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NEBRASKA REW3
Ac bank at Union w!l ll
In cm with the advent of tl
U Of blM.
year.
Diphtheria prevails in some
county school districts.
Hartinrton Catholics will put 35,000
la a new church.
During m 4,893 bushels of apples
were shipped from Brownviile.
A cowboy preacher named Brooker is
tormingr the fates of Ziun in a warm
western manner at Murdock.
John Darnell of Dwight, aged 70, and
thirty-eight years a Nebraskan, is dead.
WORK OF THE GIGANTIC MONEY TRUST
BARKS 60 DOWh ANO LESSER
TRUSTS PALE BEFORE IT
HOW THIS NEW MONSTER CREW
OUT OF A PURPOSE TO COR
NER THE COPPER OUTPUT
OF THE COUNTRY.
Homer has a new grocery store, a
block of new Bidewalks, several street
corner lamps and other thinffs too nu
numeroos to mention.
The Burlington is erecting
round house at Crawford.
John Demi, a well known farmer of
Pierce county, was taken to the Nor
folk asylum last week.
With Government Aid the Magnlfl
cence of Cornering Still More
Precious Metals Unfolded
Itself to the Schemers
A. Blake, a Waterloo farmer, was
compelled to kill a valuable horse a few
days ago. The animal became crazy
nd dangerous.
Peru wants a larger depot. At times
people have to stand outside waiting
for trains.
Miss Glegg, a dashing young lady of
Ulysses, celebrated her SsQth summer
last week. She is one of the little un
married women who is proud of her
age.
Miss Mary Hagge, who lives near
Calhoun, was brought to Omaha on an
Elkhorn train with a broken arm and
ankle and a body covered with bruises,
aa a result of a runaway near that
place. She was taken to St. Joseph's
hospital for treatment, while driving
In the country with Otto Schroeder.her
betrothed, the team took fright and
running away, threw Miss Hagge heav
ily. Schroeder, after getting the team
under control, took the injured woman
to the station at Calhoun, where they
boarded a train for Omaha in search of
urgical assistance.
Gus Lenz, a German bachelor about
40 years of age, living alone on his
farm northwest of Eustis, left Eustls
about midnight Saturday. His body
was found off the main road near his
house. Several bloody tracks were
found in the road, one wagon wheel
being covered with blood. The horse
evidently ran away, catching Leni in
the wheel of the cart, by which he was
dragged three-quarters of a mile. His
face was badly torn, his nose broken,
apparently by a kick of the horse, and
his scalp "torn entirely loose from ths
neck to the top of the head.
FEAR PUTS CURB ON FINAN
CIERS' LIPS.
New York. (Special.! Trust A
bugaboo created by sensational
orators to frighten a too credu-
ious puDiic v all street defini
tion of a trust, given two years
,igo.
Wall street has changed its defl-
on of the word "trust" within
last few weeks. So long as
re industrial monopolies content
ed themsflves with playing with
a few stock quotations the gentle-
men who get a commission for
buying and selling for others con-
tinued to view the situation with
complacency, but when the great
Money Trust came into view and
action and began to play fast and
loose with the money market by
the exercise of a capital that runs
ihlu me uuuons; wnen oariKS De-
gan to topple and great trust com-
panles shake; when financial dis
aster was followed by the suicide
of one of the victims then Wall
street woke up to the fact that v
the "Bugaboo" Trust was really
a very seriou reality that a
power ha darisen in the land that
was to be feared, if not respected.
Men higti In the financial world,
men who never before feared to m
say what they thought of men and
f JAMES STILLMAN,
I
It is understood at the office of the
United States district attorney that
Fair and Jockens, the two Fort Crook
soldiers who are accused of shooting
Morgan, will be arrested on the charge
of murder, and will at once be taken
before County Judge Howard at Pa
pillion for arraignment. It is stated
that no resistance will be offered by
the military authorities at the post to
their arrest. It is contended by some
that he fac tha he men have already
been tried by court-martial woiMd in
terpose a bar for their protection, on
the gTound that they have already been
once placed in Jeopardy for that of
fense. The federal authorities decline
to indicate the line of defense that will
be relied upon to clear the men.
things admitted yesterday to a
New York Journal reporter that
they did not wish to declare open-
ly their opinion of the way in v
which the money market had been
manipulated, because they had no
wish to antagonize so powerful an
organization as the Standard Oil
trust or a public official of such
power in the financial world as t
Secretary Gage. The names of
Rockefeller, Morgan, Havemeyer,
Sloape, Webb and others every
one sta&ding for a great trust, and c
all together for a greater one
are no longer to be spoken of lr-
reverently.
WHO CONTROLS MILLIONS WHILE MONET
FAMINE PREVAILS.
This gentleman, president of the National City bank, the repository
of the Money trust, had his luncheon served for him In his private office
The hour-was Just after 3 o'clock. President StUlman was In a most cheerl
ful mood. There were one or two clerks In the room and two men who
were counting money. The stacks in their hands looked to be the new
rold certificates. They were crispness personified. They were of a de
nomination so large as not to be readily recognized by persons outside
of banking vircles.
I In press on which the rreenback art
printed.
CHAPTER VII.
REVENGE ON HAUGHTY BOSTON.
JAN.
Having accomplished a splendid coud
in New York, the Money Trust went
over to Boston and smashed the Globe
National bank.
It wanted the copper stocks contained
In the bank's vault.
It got them.
President Rogers visited Boston, and
after a stormy interview with the di
rectors of the bank and with the own
ers of the copper stocks, put those
stocks in his dress suit case. He did
not go over to Massachusetts wearing
a mask or carrying a sand bag, but no
highwayman could have done better
work.
The Money Trust had cornered the
money market, and it was impossible
to secure loans upon the copper stocks
The Money Trust could have hammered
them still lower had it wished to do so.
It was magnalmously content, however,
to get them at a figure which some
estimate at about half price.
Thus is one more link forged in the
chain of mines that will constitute the
Copper Trust monopoly. When the
trust has completed Its plans the price
of copper and of cupper stock will be
allowed to go up. Then the Money
Trust will sell out at top figures, smash
the market and buy all the stock back
again at thirty or forty points below
the figure at whic h it sold It. It Is the
old Standard Oil-Sugar Trust game
over again. But It can do much better
now that It has the Money Trust In
the combination.
This Money Trust is so powerful that
It has induced the United States gov
ernment to name the trust's fiscal agnt
the National City bank as the de
pository of the receipts of the Internal
revenue department of this city.
Thpse receipts amount to about
000,CK)0 a week. If the National City
bank loans this money it will make a
substantial sum from it. On the other
hand. If It withdraws it from circula
tion to further some stock Jobbing
scheme of the Money Trust, the mem
bers of that trust will, perhaps, make
moie out of the Internal revenue re-
ceips than if they were handled In a
legitimate banking business.
The selection of the National City
bank as the depository of this money
confirms the statement that it has the
strongest possible "pull" with the gov-
ernmtnt, and that If the Money Trust
sees anything at Washington that it
wants It simply has to ask for it to
get It.
GAGE'S LITTLE SCHEME
WHILE AIDING WALL STREET HE
DOESN'T FORGET LYMAN J.
Is Connected with the Banks Which
He Officially Designates aa Chief
Agents of the U. S.
TO CONTROL NATION'S FINANCES.
, Islington, Neb. C. F. Spencer, may
or Lexington, says: "The best paying
business enterprise that could be plac
ed In Lexington at this time would un
doubtedly be a factory for beet sugar
or hemp, which could be supplied by
home-grown materials. We have irri
gation and a soil that can't be beaten
on earth. We can produce excellent
beets and can raise any amount of
hemp for making cord, rope or binding
twine,"
Sutton, Neb. (Special.) On Christ
mas afternoon while J. H. Hennessey, a
leading implement dealer of this city,
was driving around town, his team, a
spirited one, became unmanageable.
In his struggle Mr. Hennessey was
thrown out of the buggy and as a re
sult received a broken and lacerated
leg, above the ankle. He was removed
to bis home and the fracture was re
duced by Dr. Bening. Mr. Hennessey
is resting as well as could be expected.
Simon Krosne of Fremont has begun
wit in the district court against the
North British and Mercantile Insurance
company for $1,000 insurance. The pe
tition, sets forth that the plaintiff took
out a fire Insurance policy for J1.000 a
year ago and that on September 21,
1899, a fire occurred, by no design of
the plaintiff, which caused him gTeat
damage. It is stated that a loss of
S1.850 was sustained. The plaintiff says
that although he has fulfilled every
obligation, no settlement has been
made, and he therefore asks for the
amount of his insurance, with interest.
Coumbus, Neb. (Special.) The recent
rise in the price of lumber has affected
business In this locality. J. B. Geitzen
manager of the Foster & Smith lum
ber company, states that in many In
stances the price has advanced from $4
to $8 per thousand. As a consequence
those who have contemplated building
have been obliged to postpone the en
terprise until more favorable rates are
established.
The Knollin sheep ranch, situated a
half mile north of town, now contains
over 30,000 head of sheep, which are
being fed through the winter months
and fattened for market Hundreds of
tons of hay and thousands of bushels
of grain will be required for the winter
feed. This will furnish a profitable
market to the farmers of this portion
of the country.
Superior, Neb. "The best opening,"
aid. Mayor W. N. Hunter,"is, of course,
for a factory that will use material
that is most easily obtainable. A cel
lulose factory doesn't require unlimited
capital to build and operate and this
community offers an unlimited supply
of the material In the raw state corn
stalks. Starch works would pay here
also. I hardly think that Superior
would put up extensive bonuses to se
cure factories, but any enterprise that
does come Into this town will receive
ood, practical aid and support. There
is one thins; that Superior offers the
manufacturer that few other towns can
-that U railroad facilities. There Is
one point here where a man can throw
baseball across the tracks of four
ft the greatest systems In the United
illsj thi lult r, the Northwest
f the Bwttncton and the "Missouri
L. 'e. A BMnatectww could not asb
rtjtttr mm thM."
STORY OF THE SCHEME
(New York Journal.)
The latest monster in Wall street is
the Money trust. It has Just gobbled
up the Globe National bank of Boston,
which failed with creditors to the
amount of $10,000,000.
The Money Trust is the creation of
John D. Rockefeller, the brains of an
other trust the Standard Oil of J.
Plerpont Morgan and of the innumer
able tribe of capitalists that are at
tached to them.
The Money Trust has a valuable
friend in the person of Lyman J. Gage,
secretary of the United States treas
ury- This gentleman, who has been
closely associated for a great many
years with other members of the Money
Trust, a few weeks ago provided about
12,000,000 belonging to the United
States to the Money Trust, with which
It accomplished the grabbing game it
tad in view.
CHAPTER I.
THE ORIGINAL PLOTTERS.
"Henry, I think I'll go into copper,"
John I. Rockefeller made this remark
a year ago to his right-hand man, H.
H. Rogers. When a Rockefeller talks
of "going Into" anything he means that
he intends to seize it body and soul
and own it thereafter.
The Rockefellers "went into" copper.
They foresaw the enormous amount of
money to be made out of the metal, for
copper is consumed In tremendous
quantities in the ever-increasing elec
trical business. It is employed In cart
ridge making, In telephone service. In
shipping and in a thousand different
tradis. It was a good thing to "go
into."
Whf-n Mr. Rockefeller announced thai
h"? was "going Into" copper he meant
that he was going into it In the same
way that he went into oil.
He and Mr. Rogers formed the Amai !
gamated Copper company, with a cap-
ital of $75,000,000. It was a New Jer- !
eey concern that started with a Pick
wickian list of incorporators. Its plain
ly announced object was to acquire all
the copper mines In the United States,
the capital of the concern to be In
creased when necessary. Those firms
that did not come willingly into the
combine were to be ruined and forced
to sell ouL The Copper Trust was to
follow the same lines as the Oil Trust;
there could be no better. They are
making millions for the Rockefellers
every year.
CHAPTT3R II.
THE HAUGHTY BOSTON CAPITAL
1ST.
Into the Copper Trust came Marcus
Daly, the copper king, who was made
president; Henry H. Rogers, of the
Standard Oil Trust, who became vice
president, and William G. Rockefeller,
who was made secretary and treasurer.
These men constituted the directory,
with the addition of Frederic P. Olcott,
James Stillman, Robert Bacon and Al
bert C. Burrage. The first thing they
did after organizing was to deny that
any such thing as a copper trust had
ever been contemplated.
Some of the most valuable copper
mines In the country were owned by
the family of A. 9. Blgelow, a Boston
banker. Mr. Blgelow was a director in
the Globe National bank, which has
Just been wrecked, and a leading own
er of several important copper mines,
among them the Boston and Montana,
which Is one of the richest mlne in
the world. The Rockefellers wanted
these mines. No Copper Trust could
be complete without them.
The Rockefellers tried to buy these
mines, but failed, Mr, Blgelow declar
Ins; that the price offered was entirely
Inadequate. He preferred to keep hit
mines and run them himself.
The Rockefellers knew a thing or Us
They had not formed the Oil Trust for
nothing. They burnished up their old
methods for forcing refiners to sell out
to them. Such methods would do Just
as wen in the case of copper mines.
They determined to put them into ef
fect. They began hammering the market
for copper mine stock. Owning already
a large quantity of copper mining pro
perty, they were able also to hammer
the price of the metal itself. The Rock
efellers have so many business ramifi
cations ail over the country that they
were in a position to reduce the de
mand for copper. Independent pro
ducers found their stocks uncalled for.
CHAPTER III.
ENTER A GOVERNMENT OFFICIAL. I
The agent of the money trust is the
National City bank. It was organized shores of various securities for
Money Kings to Organize a Bank of
Great Power.
New York. (Special.) There is in
prospect for this city, according to
rumor among bank men, a great flnan
ment tne latter would have got It. It
will be seen that in this transaction the
government waa entirely the tool of
tne aioney Trust
Secretary Gage could have nrevented (no f t ti t tn tt-Vtlih In thin orinnlru
this plot from succeeding had he asked will rival the power of the Bank of
i. T,T a'lgovernment Donas, uut England in Great Britain. It Is the
he did not. The government, annar- ,.rtniir, i imm.r,. r
ently was only buying from the Money )Slt and issue, under the name of the
JIUIt. Vsrlnnil ManU r.t tha ITnH&A ttuu nr
LHAntK . the United States National bank, with
ALL READY FOR THE PANIC. resources so large that It will be able
Meanwhile the Money Trust was pre- to commanl tne finances of the coun-
panng the staire management of n l"y. Tne intention is to any tne insti-
financial panic that would enhi it tn tution with the United States govern
do two things. It wanted tn u ir ment as a sort of fiscal agent of the
friend, the Conner Trimt hv rrhi,in., United States.
the copper stocks In Boston and it The nucleus of this great institution
wanted to make use of ih mn,. h is the National City bank, which al
reaoy in tits unci exusumce na oeen
had cornered by getting as many
by the standard Oil crowd. James
Stillman, one of their number, is Its
president- He is a director of the cop
per trust. He is a smiling gentleman,
whom no one would suspect of the JLt
pacity to hurt a fly. Many anoRf
such gentleman has been employed by
the btandard pil trust in its transac
tions. Mr, Stillman, as the agent of thd
Money Trust, has this advantage the
United States treasury is at his beck
and call. Secretary Lyman J. Gage,
who was the associate of Nelson Mor
ris in the First National bank of Chi
cago, is closely allied with the Rocke
fellers. They have innumerable busi-
ft as
strangely favored by the powers al
ness associations in common. They are j flood the market with money or hide It
politically friendly and interdependent, in its safe. More than a week ago it
It was Mr. Gage, Nelson Morris and began the latter process. Enormous
was possible In New York nmi ow, i.u Washington. With il, rumor says, will
loaning It out at enormous rates of In- unlte the lowrful Hanover National
terest. bank, a smaller institution whose namu
The Money Trust began calling In its ls not Kven- an(l IH-rhaps other banks,
mans inuiscriminately. so as to create
a monev famine. The same people
have engineered wheat famines, oil
famines, and In a short time hope to
produce a copper famine. That !s how
prices are raided. They know the game.
Il is possible to corner the money
market. That is what the Money
Trust is for. All its plans were ripe,
and It decided to do so.
The Money Trust has at its disposal
all the cash of the Standard Oil com
pany, as wen as its credit. It
some other Chicago men of Influence
Intimately connected with the Rocke
fellers, who a few years ago helped
Prtsident McKinley out of financial dif
ficulties. There are few things, it is said, that
Secretary Gage would not do for the
Money Trust, for the Copper Trust and
for the Standard Oil Trust. There are
few things that these different trusts
would r.ot do for hlm.
A scarcity of cash In Wall street due
to entirely natural causes suggested to
the Money Trust and to its agent, the
National City bank, the practicability
of cornering the money market wholly.
To carry out the plan they knew they
waas of greenbacks and bushels ot
gold were hoarded by the National
Ciiy bank at a time when they were
in great demand and commanded splen
did rates of interest. The bank waa
the miser that clutched and gloated
over Its treasure while neighbors starv
ed. These facts were exclusively told
In the Journal on December 12 in oth
er papers eight days later.
On Monday a week ago, when there
was a panic in Wall street the leading
bankers met at the Clearing House.
They talked over the situation.
"Things are in a bad way," they
said. "He must do something to avp
the market. There Is no knowlne what
The seat of this new United Statu
bank Is to be- the old custom house.
The amount of Its capital and the ex
tent of its resources are yet, of course,
problematical.
The resources of the Hanover Na
tional bank are from $40,000,000 to $),.
000,000. The National City bank ha
out In loans at times as much as $100,
000.000. These two banks ajone would form In
combination a power whose nod would
practically control Wall street and the
financial destiny of the nation. Stand
ing behind them with unlimited cap
italare the Rockefellers, the whole
Standard Oil crowd, the Morgans, the
Havemeyers and the Sloans. Such a
combination would act as the fiscal
agent of the United States, not like the
old United Slates bank, by a cryigres
slonal charter, but by favor of the gov
ernment. That the plan has the favor
of the present administration is argued
from recent favors shown to the Na
tional City bank by the secretary of
the treasury.
M'KINLEY SNUBS 6EN. WHEELER.
could be helped by Secretary Gage, who will happen to It unless It is protected
.-.h :ncj- must m: loosened up."
JUKt then In came President Still
man of the National City bank Kiill
man, the business manaper of the Mon
ey Trust. He was rubbing his hands
pleasantly and P.king lik" one who
has not a care In the world.
"What Is all this about, gentlemen?"
hf said unctuouKly. "Why have I bei n
ent for?"
They told him of the panic and the
langer to the market.
"My bank can do nothing more, gn-th-mi-n,"
he said. "We have loaned $$,.
000,000 today purely out of philanthro
py and to relieve the stringency."
For every cent of that $3,0sj,V'Xl that
Mr. Stillman sijke so proudly of the
bank charged 10O per cent Interest,
CHAPTER VI.
HOW THE GAME PAID.
The Money Trust made enormous
profits from the cash given to it by the
secretary of the treasury from Uncle
Sam's coffers. It reullzed from $18,000
to $:!5.000 a day profit from the money
In addition to the legal rate of 8 per
cent interest.
The Money Trust was finding that It
is much more profitable to corner mon
ey than it Is to corner even oil or cop
per. Those commodities never yield
an interest of 186 per cent per day.
Money does in panic times. It did last
week.
A'ith the aid of the government thert
should be no reason for the failure of
any scheme undertaken. The Money
Trust plays with marked cards. There
ls a mechanism by which It can stop
Its roulette wheel at the red or at the
black Just as it pleases. With the Hhll
Ity to loosen or tighten the money mar
ket It can buy and make prices high or
It can sell and make prices lower. There
ls no limit to its profits. They are
earned with almost no risk. The mem
bers of the Money Trust know absolute
ly under which thimble the pea rolls.
If by any chance the lamb speculator
giM-sws the right thimble, the Money
Trust, by a pi-cullar sleight of lutnd,
can change the pea from one thimble
to the other.
This Is better than owning; Industries
like oil, sugar or copper. It requires no
factories; no dealing with dissatisfied,
overworked, underpaid labor. It can
all be done at oak desks In nice, clean
offices. It Is absolutely sure. It comes
as near as possible to ownlnf the print-
Is In a position to end money famines
at any time by liberating in Wall
street some of the accumulated mil
lions of t n le Sam's money.
Mr. Cage fell right In with the plan
the Money Trust. Whether h" dii
so knowingly or was Imposed upoii.t-aiii
leader muxt decide for himself, not for
getting, however, to carefully uHgh
Mr. Cage's record for standing by hi-
friends.
CHAPTER IV,
UNCLE SAM A SIDE PARTS ICR.
The Money Trust decided that the
best plan for preventing Uncle Sam
from relieving the money stringency
was to grab his millions as xin as
they appeared In Wall street and put
them in the vaults of their bank. Then
the task of relieving the stringency
would devolve, not upon the govern
ment, but upon the Money Trust
where the Rockefellers believed it
should be and they need not relieve it
until they were quite ready.
By some method, which readers- may
consider mysterious If they choose, the
Money Trust learned that Mr. tlage in
tended to offer to purchase $25,000,000
worth of certain government bond is
sues. The trust learned this in ample
time. No one else was permitted to
share the secret.
The Money Trust thereupon went In
to the market and purchased all of
these bonds that It could secure. It
obtained about $12,000,000 worth of
them at reasonable prices. When Mr.
Oage announced the purchase he de
clared that the figure he would pay
would be that at which they closed In
the market on the day the intended
purchase was made known.
The Money Trust "cashed In" their
$12,000,000 worth of bonds tlirough the
National City bank. They got the mon
ey for them and put It In their vaults.
On the same day, In order to prevent
the release of any more government
money they bid up on the market price
of the bonds to a higher figure than
was offered by Untie Ram. No one
was going to sell to the government
when he could get a better price on the
Stock Exchange. This move was effect
ual In keeping In the treasury in Wash
ington about $12,000,000 which the gov
ernment had Intended to distribute.
Had the Money Trust succeeded In
buylna; up all the United States bonds
o ftbe Issues designated by the govern-
Presldent Usd Him For Political
Purposes Only.
Washington, D. C (Special. ) There
is evidence that General Joe Wheeler,
having served the chief purpose for
which he was apjinttd an army oil 1
cer by the president to popularize the
war among the democrats generally,
particularly those of the southern
states Is to be treated with scant cour
tesy. General Wheeler some days ago re
queued (Jenerul Otis to find out from
the department authorities whether the
president desired him to rmume his
congressional duties or to remain in the
military service. General Otis made
this request for Information by cable,
and a blunt reply was sent.
The president Informed General Otis
that It was a matter of no Importance
as to whether General Wheeler stayed
In the Philippines or returned to this
country, and that the president had no
suggestions whatever to make.
It would appear now that General
Wheeler, who is almost certain to lose
his seat in congress, will receive no
substantial reward from the Adminis
tration in the military service.
The general's friends think he could
with propriety be retired as a briga
dier general In the regular service, and
have expected the administration to
take the initiative. Huih retirement
would have to be effected through leg.
islatlve enactment. As a majority of
the democrats in congress are Indig
nant at General Wheeler for having al
lied himself with the administration In
any sense, recognition of his service
would have to be suggested by the re
publicans. There is a feeling of Irritation even
among the democrats over this news of
the administration's unkind treatment
of the gallant veteran.
It Is asserted that even If his seat be
declared vacant he would be re-elected
from his district In Alabama and com
back triumphantly to congress.
Clilcago, 111. (Special.) The fact that
he First National bank of this city is
correspondent of the National City
bank of New York has lent added in
terest here to the report that Secretary
of the Treasury Gage ls to become pres
ident of that Institution and of the
Hanover National bank, which, with
one or two others, are to be consoli
dated under the names of the National
Bank of the United States.
Mr. Gage is still one of the principal
stockholders of the First National
bank of this city, and It is safe to pre
sume that his old bank will continue
Its close relations with the mammoth
financial organization which is to han
dle the money of the Rockefellers and
act as disbursing agent in distributing
the United States internal revenue re
ceipts. Having na information except the
newspaper reports. President Forgan
of the First National bank was not
disposed to discuss the consolidation
project. He said the First National
was the correspondent of the National
City bank of New York, and in that ca
pacity did the bulk of the local busi
ness. He added that he did not be
lieve the report that Secretary Gage
was to take the position of president
of the consolidated institution.
The National City bank of New York
was recently designated by becreiary
Gage as the chief depository of the
government revenue receipts, amount
ing to nearly $1,000,000 a day. It Is tho
pluce of first deposit for funds which
otherwise would go Into the vaults of
the United States treasury.
By the special favor of the secretary
of the treasury this New York concern
is permitted to lend out this enormous
amount of government revenue, only
depositing for its security an equal sum
in United States bonds tn the hands ot
the secretary,
TO AID WALL STREET.
The object in thua diverting the rev
enue receipts as explained by Mr. Gags
when he took the step last week, was
to relieve the money market in Wall
street and come to the relief of the
distressed bankers and stock brokers
who had been led by overspeculatlon
Into financial straits.
Secretary Gage has given to the Na
tional City bank of New York the
greatest possible assistance, and has
placed it In the way of reaping enor
mous profits by the use of government
funds. Indirectly he has strengthened
all banks which have interests Identi
cal with the New York concern.
As a result of these developments
the question has again been raised as
to the legality of Mr. Gage's conduct
In continuing his interest in the First
National bank while holding the office
of secretary of the treasury. The law
declares In explicit terms that the sec
retary of the treasury shall have no
Interest, directly or Indirectly, In any
national bank or other institution
which deals In government securities.
The purpose of the law was obvi
ously to prevent the secretary showing
favor to any concern from which h
might derive a profit. It was the Idea
of those who made the law that the
secretary should not be In a position to
be tempted from the strict path of duty
by the remotest prospect ot any profit
lo himself.
Secretary Gage has always maintain- ,
ed that his possession of stock in the
First National batik was not a viola
tion of the law, and contended that the
act was intended to prohibit only an
active participation in the management
ot the bank.
WHERE VIOLATION LIES.
The question as to his violation ot '
Jie law may now be found to depend
upon the relationship between the New
York National City bank and the First
National bank of this city. Banks
which are correspondents are generally
regarded as agents, the one for t he
other. To a considerable degree the
Interests of the two banks become Men
tical. A benefit which Is done to one
as agent is shared by the other as prin
cipal, and vice versa.
The report which connects Secretary
Gage with the presidency of the big
consolidated Institution which is in
progress of organization wets the lime
fur his assuming harge at the close
of the present administration. It Is
well known that Secretary Gage ha
no Intention to resign until his four-
year term has explied. but at the samo
time it ls equally assured that Mr.
Gage will not retain his place In the
cabinet even should McKinley be re
flected. There have been frequent re
ports that he would take charge then of
some New York financial institution,
and the uniform favor shown by the
National City bank has added to the
probability that this would be the firm
of his ultimate choice.
FOR EXILES AT GUAM.
Washington, D. C (Special.) In an
swer to Its appeal for contributions ot
books and papers for the garrison at
Guam, the navy department has re
ceived VIH books, 8,217 ma-gaslnes, 2,14
illustrated weekly papers, 72 sets of
dominoes, 72 sets of checkers and 72
sets of alphabet blocks, the last to tx
used to teach the native children.
MORE FAILURES.
Boston, Mass. (Special.) The John
P. Ivovel! Arms company and the John
P. Luvell company, an allied firm, man
ufacturers of sporting goods of all
kinds, made an assignment for the ben
efit of creditors.
The firms were heavily Indebted to
the Glole National bank, which was last
week placed In charge of a temporary
receiver, and thi institution, or rather
Its former president, Mr. Cole, has been
represente1 In the business by C. W.
Norcross, who Is isald to have virtually
managed the concern for more than a
year past In the Interests of the bank.
It has been stated that Mr. Sole,
president ot the bank, exchanged the
paper of the Level! company for min
ing securities, but the fact that Mr.
Norcross has remained In charge up to
the present time would seem to cast
doubt upon this story. It ls stated
that the mercantile bills contracted by
the company have been paid as prompt
ly as those of most business houses, so
that the manufacturers who have been
supplying them with goods are not big
creditors, the bulk of the indebtedness
being to banks who have discounted
the company's paper. '
Charles K. Barnes, Jr., one of the
isslgnees, said: "The assignees are
Enable lo give any estimate yet as to
the assets and liabilities, and probably
will not be able to do so for some days
The companies operate stores In a
number of cities, from Rangor, Me, to
Providence, R. I., and they have large
stocks on hand, which will have to be
thoroughly examined before the as
signees can discover Just what the
financial situation Is, A statement will
probably be Issued In a few days"
The house of the John P. Ivell Armi
company waa founded In 1141 by Johp
P. Lovell.
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