Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-12-28
Dozen MEN IN CONTROL
OF COUNTRy'S MILLIONS
Samuel Untermyer DepIores
the Concentration of Money
Power in New York.

| NEW YORK, December 2S.-The con-
centration OF the money power of the
| country in the hands of a dozen individ-
uals in this city through an unrestricted
use of the funds intrusted to the banking
institutions controlled by them was pro-
| nounced one of the greatest dangers con-
fronting the nation and one Of the prin-
| clpal reasons for the growth of trusts
| in lecture delivered by Samuel Inter
myer at the Finance Forum Of the West
| Side Young Mems Christian Association
last night.
He said no money trust in the sense
of the word trust as applied to illegal
industrial combinations did exist. but
there was a close and we'll defined "con-
| munity of interest and understanding
among the men who dominated the finances
| OF the country and welded a fabulous
power over the fortunes of others through
their control of corporate funds belonging
TO other people. He added that he had no
reproaches to make against the men who
mad achieved this power. as they had ex-
erclsed 1t with exceptional justice and
se1,restraint. blu. his criticism was
| ieVeied against the financial system that
mas made such results possible and
| threatened to lead to a moneyed oligarchy
with unprecedented power
Alter describing the methods of financ-
I
tons through banks known as Issuing
houses. Mr.. Untermyer said there was
absolutely no competition in this bust
ness. and the smaller banks were glad to
| nsure as underwriters, because a SUBJ
stantial item of income depended upon
this good will of the large banks So
great was the power and patronage of
these large banks. he said. that it was
not necessary for men to be even direc-
tors In the financial institutions they con-
trolled. Mr.. Untermyer then said:
Concentration in Last Decade.
There has been greater concentration
| of the money power in the last five or
ten years through the control ACQUIRED
by these few men over corporate funds
that are deposited under their direction
In our financial institutions than in the
entire preceding fifty years. The process
OF absorption is likely to continue until a
few groups absolutely dominate the en-
tire financial situation of the country
unless some way can be found to check
| their march of progress.
1T is said that the average daily bank
balance OF the United States Steel Com
pany is about $4,000 900; that Of the to-
bacco trust is said to be $4,000 600 or
more, while the average daily balance
| of deposits of the many other trusts
| whose financial headquarters have been
| transferred to New York must amount
conservatively stated, to many hundreds
or millions of dollars. When to this is
added the influence of these bankers in
designating or directing the depositaries
OF the funds of the principal railroads Of
the country into the institutions con-
trol!ed by the respective issuing houses
we begin to get some faint conception of
| the sources of their power.
Thus it has come to pass that less
than dozen men in the city of New
York are for all practical purposes in
control of the direction Of at least Is per
cent of the deposits of the leading trust
companies and national banks in the
city of New York and of allied institu-
tons in various parts of the country
Where the Objection Lies.
mo fault could be found with the most
unrestricted use by these men of their
own money within lawful limits. So long
as they use their own money we have
nothing to fear from their mad race for
power. 1t is when they tap the resources
of the merchants in our banks and the
savings of the people in our life insurance
companies and industrial and railroad
corporations that We must stay their
hand. no matter how we'll meaning may
be their purpose No matter what NAV
have been their genius or how well they
may deserve of us. no man or body OF
men in private life and without defined
obligations to the public or legal re-
straints. should be permitted to enjoy
such an orgy of power if a way can be
found to avert 1t. "
Mr.. Untermyer also said the same DOW
er that controlled the banks dominated
the Clearing House Association, and the
despOtic control organized by that asso-
citation was archaic and dangerous and
should be put under the supervision of the
controller of the currency.