The Washington herald., 1908-01-15
GIVES SENATE FACTS
Culberson Produces Figures
10 Back Charge.
says Law WAS VIOLATED
Individual Bidders Who offered
More for Bonds Than Banks Paid
Were Not Allowed 90 Subscribe.
Report from Treasury Expected to
Reach the SOIOns To-day.

Senator Culberson, or Texas, minority
| leader, yesterday charged the Secretary
OF the Treasury with having violated the
law in making awards Of Panama bonds
under the recent relief measures adopted
TO improve financial conditions. He Of
fered TO bring befors the Finance Com
mittee witnesses who would present
proofs to sustain his charges. II the
chairman. Senator Aldrieh, would con-
slider the investigation and summon wit
nesses
Mr.. Culberson submitted the following
resolution:
Resolved, That the Secretary Of. the Treasury be
and hereby Is directed 10 report TO the Senate the
amount OF circulating notes issued by each national
| bank 20 which awarded Panama bonds under
the issue Of November ls 1907 and which said notes
we're issued IN consequence Of the award Of such
bonds,
He asked immediate consideration for
the resolution. but as an objection by
Senator Aldrich. of Rhode Island. chair
man Of the Finance Committee. was
made, the resolution went over under
the rules.
Couldn't Get Information.
In explaining why he desired the reso-
luton TO be passed Immediately. Mr.. Cul-
berson said that he wanted to insure that
the information would be sent to the SEN
ate to-day. when Secretary CoTtelyou is
expected 10 reply 10 the recent Senate
resolution calling for information.
Il have myself tried by letter TO get
the information called for by this reso-
luton" said Mr.. Culberson, "but have
been unable TO do so
He read from the act OF Congress au-
thorizing the Panama bonds that the
Secretary should give Ito all citizens OF
the United States an equal opportunity
to subscribe therefor"
Then D quoted the Treasury circular
of November Is. 1907. inviting proposals
that bidders Offering the highest prices
viii receive the first allotments"
Gives Interesting Facts.
i will submit facts to show that the
Secretary Of the Treasury has violated the
law, said Mr.. Culberson. He read a
letter from J. T. Coston. Of Oseeola.
Ark, in which the writer stated that he
had submitted bids for SZ.5D.G00 Of the
bonds at a minimum bid Of 1923 lie read
the letter sent to Mr Coston by Assistant
Secretary Edwards, In which the latter
said. The department did not accent
any individual bids where the amount Of
the bid exceeded $l0.000"
The Senator said he was prepared to
show that responsible individual bidders
had submitted proposals aggregating 81.
GC60. not one OF which was below l0gss
while bonds 20 the amount Of s. .262. SO
had been awarded 90 national banks al q
figure below the lowest bid Of these in
dividual bidders.
WHH Circulation IssuedG
1T is said that the reason why tie
bonds were awarded TO the banks was
that the latter would issue circulation"
said the Senator. While / do not con-
cede that this is sufficient answer 10 the
charge Of fav0ritism, the Senate is en-
titled 90 know whether the banks receiv-
ing the allotments of the bonds actually
issued circulation.
The objection by Senator Aldrich to
present consideration Of the resolution
cut off further financial discussion.