The times. [volume] (Washington [D.C.]) 1897-1901, 1901-02-14
THE NAHIONALCITY BANK
Representative Richardson Ar
raignS Secretary Gage.
MIR. Moody, Republican Member of
the Appropriations Committee, Ad-
mfts the Force of the Criticism
Made by the Minority Leader
Rental of the Custom House Site.

Rental of the Custom House Site
81 realize the force OF the criticism The
gentleman has made. I do not intend Il
answer his arguments" This statement
was made in the House yesterday by Rep
resentative Moody of Massachusetts, q
Republican and one OF the leading mem
bers of the Committee on Appropriations
during an argument made by Representa-
tive Richardson of Tennessee against the
National City Bank of New York receiv-
ing any rental from the Government for
the old custom house site. 1t is the first
admission of the injustice of the claim
ever made by a Republican member. Re-
publicans have claimed that the transac-
tion was legitimate and that Mr. Gage
had made a good bargain for the United
States. Continuing. Mr.. Moody made an
other important. statement bearing upon
This case and explaining why the appro-
priation was put in the SundEy Civil bill.
Mr. Moody said:s ..-..
Let me say to him (Mr. Richardson)
the subcommittee having charge OF this
bill, consisting of some Republicans and
two eminent gentlemen from that side Of
the House, put this appropriation in sole
ly upon the ground that the National City
Bank had the right to go into the Court
of Claims and recover that money as a
Judgment against the Government"
Representative Richardson, the minority
leader of the House, who has given care
ful study to the whole transaction be-
tween the National City Bank and Secre-
tary Gage. regarding the old custom house
site. made one of the strongest speeches
OF the day against the rental item IN the
bill Even the Republican members gave
him close attention He was frequently
interrupted with applause from the Demo-
Gratis.
In beginning his speech, Mr.. Richard
son referred to the vast expenditures be-
ing authorized by this session OF Congress
and the extravaganza which characterized
some of the items in the bill under con-
eideration-
Mr.. Moody favors economy. He ques-
tened Mr.. Richardson as to bills that had
been passed at this session and finally
asked him what there was in the Sun1ry
Civil bill that should be stricken out.
II have not had time to go through the
bill as should like to have DONE" replied
Mr.. Richardson, but before ! have con-
cluded l will name at least one item to
gentleman
Mr.. Cannon. in charge of the bill, chal-
ienged Mr.. Richardson to show single
item which should be stricken out.
Il will name one if can put my hand
on the BILL" he said ION page for the
rent of old custom house at New York
Now. / shall object to that item and
move to strike il out. l want to say a
few words about il How does it arise,
To rata he brsa he
of the Treasury was authorized to sell the
old custom house in New York City.
limit was put upon it. He sold IL for
SO. 265, COO. He sold it to the National City
Bank of New York City. He made con-
tract with that bank before he sold IL
to the bank and it was a condition of the
trade that he was TO rent this property
from the bank and give them a rental
equal 10 per cent on the purchase non
ey. The bank bought 1t in August. 1899,
for s3.265, ,oC0. AS a further part and con-
dftion in that trade, Mr.. Chairman he
made an agreement with that bank that
as long as the Government of the United
States held the title to the property the
bank would not be liable for taxes In
other words, an agreement was made that
4 small sum should be reserved and not |
paid by the bank for the property, and
hat so long as that state Of affairs exist
Il the bank assumed that il would not be
liable for municipal and State taxes in
New York. Now, what followed? After
This trade was made the National City
Bank of New York, without paying one
dollar of purchase money, gave deposit
check to the Secretary of the Treasury
ior the purchase money. three million dol
ars and over. as have stated. A simple !
deposit check was given to the Secretary
1f the Treasury for this purchase money. |
Less $50,0oe." Mr.. Smith Of Kentucky |
said
My friend says less $4,000 continued !
Mr.. Richardson. There was small cash |
payment made Immediately the contract !
was made to pay per cent upon this pur- |
chase price, which was not paid, and which |
mas never been paid. In addition to the |
purchase price Of this property the Sec
retary Of the Treasury has maintained a |
iApOSit In that bank on an average every |
lay since that time OF S15. .o00, 600 and over. |
leave out the odd figures II you take |
simply the contract, charge the Govern |
nent of the United States with per cent |
rent On the purchase price and also credit |
tie bank with per cent interest on the |
purchase money which was kept, you will |
fnd that rent viii be equal to $3.50 900 q |
year. The Per cent interest Will be |
equal to $4,000 per year, MAX
ing two hundred and sixty odd |
thousand dollars for each year. But In |
addition 70 that, take the interest on the |
rs. .000. 900 ar per cent, that the Secre- |
tary OF the Treasury has kept on deposit |
with that bank. and count per cent in |
Lerest upon that per annum. and you have |
$500, 600 and over of interest upon those |
deposits. Six hundred thousand dollars in |
terest upon the deposits. added to $3.50 900 !
upon the other items that have men |
Lioned. makes $3.50, 600
'In five years. the bank. without having |
paid any money. Will have received as a |
present, this custom house property worth !
g, ,2s5. GOO Now. is that right? Is that
)roper2
There was another corporation, the |
Loan and Trust Company OF
lew York. which offered to pay So. .055 600 |
ash for the property. That proposition
vas turned down. this one was accepted.
With the additional provisions in the con-
ract which / have referred to- which. in
fleet, will donate as q gift this custom
louse property to the National City Bank
II New York ] want to tell you why. in
ny judgment. this thing was done. do !
TO PREVENT TUT rnru