The Birmingham age-herald., 1912-12-11
First Testimony Heard as to a Concentration of
 Money and Credit"
PROBE IS ASKED OF
 RAILROAD DEAL
Is President Taft Considering Making Colonel Goethals Governor Gen eral of Panama Canal Zone?
 No Action by Committee
THE DAY IN CONGRESS.

Senate met at noon.
 Bill introduced to create Colonel Goe- thals major general.
 Commerce committee hears opposition to Involuntary act of seamen.
 Marine representatives opposed sea- mems involuntary servitude bill before commerce commission.
 E. L. Cornelius was appointed sergeant st-arms. .s..ssst
 Senator Sutherland introduced bill to allow application for pecuniary indemnifi- cation by persons wrongfully convicted Of crime in United States courts and after ward pardoned.
 Committee Investigating Mexican revo- lutlon heard several witnesses.
 Court of impeachment resumed trial Of Judge Robert ". Archibald.
 Adjourned at 5,5s D, m. until noon today.
 House met at noon.
 Rules committee considered New Haven and Grand Trunk investigation resolution.
 Campaign fund Investigating committee decided not to resume hearings before December F.
 Resolution to unseat Representative Bowman of Pennsylvania debated and vote set for Thursday,
 Ways and means committee failed to take action on majority's tariff hearing programme.
 Interstate commerce commission ar ranged for hearing Wednesday on Ayres bill for investigation of railroad shop management in Eastern Traffic assoc.a- tion.
 House leaders plan to recess for the holidays from December 21 to January 3.
 Representative Hanna introduced bill to place all fourth class postmasters on minimum salary of S4O0
 Adjourned at 4;52 ?. m. until noon today
 New York Methods Shown
 Washington, December 10-The first testimony as to a "concentration of money and credit was heard today by the House banking and currency committee in it's investigation of the so-called money trust. " L. Frew president of the Corn Ex- change bank of New York. and chairman of the New York clearing house commit gee, occupied the stand throughout the day and was put through grilling ex- animation by Samuel Untermeyer, counsel for the committee.
 Through Mir Frew Mir. Untermeyer put
  ments by which five men control two of New York's greatest financial institu- tions, the Bankers Trust company and the Guaranty Trust company, with eg gregate deposits of nearly $400 100. The Bankers Trust, MT. Frew said, was con- trolled by H. P Davison, George B. Case and Daniel G. Reid the Guaranty com pany by H. P Davison, George F. Baker and William P. Porter. These men hold and vote all of the stock of the com | panies except enough to allow board of directors to qualify, and under the trust agreements, have absolute authority over the interests of the companies even ;o the acquisition or merger of other institu- tions.
 How New York Attracts Money MT. Untermeyer also received from Mir. Frew a description of the method by which money was attracted to New York when small country merchants and farmers demand funds for moving crops or the accommodation of their business affairs Mr. FreW said the money was needed cn the New York stock exchange for speculative pur- poses; that country banks kept large sums on deposit in New York and that l when the home, demand for money l became strong the New York price of money rose and the country banks. to gain the big interest charges, put their . money out in call loans on the New ! York stock exchange. All of these loans are based on stock exchange col lateral. Mir. Untermeyer elicited.
 MT. untermeyer and the witness did rot get along well together and throughout the day the colloquy be- tween the two time after time, be- came heated. MT. F'rew apeared eva sive and insisted upon making lengthy explanations which led the discussion