The evening world. [volume] (New York, N.Y.) 1887-1931, 1912-12-09
BANK Freeze OUT
BYCLEAR|NG HOUSE
STOPS RATE CLASH
Money Trust Probers Told by
Baltimore Financier of
Competitive Methods.

WASHIN0TON, Dec. IA generai uo-
tense OF the clearing house system Of
banking and a decided stand against
Government regulation Of clearing
houses were made to-day by Waldo
Newcomer. Manager OF the Baltimore
Clearing House. before the House
Money Trust Investigating Committee.
The committee took Up the clearing
house situation In Baltimore. Repre-
scntatives OF two banks. which had
been refused conditional membership IN
tho Association. appeared. Manager
Newcomer explained that the banks
we're not admitted because as condition
al members they would not be bound 81
the rules Of the Association as to out
Of town check exchange charges and
other rates and would be In a position
to compete at an advantage with the
other members Of the association bouni
by the rules.
In a prolonged discussion with Samuel
Cntermyer. counsel for the committee,
Mr.. Newcomer declared that clearing
houses throughout the country were
beneficial institutions, and that any at
tempt at Government regulation would
hamper their efforts.
MONEY PRoBERs HIT ~ BILL
OF LiNpsERo.
Hitting at members o! the committees
Of both Houses Of Congress investigating
tho Money Trust" Representative
Nndbcrgh Republican, OF Mlnnesota)
to-day submitted q joint resolution re-
quirinx Senators and Consressmen to file
q statement oftheir financial interests or
Affiliations with any banking. loanlng or
brokerage business. Lthdbcrgh was
author OF the original Money Trust
probe resolution.
'Ths eagerness with which membe 70
Of the Banking and Currency Commits
sion sought the control OF the money
trust investigations and much Of the
support they obtained In securing II
was due to the fact that most OF the
committee and many other Congress-
men are bankers or bank Attorney
said LindberGh. Il do not claim that
thsy are knowingly seeking to deprive
the public Of securing . fair and Inn
y
and their lawyers are not the parties
to whom this financial legislation should
bs wholly entrusted. The public inter.
ct In this case 10 superior to all others.
ana the majority members OF the COM
mittee should have no personal financial
interests"
The resolution specifically states tn:
Senate Committee on Finance and th<
House Committee on Banking and cur
rency have membership mostly made
up Of bankers. lawyers and controlled
BY those directly. personally and fnan'
cially interested In that class OF leg1s
lation" and that Ito a greater or lesi
extent many other Senators and Rep
resentatives are similarly interested"
The first witness at the Money Trus'
inquiry to-day was William w. Cloud
President Of the State Bank Of Mary
land. Mr.. Cloud said his banh
had applied for clearing house PRIVILEGE
but had been refused because It was mol
q member OF the Baltimore Clearing
House, but desired to clear through an
other bank that was.
| Does the Baltimore Clearing Hous,
prescribe rules which prevent bapl
making Its own price for exchange OF
out-of-town checks?" asked Mr.. Inter
uyer.
Yes. 1t amounts 10 that" answered
Mir. Cloud.
UNTERMVER ASKS AsouT
THRoTrLiNo.
"But that 10 throttlins competition
Isn't IT."