Evening star. [volume] (Washington, D.C.) 1854-1972, 1912-12-12
STOCK FEUD AIRED MAY AWAIT WILSON
Money Trust Probers Told OF Choice of Inaugural Chairman
Fight Between Exchanges Unlikely for Several Days.
BROKERS GIVE TESTIMONY COSTELLO is STANDING PAT
Members OF Consolidated Barred Increased Strength Fight
From Doing Business They Say. Against Jordan
LOANS ARE ALSO CONSIDERED NAY HAvEi TO COMPROMISE
a. 0riesel Tells of Methods in Reported
on York deredA Again bv Chairman Mo-
Bankers Not Held Here Combs-A K Suggested.
Money Trust Probers Told Of
Fight Between Exchanges.
BROKERS GIVE TESTIMONY
Members Of Consolidated Barred
From Doing Business, They Say.
LOANS ARE ALSO CONSIDERED
J. 81. Griesel Tells of Methods in
Use on New York Exchange.
Bankers Not Held Here.

The feud between the New York
Stock Exchange and the Consolidated
Stock Exchange and the effect Of the
stock exchange bar against Consoli-
dated brokers were gone into today
by the House banking and currency
committee. investigating the money
trust.
Half dozen members Of the Consoli-
dated Exchange. including President
Miguel De Aguero. were examined by
They explained that under
the rules Of the New York Stock Ex-
change they were absolutely prohibited
from doing any business with mem
bers Of that organization. They ex-
planned how their business had been
curtailed by this prohibition.
Loan Brokers Testify.
Prior to the examination Of the Con-
solidated Exchange witnesses the commit
tee heard several money brokers operat-
ing in the loan crowd on the New
York Stock Exchange. They testified that
an enforced low rate OF interest would
prevent the movement Of money toward
New York from country banks. when the
money was needed at home points.
Just before the committee recessed for
Mr.. Untermyer called to the
stand Frank X. Sturgis Of e New York
Stock Exchange. He was the first OF
list of witnesses from the stock exchange
who will be questioned as to the theory
to the speculative character OF trade in
stocks listed the exchange.
Methods Of Operation.
]. H. Griesel of Griesel & Rogers, New
York. testified as to methods of operation
Of the New York Stock Exchange. He
change did not begin ordinarily until
market is very active.
Some times,'' he said, s., 800 600 or
$4.OOO.OO0 is loaned within fifteen or
twenty minutes. this volume of transac-
tions serving as a basis for rates on re-
newal of loans. I have loaned sometimes
$2O.OOO,000 or So, ,OOO.OJO a day and boz
rowed. perhaps. $15O0o.OO on single
day.
II lave loaned as high as $50. 100000. I
represent the borrower rather than the
lender. and, Of course. get the benefit in
the loaning transactions"
Mr.. Griesel said ]. P. Morgan & Co.
frequently loan At the exchanges, though
sometimes several months may elapse
between their transactions. He said the
principal lenders were the National City
Bank. the Chase National and the Bank
of Commerce.
Money, Lending System.
The method Of lending money in "the
loan crowd" on the stock exchange was
described by the witness. He said that
New York banks loaning for out-of-town
banks usually made known the banks
for which they were lending. -
What would be the result of fixing a
rate OF interest on money on the stock
asked MIR. Untermyer.
why, 1t would keep the money at home
in the country banks" answered Mr..
Griesel.
Marcus Helm, member of the Con-
solidated Stock Exchange, said he had
been in the exchange since 1885, and
the New York Stock Exchange and the
Forced to Close Account.
ION May 10. 1910. the governors of
the New York Stock Exchange passed
a rule prohibiting any stock exchange
broker from having any dealings with
the CONSOLIDATED Exchange" said Mr..
Helm.
Here Mr. Untermyer read into the
MIR. Helm said that his brokers on the
stock exchange forced him to close
out his account, despite an effort to
fight the rule In the courts
He said he finally wrote to his stock
exchange brokers. setting forth that he
was no longer connected with the Con-
sc. .idated Exchange and that he would
become nominally an inactive member.
Some time later he was forced to close
out his account. and all efforts to open
another, he said. were futile.
Brokers Not Detained.
When the committee reassembled today
New York Stock Exchange representa-
tives were being detained here to their
LAS soon as yesterdays disturbing
financial conditions in New York were
known. the stock exchange governors
here were offered the option OF returning
home. and coming back for Mondays ses-
sion," said he. Every possible courtesy
consistent with the work Of the. committee
has been extended to every one. If the
committee Is to progress with It's work
and to have witnesses at hand il is I'm.
possible to avoid occasional slight inco4f-
venience. -..-.-..,.-
1.-THE counsel for the committee has been
considerate with respect to
" Illnesses. Every afternoon they have
oeen notified by telephone in New York
n ether they would be required. the. fol-
owing morning, but in some cases they
lad left for Washington on early trains
before they could be reached. Witnesses
instead OF being subpoenaed all for the
same day have been subpoenaed for diff
lerent days, with the express view OF
saving them every possible inconven-
ence."