The Washington times., 1912-06-07
SIX MEN CONTROL
. BANKING BUSINESS
/. OF THIS COUNTRY
Startling Condition Revealed
Il BY Congressional Com.
&xL mittee's Probe.

r NEW YORK, June six men direct
outright the polices of nearly 100 Of
the biggest banks and other financial
institutions in New York. They are:
Frank A. Vanderlip, president of the
National City Bank.
James G. Cannon, president Of the
Fourth National Bank.
Walter e. Frew, president of tho Corn
Exchange Bank.
Richard Delafield, president Of the Ma
ldonal Park Bank.
Otto T. Barnard, president of the New
York Trust Company.
A. Barton Hepburn, president Of the
New York Clearing House, and chair
man Of the board of the Chase National
Bank.
The f1ve frst-named constitute the
membership of the clearing house COM
mission Of that all-powerful organiza-
ton, the New York Clearing House AS
sociation. 1t is the controlling body
of the clearing house. Mr.. Hepburn is
"a member Of the committee ex officio by
reason Of his being president of the
Clearing House Association.
This committee directs only in name.
Behind its members stand the small
group Of financial giants which consti-
tute the Money trust, now under inves-
tigation by the Committee on Banking
and Currency of the House of Represen-
tatives. Among them are ]. Pierpont
Morgan, Thomas F.. Ryan. the Stand
ard OIL interests, and George F. Baker.
Money Trust Probe.
A clear glimpse into the far reaches
of the Money trust lair was afforded yes
terday by thesdevelopments which came
with startling suddenness as the re-
Q al 80 tI,4 .,1 H., L.
York before the Congressional sub
committee intrusted with the task of
exposing to the nations view the most
potential combination that grips the
Icountry's vitals.
l. Under examination by Chief Counsel
Samuel Untermyer, William Sherer for
twenty years manager of the clearing
house, made admissions upon which the
foregoing assertions are based. z. H.
Farrar, associate counsel, sat between
snairman ana mn Irra Arsen aIs Pujo, Of Louisiana,
stantly with each other during the
four-hour hearing.
Aftrr describing minutely the physical
Enerer was then led by Mr.. Unteriryer
10 discuss the more subtle operations
pf the organization. Among other facts
deduced from him were:
The New York clearing house is a Law
nto itself There is no legal check or
PTS great and extraordinary powers. i
actually issues gold and silver certifi
gates In Imitation Of the paper currency
OF tie country, which Is used by the
members Of the association practically
To increase the circulation medium. Ir
times of panic It issues clearing houst
certificates at will to brace up The
credit Of its pIenbers or such OF them
ps 1t pleases, and other financial insti'
Buttons that may not be members.
>~l'. Can Ruin Any Bank. -
Tha clearing house committee, with
cut let or hindrance, can ruin any banl
cr trust company. whether 1t be mem
rtrr Of the association or merely b!
clearing through members, hv denying
it the privilege of clearing directly o
Indirectly.
Mr.. Sherer was preceded on the wit
hcss stand Arst by J. Lawrerce Laugh
lin, professo Of political economy II
Chicago University, and chairman o
the executive committee Of the Nationa
Civic League. of which John Clafli,l, o
New York, is president, and then b.
Irving Bush, treasurer of that organi
Eation.
1t WAS developed by their testimon.
that this league, for a year. has beel
dsVnting it's energies ard resource
to an educational campaign favorabl
to the adoption of the Aldrich bank AM
curr ency reform plan. one of the chic
features of which is central bank
Prof Latghlm has had active direction
tf the work, AMI has spent $4,000 thu