New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-06-08
BLAME CLEARING HOUSE
FOR CLOSING ORIENTAL
Huqh KeIIy'S Letter to Stock
holders Supplements Evidence
of Ex-PreSident Jones.
CANNON ADMITS S0lVEMCY
Untermyer Shapes Congress In
curry Toward Power OF Five
Bankers in Controlling
Financial Situation.

Financial SITUATION.
In an effort to show that the arbitrary
rulings of the Clearing House committee
consisting Of five members, were dlreclly
responsible for the failure OF the Orl-
entail and other banks during the panic
i'm the fall of 1907, the Congress COM
mittee investigating the money trust
turned the light on some interesting IN
side facts of that tumultuous period at
the resumption of the hearings at the
Gus ON House yes, crday.
.'amuel Untermyer, counsel Tor the
committee. shaped the inquiry in that
respect toward the support of the main
proposition which he has been trying to
demonstrate since the investigation
opened. that this small committee OF five
bankers at the Clearing House are the
real dctators in the banking situation in
New York.
Richard w. Jones. jrp who was de-
posed as president of the oriental Bank
shortly before it closed in January 1905.
and other directors of the bank at that
time told on the witne IS stand yesterday
VI
the Clearing House committee, at which
a. Burton Hepburn, president of the
Clearing House Association, and other
members Of the committee had
pledged the support of the Clear
ing House banks to the Oriental
It'll the last ditch" Shortly after
ward, the witncsces testified, this same
1aI ho
payment of the Clearing House certiii-
Gates held by the oriental, causing run
on the bank and forcing it to close It's
doors, though the institution was en-
tirely solvent at the time.
other banks which Mr.. Untermyel con-
tended suffered a similar fate at the
hands of the Clearing House committee
at that time were the New Amsterdam
Bank. the National Bank Of North
America doth then controlled by Charles
w. Morse and the Mechanics and Trad
ers' Bank Counsel for the committee
brought out the fact that all four Of
IN. banks paid their debts in fun and
that the stockholders received dividends
during liquidation.
memory of James c. Cannon. president
of the Fourth National Bank and one of
the present members of tie Clearing
House committee. in regard TO the cir
Cumstances surrounding the closing Of
the Oriental Bank by interrupting his
testimony with that of Mr.. Jones and
other Oriental Bank witnesses. Mr..
Cannon was not on the Clearing House
committee at that time he said, and
could not give counsel the details which
the latter seemed to think the witness
should know.
Admitted Oriental Was Solvent.
Mr.. Cannon admitted however, that it
would appear that the Oriental Bank
was solvent at the time it closed its
doors. AS a trustee in liquidating the
affairs of the bank, later. through the
Metropolitan Trust Company, Mr.. Can
non said he received $1,000 for his ser
vices President ives of the trust COM
Tany, who was chairman Of the liqui-
dating trustees, was paid $1,000, the
witness said. Jones had testified that
the expenses for liquidating the Oriental
Bank amounted TO about $4,000.
1t al -cared that before the death Of
Hugh KClly. wi succeed MIR /, nos nc
,.,.n.d,. - a. ,4...
l,ttcr fO the doIositpre and ,to.lyb,tJ,.
80 ,ha ,,,,
u 'le ''"h' al "hl'h Il bitterly cri;i-
,,,....d n,..i,.
''"'iu ie@''' jones ana the bank
anG highly commended the management
nf ;ts Affairs ,.,i,. .b. -.
ne accepted me Presidency at the sug-
.,ft,rt,l o..,,,. ,,.,,,,.,, -.