The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1912-12-11
Skeletons In the Financial Closet OF
Wall Street During Panic Of
1907 win be Ratified
by PuIo.
INFORMATION
Committee Probing the Alleged Mon.
ey Trust la Still Hammerins
Away at the Banks
Back Door.

United Press Leased Wire Service.l
WASHINGTON. Dec. IL Skele.
tens of the financial closet of Wall
street, during the 1907 panic promised
to be severely shaken today when the
Pujo committee resumed probing the
money trust.
More inside history OF the black
Friday of 1907 was expected from
Walter Frew. chairman OF the loan
committee OF the New York clearing
house and president of the Corn Elk
change bank Other clearing house
members were also scheduled to tell
their parts In the money squeeze.
when cashiers certificates succeedeu
real cash as medium of exchange.
How the Knickerbocker Trust Com
pany. and the Oriental Bank we're
pushed to the wall and then paid
out" was to be shown.
Samuel untermyer also anticipated
further revelations today Of the pres
ent tightness,, of the money market.
Testimony on the rise Of call money
to 20 percent and the present high
rate was a proposed phase Of today's
inquiry.
Inside information upon methods OF
the loan crowd of Wall street in
hoisting the call money rate during
the crop moving and other period OF
| financial stress are being laid bare be-
/ fore the committee. Untermyer had
| intimated by his questioning of wit
nesses that this stimulus is largely
artifcial TIesf1as sought to show. that
| the interest rate is bid up, to draw
money from country banks to Wall
street, with the high interest rates as
the dangling bait of the money trust
To show that the legitimate trade
of country merchants and manufac-
turers is sacrificed to meet the spec
nlative demands of Wall street Is an
| evident trend Of the examination. Evf-
dence tending to show that the "coun-
| try consumers" of money are deprived
/ of LOANS, except at exhorbitant rates,
| while Wall street spectators have
plenty is being developed
How many banks loan an over
whelming part of their deposits to
Wall street brokers is written into the
record as part Of Ftew's testimony.
| He declared that half OF the Corn
Exchange banks loanable assets were
almost constantly employed In 1the
! street"
! Dominion of J p Morgan and Com
| pany, over deposits aggregating S400.-
900 600 Of the Guaranty and Bankers
Trust Companies Of New York was
also exposed by Frew. He admitted
/ that voting trustees" self-perpetuat-
ing In power, control the business OF
these giant institutions with the d.
reotors performing merely nominal
duties of supervision.
1 Today F'rew asked to be cToss-
| examined by his own attorney He
insisted that wrong Interpretation up
on his testimony had been placed by
the form OF Untermyer's questions
Lively tits between Frew and Inter
myer caused the demand by Frew for
some friendly questioning by his
own counsel
Frew's examination was resumed
when thee ommittee met He told of
an investigation by the New York
clearing house of exchange collection
costs and methods in other cities
This Information was published by
the New York clearing house.
4 Untermyer challenged the statement
OF Frank a. vanderlip, former assist.
ant secretary Of the treasury, that
collection of country checks cost