The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1911-03-22
TELLSH0W MORGAN
AIDED CLEVELAND
Writer Says Financier, Appearing at
Eleventh Hour, Showed How to
Meet National Crisis.

land gold bond issue OF 1895. includ-
ing the interview that took place be-
tween Morga nand Cleveland at the
White House, is published In the
April Metropolitan Magazine as one
OF the chapters in Carl Hoveys Life
Story OF j. Pierpont Morgan" The
article shows that Cleveland held out
up to the very last against bond is
sue to syndicate of bankers; that
| II was not until the Springer bill, au'
thorizing a popular loan. had been de-
| feated and the gold reserve in the
treasury had been reduced TO a few
millions that he would consent to see
Morgan, and that in the negotiations
! that followed between these two II
was Morgan himself who pointed out
| TO tho president the statute by which
the private loan could be made con-
stitutional.
Mr.. Hovey's account, which Is full
OF interesting and hitherto unrelated
circumstances is evidently derived
| from an authentic source. Negotia-
tons had been begun between the
treasury department and Morgan TO
relieve the situation, but had been
broken OF by Cleveland's direction.
The morning after the defeat OF the
Springer bill, Morgan left for Wash
| ington accompanied by his partner,
Robert Bacon, and his lawyer, Francis
Lynde Stetson. Secretary OF War
Lamont met Morgan at the station
and informed him that Cleveland
would not consider a private bond
sale and would not see him. Morgan
ii To ha ALL In of
where they learned from treasury or
ficials Of the imminence OF the crisis.
Morgan sat up all night playing soil
taire The next morning he told his
partner that he had evolved plan.
He remembered that when he was
Young man Lincoln had faced the cris-
Is OF an empty treasury. and that he
had had an act passed authorizing the
president to purchase gold whenever
the government needed II. and that
he thought this statute was still on
the books.
Cleveland Receives Morgan.
While at breakfast, President Cleve-
land sent for him. The story con-
tinues
1.-The presidents greeting was very
short and formal. Mr.. Morgan looked
at him and sa wthat he was not smok'
ing, so he did not light his own cigar
He and Bacon sat down at what was
destined to be memorable confer
ence. Mr.. Cleveland reiterated his de-
termination not to consent TO sale
of government bonds to a syndicate
OF bankers or otherwise. He dis
cussed the situation with his official
advisers while Morgan and Bacon sat
at spectators In the scene. The MIN
utes grew into hours. Mr.. Morgan
was not asked to make any sugges-
ton. The president was striving with
his own advisers to find a way out
OF the difficulty and was determined
to do It, If possible. At last a mem
orandum taken from a telephone mes
sage showed that there were but
nine million dollars OF gold left in the
New York sub-treasury. At this point.
Mr. Morgan broke his silence. He
said. Mr.. President, the secretary
of the treasury knows OF one check
outstanding for twelve million dol
lars. n this is presented today, II Is
all over
"Mr. Carlisle had told him the even
ing before at the hotel about this
check. He had had It in his mind
everv minute since that time. The
secretary confirmed this statement at
once and the president then turned
10 Mr.. Morgan for the first time and
said. Have you anything to sug-
gest?
Morgan Shows the Way.
"To this man who Is accustomed 10
taking the initiative in things. 1t had
been an ordeal to sit silent and In
active that morning at the White
House. When he began to speak. he
talked rapidly. He told the presi-
dent of his recollection OF that Sec
ton number four thousand and some
thing of the United States statutes.
"At a word from the president,
ATTY. Gen. Olney stepped out OF the
room and in a moment returned with
the book of Revised Statutes. He
told the president that what Mr.. Nor
gan had said was perfectly true. that
this act was known as Section NO
370O' and that from a casual exam
ination he thought Ii was still In
force. Mr.. Cleveland quietly took the
hook from his hand and with deep
concentration read the act to himself,
Everyone in the room sat In the
silence OF deep suspense. When the
president had concluded the reading
, Of the section, he laid the book slow
lv ON his desk and then his face light
ed ND with almost smile OF RELIEF
and he said Mr.. Morgan. ! think
the act is ample for our needs and
that It will solve the situation.
after the details OF the loan had
been discussed, all arose from their
seats and someone said: Mr.. Nor
can what is that brown powder on
vour trousers and clothes and all
around your chair? He looked down
quickly. II was his after-brcakfast
cigar that he had been holding In
his hand unlighted as he entered the
roo mand which. as he sat there. he
had unconsciously ground TO pieces
until Il Uttered the carpet. The pres
ident laughed, and reaching for a box
NJ CIGARS. told Mr.. Morgan that l. was
time for him 10 have a smos" ana
added that he wished Mr.. Morgan
wound remaia wEiic he Dictated the
sce.ial mesa 70 In ordEr 10 sec " IL
INCORPORATED all the details OF the
plan"
Richard Sprunk Accident Victim.