New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-02-10
CUSTOM HOUSE INQUIRY
RENTAL FROM CITY BANK.
Sulzer's Charges of "Outrage and
,SteaP Not Borne Ont by Facts.

Washington Feb o-At hearing before the
House Committee on Public BUILDINGS Gnu
Grounds to-day the Assistant Secretary Oh 'iie
Treasury Horace A Taylor. took consioerapie
OF the wind out of Congressman Sulzer . saii9
In regard to the charges made by him that the
disposal Of the old Custom House property III
New-York to the National City Bank was an
Outrage and a steal" The committee was IN
session to hear the facts IN the case, In order
,rtellizently to pass upon the resolution pre-
sented to the House by Mr.. Sulzer, which called
for Information as to when the deed for the sale
was executed. where it was deposited and why
II had not been recorded in New-York County.
Mr. suIzer stated that the authorities In New
York have never been able to find out when the
deed was executed where 1t was depositeu
or any information concerning It he also as
sailed the Treasury Department FOR the Trans
action pronouncing 1t an ''unspeakaole outrage
on the government and on the city or Newly ork-
He asserted that the property was worth eo'oVu'-
600 when 1t was sold. and it worth SlooOoOoo
now He said that the Custom House covered
two large blocks. about 800 by 400 feet He
stated that more than S1OOO.0O0 had already
been paid to the National City Bank for rent
He further stated that not a dollar had been
paid for the property by the National City
Bank-that the transaction was simply matter
~ bookkeeping transferring the purchase price
n. 81 265 600 from one account to another. He
declared that there ought to be an investigation
by Congress of the whole affair."
Mr.. TAYLOR replying in detail to the charges
said that In the first place. no deed mad ever
been executed, so IT could not be deposllen any
where and could not be recorded. Inc reason
the deed had not been executed. continued MT
TAYLOR, was because the property was not iuIlS
maid for. and under the contract the Natlonai
C,,+v Rank was not compelled to make final pay
rnent and get the deed until the new Custom
House was completed
Mr. Taylor showed by the records that the
nroperty, under an act of Congress, was offered
at one time for 100000 that $4,000 was spent
in advertising to secure bidders and not olo
could he secured. He produced letters from
former Assistant Secretary Of the treasury
under President Harrison and from an Acting
Secretary of the Treasury under President
Cleveland stating that it was doubtful whether
the nropertv could be sold for as much as
g ooo oOO and suggesting that It would be I'M
wise to place this limit in the bill. because If no
bidders could be secured the sale could not De
made. He also showed that under second act
of Congress fixing the minimum price at SooOo'-
000 the property was advertised IN e4eNeh
leading New York papers and efforts were rliaoe
for months to secure bidders. and the highest
hid of the three submitted was S3.265.O00. or
1865 600 above the amount fixed by Congress
He further showed that the government IN
stead of having paid 100000 in rentals had
maid less than one-half that sum. He showed
that the size of the lot, instead or being Two
large blocks was less than one-half OF one. MT.
Sulzer had stated that the lot was $40 by 4Oo teet
making 100000 square feet, while there are only
33 600 square feet in it. or one-r1nth the size
given by Mr.. Suzer. In replying to the charge
that the National City Bank had not pald a
dollar for the property, but simply transferred
the account on it's books, he showed that the
fuI amount had been actually transferred 10
the credit Of the government at the Sub-Ireas-
urv in New-York, making a payment as COM
plete as though the actual currency had been
paid over. ., -
nected with the sale of the Custom House
property was as clean and Intelligent transac-
tion as any ever made by a public officer; that
more than S25O000 above the amount fixed by
Congress was secured. and the money was
turned over 90 the credit of the government,
barring $4,000 still unpaid. The property was
leased lust as Congress directed 1t should be.
for per cent on the amount of the purchase.
He declared that II was remarkable that Mr..
Gage. the Secretary of the Treasury at the time,
should now be assailed for doing precisely what
Congress authorized and directed that he
should do.