New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-05-10
MAYOR ADVISES BANKERS
Urges Upon Trust Company Sec
ton Value of Distributiye Justice
USURY LAWS N0NSENSICAl
Gov. Baldwin Defends Investiga
= tion of So Called Money Trust
Because of Prospective
Legislation.

The trust company section of the Ameri-
can Bankers Association held their SECOND
annual dinner last night at the Waldorf
Though this section OF the bankers ssso-
citation is only two years old. II already
numbers among it's membership 1,l8 OF the
/ 800 trust companies In the United States
and there were 500 trust companies repre-
scented at the dinner last night. The guests
came from thirty-six states.
Mayor Gaynor and Governor Baldwin OF
Connecticut were the ones selected by the
dinner committee TO advise the trust com
pany men on their future conduct The
burden OF the Mayors advice was for dis
tributiye justice.
"If you have a bad name" he said, ut
is because here and there there is feel
Ing that because of money there Is too
much power In the hands of a few men.
That you want to counteract by distribi-
tive justice. doing right by every one
lie had previously said that ambition and
emulation were the moving forces OF the
world. He now defined socialism and said
that the movement was growing. Under
socialism" he continued. ambition and
emulation will be gone. There will be
more poverty under that regime. ! think.
than the world ever saw, and 1t won't last
one generation But. on the other hand
under competition We don't want 10 put
our hobnalls into our brothers flesh
Don't Want Too Manv OF You"
The bankers were called by some states
men the octopus. the Mayor said IN open
ing his speech. but he was not afraid OF
them. I'VE nave good many of the same
kind. as Mr.. Morgan knows, right here In
New York" he said "I have found you
about the same as the rest OF mankind
You have your useful place in the world
and ] don't look upon you with any alarm.
Yours IL an absolutely necessary Office IN
any civilized community. But We don't
want TOO many Of you. The moueyed In
terest r. always dreaded Those who
charge interest for money arc always
dreaded"
This opened the way for discussion or
the usury laws. which he said we're OF
small value and had already disappeared
from England and most OF continental Flu
rope. The usurv laws Of New York he
characterized as the most nonsensical In
the county. They were designed 10 protect
the poor, but only added TO the rate the
poor had TO pay for money.
The borrower is said Z" he sery want Of
tho lender" ho said. "and this f. to some
extent true But n q mans credit IL not
good you charge him higher rate for TAX
ing the risk OF lending to him. and II the
law limits the rate you can char have
heard OF such a thing ~ commission
charged on tho outside. 20 the poor man
phys his higher rate after all. The Law
sets the legal rate Of interest az per cont
but YOU cant GET more than ~ per cent
FOR yOur money unless there Is demand
Tor IL, and II there Is a demand for II you
arc gong 10 get moro than per cent. You
might as Vel try 10 regulate the seasons
bv law as 10 say what rate shan he
.hIry.d fnr money
Governor Baldwin talked Of government
md 'ho trust companies and emphasized the
necessity for keeping the trust companies
under late control They we're organized
TO do business in separate communities,
and il ought not 80 he that a company
organized 10 do business I'm Texas should
Boz compelled 10 tollow the same methods
90 one organized to do business IN New
York Each company ho said, should be
allowed TO respond n the needs Of the
,ommunity which It Was organized 10
serve
fie lid not deny. however. that Il might
he proper for the federal government 10
have certain powers Of inquiry over trust
companies where those companies became
involved IN affairs Of Interstate commerce
or national banking By association with
rational banks The investigation OF the
so-callcd money trust" he said, presented
such problem II fIrredchlns importance
Their" might be some question. he thought.
~ The power ot Congress 10 conduct this
investigation, but II was one which was
hkcly 10 lead To- legislation. and where
legislation was contemplated INVESTIGATIONS
were proper
I. ". FricS. ~ Wuston-Saleu y. {.
president Of the trust company section Of
tho American Bankers Association. vas
toustmaster, and those at the speakers
table were John SHELTON Williams, OF Rich
mond, Va. Festus J. Wade, ~ 81 Louis.
Frank T. Nauderp. president Of tho Ma
tonal city Bank; Jacob w. Schin. oliver
{. Fuller 81 Milwaukee. j p Morgan, tr.:
William G. POLLEN, vlce-presIdent Of the
Bankers Trust Company: George r.
Baker. chairman Of the board OF directors
Of the First National Bank. Bishop Charles
(. Burch. Edwin :. Marston. president OF
the Farmers Loan and Trust Company;
Governor Sumeon T.. Baldwin OF Connect
cut MAYOR Gaynor, Z. G. ConVcrs" presi-
dent Of the Bankers Trust Company: eX-
Senator Chauncey VI. Depew. William
Livingstone. Of Detroit president OF the
American Bankers Association: y e..
Con. of Cleveland, 4 Barton Hepburn.
chairman OF the board Of directors of tine
Chase National Bank: Lawrence l.. Gil
lesple. OF J. s Bache g. Co; Clark Win.
Jams, president OF the Windsor Trust cont
pany, and Francis 2. Bangs.
Among the guests were Robert Adamson
Alwyn Ball, jr., otto 4. Barnard. Water
It, Bennett, e. NJ. Billings Charles \
Boody. Irviug T. Bush. James @ Cannon
Elvcrton Il. Chapman, Lewis l.. Clarke
Edwin ". Coggeshall. Charles A. Conant
Thcodo~e W. Cramp. Lewis l.. Delaneld
Richard DelaGeld. +. Ashton de Peyster
Robert \. Drysdale Pierre G. du Pont
General r. {. du Pont. William ~ Dyk-
man. j. i. Fahnestock Richard J. Faust
lr., X. q. Fessenden, Pllny Fisk. wilbur
&. Fisk Andrew Freedman. Walter h.
Frew and r. A. Gillespie.
George !. Goud. Irving II. Grlswold.
Barker Gummere, j. Horace Harding. r.
W. lIartshcrnJ George Harvey. G. 4.
llazen. Augustus V. Healy. Joseph W. Hef-
iernan. Alfred W. Hudson. James imbrie.
Ernest lSelln Pierre jay, Clarence III. kel-
seN. willard '. King. Moses >. Lott. Frank
LYMAN. Il. IT, McCarter. cal III. McCartcr.
Edgar H. Marston. William j. Matheson.
Robert r. Moore. George Wildwood Muir
ray, charles -. Norton, eX-Judge Morgan