Evening star. [volume] (Washington, D.C.) 1854-1972, 1912-06-14
NOT AMORGAN LOAN
Evidence That U. S. Treasury
Blocked Panic of 1907.
MONEY PLACED IN BANKS
George B. Cortelyou, Former Secre-
tary of Treasury. Witness in
Money Trust Inquiry.

NEW YORK, June 14-Evidence in
tended to show that the 100000 which
J. p. Morgan has been generally credited
with placing upon the New York Stock
Exchange during the panic of 1907 was
really supplied by the Treasury OF the
United States was introduced yesterday
afternoon at the hearing of the Pu1o
committee OF the House Of Representa-
tives that is investigating the so-called
money trust.
Samuel Internyer. counsel for tho COM
mittee obtained from George F.. Cortci-
you. Secretary of the Treasury under
tho Roosevelt administration, the aSser-
ton that he understood" the money
loaned by the government to the banks
at that time was to be used on the stock
exchange.
From the New York subtreasury the
attorney secured a statement showing
that on the day, October "a, 1907. on
VIII ch Mr.. Morgan told r. III. Thomas,
the twenty five-million-d dollar loan TO the
exchange loan brokers the government
had deposited with the banks nearly
Sz..,0Cn,OO0.
Banks Agree to Loan $23, $50, 600.
From Charles Steele, q partner OF j. !.
Morgan. he obtained statement SHOW
ing what fourteen banks had agreed 10
loan" to the stock exchange on tnat day.
The total amount agreed to- was S2S,-
$50 COO, but the amount actually loaned'
according to the statement, was $1s,a5,-
Om All these banks, the subtreaSury
statement showed. had previously re-
ceived deposits of government money.
The statement from the subtreasury
was obtained after Mr.. Untermyer had
failed to procure from Mr.. Cortelyou the
government funds. which. the witness
testified. amounted to about $4o,0O0,OO0.
during the panic. Mr.. Cortelyou could
not recall specifically what banks received
money.
Mr. Untermyer was trying to bring out
that some of the so-called Morgan banks
received deposits. The list furn shed by
Mr.. Steel included the First National, the
National City, the Hanover National. the
National Bank of Commerce and several
having Morgan affiliations The attorney
read into the record from the two lists
comparisons showing that october - the
First National had received Ss,25o.Ooo in
government deposits, had agreed to
loan on the stock exchange $4,0O0OOO.
and had actually loaned S2,6SOOOO. He
made Similar comparisons for other
banks.
Mr.. Cortelyou Not Informed.
Mr. Cortelyou sad that he had not been
aware that the banks under Mr.. Nor
Gans guidance had loaned money on the
stock exchange in proportion to the
amounts they received from the govern
ment," but Mr.. Steele testified that Nor
gan brokers had been sent to the ex-
change to announce that money was
available and to say at what banks loans
could be secured. Mr.. Morgan. Mr.. Cor
tel, on conceded. was 1.-The leader of the
movement
Evidence that Charles w. .dorse made
an offer to the con roller OF the currency
TO pay off all the depositors of the falied
Bank of North America was brought out
in connection with the testimony given
by Charles A. Hanna. government re-
ceived of the institution. Letters between
Morse and the controllers Office were
place don the record, showing the govern
ment had refused the offer. although Mr..
Morse was told that ii he would deposit
his funds with the government the con-
troller would see that the depositors We're
then pad
After hearing the testimony Of wit
nesseS in regard to the practices Of the
New York Stock Exchange, which MIR.
tntermyer characterized as contrary to
the law of the land the hearing was ad-
journed sine die.
Future Hearings in Washington.
Chairman Pujo announced that future
hearings will be held in Washington.
THE main line Of the inquiry relating
to the concentration of the control Of
money and the use of our financial and
industrial corporations to that end has
not yet been touched upon to any extent"
he said. That must await the removal
OF all questions of power or the cOmn1fe-
tee by the passing of a pending bill, and
must be followed by months OF prepara-
ton and investigation. The inquiry upon
collateral branches rela ing to the clear
ing house and stock exchange is also
uncompleted That as to the stock ex-
change has barely begun. The commit
tee hopes and expects In the end. with
the aid Of further power, to secure the
data on which to base permanent con-
Strucllve legislation"