New-York tribune., 1912-06-12
,nr that in reality suen collection meant

an actual loss 20 the banks.
"Iep't ~ 8 feet tiat the Clearing HOUSE
makes this enormous profit on cut-ot-
town cheeks?" asked Mr.. Unternnyet.
II Is not" replied the witness hotly
How do you know II isn't risht7
asked counsel
Wen. / know II isnt--l don't think
sbArer kne7y what nc was esyinS," was
the reply.
90 you know wha; you are talking
about"
Yes do"
Tell us how you know you under
stand what you are talking about?
asked Mr.. Cntermyer.
Mr. vanderlip did not reply Immediately
and Mr.. tTnterrnyer continued:
"gsre. now YOU gay Sherer didn't know
what he was talking about. He hae been
with the Clearing House for twenty-four
years. You say you know more about the
Clearing House than he. Now. please give
me an idea where you get your inforina-
tlcn, and what right you had to make such
statements as are in your letter
'T get my knowledge through expert
ence." Mr.. vanderlip finally retorted.
You refuse TO give any other channels?'
asked counsel.
The witness did not answer.
Don't you think you should apologize
for what you said in that open letter."
Il don't think I will apologize" said Mr..
Vanderlip.
Counsel for the committee discontinued
his examination of the witness abruptly.
Control in Hands Of Few.
Mr.. Hepburn testified that the collections
OF Country checks" by all the banks and
trust companies which are members OF the
Clearing House Association probably would
amount to about s1oo,0o0,0oo daily. The
profits on this were small. IL any, he said.
He admitted that most of the larger and
more prosperous banking institutions were
controlled by very few men.
Don't you think this is a rnenacing, des-
potic, centralized power?" asked Mr.. I'm
termyer.
"Cut out some Of your adjectives and
will agree with you-it is great central
lied power" Mr.. Hepburn replied.
Mr.. Untermyer discussed the currency
bill recommended by the monetary COM
mission with the witness. Mr.. Hepburn
said he favored it. Counsel wanted TO know
II the witness didn't think there should be
stricter government control over the CEN
trail reserve bank. proposed In the bill, par
ticularly in regard to the appointment OF
the three governors Of the central bank,
one OF whom the President Of the United
States could not appoint unless he had been
duly approved nominee of the bankers.
THE fear Is that they might appoint
some politician" said the witness.
Don't you think public man. whom
you call a politician, nominated by the
President. would be as capable as a finan-
cial politician nominated by the bankers?'
asked Mr.. Untermyer.
II would have perfect confidence in snv
man appointed by the President and APP
proved by the United States Senate MI.
Hepburn replied
The lawyer referred to the tendency OF
concentration OF the financial affairs OF
the large interstate industrial corporations
In New York. and wanted to know IL that
wasn't responsible for the great increase
Of deposits in certain Of the large banks.
"You know where these corporations de-
posit their large balances, don't you?'
asked Mr.. Untermyer.
'I don't know where az many OF them are
as I wish did" replied Mr.. Hepburn.
But you would know where TO so 70 get
them II you wanted them. wouldn't you?
the witness was asked.
YES / would go to the once OF the
company" was the reply.
chase's Larees. Depositor.
Mr.. Hepburn objected IS mentioning the
largest corporate depositors in his bank.
the Chase National He wrote the name OF
the largest depbs!tor Of that kind. however.
end handed it TO Mr. Unternyer. Then ne
was excused.
The tenor Of the inquiry switched from q
serious vein TO one Of considerable amuse.
ment as soon as Secretary Ely OF the Stock
Exchange, and Mr.. Unternnysr began 70
fence orally.
The Stock Exchange is not incorporat-
ed, IS it:" began counsel.
Isn't .t:" quer.ed Mr. Ely.
.'Don't YOU know" asked Mr.. Cntcrr1yer,
with surprise.
II don't know anything about H." said
the witness.
Nr. Ely vas unable TO recall much about
the .nvest!gation OF the Stock Exchange by
the Hughes committee. He could remonter
the name of only one Of the commissioners.
Chairman White. and he declined to idenh'
~ q report Of the committee which Mr. Tn
terrver handed him. He believed it Rad
been a secret investigation, however and
didn't think the findings on which the
committee based It's report ever had been
made public There had never been pub
lie Investigation of the Stock Exchange, so
far as he knew.
There is another exchanse-the Consoli-
dated Exchange--isn't there" asked Mr.
Untefmyer.
.I think there IT," was the reply.
"Doo't YOU know asked counsel. with
Amusement.
well. 7 have an impression that there
is," said ths witness.
What do you know about the Consoli.
dated Exchange asked Mr.. Untermyer.
'',;o.hine," the witness abruptly replied
Several we'll known brokers had CONS into
the hearing, who. II vas said. would prob
ally be called as WITNESSES lAter on. They
were greatly amused At Mr.. Elys answers.
and Mr. Untsrnayer and members OF the
committee joined in the general lansh
which occurred frequently.
Reason fer Rule Not Known.
TIE witness readily idsntifed the little
book containing the rules and re2u!anoni
OF the Stock Exchange. Mr.. Untermyer re-
ferred 10 tbs rule prohibiting any business
communication or dealing between mem
bers of the larger exchange with the Con-
soldated Stock Exchange members under
penalty of Suspension. The witness said