-
ing the same into the treasury at as
early a date as possible"
3,61s, Revised Statutes: "Au pro-
ceeds of sales OF old material, con-
demned stores, supplies or other prop
erty OF any kind shall be deposited and
covered into the treasury as miscel-
laneous receipts on account OF pro-
ceeds OF government property, and
shall not be withdrawn or applied ex-
cept in consequence Of a subsequent
appropriation made by law"
These facts are admitted by Secre-
tary Cages subordinates as to the de-
post of the check In the National
City bank. The only defense Is (first
by Supervising Architect Taylor Of the
that the money was Gov
ctCu iuCO TIC IlCdouIyB Al INC hou-
guage Of the Law when II was placed
in the government depository, the
Standard Oh bank.
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
possession and thus kept on |
the city tax books. That" he said.
was not the governments business.
II was for the New York tx depart
ment" -
Favocs To One Bank.
Four transactions Of the government |
with the National City bank, as the |
World has shown. have melted the ia
Vored institution these 4
PROFITS:
Profit on Union Pacifc--Pay-
mrnfs of Sz3.0oo.e 600 in part dis
tributed among the United
states repositories by National
Civ bank, but the greater part
retained by the National City
bank on deposit. 10000
Profit on FINANCING the pay
ment OF the see.o0o00 indemnity
10 Spaln-estsnAtsso -. SosVS