New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-06-08

had with the Clearing house committee
members. Hewitt read a long statement TO
the committee, in which he questioned the
Jurisdiction of that body and its right 10
place him under oath.
He was sworn. however, subject to MS
protest. He told all he remembered
about two visits to the Clearing House.
He said they had protested vigorously al
the suggestion that Jones must resign
The committee told them that they couId
not afford to have the Clearing House uh-
der fire, as Mr.. Jones was. and ne "ou'u
have to go. They suggested Kelly as presi'
dent. Kelly said that he didn't want 10 DC
president for three days and wanted "
know how far the Clearing House lhtehueu
to stand by the Oriental, the witness SAID.
Would Stick to Last Ditch
Some one-I think it was Mr.. Hepburn
told us that the Clearing House would stick
by us to the last ditch" said Mr.. Hewitt
Some other member of the committee sa'd
that all the resources of the Clearing House
banks would be back of us and that no one
bank would go down unless they all went
down" Mr. Beekman corroborated inc
testimony of Mr. Jones and Mr.. Hewitt
Mr. Untermyer and Mr.. Cannon INDUCED
in frequent passages of wit ana sPHI'e"
repartee while Mr.. Cannon was tesIilSIhs'
Mr.. Cannon said that Kuhn, l'oep " ~
had an interest i'm the Fourth NauoHd'
Rank of which he is president. In an
swer TO questions about changes OF cohuo'
I'm the Fifth avenue bank, in when 'ho
witness said he had a substantial inter-
cst " Mr. Cannon said he did not think the
.f hank nHU UttI Ma
terally changed
We'll. it put it into the ring ihs''a" VI
outside. didn't it," asked Mr.. uh'er''iSe''
well we always consider ourselves III
the ring; never on the outside reP''u wv
witness
Mr. Cannon was unable to say VINO was
on the outside of the ring.
you have written books. on the SUBJECT
of clearing Houses. haver't YOU: lie was
asked.
II have attempted to-" replied the wit
ness.
And YOU succeeded, did YOU not? aaNe"
Mr. Untermyer.
"Why. yes such as they are said MT.
Cannon
Mr. Cannon said he did not consider the
regulation of the banks in regard 10 ''"-
form rate FOR collecting 0ut-oi-to"h 'h''NN
a vicious regulation. He did, however con-
slider the attempt to regulate uniform rates
nf interest on deposits vicious and unaW-
fuI he said although ne had referred To
il as one Of the principal functions OF the
clearing houses IN his book. He had
merely stated the fact i'm his book, he said,
because hc had found it to be 50 from the
statistics he had gathered from the az
clearing houses throughout the country
The witness said that competition pre-
vailed between all the banks in all mat
ters connected with the business, and mat
II was never worse than at the present
time He admitted however. that there
was no competition I'm the matter Of
charges for collecting out-of town checks.
He said the clearances for the Fourth Ma
tional during May 1912. had been $-i"","O.
The collection Of out-of-town checks for
the same period had been N}"oo,ooo. and
that was about normal business for his
bank.
Clearing House Incorporation.
DO YOU approve II the present irrespon.
sible ana unincorporated condition II the
Clearing House" suddenly asked Mr. I'm
termyer.
Mr. Cannon said he believed u should
be incorporated and regulated by law. Th"
powers Of the Clearing House C7mmitte"
had grown considerably during the lat
few years" he said but the rule nNlns
tax on the collection Of out-of-to checks
had been adopted as a means Of preparu-
for loss, and not for profit 10 the bank
Mr. Cannon testified that he had refused
TO answer the question recently put bF
the House committee. ON "advic" al couu-
sci" and because Section 52u Of IN" ma
tional bank act protected national banks
from yisitorial powers from all save IN
Controller Of the currency and courts of
justice.
But we have nothing TO conceal me
added. and il compelled 10 do $50, VIII
voluntarily open our accounts.
William Shercr. manager Of the Clearing
House who continued his testimony from
the day before. corrected the figures D."
gave IN his former testimony, cutting IN"
fees Of the banks for collecting out-oi-
town checks down from $Jo"D~S I" about
S2uO1OGG q year
lie said be had talked with Frank !.
Nanderlip. president OF the Ndii"nal 'IiN
Bank and other members OF the Clearing
HouS" committee, and they had SHOWN
him his error. lie was compelled to admit.
However. that tins latest estimate was not
his own and he could not swear 10 It's ac.
Curacv The hearing was ADJOURNED lhll
Tuesday. 1T II a. IN.