| Show MR CARLISLE AND BONDS k Sicre secretary tary appears before the commit committee tee tells tell the story why and low how like hie late were other in teres clug testimony washington june 16 secretary carlisle was wag examined under oath today by the senate committee appointed to investigate vesti vesil gate the recent bond issue the hearing was held in the rooms of the senate control tee on finance senators harris waltham jones and platt being present chairman harris s explained that the committee had decided tu to take all the testimony under oath and did not wish to make discriminations mr air carlisle responded that he expected and desired to be put under oath mr vest began the examinations asking for it fuller explanation of the first bond contract with th the morgan eMorgan syndicate that had bad been given in mr carlisles written statement aa my y main purpose said secretary carlisle was to prevent shipments of gold from this country mr vest asked who made the first suggestion as to the protective clause in the bond contract with the morgan syndicate the secretary answered that the first dra draft it was made in his private office and then taken to an adjoining room and shown to mr air morgan and mr francis lynde stetson after which some changes were made this was the mr air stetson tile the secretary explained in response to an inquiry who had been a law partner of the pre president mr vest asked why the contract had been given to the syndicate to which mr carlisle replied with lengthy exola nation of the great emergency existing which would not permit a delay tor for the usual formation of bf a bond sale you never had negotiations with any other ban bankers kerts outside of the morgan syndicate asked mr air vest there was some inquiry but no negotiations got lations were opened said the secretary carlisle went on to explain that the president was kept apprised of all phases of tile the negotiations to vests question as to wily the pu public b bond sale was resorted to at a later date when an earlier sale was by private contract mr air carlisle said he file first move was due entirely to emergencies exist i i ing and to disturbing reports which were without a shadow of foundation and that hat the government had long contemplated a bond issue vests questions turned to graves bid ald which was rejected the amount of graves 3 ancs award of given iven to the morgan syndicate the senator asked why after alj was rejected the government did not receive the benefit of tile hie rise which had occurred in the price of bonds instead of the benefit going to the morgan syndicate under their blanket bid mr carlisle sald this was a matter of opinion and in his opinion graves bid was a dulity cuilty after which morgans bid which was wa tile the next highest took the bonds ills action he said aas A as taken after consulting the law offices of the government lie he would have taken tile the same course it if the price of bonab had fallen Is it not a fact asked vest that because the syndicate had carried out the protective clause you were inclined to favor them not in the least declared tile hie secretary emphatically iff 1 I am not conscious of any any such feeling but albut you and the lite president were p pleased eased with the manner in fit which the protective clause claus had been carried out inquired mr vest yes lye but I 1 am not conscious of the remotest feeling in favor of the result 1 I suppose you never contemplated paying in silver inquired vest the secretary replied that the present presen t policy of pay paying liki in gold had been to followed so long that he did not consider it to depart front from it in times of emergency platt inquired as to current reports that carlisle atone time had con contemplated paying in silver but that it had come to tile the cars of the president who said it in list not be done carlisle said he had heard of thebe rumors and the statement that tile the president had overruled him had not a word of truth in fit it dont you remember bald debt that tn ili that conversation with me you said that hatin tn the event of reaching the limit of the lite gold reserve you had one remedy available namely to use tile option to pay pat it in silver and that you would do it if it was not for the provision as to lo maintaining the parity carlisle Car lible said lie he thought this view as to parity expressed his views although he be could not recall the exact conversation then at that times s pursued debt ily you ou did not claim that gold payments were in pursuance porsi tiance of the policy established by secretary foster do you remember another conversa HOD flat continued debt in which you ou told me that boit you had teen the president 1 and that he felt that when tile the holder of greenbacks green backs demanded gold he was entitled to loll 1011 it 1 I recall no such conversation said bald the secretary 1 and that con tinned vett vest he th president hail had called a cabinet meeting for th ih next morning I 1 carlisle said ald it would beno be i no violat violation foll of cabinet confidence to 11 hay ay that thal the question never came up at a babl cabinet net meeting ater after further examination carlisle was excused anil and tile hie committee took a recess until when the aI distant stant bee secretary wax was examined assistant secretary curtis curlis wat was exam ned rapidly and pointedly by vest vert curtis said isaid he had gone arone to 0 new york by direction of carlisle before the syndicate bond contract walk wa made to ascertain the temper of the situation lie ile had visited bankers officials etc did you expect to get the temper of the situation itu atlon front rom bankers asked mr vest vert the assistant secretary replied that he had talked with men at clubs and with air fairchild and air stew 1 I rt ills hi first specific instructions from mr air carli carlisle je were go and sec bee mr air bel mont tile secretary desired him to see what could be done to get gold abroad but authorized no proposition to be made air belmont showed him unfavorable cablegrams cable grams from europe mr air vests questions indicated bur surprise that belmont should be negotiating with europe before mr curtis had arrived subsequent testimony showed belmonte Bel monts view wat wa pessimistic asto as to getting gold abroad morgan promised to do the best he could at a later meeting at morgans house hoube arranged by telephone message between new york and washington two gentlemen told him they could get gold abroad and sell fifty millions of bonds there at yi 33 meaning the interest rate there was war no definite proposition it was understood air curtis would telephone afar gan from the treasury at 3 next day as to whether the general plan had been approved ile he telephoned morgan t that hat a messenger would carry a letter to him that night the letter which was front from carlisle said the interest rate was too loo high the two financiers then came to washington belmont calling on oil air carlisle and morgan on wit witness nebs morgan said it was urgent for the government to act quickly in order to be able to continue its policy on gold payments air stetson came over with mr air mor gan thursday morning morgan stetson and curtis drew a contract witness dictating and morgan and stetson making occasional suggestions it was t then hen submitted to carlisle Cir lisle and olney who made some changes after w which aich it was signed thu the right to sign the lite belmont and names was cabled from europe the provi provision bion that the syndicate would protect the treasury gold mas by mr olney or mr carlisle and written liy by the latter curtic did nut definitely which ot of the suggested the he proposition |
