The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1912-12-17
Country Banks Send Their Cash to
Wall Street for the Stock Gam
biers to Wager on
Uncertainties.
FEATURE FOR TODAY
Last Witness Monday Refused TO An
swer Questions and PuIo Insists
That lie Must Speak
Out

limited Press Leased Wire Service.I
WASHINGTON, Dec. 17.---Loans o.
millions of dollars for speculatiya
purposes in Wall street, including the
use OF country banks money in the
market, were the next features on the
program today in the money trust in-
vestigation
With tilt between Frederick Lew
isohn, stock exchange broker and
banker, and Samuel Untermyer, At
torney for the Pujo committee, how
ever, was In prospect to open today's
hearing Lewisohn whose firm hand
led the marketing on the New YorH
stock exchange of the California Pc
troleum Company, was chosen as the
opening witness. to reconsider his
blank refusal just before adjourn
lnent last night to 6ivulge the pro-
moters' profits. Chairman Pujo in
sisted that this information must be
given, unless it lis discriminating evi-
| dence.
i
to hinge upon the enormous loans OF
money by banks in Wall street and
.l"interlocking directorates' to show
the financial sway OF the most power
lful financiers of the country. This
& evidence has been secured from a
score or more Of banking interests OF
I New York. II is said to be literally a
Sdirectorg Of American rniliionaires.
This phase OF the money probe Is re-
garaed BY members Of the Pujo COM
: fmittee as one OF the big features OF
the inquiry. 1t will show the actual
financial interest or control OF banks,
railroads and giant industrial corpora
tions by few men.
Use of the money OF great nation.
al and state banks Of New York, In
= Wall street, both for investment and
speculative purposes, will also be
drawn out by means of the commit
: tees statistics How money from
, out of town banks flows to Wall
street, when interest rates soar and
during periods when money Is tight
outside of New York, was another pro
posed branch of the inquiry today.
John F. Aspegren, president of the
New York Produce Exchange. tn,
1 first witness, told OF listing certain
securities on the produce exchange i
1907.
I'VE thought it would canse troubl,
from the New York stock exchange
but 1t did not" he said.
Trading in these stocks was dis
continued three years later, the brok
er said, after some stock exchang,
brokers complained of the practice
He Indicated that the stock exchang
objected to such trading on the Pre-
! duce exchange.
n Frederick Lewisohn Of Il-wisohl
:. Bros. New York brokers, was thel
1. recalled. Lewisohn's attorney sal
r. he reluctantly agreed to produce pc
Is pers demanded yesterday by the CON
mittee, tending to disclose the prt
}. noters' profits in floating the Cal
I. fornia Petroleum Company etock o
the Now York stock exchange.
"Mr. Lewisohn feels he was Just
fled in refusing 10 produce these ps
n, pers," his lawyer said, 'fbut will pr,
duce them because Of the report
that he has something Interior t
conceal
j. The brokers' papers disclosed tha
the capital stock of the oil compan
was 5000, 600 and that the promo
ers got s7,5o0O 600 OF stock in one sur
syndicate and a. like amount in a.
" other syndicate for operations In p
rope. Lewisohn could not say whet
err any national banks were subscri
= ers to the syndicate.
Investors in the syndlcate's stoc
paid s111 share.
I'VE thought we'd make a mark
- SO these investors could increase
-. decrease their holdings as they sa
~ ftt,' said Lewisohn, describing he
-. the market was made" on the Ne
~ York stock exchange by selling al
buying the stock in great quantitis
!. He added that the promoters also h,
~ stock to sell in the manufacture
go market.