The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1912-12-11
SKELETONS
in FINANCIAL
CLOSETS Barred
Walter Frew Gives Inside His.
tory of BLACK Friday"
Of 1907
Ea
TRUST co. PUSHED TO
WALL AND THEN PAID OUT
information Given Pujo Commit
tee on Hosting of Call
Money Rate


WASHINGTON, Dec. 1l.-Skeletons
OF the financial closets OF Wall-st,
during the 1907 panic, promised to DO
severely shaken today when the Pujo
committee resumed probing the mon
ey 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 Ex-
change bank. Other clearing house
members were also scheduled to tell
their parts In the money squeeze,
when cashiers certificates succeeded
real cash as medium OF exchange.
How the Knickerbocker Trust COM
pany, and the Oriental bank were
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.
TO 20 per cent, and the present high
rate, was proposed phrase OF today's
inquiry.
Inside information upon methods OF
the loan crowd" OF Wall-st., in hoist
crop moving and other periods OF
| financial stress, are being laid bare
| before the committee Untermyer had
/ intimated by his questioning OF wit
nesses that this stimulus is largely
artificial. He has sought to show that
the interest rate Is bid up, TO draw
money from country banks to Wall-st.,
with the high interest rates as the
Aon l,,~ kotk - h.
To show that the legitimate trade
OF country merchants and manufactur-
ers Is sacrificed TO meet the specula-
tive demands OF Wall-st., Is an evident
trend OF the examination. Evidence
tending to show that the country
consumers" OF money are deprived OF
loans, except at exorbitant rates,
while Wall-st. spectators have plenty,
ts being developed.
How many banks loan an over
whelming part of their deposits to
Wall-st. brokers Is written into the
record as a part OF Frew's testimony
He declared that half OF the Corn Ex.
change banks loanable assets were
almost constantly employed in tho
Btreet"
Domination OF ]. p. Morgan & Co.
bver deposits aggregating $40O,0O0,OO0
bf tbs Gnaz.nty and BANKERS Trust
Companies, OF New York, was also ex-
DO ed by Fred He admitted that
voting trustees" self-perpetuating In
bower, control the business OF these
Giant institutions, with the directors
performing merely nominal duties OF
supervision.
Today, Frew asked TO be cross-ex-
mined by his own attorney. He In
listed that wrong Interpretation upon
liz testimony had been placed by the
crm OF Untermyer's questions. Live
Tits between Frew and Untermyer
aused the demand by Frew for some
friendly" questioning by his own
ounsel.
Frew's examination was resumed
hen the committee met He told
Z an investigation by the New York
hearing house, OF exchange collection
osts and methods In other cities.
his Information was published by the
lew York clearing house.
Untermver challenged the state
hent OF Frank A. Vanderbilt. former
assistant secretary OF the treasury,
hat collection OF country checks cost
lew York banks $2.000,000 to So
be. 900 annually. Frew suctained
anderlip's contention, saying loss OF
terest on such accounts caused the
kpense.
The bank president said the aver
re dailv country collections In New
DIRK were $14009.000
Untermyer had Frew take pencil,
bid figure the banks loss at this rate
S1 800 day. They clashed frequent
the lawyer complaining frequently
|at Frew was evading direct answers
his questions.
Untermyer produced the clearing
buse report to show that slight
Noft was made on collections. In
cad OF the big loss alleged by Van
erlip.
81 don't want to criticise Mr.. Van
erlip." said Frew.
81 know you don't, but you have to-
you know he Is inaccurate" Inter
yer retorted.
Untermyer made sarcastic COM
ents on the report. finally forcing
rev. who SIGNED II, 10 admit that In
me statistical features. ii was In
curete.
Ano'Cer assault on the report was
NlInF nIIInn min