Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-02-02

resolution introduced today by Repre-
sentative SulZer of New York requests the
Attorney General, ''if not incompatible with
the public interest" to inform the House
when the government executed the deed
for the custom house property in Wall
street. New York city. to the National City
Bank; where the deed Is at present in
whose custody IT has been since executed
and why the deed has never been recorded"
In statement explanatory of the resolu-
tion Mr. Suzer says:
My resolution speaks for itself. ] think
it viii be complied with by the Attorney
General and we will soon find out when the
deed was executed and why it has never
been recorded, so that the bank will be liza
bic for taxes. This entire custom house
transaction is one of the most scandaIous
pages In the history of this government All
the facts in connection with this business
should be carefully investigated by Con-
gress, and l believe that if ii were inves,i-
gated by Congress sufficient would be
shown to vitiate the whole business.
Agreement With the Bank.
''As is well known, the Treasury Depart
ment made an agreement with the Ma
tional City Bank by which the bank pur-
chased the customs house property for So
265CO0. This was in 1858. and the price
real value of the property. The most ex-
perienced real estate men in New York city
say that the property is worth at least
SlooooOUo and is increasing in value every
day. The bank, however never actually
paid the government dollar for this prop
erty. At the time of the transaction il
simply transferred on its books from one
government account to another government
account $3,2l5,O00. being the purchase price,
less $4,000, and this latter amount has
never been transferred and is apparently
still due to the government. Everybody
knows that the National City Bank is one
of the large repositories of the government
and the Secretary of the Treasury always
has on deposit in the bank government
funds to the extent of millions of dollars.
30 as matter OF fact not single dollar
of the banks money has ever gone out of
the bank to the government for this most
valuable piece of real estate in Wall street.
Why $4,000 Was Held Back.
Apparently the reason why the $50 900
was held back was so that the deed would
not actually pass from the government to
the bank, and hence it would not have to
be recorded in the county of New York,
showing that the title had passed, and thus
making the bank liable for taxes
Then another thing still worse: The
then Secretary of the Treasury made a
contract with the National City Bank by
which the bank leased the custom house
property TO the government for an annual
rental of 4 per cent on the pur-
chase price. amounting to $4,000 a
year rental Just think of it! The
governments own property, and the gov
ernment paying the bank $4,000 a year
for the privilege of occupying its own
premises. And this has been going on for
eight years, and the government has paid
to the bank rental OF over a million
dollars Last year succeeded in stopping
the payment of this rental. striking the
appropriations out Of the sundry civil bill
and | shall make fight against the ap-
preparations this year If any attempt is
made 10 pay this rental to the bank.
ut may be years before the new custom
house is completed. and in the me 4ntime the
National City Bank, without parting eth
single dollar of its own money, will have
received practically the amount of money
agreed to be paid for the old custom house
property. Then the bank will have a clear
title to the property without actually ever
having paid out a dollar for IL and having
made on the transaction several millions OF
dollars in rents. Ii is a disgrace to the
government"
Mr.. sulzer closed his statement by urging
that the whole matter be probCd and in
vestigated, and scoring Messrs. Gage and
Vanderlip in unmeasured terms.
Device to Escape Taxation.
NEW YORK February 2-It was an
nounced several weeks ago that City Con-
troller Metz was trying to find way to
collect taxes on the old custom house at
Wall and William streets. The negotia-
tions for the sale OF the building and site
by the government to the National City
Bank were completed in 1898. and about a
year later the sale was concurred IN by
Congress In special act. The price fixed
was &2G5OOo OF this amount all but $50,
600 was paid by the National City Bank,
With an understanding that the $4,000
should be paid when the government re-
leases occupancy OF the building and moves
TO its new custom house at the foot of
Broadway. CntU that time the government
pays TO the National City Bank Sl30.6OO a
year rental.
Controller Metz In announcing his inten-
tlon to collect taxes on the building for
seven years past. IL possible. said he believed
the witShOlding of 10000 OF the purchase
money was a device to escape taxation As
long the building remained federal prop
erty taxes could not be collected on IL by