The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1912-11-04
Second National and Union
National Banks Are Men
toned in Money Trust In
vestigation.
FEDERAL EXPERTS
MAKE ALLEGATION
Assert that Corporations
Want to Control Country's
Commercial and Financial
Interests.

~
I In report made to the committee
on banking and currency of the house
of representatives, by experts, employ
ed at the instigation of the house, two
Richmond banks-the Second National
and the Union National-are named as
I,the only banks in the state which are
connected with big corporations, hav-
ing as their object the control of the
commercial and financial interests of
the country, through the interlocking
of the directorates of corporations.
Statements denying allegations con-
| tanned in the report were made by Of
ficers of the two local banks today. Of
branded the report as false.
The report on the so-called money
trust gives a list of ninety-two printed
pages of financial institutions which
are said to be involved in this chain
of corporations whose directorates in
terlock and which heretofore are alleg
ed to belong to the interlocking COM
bination. The pamphlet was printed
at the government printing office for
the use of members of the investigat-
ing committee. but has not yet been
made public officially.
Mistakes were made in the list of
officers and directors of the two local
banks, mentioned in the report. The
officers Of the second National which
has $250,00o capital, and s3O9,702 re-
serve or surplus, are set forth in the
publication as follows.
President, ]. B. Dougan; vice presi-
dents, d. G. Reid, G.. II. Eggemeyer,
cashier, S. w. Gaar, directors, Howard
Campbell, c. A. Gaar, c. H. Land, I.
r. Howard, J. ]. Harrington, H. C.
Starr Henry Gennett, s. s. Strattan
Jr., c. W. Elmer, E. G. Hill, E. G. Hib-
berd, P. W. Smith and G. w. Miller.
The report states that the Union
National Bank of Richmond has $780,
600 capital and $129,O4O surplus and
that its officers are as follows: Presi-
dent, George L. Gates; vice presidents,
M. c. Henley, E. H. Gates; cashier, H.
j. Hanes; directors, G. A. MCGUIRE, E.
G. Hibberd, l. M. Ridenour and E. w.
Mcclure.
Deny Experts' report.
According to the statement of E. II.
Gates, cashier of the Union National
bank, D. G. Reid is not a director of
this institution, as is set forth in the
report of the experts.
The investigators made one point
emphatic and that is that in their opin-
ion there is no strenuous rivalry
among the big interests, but they are
on good terms and follow the general
policy of working together without
pickering and strife. Their plan, as
alleged by the experts, is most ex-
pressively stated in the phrase, inter
locking directorates"
Its nothing but rot" said E. H.
Gates, when he was asked his opinion
on the report. THE Union National
has nothing more to do with what they
allege than any other bank in the coun-
try. OF course, all banks have New
York representatives. Dan Reid is
not even a member of our board of di-
rectors. There's nothing to that al
legation that our directorate interlock
with that of other banks"
Samuel Gaar, cashier of the Second
National bank branded the allegations
as ''bosh.'' He declared that while
Reid held stock in the bank he did not
hold controlling interest
Have Studied Banks.
The experts say they have reached
this conclusion after making a study
of the directorates of all of the inn
portant corporations in every part of
the land. The report estimates the
total assets of the Morgan-Rockefeller
group as follows:
Industrials and public utilities. $751;
6S6,S5S,s14; railroad properties. ST.
250,000,000; banks and other financial
institutions, $4,000, Oil ,932; mining and
oil properties, O0,s4s,s32; miscel-
laneous, 1892, $4,000; total, s39,711,-
32S,67S
Many of the corporations included
in this table are known to the world
by diverse titles indicating owner
ship. such as Morgan concerns"
STANDARD OIL" Could" Vanderbilt"
"Guggenheim," HILL" ETC., but the ex-
perts insist that they are all subject to
the same domination and are properly
classified as belonging to the Morgan
Rockefeller group.
The figures gathered by the experts
also indicate that the Morgan-Rocke-
feller interests are dominant in all the
other groups; that they interlock with
the same interests that dominate the
Standard Oil company and the same
that dominate the Steel Trust, and
these two are found side by side
throughout the financial world
Examined Records.
In a test of 244 banks scattered
throughout the entire United States