New-York tribune., 1901-02-15
PRICE THREE CENTS.
PHARISEES UNMASKED.
CUSTOM HOUSE SALE STARTS A FIERCE
FIGHT IN THE HOUSE.
DEMOCRATIC LEADERS SHOWN TO HAVE
ASKED THAT BANKS BE MADE Gov
EMINENT DEPOsIToRIEs FOR
PARTISAN REASONS.


PARTISAN REASONS.
Washington Feb 1.-THE sale of the New.
York Custom House to the National City Bank
occupied the centre of the stage during the de-
cate on the Sundry Civil Appropriation bill in
the House to-day. Much excitement attended
the debate Mr. McRae, Arkansas Democrat.
raised the issue with motion TO strike out
the appropriation of $371047 for rent Of the
Custom House. and with this motion as a basis
Mr.. Jones, of Virginia. also Democrat. made
a fierce attack on the manner and circumstances
of the sale and the vast profits which he al
legged the bank made out of the transaction
Secretary Gage was sharply criticised. and sew
eral references were made to the letter written
by A. b. Hepburn. at that time vice president
of the National City Bank. to the Secretary.
Mr.. Cannon and Mr.. Hopkins of illinois, de-
Tended the Custom House transaction. and the
latter turned the tables the Democrats by
springing on them series Of letters written by
prominent Democrats. including Senator Jones.
of Arkansas. to the Secretary of the Treasury
under the Cleveland Administration. asking that
Government funds be deposited in banks man.
aged by Democrats. His centre shot letter
written by Representatives Richardson. of Ten
| nesee. now the Democratic leader of the House,
| in behalf Of bank at Murfreesboro, Tenn Mr.
McRae Indignantly charged that the letters were
private and had been furnished to divert atten-
ton from the sale OF the New-York Custom
House He and Mr. Hopkins had hot words.
| and for a moment it looked as II there would be
| a personal encounter. In the end Mr.. McRae's
amendment lost 50 to 9S. strict party
VOTE and another amendment offered by Mr.
Richardson to provide that the rent should not
be paid until the title to the old Custom House
passed from the Government TO the bank failed
| on tie vote
HOW THE TROUBLE BEGAN.
Mr.. McRae in moving to strike out the appros
priation for the rent of the Custom House.
reviewed the sale to the National City Bank,
saying that $4,000 withheld that the
title would not pass to the bank and it thereby
| escaped taxation. Bird s. Coler. Controller OF
| the City of New-York he said, had protested to
| the Secretary of the Treasury. asserting that
the city and State were being defrauded out of
$4,000 year in taxes.
Mr.. Richardson declared that the Secretary OF
the Treasury had contracted to retain the title
| TO the property in the United States.
Mr.. Cannon called attention to the fact that
| the Custom House site was sold under the au-
| thority of an act of Congress which permitted
the payment of the purchase money in install
| ments
| Mr. Jones expressed the opinion that the bank
would not pay the $4,000 withheld for ten
years.
Mr. Richardson read the letter of the president
! of the bank. saying that so long as the title to
the property remained in the United States the
bank would not be liable for taxes water rent.
and Secretary Cages reply agreeing to this un-
derstandng.
Don't YOU know" intertected Mr. Hill. Of
Connecticut. that with regard TO the taxes
under the laws Of New-York. it doesn't make a
particle of difference whether the title is in the
bank or the Government
SECRETARY GAGE ATTACKED.
Several New-York Democratic members
jumped to their feet to deny this statement.
Proceeding. MIR. Jones read message from
the Treasury Department in answer TO an in
quiry made yesterday by Mr.. McRae. 70 the ef-
feet that $4,000 remained unpaid under the
terms of the act which authorized the SALE that
it drew interest at the rate of 4 per cent. pay
able the pleasure of the purchaser. not. how
ever later than the date Of the completion of the
Custom House. Mr.. Jones said the new
Custom House would not be completed for ten
years. During those years. he said the bank
would obtain S136.OO0 annually for the rent OF
the old Custom House. would save $4,000 taxes
and would have the use of S3,21O.O0O. which at
per cent. would be equal to S12S.O0O a year.
He figured that the bank would obtain $307 900
in ten years. almost enough TO pay for the site
States funds deposited with the bank In con-
clusion. Mr.. Jones declared that the transaction
fraud the Government and If the Sec
retary of the Treasury allowed IL to continue
ne would be particeps criminis to the fraud
Democratic applause)
CUSTOM HOUSE SALE DEFENDED.
Mr.. Cannon. replying, explained in great de-
tail the scope of the transaction. He declared
that the whole subject an exceedingly plain
business proposition when il was divested of the
partisanship and defamation which might have
it's place the stump in the stress of a political
campaign, but was hardly appropriate IN the
discussion of the law. II for one" said Mr.
Cannon, propose to treat this institution as r
would treat the legal demand Of any other cor
poration or individual. be he rich or poor"
Why should the Government which ha,
s15,OO0Oo0 on deposit with the National City
Bank. pay interest TO that bank?' asked Mr..
Richardson.
The gentleman is playing to the galleries"
replied Mr.. Cannon The Government is not
paying interest matter Of favor 1t Is pay
ing the rent il agreed TO under the law The
gentleman seeks to muddy the waters by speak
ing OF the large Government deposits in the
bank The United States deposits its funds
wherever a bank qualities as a depository by de-
posting in the Treasury bonds dollar for dollar
1t becomes part Of the Treasury for that pur-
pose"
why did Congress authorize the sale Of this
property when IL was apoarent that offices would
be needed until the new Custom House was COM
pleted?' asked Mr. Jones
That is not involJed in this discussion" re-
piled Mr.. Cannon. Congress proposed TO build