The Chickasha daily express. (Chickasha, Indian Territory [Okla.]) 1899-current, 1912-12-10
Senate Committee Frobers Plan
to Go Deeper into the..Oper-
ations Of the Alleged
Money Trust
CLEARING HOUSE HEAD
IS WITNESS TODAY
Attorney for Committee Seeks
to Determine Extent o f
Domination Of Outside
Banks BY New York
Telegram BY United Psss

Telegram by United Pesa
Washington, Dec. 10 1.-The reputed
domination o. banks by the clearing
house association and the alleged mo
nepoly Of finance, were brought out
more in detail when the money trust
Investigation was resumed today.
The committee turned the search
light on the New York stock exchange.
President w r. Frew and every mem
Der Of the New York clearing house
being scheduled to appear as wit
nesses
Attorney Untermeyer, for the com
mittee, proposed to probe the infiu-
erce q the New York clearing house
as affecting clearing banks In other
cities, inquirng to what extent the
New York association dominates the
country banks
When Frew took the stand he told
how the Corn Exchange bank Of which
he Is president was enlarged by merg-
ing two other state institutions. He
sale the Corn Exchange had twenty
nine branches in New York. In con.
sidering TIE elig bility OF banks for
membership IN the clearing house. he
said that only capital not the surplus
Of a bank, was considered.
Clearing house domination Of bank
ins institutions was the subject Of the
first days examination OF witnesses
in the house banking and currency
committees investigation of the alleg-
ell money trust Eleven bankers, rep
resenting institutions in Pittsburgh.
Philadelphia, Baltimore and New York
testified.
Samuel tntermeyer, counsel for the
committee conducting the examination
endeayored 70 show that there was a
general movement among clearing
houses to impose on banks rule en-
forcing the collection OF commissions
on ont Of towE checks.
n this connection, he ascertaiued
tha the Baltimore clearing house de-
clired to admit the State Bank 81
Maryland to a membership because. as
clearing member, it would not abide
b. theSelearing house rule enforcing
such collections,
From the fittsssAurg bankers Air. I'm
termeyer found that suit was pend
ins in the courts to prevent the en-
foroement Of a rule FOR collecting com
missions on out OF town checks which
was adopted in conjunction with the
clearing houses OF Cincinnati, Cleve.
land and Columbus. The Melton Ma
tional, Farmers Deposit and Lincoln
National bank of Pittsburg declined TO
accept the rule and now are seeking
an injunction to help its operation. r.
B Woodwos of the Pittsburg Clearing
House association told the committee
tha. the collection on out Of town
checks free Of charge did not embar-
rass the banks financially but impos-
Ing rate OF exchange was for the
purpose OF increasing the earnings.
Mr. uutermeyer read into the record
the rules of the clearing house asso-
citation Of Salt Lake City, where they
were prescribing an iron bound rule
made by its members for practically
every act performed by the depositor
A G Knox Of pittsburg president or
the Melton National bank. declared
these rules practically took control Of
] the bank out Of the hands OF its Of
ficers.
The operation Of the clearing house
section Of the American Bankers asso-
eistion was described by J A. Pusley
Of New York, formerly q member 81
/ the executive committee OF the asso.
citation He said the section embraced
about i2O Of the 200 or uore clearing
/ house in the country It had made no
effort he said TO prescribe rules fol
/ itn members IN connection with TIE
Ger duet OF their business.
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