The Birmingham age-herald., 1912-06-07

timony on certain collateral subjects. The relation of the clearing house association and the stock exchange as twins to the financial system and to the increasing concentration of money will be investi- gated in the few sessions that are to be held before the summer vacation.' Loughlin First Witness
 The first witness was Prof. J. Law renee Loughlin formerly of the Univer- sity of Chicago, and now head of the National Citizens league for the promo tion of sound banking measures. He was questioned by Samuel untermeyer, spe- ciai counsel for the committee, as to what benks had contributed to the campaign expenses of the organization which is SUD- I porting measures for monetary reform. | MT. Untermeyer brought out no contri-
 buttons had been made to the campaign l fund of the organization by J. P Morgan 1 & Co.,, or Kuhn, Loeb & Co. He wanted
 to know why. Professor Loughlin said l they had not been solicited.
 What I want to know Is why the names Of these great private bankers are so
 significantly missing from your subserip-
 ton list 2" asked the attorney of the next ! witness, Irwin T. Bush, chairman of the | New York branch of the organization l There was nothing coming from private l bankers" said the witness. fThe theory
 that the banks should carry on the re-
 forms by themselves is growing. The
 burden of panic always falls on the merchant"
 l He said Andrew Carnegie had contrbu-
 ted $5O0O What kind of a merchant is he?" interjected the lawyer 1 Well, he was some merchant in his 1 day." said Mir Bush. Witness laughed.
 Scherer Takes Stand
 William Scherer, manager of the New l York clearing house association, testi- 1 fled the clearing house was an entirely voluntary organization and was the sole judge of the eligibility of it's members. These in 1858 numbered 52 and in 1910 50. he said. The business of the clearing house, however, had grown in that time from millions to decimilions. he said,
 Mir. Untermyer asked why the clearing house had established a rule barring from admission all banks with a capital less than S1,O00,O00.
 50 that the depositors will have some thing to fall back on," said the witness. But" said MT Untermyer, If 1t is barred from admission by that rule, 1t must clear through some member of the organization
 "They can pay over the counter" said l the witness.
 But you know that that is not prac- l ticable," commented the lawyer The attorney then brought out no mem Der of the clearing house could clear for a non-member without consent of the clearing house committee. You know that banks are not always able to get a member to clear for them, do you not?" was questioned.
 Yes, sir a member assumes a great responsibility." he replied. "All that could be avoided if the clear ing house would let down the bars and let reputable bank in, could it not?' was the next question.
 MT. Scherer said this was a question of judgment. MT Untermyer attempted to take the witness through list of names if possible to determine the interests in control of them. MT. Scherer,, however, was reluctant to identify the names. Take the Hanover National. that is known as Morgan bank, is it not?" was asked.
 T do not know 1t as a Morgan institu- tion,' said Scherrer.
 Well the National City, that is known as a Standard oil bank is it not?' 'T have heard it referred to as such in the newspapers but I am not compe- tent to testify as to these matters under oath" replied the witness.