Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1912-06-13
INTEREST DROPPED At ONCE
WITHIN THE DAY THE PRICE OF
MONEY FELL FROM 90 PER
CENT TO 3 PER CENT
AFTER STOCK EXCHANGE
Money Trust Probe Is Securing Nam-
able Information About Opera
ton II Stock Exchange.

NEW YORK. June l2.-Scme here
toforo unwritten history Of how j.
i. Morgan helped the panic of 1907
by supplying $4,000. 900 at "A crucical
time was dramatically told on the Wit
ness stand today by II. II. Thomas,
president OF the stock exchange at
that time, testify ing before the PuJo
committee Investigating the sc-called
money trust.
Mr., Thomas said that on the morn
ing of October "a. 1907, sixty per cent
was being offered for call money and
none was available. lie went to James
Stillman, then president of the Ma
tional city bank. and told MIN $25,-
600, 900 was needed. Stillman sent
him TO Morgan, saying ho would tell
Morgan he was coming.
when | got 10 Mr. Morgan's office
there was great excitement said tho
witness.
Dug Up the Coin.
Mr.. Morgan was in conference
and people were going In and out.
the excitement was intense. | waited
for him twenty minutes. He came out
OF his office and said to me We are
going to lend you s25. 100000 Go
over to the stock exchange and an
nounce It,. ] said ALLOW me to make
a suggestion. Mr.. Morgan, He said
Yes. yes, what IL II" ! think |
soid, that the money should be diyid-
ed up into lots and distributed among
the banks. II would have a better
effect. Very good suggestion said
Mr.. Morgan. Perkins he said, and
snapped his finger, Perkins, divide
that S25,000,000 into small lots
George w. Perkins was the Perkins
referred to.
Mr.. Thomas testified that the loan
had a very decided effect in relieving
panic conditions.
Morgan 01ntrorcd Situation.
Then, 1t rested with one man to
say whether the panic would go on,
don't you think that's dangerous
condition." asked Samuel Untermy-
er, counsel for the committee.
"l couldn't answer that" replied the
witness.
| Mr., Thomas said that when he went
back to the exchange and announced
the Morgan loan the effect almost in
Simultaneous. 1T popped up in a num-
ber Of places instantly. The banks
began to loan money and the ran on
call money dropped back to six per
cent and then to three per cent
Witness Was Reluctant
James b. Mabon president of the
stock exchange was questioned at
length by Mr.. Untermyer in an effort
/ to get him to admit that the New
! York exchange was used as an instru-
ment to concentrate the control, Of
the securities Of corporations in New
York City for the benefit of the great
banks.
The witness conceded that the ma
jorlty of the collateral accepted by
the banks on call loans was composed
Of securities listed only on the stock
exchange and that, in turn. 1t was of
great advantage to corporations to
have its stock listed there. He was
reluctant to admit however that the
chief reason why corporations listed
their securities On the exchange was
to give them loanable value.
Mabon mentioned Standard OIL
stock as one of the examples. Of an
unlisted security available for bank
loans and said he was sure there were
others.
Not Much Manipulation.
Tho attorney then raised the ques-
tion with the witness as to whether
manipulation on the stock exchange
was not going on now as well as ever.
"Oh, | don't think So" Maben re-
piled. THE stock exchange is trying
to get the public confidence. We
have fined and punished members for
manipulation. One Cf them Is s. b.
Chaplin, ] don't remember. the others"
"Mr. Chaplin is the man that Great
Cd fIotitinitu ply OF II ,,Ir
Island?"
YES"
"You punished him terribly, sup
pose?"
"Yes, he was punished
"7y thirty days suspension" said
Mr.. Untermyer "You call that pun
ishment for such a glarlng piece Of
work as that Rock Island deal?'
The witness was silent.
Could start Another.
In an effort to show that the var
ious committees of the stock exchange
were endowed with autocratic power
in the matter Of regulating the opera
ton OF the Institution, Mr., Untermy-
er read into the record OF number
OF rules and regulations, emphaslz-
Ing particularly. one, fixing commls-
sions and forbldding members to split
commissions with outside brokers or
with customers.
! Mabron was asked IL he did not
/ think the latter rule was an act in
restraint OF trade.
why. any group of men can get
together and start another stock ex-
change" Maben said.
"Why make such a statement" snap
ped the lawyer. You know that you
would kill II off like you have choked
the concentrated stock exchange for
twenty years"
Tho hearing will be continued to-
morrow.