The times. [volume] (Washington [D.C.]) 1897-1901, 1900-06-06
TIE FINANCES OF CUBA
Relations With the North American
Trust Company.
Secretary Root Replies to a CnIl
for Observation-Disclosures of Funds
ia the Corporations Hands
sonds AEgrcEntinE 100000
Furnished to the Government.

and transmitted to Congress. The repl
consists of mass of documents. includ
ing ali orders issued by the War Depart
ment referring to the North American
Trust Company a statement as to the com
pany's financial condition. showing in de
| tail the assets and liabilities; s:atemen
OF its organization and copies of all bono
filed by it to secure the Government. bot:
in acting as fiscal agent and a public de
pcsitory. Much of the information did no
arrive from Havana until yesterday.
| was called for by Secretary Root last week
Secretary Roots letter of transmitta
says that the North American Trust Com.
/ pany is corporation organized under the
laws Of the State of New York, with &
paid-up capital of $1,000, 600. The com.
| pany transacts two kinds of financial bust.
ness for the Government. 1t acts as finan-
cial agent for the Government, in which
| capacity the company receives in New
York from the Treasury Department mon
| eys of the United States designed for dis
bursement in the Island of Cuba, and pays
out the same amount of money at its va
rious branches in Cuba on the checks OF
various disbursing officers stationed in
that island to whose credit the deposits
are made, thus relieving the Government
| OF the necessity of transmitting money
In specie to the different points in Cuba
where it Is to be used. The company acts
also as depository of the funds of the
Island OF Cuba. In this capacity the COM
pany receives deposits of Cuban revenues
10 the credit of the disbursing officers of
the Cuban government and pays them out
on the checks Of such officers. Secretary
Root says:
The relations Of the North American
Trust Company to the Government as fiscal
agent. are not with the War Department,
but with the Treasury Department. through
which the designation of the fiscal agent
was made and the business under such
designations has been conducted. The
only connection Of the War Department
herewith has been that whenever the
Treasury Department has honored
War Department acquisitions FOR the
payment OF money to discussing officers
OF the army in Cuba, by depositing the
money with the trust company. such dis
bursting officers have obtained the money
by drawing their checks upon the trust
company"
Secretary Root explains that as fiscal
agent OF the United States in Santiago a
bond of s250.C00 was filed and as fiscal
agent for the city of Havana and other
places in the Island OF. Cuba another bond
OF S2o0,GO0 was fled. Continuing. he says:
Inc total amount of moneys of the
United States in the hands Of the North
American Trust Company, as such fiscal
agent. drawn from the appropriations for
the War Department, or having any rela-
tion to this Department or to the army is
S1S.622.C9. Detailed memoranda showing
the deposits and what branch Of the army
accredited to is appended to the reply.
1t will be observed that under the bonds
vnp hut no. 4 Co.,
ury Department, the agent is stated to be
entitled to commission OF one-half of
l per centum upon the moneys received
and disbursed by it. 1 am informed that
such commission has never in fact been
paid, and that no commission has been paid
to the trust company for its services as
fsca! agent. but that a claim therefor Is
now pending before the Treasury Depart
nent uradjusted.''
1t is explained that the company was a,s1
designated by the Secretary of War as a
depository for the revenues CT the Island
OF Cuba upon furnishing approved bonds to
the amount of SI56, Geo, and was later re-
CURED to furnish additional bond in like
amount, and in July, 1899. was required to
furnish another additional bond Of $500. 90.
making total of 100000. The revenues
of Cuba were regularly deposited with the
trust company until the Goth of March,
1900. when an order was made provid ng
for the establishment of an Independent
treasury in the Island of Cuba, ard since
that time the North American Trust Com
pany has not been used as general deposit
tory of the revenues of the island.
1t is remarked that under the system
of an Independent treasury revenues of
the island with few unimportant excep-
tons are paid directly to the treasurer
the treasury, and paid out only on war
rants signed by the auditor and counter
signed by the Governor. so that the gen.
eral funds of the island are retained in
the treasury vaults instead of being de-
posted with the trust company. When
moneys are allotted from the general fund
to disbursing officers. the treasurer is au-
thorized to deposit the money so allotted
with bank or trust company which has
qualified as depository Of island funds
to the credit of the disbursing officer to
be paid out on that officers checks at such
points of the island as may be most con-
venient to qualify as a depository.
The exception to the deposit OF revenues
with the treasurer, to be kept in the
treasury vaults. consists of authority to
the treasurer to direct that at points our
side of Havana, where money collected is
needed for disbursement at point of col
lection 1t may be deposited for disburse
ment at that point instead OF being sent
to Havana and then sent back to the dis
bursting officer. For receiving, transmit
ting. and paying out funds thus allotted
to dsbursiEg officers. repositories are al
lowed one-fourth of l per cent when the
payment is in the same place where the
deposit is made. and one-balf ef per cent
when payment is made in a different place
than where the deposit Is made
THE moneys remaining on deposit with
the North American Trust Company TO the
credit of the Treasurer of Cuba" says Mr.
Root, amount to s226. Gs344. The DISPOSE
ton of all moneys of the treasury of Cuba.
according to the last report. dated May 20.
1900. is as follows: Deposits with the
North American Trust Company, S22i.GS3
Spanish and French gold on transport Sedg-
wick. in transit to the assay Office, CT the
value in United States currency OF $780,
90; in vaults of the treausry of Havana.
s4Sl.S1T, making a total of 81 ass. 500. The
trust company also held on the Goth Of May.
1900, TO the credit of various dishursing Of
ficers OF the Island of Cuba at New York. |
Havana. Matanzas, Cienfuegos, and San
tiago less such drafts as may have been
made against the came. but not repor ell
on that date, sums remaining from the de-
posits to the credit OF disbursing officers
Of the Island of Cuba under the former ar
aggregating $780, 92 and sun
deposited TO the credit OF such disbursing
officers under the order OF March Is, 1900. !
ssgregating si,4O0,0O0."