The Birmingham age-herald., 1912-12-10
Bankers of Pittsburg, Phila- delphia, Baltimore and
 New York Testify
COURT SUIT PENDING
 TO BREAK THE RULES
Knox Declares Regulations Take Con- trol of Bank Out of Hands of Or ficers-Pujo Issues Statement
 Saying All Is Harmonious

Washington. December 9-Clearing house domination of banking institutions was the subject of the first days eNami- nation of witnesses in the House bunk ing and currency committees iuVestiga- ton of the so-called money trust to-day Eleven bankers. representing institutions in Pittsburg Philadelphia, Baltimore and New York testified
 Samuel UntermeVer, counsel for the committee, in conducting the examina- ton. endeavored to show that there was a general movement among clearing houses to impose on banks a rule en- forcing tue collection of commissions on out-of-town checks collected by banks In this connection he aseertained that the Baltimore clearing house declined to | admit the State Bank of Maryland to a membership because. as a clearing mem- Der. it would not abide by the clearing house rule enforcing the collections.
 From the Pittsburg bankers Mir. Inter myer ellcited that a suit was pending in the courts 10 prevent the enforcement of rule for collecting commission on ! out-of-town checks which was adopted in conjunction with clearing houses i'll Cincinnati. Cleveland and Columbus. The Melton National, Farmers Deposit and Lincoln National Bank of Pittsburg declined to accept the rule and now are seeking an injunction 10 prevent is op- eration.
 Banks Not Embarrassed
 Robert W. Wardrop, president Of tue Pittsbnrg Clearing House association. told the committee that the collection of out-of-town checks free of charge did not embarrass the banks financially, but that the imposition of rate of exchange was for the purpose of Increasing the earn ings."
 MT. Untcrmeyer placed in the record the rules of the Clearing House assoeia- tion of Salt Lake City which prescribe an iron bound series of regulations gos eruing tho charges to be made bs L its n' ns5srs for sssacticaUS cry sef,Aiee i performed for deposltor. A. C. Knox | of Pittsburg. president of the Melton ] National bank, declared these rules plac- tlcally took control of the bank ont of the hands of It's officers.
 The operation of the clearing house section of the American Bankers aaso- citation was described by C. X. Pugsley of New York, formerly member of the executive committee of the association. He said the section embraced about 120 of the 200 or more clearing houses in the country. IL had made no effort he said. to prescribe rules for it's members in connection with the conduct of their business.
 When the committee adjourned for the day N. R. Frew president of the New York Clearing House association, was sworn and his examination will besai to-morrow's session.
 PuiO Issues Statement
 When thecommittee began the hear ing of the money trust investigation today, Chairman Pujo made the follow ing statement:
 Tn resuming this inquirty the com mittee feels that the many unauthor- ized misleading and inspired reports that have been circulated concerning its work and plans should bc corrected and that the public should bc warned against placing any credence in them. There has been consistent hostile ef- fort in certain directions to embarrass the Inquiry. No statements have been or will be made. or authorized on be- half of the committee at any time ex- cept such as may be openly announced at the hearings.
 At no time has there ever been any friction. misunderstanding or differ enee either among the members or with or between counsel. The unOSt naf- mony has prevailed from the beginning. and the reports to the contrary have been sheer fabrications Nor is there any authority for the persistent pub lished statement as to proposed rem edies or legislation. The question has never been before the committee and k would be premature 10 consider it.
 Iniuiry Just Started
 "'rhe committee Is not yet in posses sion of the facts on which to base n judgment. It has barely reached the threshold of the inquiry. SD that any opinion as to it's action Is decidedly premature to say the least Attention Is called to the annc uncement made at the outset of the hearings in May that terms of the resolutions upon which the committee is acting cannot be car ried out unless Congress shall have en- acted the bill that has passed the House and Is now pending In the Sen ate removing all existing douht as to the committees power to Inquire into the part If any that is played by the Continued on Page Ninc.)