New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-12-29
PUJO COMMITTEE CAN'T
FORCE BANK TESTIMONY
Controller of Currency Cannot
Be Forced to Give Conf
Dental information.
BROWNS BRIEF ADOPTED
No Power to Force Attendance
Before Congress Committee
Unless Acting Under
Constitution.


Constitution.
Washington. Dec. 2S.-Attorney Cen
eral Wickersham adopted to-day the
hrief of Wrisley Brown. special attorney
of the Department of Justice, refusing
the request of the Committee on Bank
ing and Currency of the House of Repre-
sentatives. made through Samuel Inter
mver. its counsel. for of the bust
ness of banks which are not included in
the customary reports already made
public.
Mr.. Browns brief says that neither the
House nor the Senate has any authority
10 compel the attendance or testimony
NJ witnesses before the committee OF
either body unless the committee is act
ing under authority expressly delegated
by the Federal Constitution TO the body
which that committee represents.
MIR. Browns opinion is summarized as
lows:
That n committee of the House Of
representatives is without power 10 COM
el national bank officers to testify re
arding the affairs OF national banking
. sOCiations.
That il is ultra wires Of the Control
le of the Currency 10 examine into the
affairs Of national banking associations
for the purpose of securing information
fer the sole use OF committee OF con-
& ess.
3 That the Controller of the Currency
is morally, although probably not legally.
bound TO hold in confidence information
secured from national banking associa-
tons by virtue OF his official authority,
In ian far ifs puhllC1flOn lS
officially authorized by law.
4 That the Controller should not and
can not be compelled to divulge such in
formation by committee Of the House
cf Representatives.
Outside Congress Jurisdiction.
The opinion says Of the resolution di-
recting a Subcommittee of the Commit
tee on Banking and Currency of the
House to inquire into certain matters
relative 10 the supposed control of the
money market through concert of action
in the operation OF national banks and
large corporations engaged in interstate
commerce:
The resolution purports TO authorize
ar Investigation for the purpose of &C
quiring information from which to for
muldte remedial legislation, although
much Of the information that is appar-
emily desired relates 10 affairs falling
outside of the jurisdiction of Congress
such as. for example. the operations OF
the New York Clearing House. the New
York Stock Exchange and the insurance
companies which are not subject 10 fed.
eial control
After telling how the committee failed
20 get information from managing Off
GERS Of various national banks and the
passage Of bill by the House for the
purpose of removing the confronting diff
Guilty. which struck a snag in the Senate
the brief continues:
Having thus failed TO secure legislative
sanction for this feature Of the inVestiRa-
ton Of the so-called money trust" the
House committee now seeks TO secure the
desired information through the ma
chinery of the Office OF the Controller
VI the Currency 1 am advised by the
Controller that he now has very little
II any, of this information in his pos
session, and that IN order TO satisfy the
demands Of the resolution it would be
necessary for him 10 cause special eXami-
nations for the purpose.
IL is fundamental that The Congress pos
Sesses only SUCH powers as are uelegated
10 il by the Constitution of the United
sress possesses such incidental powers as
are expressly conferred upon II.
Power Vested in Executive.
The brief adds that "the vistorial
power OF the government over national
5anking associations comprises the power
u the examination and inspection, to-
gether with the power Of supervision and
control. These powers are vested in GER
tain officers OF the executive branch OF
the government and in the courts of JUS
tice. to be exercised in accordance with
the spirit as well as the letter Of the
national banking laws
Mr.. Brown says In closing
In my opinion that part of the resolu-
ton OF the House of Representatives
which presumes 10 direct the Controller
10 exert his Official authority in behalf
of its committee in securing information
relative TO the operation Of national
banks is squarely in conflict with the
~ legal force or erect. National banks
are creatures Of the laws Of Congress
and the rules whereby they shall live
and move and have their being are pre-
scribed by the laws Of Congress Surely
this elaborate and well considered
scheme Of OrganiZa ton and operation can
only be interfered with through leSisla-
tive expression of the will OF Congress.
The Congress has authority TO secure
such information as It may desire re-
garding the business activities and meth
DDS of corporations created by il, for ii
has right to know what It's creatures
are doing. but having specifically limited
the extent to which the affairs of ma
tional banking associa tons shall be sub
ject 10 examination. and having specified
the purpose for which such examination
shall be made. II can assert this author
ity only through the medium of direct
legislation.
The Controller of the Currency de-
riyes his powers from the legislation OF
Congress. but he rs an officer of the ex-
ecutive branch Of the government, and.
as such. he is not answerable to the
legislative body.
President Taft has notified Representa-
tive Pujo that he cannot comply with
the request made by Samuel Untermyer
respecting the Controller Of the Currency.
and inclosed the opinion adopted by the
Attorney General This opinion was sent
on TO Mr. I'nteTmyeT.