Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1912-12-10
THE MONEY TRUST.
Continued From Page One.)


Continued From Page One)
isn't that a pretty fair return
Yes, that's pretty good"
But with a rate of exchange it
would be better. is that it?''
Yes, it would be better"
Mr. Untermyer placed in the record
the rules of the Clearing House Assoc
citation of Salt Lake City. which pre-
scribe an iron bound series of regula-
tions governing the charges to be
made by it's members for practically
every service performed for a deposit
tor.
The operation of the Clearing House
section of the American Bankers As
ISOLATION was described by C. P. Pugs-
ley of New York, formerly a member
of the executive committee of the as
soeiation. He said the section en-
braced about 100 of the 200 or more
Clearing Houses in the country. 1t
had made no effort, he said, to pre-
scribe rules for it's members in con-
nection with the conduct of their bus
mess.
When the committee adjourned for
the day, W. r. Frew, president of the
New York Clearing House Association,
was sworn. His examination will be-
gin tomorrow's session.
The first witness was William NJ.
Cloud. president of the State Bank
of Maryland Samuel Untermeyer,
counsel for the committee. took up his
examination. MIR. Cloud said his
bank hae applied for Clearing House
privileges, but had been refused, be-
cause it was not a member of the Bal
timore Clearing House, but desired to.
clear through another bank that was.
Does the Baltimore Clearing House
prescribe rules which prevents a bank
making its own price for exchange on
out of town ehecks?" asked Mr.. Tn
termyer.
yes. it amounts to that" answered
Mr. Cloud.
But that is throttling competition,
isn't ftp
We'll l wouldn't say throttling,"
said the witness.
John r. Bland, president of the Unit
ed States Fidelity and Guaranty Co.,
who followed Mr.. Cloud on the stand,
said his company had sought in vain
tc secure the privilege of clearing out
of-town checks through its banks of
deposit. which were members of the
association or to secure full member
snip in the association, but within the
last few weeks, however, he had been
given to understand that agreements
were being made by the Clearing
House to take care" of the Trust
Companies.
"As a result of the agitation of this
committee your object has been ae-
complished?" suggested Mr.. Untef
myer.
We'll, l couldn't say as to that"
Eugene lowering. president or the
National Bank of Commerce of Bal
timore and chairman of the Clearing
House executive committee. produced
the constitution and rules of the Balti-
more Clearing House.
Washington, Dec. "A general de-
fence of the Clearing House system of
banking and a decided stand against
government regulation of Clearing
Houses We're made, today, by Waldo
Newcomer, manager of the Baltimore
Clearing House, before the House
Money Trust investigating commit
tee.
Tie committee took up the Clearing
House situa zion in Baltimore. Repre-
sentatives Of two banks which had
been refus ~ conditional membership
In The association. appeared Manager
Newcomer explained that the banks
We're not * miteed because as condi-
tsonal nlen. bers they would nto be
Lound by the rules of the association
90 20 out -of-toNrn check exchange
harSes and other rates. and would be
n q position to con pete at an advan-
tase with the othe- members OF the
2sSceiar on bound b 2 the rules.
N prolonged dis ,ussion with Sam
sci Crtermyer, cot nsel for the com
m!ttees, MIR Newco ner declared that
Clearing Houses til roughout the coun-
Try were beneficial institutions and
that any attempt At government regu-
lation would hamper their efforts.