The Savannah morning news., 1901-02-15
CAGES LITTLE DEAL
THOROUGHLY AIRED IN HOUSE
YESTERDAY.
REPUBLICANS RETALIATED.
READ DEMOCRATIC LETTERS FOR
SIMILAR FAVORs.


ernment-Was Very Profitable TO
the Bnnk and UndeniabIy Done for
Political Rcusons-The Secretary
Upheld by strictly Party Vote.
Washington, Feb. 1i.-The events in con-
nection with the sale of the old New York
custom house to the National City Bank,
which heretofore has been the subject
of much comment, occupied the center Of
the stage during the debate on the sundry
civil appropriation biz in the House to-
day Much excitement attended the de-
bate. Mr.. McRae of Arkansas, raised
the issue with motion to strike out tas
appropriation OF $37,047 for rent of tho
custom house, and with this motion as a
basis Mr.. Jones Of Virginia launched a
fierce attack on the circumstances and
manner of the sale. and the vast profit
which he said the bank made out of the
transaction. Secretary Gage was sharply
criticised and several references were
made to the letters written by Mr.. Hef-
born to Secretary Gage apropos of tao
political claims of the bank
Mr.. Cannon and MIR. Hopkins Of Illinois
both defended the Custom House transac-
ton and the latter turned the tables on
the Democrats by springing upon them
series of letters written by prominent
Democrats, including Senator Jones. OF
Arkansas 20 the Secretary OK the Treas
ury. under the Cleveland administration.
asking the deposit of government bonds,
IN banks with Democratic prOclivlties. His
center shot was a letter written by Mr..
Richardson of Tennessee. now the Demo-
cratic leader of che House
Mr.. McRae Indignantly charged that tho
letters were private letters and had been
furnished TO divert attention from the
sale of the Custom House. He and Mr..
Hopkins had hot words, and for a moment
1t looked almost as If there would be a
personal encounter. In the end Mir. Me-
Rae's amendment was lost, So TO 9s
strict party vote and another amendment
offered 20 Mr.. Richardson. to provide chat
the rent should not be paid until the title
TO the Old Custom House passed from the
government to the bank, failed on a tie
vote. Fortytlree OF the 1877 pages of the
sundry civiI bin were completes to-day.
Mr.. Jones read a message from the
Treasury Department saying chat $4,000
remained unpaid under the terms OF the
act which authorized the sale; that 1t
drew Interest at per cent, payable al
the pleasure OF the purchaser
Mr.. Jones said the new Custom House
would not be completed for ten years..
During those years, he said, the bank
would obtain $4,000 annually for the rent
of the old Custom House; would save $50
600 taxes; would have the use Of 81. 10000,
which, at 4 per cent, would be equal to
Sl2SO00. He figured that the bank would
obtain 1907 900 In ten years. almost enough
to pay for the site, besides having tho
use of millions OF United States funds de-
posted in the bank. Mr.. Jones declared
the transaction was fraud upon the gov
eminent and If the Secretary OF the Treas
ury allowed It 20 continue he would be
particeDs criminis to the fraud. Demo
cratic applause)
MIR. Cannon, in reply, contended it was
q pain business proposition.
Mr.. Hopkins produced copies OF letters,
which he said had been written by PROM
inent Democratic lenders under a Dem
ocratic administration, asking that certain
banks be made government repositories
because of the political associations of
their managers. Mr.. Hopkins said the
Hepburn letter to Secretary Gage was NOT
the only one OF that kind; 1t had Demo
cratic precedents. one letter he read ask
ed that the German National Bank of
Little Rock, Ark, be made government
depository, adding: 1T is exclusively
Democratic in its management"
Another letter read referring 20 the
bank authorities seeking governmental de-
posits, said:
'"rhey are all reliable Democrats" and
was signed by Senator Berry of Arkansas.
To this was affixed: Il concur, j. X.
Jones'"
Another by s. M. Peel, then a member
OF Congress. objected to a government
depository because 'the owners Of that
bank are open and notorious Repubh-
cans"
do any OF these letters say lin consid-
GRAFTON Of contributions they are enti-
tied to the deposits, etc?' asked Mr..
Richardson.
Mr.. Hopkins then read letter to Sem
ator Brice from a Toledo, o., Democrat,
commenting a banker who had been a
liberal contributor"
Did any Of these gentlemen buy prop
erty Of the government" asked Mr..
Richardson.
Mr.. Hopkins Immediately produced a let
ter written by Mr.. Richardson. under the
Cleveland administration indorsng "for
good and satisfactory reasons" an appl-
cation for the transfer Of the government
deposits, from the First to the Third Ma
tional Bank Of Murfreesboro, Tenn Mr..
Richardson retorted that that bank was
$50 miles from his district, and never
contributed to his campaign.
Mr. McRae in reply 10 Mr.. Hopkins
said the letters were private. and charged
that they had been furnished to break
the force of the charge against the Sec
retary that he was paying political debts
due the National City Bank Mr.. Hop
kins said he had learned of their exist
ence during the last Democratic adminis-
tration from officials in the Secretary's
Office.
Mr. McRae insisted that Mr.. Hopkins
should state whether Secretary Gage had
furnished the letters.
Mr. Hopkins did not reply
III the gentleman does not reply / will
assume" he said, "that both he and Sec
retary Gage are guiity"-he hesitated
moment and then added-"of violating the
rules"
Mr.. McRae's motion to strike out the
appropriation was lost. 50 to 9S
Mr.. Jones then offered an amendment
TO provide that of the appropriation of
S371. .0n for rent the Secretary Of the Treas
ury should withhold $4,000 stlll due the
government on the purchase price of the
property. Against this amendment Mr..
Cannon raised a point OF order, which the
chair sustained.
Mr.. Richardson offered an amendment
providing that none OF the rent should be
paid until the title passed from the gov
crnment to the bank.
To this Mr.. Cannon also made a polrt
OF order, but Il was ovorruicd The vote
on the amendment was a ne. % to g2. ami
Falf