Jasper County Democrat, Volume 9, Number 14, Rensselaer, Jasper County, 7 July 1906 — CRUMPACKER, HEMENWAY AND STANDARD OIL. [ARTICLE]

CRUMPACKER, HEMENWAY AND STANDARD OIL.

When Lyman J. Gage was secretary of the treasury under President McKinley it was determined to build a new custom house in New York city, The old custom house property was sold to the National City Bank, a Standard

Oil institution. But the government could not move until its new building was erected, and Secretary Gage agreed to pay $130,000 a year rental to the Rockefeller bank.

In order to avoid paying taxes on the property the bank did not take title and it was allowed by Gage to withhold part of the purchase money and take title (and liability for taxes) at its convenience. Only $50,000 remains unpaid, but as the title still rests in the government the bank escapes taxes and at the same time draws $130,000 a year rental. The republican congress allows this injustice to New York. When the $130,000 item in the appropriation bill was reached in the house the other day Congressman Sulzer of New York objected to it. The New York World’s report of subsequent proceedings is as follows:

“The chair holds that this is a debt owed by the government and that it should be paid,” said Mr. Crumpacker of Indiana, who was temporarily presiding. “If it is a just debt the National City bank can recover through the court of claims,” Mr. Sulzer said. “It is the same old steal. That bank is withholding $50,000 of the purchase price from the government for the sole pupose of defrauding the state and city of New York of taxes. So long as the bank does not pay the $50,000, the deed and title to the custom house property remains with the government.” Mr. Fitzgerald of Brooklyn said the contract was a scandal and a disgrace. Mr. Sulzer’s motion was lost, 65 to 88. Every republican in the house, except McCreary of Pennsylvania, voted against it. John Wesley Gaines of Tennessee moved to deduct the $50,000 owed by the National City bank to the government from the appropriation and give the bank a deed for the property, so that the state and city of New York can collect the taxes. This was voted down, 72 to 40.

Commenting on the matter the World says editorially: “The house of representatives yesterday jammed through the scandalous ‘rental’ item of $130,000 for the use by the government of the old custom house in this city. Why give unearned public money to the Standard Oil bank? Why reject Mr. Gaines’s motion to close up the deal so thatNewYork city can tax the property ? Why is Mr. Crumpacker of Indiana engineering this iniquitous proposition? Do Mr. Crumpacker’s constituents admire such activity?” Mr. Crumpacker’s constituents will certainly have a chance to say whether they approve his activity in behalf of Standard Oil. In the last congress it was Senator Hemenway (then a representative) who championed the Standard Oil cause in this same matter.