The times. [volume] (Washington [D.C.]) 1897-1901, 1901-02-15


discussion begun on Wednesday OF the re
iations existing between Secretary Gag
and the National City Bank of New York
in the matter of the purchase of the OLE
custom house at New York City. Tn,
! Democrats attacked and imputed ulteriol
motives to the Secretary and the Lanl
| officers. Republicans defended the trans.
action. Mr.. Hopkins read a number Of
letters endorsed by Democratic Senator.
and Representatives, including Mr. Rich.
ardson of Tennessee, asking that certain
banks be designated because of political
considerations as national depositaries OF
Government funds. This led to an ex-
citing collcquy between Mr. Hopkins and
MT. McRae. The latter took the ground
! that the letters were private and that Mr..
hopkins was guilty of an improperly in
securing and reading them. Mr.. Hopkins
thought not, He said they were public
records. and that he had lone a public
service In exposing Democrats on the sub
lect Motions to strike out the appro-
prlation to pay the back rental agreed
on for the use of the property and to
withhold payment until the title had
passed to the bank were defeated the
latter motion being lost on a tie
The House resolved itself into Commit
tee OF the Whole at 1:10. for the further
consideration of the Sundry Civil Appro-
priation bill. Mr.. Hopkins took the chair
Mr.. Jones of Virginia addressed the
committee in support of the amendment to
strike out the paragraph of the bill max
ing appropriation for the rental of the
custom house property at New York Be-
lore proceeding far he asked for a ruling
from the Chair on point of order made
by him against the paragraph. his conten-
ton being that appropriation should be
PROVIDED for not in the Sundry Civil bill,
but in a general deficiency bill.
Mr.. Cannon, in charge of the bill men,
toned that the item was not subject to a
point OF order. Mr.. Hopkins was relieved
In the chair by Mr. Payne, who overruled
the point of order Mr. Jones reviewed at
considerable length the history OF the
transaction between the Secretary of the
Treasury and the National City Bank. of
New York City, in the matter Of the pur-
chase OF the old custom house at New
YORK. Only $4,000 In cash had beer paid
TO the United States. The bank. being
designated depository of the United States.
mad given the Government credit for So
2lo0OO, and had withheld the payment Of
SoVOuV, the title to the property remain
ing in the United States, the bank thereby
escaping the PAYNE mt OF State and CITY
taxes on the real estate. This sum of $50
600 had been owing for nearly three years.
tho bank paying the Government interest
at the rate of per cent year, or 81 600.
Inc State and city tax on the real estate
would be. according to Bird S Coler. who
had protested to the Secretary OF the
treasury sol, GOO year. the bank thereby
making $4,000 year by owing the Gov
eminent and escaping the taxes due to the
State and city OF New York Mr. Jones
showed that it was part Of the under
standing between Messrs Gage and Still
man that the title to the property should
continue in the United States.
Mr.. Grosvenor interrupted and Mr.
Jones asked him to explain why bank,
perhaps the strongest in the United States.
having S15,Oo0.000 in Government bonds on
deposit, should continue to owe $50. coo on
a sS.OOO,0O0 purchase unless it was to
evade the tax laws of the State OF New
York. Mr.. Cannon did not attempt to ex-
plain
Mr.. Jones in conclusion made a plea for
the adoption of the amendment. If it
should be defeated he would seek to
amend the bill! by deducting the sum
owing the Government from the sum car
rted in the bill (s371 ,000) for the rental of
the custom house. Mr.. Cannon took the
foor to defend the appropriation, contend
ing that the Government OF the United
States was only carrying out its part of a
contract
Mr.. Hopkins. addressing the Chair. said
that Mr.. Hepburn's letter was not the |
only one in the Treasury Department ask |
ing for deposits of Government funds upon |
political grounds, and he created amuse- |
ment among his political friends and in |
the galleries by reading a number of let
ters from Democratic bankers in Arkan-
lie Dnra
lessee making that request. all of them
IN political grounds. These letters were
endorsed by Senators J. X. Jones' Chair
nan OF the Democratic National Commit
lee; Berry Brice, and Payne, and several
in Congress. The last one
ne read was from Representative Richard-
son. the minority leader. endorsing the
application of the Third National Bank of
Tenn.
But" protested Mr. Richardson, that
S $50 miles from me; not in my district,
and they never contributed to a campaign
'und for me-"
Mr.. McRae took the reading of the let
ers seriously and made an animated at
ack upon Mr.. Hopkins for making public
he letters, and he fereely questioned Mr.
Hopkins as to his source of information
Is to their existence.
Mr.. Hopkins replied that he had learned
If them from a Treasury official in DEM
,cratic Administration. but in reply to a
demand for his name laughingly retorted
hat Mr.. McRae would hardly get that
Mr. McRae said that in the failure to
1--WE the name he would assume that the
etters came from Secretary Gage and
hat he and Mr.. Hopkins were guilty of
dishonest act.
Mr.. Hopkins said that so far from be-
ng a dishonest act, what he had done
vas for the public good in exposing the
hypocrisy and cant of the Democratic
arty and it's leaders on this subject. Mr..
hopkins asked Mr.. McRae II he contend
d that the letters were private.
MIR McRae-Of course they are.
We'll, Mr.. Chairman commented Mr..
hopkins, that is just the difficulty with
he gentleman. They are public records,
pen to him and to me and they were fur
ished upon my request"
TIE motion to strike out the appropria-
IorI was lost. SO to IS.
Mr. Jones of Virginia moved an amend
tent directing the Secretary of the Treas
nv to deduct from the amount of rent
he sum of $50, 600 still due by the bank of
he purchase money, thus closing up the
ale. but it was ruled out on point of
rder An amendment proposed by Mr. |
richardson Withholding payment of the
preparation until the title of the proper
Y had passed under the laws to the bank
'as sustained by the Chair and then re-
acted by the committee. 80 to 80. Chair |
b,,b dafaat- |