The Waxahachie daily light. [volume] (Waxahachie, Tex.) 1894-current, 1908-02-07
GRILLS SECRETARY
IN SENATE SPEECH CULBERSON
INDICTS CORTELYOU ON
SIX COUNTS.
A VIOLATION OF LAW
senator Declares that Public Money
Was Unlawfully Given New
York Banks to Foster
ja!''
Speculation.

! Washington, d. c., Feb. Fig
uratively speaking, Senator Culber-
son yesterday snatched off the chap
let's which Secretary Cortelyou wove
| around the brows of the New York
bankers in his report to the senate
and sought, instead, to crown them
with shame
Senator Culberson in a speech of
much vigor and fire assailed not only
! the New York bankers, but the sec
retary of the treasury, whom he in
dicted on six counts of having viola
ted the law by his operations during
the financial stringency
But, though there were six counts
in the indictment, Senator Culberson
restricted his speech to the last,
which was that the secretary had not
distributed the treasury funds in ac-
cordance with the law and that the
money he turned over to the New
/ York banks, instead of being used to
discharge their obligations and re-
| lieve the business conditions of the
country, was sold for premium and
utilized for speculative purposes.
This is Senator Culberson's s sindict-
ment against Secretary Cortelyou:
Il. That the secretary violated
the law in issuing Panama bonds,
because the proceeds thereof were
not necessary to defray expendi
lures authorized by the act of June
%, 1902, which provides for the
construction of the canal, there be-
ing ample funds in the treasury for
such purposes.
%. That the secretary violated
the law in excluding individual bid
ders in awarding Panama bonds,
preferring national banks in the
award, because the law provides that
in issuing bonds all citizens of the
! United States shall have and equal
/ opportunity to subscribe thereof
'3 That the secretary violated
i the law in using proceeds of the sale
I of the Panama bonds for the purpose
stated by him, because the law eX-
( pressly provides that such proceeds
shall be used only for the purpose
of meeting such expenditures for
/ constructing the canal.
a. That the secretary violated
the law in issuing the 8 per cent
certificates, because they were not
issued to meet public expenditures,
as provided by the statute, there be-
ing ample funds in the treasury for
such purposes.
%. That the secretary violated
the law in permitting national banks
to issue circulating notes on the 3
per cent certificates, as the law linn
its the basis of such notes to regis
! Panama bonds.
I IS. That the secretary violated
the law and abused his official dis
cretion in distributing deposits of
public money under the act of March
/ 4, 1907, the distribution being un-
i just and inequitable, whether re-
garded from the standpoint of pop
ulation or capital and surplus of
banks and much of said deposits be-
ing used by New York banks for
speculative purposes.
In support of the last count,
which, as has been remarked, was
the only one he argued, Senator Gull
berson showed that although the
combined capital and surplus of the
New York banks is one-sixth the
capital and surplus of the banks of
the whole country, they had received
one-third of the money taken from
the treasury and distributed among
the banks.
He showed that Texas, with A.
100000 population and $40,00,000
OF banking capital, had received ST.
73S,O00 of public money, while the
city Of Washington, with a popula-
ton of 100000, and banking capi-
tai Of $8.730,000 had received $4,-
$4,000 Of public money.
In support of the charge that