The citizen-Republican. (Scotland, Bon Homme County, S.D.) 1???-19??, 1912-12-12
DENIED CLEARANCE
HOUSE PRIVILEGES
Money Trust Hearing Begins.
Bankers Tell Of Close Cor
poration Methods.

washington, Dec. 1G.-The House
money trust investigating COMMITTEES
got down to work today after a recess
of several months. The program for
the next few days includes the calling
as witnesses of several New York bank
ers, among them Jacob H. Schiff, and
some representatives of the New York
stock exchange.
AT the opening session of the COM
mittee today Chairman Pujo made a
statement in which he repudiated pub
lished reports of what purported to be
the committees intentions, for the
course of the inquiry.
The first witness was William Cloud,
president of the State bank of Mary
land. Samuel Untermeyer, counsel for
the committee, took up his examination
Mr.. Cloud said his IA had applied
for clearing house privileges, but a
been refused because it is not a mem
Der of the Baltimore clearing house,
but desired to clear through another
bank that was.
Is This Throttlins?
Does the Baltimore clearing house
prescribe rules which prevents a bank
making its own price for on
out of town checks?" asked Mr.. Inter
meyer.
"Yes, it amounts to that" answered
Mr.. Cloud.
but that is throttling competition,
isn't it?"
.Well, wouldn't say throttling,' said
the Witness.
Among the other witnesses on hand
to testify were C. A. Pugsley, president
of the New York Bankers association;
w. E. Frew, chairman of the New
York Clearing House association;
Charles e. Rushman, counsel for Mr..
Frew; August Wardrop, president of
the Peoples National bank, of Pitts
burgb. and Harrison Nesbit, president
80 yI1 NyatiN~a11 u -1r ~ Ditfch,,roh &
One Finally Gets in.
John r. Bland, president of the Uni
ted States Fidelity & Guaranty com
pany followed Mr.. Cloud on the stand.
Mr.. Bland ala his company has
sought in vain to secure the privilege
Of clearing out OF town checks through
it's banks of deposit, which were mem
bers of the association, or to secure full
membership in h association, but
within the last few weeks, however,
he had been given to understand that
arrangements were being made by the
clearing house to take care" of the
trust companies.
AS a result Of the agitation of this
committee YOU object has been ac-
c~omplished?" asked Mr.. Untermeyer.
We'll, I could not say as to that"
Eugene lowering, president of the
National Bank of Commerce, of Balti-
more, and chairman Of the clearing
house executive committee, produced
the constitution and rules of the Balti-
more clearing house.
When the committee began the hear
ing on the money trust investigation
today, Chairman Pujo made the fol-
lowing statement:
I'm resuming this inquiry the COM
mittee feels that the many unauthor-
lied, misleading and inspired reports
that have been circulated concerning
it's work and plans should be corrected
and that the public should be warned
against placing any credence in them.
There has been a consistent, hostile
effort in certain directions, to embar-
rass the inquiry. No statements have
been or will be made or authorized on
behalf of the committee at any time
except such as may be openly an
nounced at the hearings.
No Friction, He Says.
AT 70 time has there ever been any
friction, misunderstanding or difference
remaining betWeen the members or
with or between counsel. The utmost
harmony has prevailed from the be-
ginning and the reports to the con-
trary have been sheer fabrications. Nor
is there any authority for the persis-
tent published report as to proposed
remedies or legislation. TIT question
has never been before the committee.
and it would be premature to consider
it.
THE committee is not yet in posses
SioH VI lIe 1dclS On winch TO base. Il
judgment. 1t has barely reached the
threshold of the inquiry so that any
opinion as to it's action is premature
to say the least. Attention is called to
the fact that the outset of hearing
last May and since frequently repeated,
that the terms of the resolution under
which the committee is acting cannot
be fully carried out unless or until
congress shall have enacted the Sill
that has passed the House and is now
pending in the Senate, removing all
existing doubt as to the power of he
committee to inquire into the part. if
any, that is played by the national
control of money and credit.
Meantime the committee will press
forward with the other heads of the
inquiry with the view of submitting an
immediate report accompanied by such
Information as may be deemed wise"