New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-05-22
TO PROBE CLEARING HOUSES
Pujo Committee to Hear A. B.
Hepburn and Other Presidents.


The Puio committee at Washington,
which is conducting the money trust in
qulry. is about TO begin an examination
Of the clearing house system i'm the Vari-
Gus parts of the country. ii is understood,
and 4. Is. Hepburn president Of the New
York Clearing House Association. has been
asked to he ready to appear as witness.
although no subpoena has been issued for
him. The heads of other clearing house
associations are expected 10 give test-
mony regarding the powers and activities
Of their several institutions. including the
measure of influence cxcrted by clearing
houses on the general policy of the banks
in their respective territories.
The committee, it is expected by local
| bankers. VIII also investigate tho clearing
house inspection system. which has been
in operation in several Western cities FOR
the last few years and has only recently
| been introduced here. the object being TO
| learn whether or not the small banks are
obliged TO conduct their business on lines
laid down by the large Institutions Bank
ers Of this city are inclined to welcome a
clearing house investigation. feeling that
IT Will serve to show the real servic" rem
dered by the New York Clearing House
Association in periods OF financial storm
and stress and that no instances of coer-
.cion of the small banks by the larger ones
viii he disclosed.
Robert J.. Fryer. president of the Fidelity
Trust Company, of Buffalo. one Of the lead
Ing Democrats of Western New York and
"A brOther-in-law OF the late Daniel Man
ming, has written a letter 10 Chairman
Pujo declining to supply the information
requested from the Fidelity Trust Com
pany as 10 transactions between IT and It's
customers. lie says, in part:
The charter Of this company was OBJ
tanned from the State of New York. ana
the banking laws of the state prescribe
our duties. W" have nothing to conceal.
and the State Banking Department knows
or every loan and every investment We
nave. Its examiners nave cOmplimented us
time and time again upon our clean ana
healthy condition. We do "A general bank
inE and trust e, mpdny buSinCs :. receive de-
posts from individuals and corporations.
and loan money To these whom We con
slider worthy and responsible. We ACCEPT
and execute public and private trusts ac'
as guardian. executor and administrators.
and in all of these matters We hold in'!p-
late OuI fuuciaTN relationship To our pa
irons. "a the same way that lawyers are
required 10 guard the secrets Of Their
clients. Were We TO 30 othcrWiS" Nc would |
nave little business To transact, even II ""
We're worthy of II.
The New NatiOnIlism II Theodore Roose-
welt promulgated at OssaV atomic startled
the country. 1t resulted in the election OF -
Democratic House for the first time I'm
mauv wears, and I'm the election of Demo
cratic Governors I'm all Of the doubtful
states What tcrrOrs VIII this yiCi'u.
scheme OF New Nationalism now have for
tine electorate If tie country when the VERY
COngresSmen who We're elected on that
issue Justify il all by assuming to give u |
one OF their committees the outrageous and (
unconstitutional power Ia inquire into the
business relations of the citizens OF the
several states with the banking institutions
created by thOs" states?
If Congress has the power 10 inquire INT"
In" relations of a state bank or trust com /
pany with its patrons, il has the same 7
pover TO invade the states and compel dis |
closure of private transactions carried on /
by citizens wholly within sovereign state. /