New-York tribune., 1912-06-12
VANDERBILT REFUSES ON
STAND TO APOLOGIZE
Bankers Open Letter Results IN
Speedy Subpoena by Pulo
Committee.
PROBING OF 'CHANGE BEGINS
Secretary Ely, the First Witness,
Cautioned Several Times by
Untermyer Not to Get
Excited.

The P,ljo committee Of the House OF
REPRESENTATIVES. which Is Investigating
the money trust " turned it's attention
YESTERDAY to the affairs of the New YORK
Stock Exchange in it's relation 10 the
banks and other financial institutions
Of the country. The committee, now
ever, did not complete the inquiry In re-
gard 70 the Clearing House, and VIII re-
turn 70 that subject to-day temporarily
for the examination OF two or three
more witnesses.
George W. Ely. secretary Of the StocR
Exchange. spent q rather uncomfortapie
hour on the witness stand at the AFTER
noon session under the FIRE Of questions
bv Samuel Untermyer. counsel for the
c,rnmittee. Mr.. Unterrnyer cautioned
the witness several times not to get ex'
cited. Mr.. Ely characterized some OF tne
fawyers questions as extremely foo'-
ssh." The Stock Exchange secretary dls-
olayed at times such lack OF knowieose
n ths rules and regulations of that III
stttution, and particularly the reasons
FAR them. that II seemed fairly to shock
shs cyeduIity of the members OF the
committee.
His curt answers and readiness 10
rsfer to the printed book OF rules ana
rAsu)ations Of the Stock Excnange as
bis "sospel'' and 'Iaw," without botner-
srS h;s head about the reasons FOR tnen''
csused 50 much lev1ty that it oroush'
forth a. sharp rebuke from Represent
atyve Neely, Of the committee. "heh
the committee was about TO adjourn TOT
cha day Mr.. Neely addressed Chairn'sh
Pujo. saying:
This hearing is in the nature o1 q
A,6icial proceeding, and l. for one IN
.,rt that II be conducted as such, ana
that proper respect be shown this COM
u,ittee by the witnesses who appear oe-
fore It." ,.,
Chairman Pujo made little speech III
rh,ch hs re,terated the other commit
tssrnan's eentiment, and cautioned 'he
witnesses generally and the spectator
:, nav more serious attention 70 lne
,,.t,.rs in hand. He assured Mr.. Ely
that his remarks were not oiteoe0u
nojntedly at him. when the STOCK DN-
change secretary began to oner dPoio-
<,se The examination Of Mr. Ely was
nnt enished Yesterday. and Will be con-
,i,ued st the resumption OF the he"i'i's'
to-day. ~.
prank A. Vanderlip. president OF the
national City Bank, and A. Barton hep
nurn. chairman Of the boaro Oh Lie
Chase National Bank, were Witnesses
TbA result Of Mr.. vsnderlips open ieI-
.Arn "a Chairman Pujo, in which ne
criticised the conduct Of the inquiry anu
sAverely questioned the accuracy OF Ger
tain testimony in regard 70 the clearing
House. was a speedy subpoena 70 appear
before the committee
In the course OF his examination Hf'
1Trtsrnnver tried to get Mr.. Vsnderlip to
spolosize for what he said IN the lettsf
but the witness said he had no apologies
N make. Chairman Pujo gave out a
.onv ~ an answer to the Vanderlip let
t.r az the opening Of the hearings IN
! which he censursd the bank president
: method Of getting his facts before the
public by an open letter" insteao OF
J through testimony before the committee
Mr.. yanderlip is chairman OF the pres
! ant Clearing House committee ana MI
Espburn was chairman Of that COM
unittee in 1007-'0S, when tho Oriental
ana other banks went to the wall on ac-
count Of the sudden calling Of the Clear
,rs House certificates held by these
hanks. as previous witnesses testineo.
Mr.. Hepburn admitted that mistake
hz6 bean made By the Clearing House
corp,nittee by the demand on the ORR
entail Bank for payment Of the certifi-
.sssee shortly following the panic Of 1907.
Morse Banks Might Not Have Failed.
II. was in Europe at the time. he said.
ts ysntured the opinion that ths ORR
sntsl, and perhaps the Morse banks
would not have failed at that time II the
rsdsuaption Of the certificates had not
bAan made. But some Of the banks
wsuld have hsd to close, anyway, ne
ssad
HeHh bank presidents testified that
.ney did not approve the idea OF incor-
poeat!ng the Clearing House and max
inf It more annenabls 10 government
control. Such a step would destroy its
usAfulness IN being able to act quickly
IN times Of money stress for the relief Of
the banks, they said. James G. Can
nan. president Of the Fourth National
Rany and an associate Of Mr.. Wander
lin on the Clearing House committee.
previously testified that he was in favor
Of bringing the Clearing House under
statutory regulation.
Mr. Untermyer began examining Mr..
vanderlip in regard to the testimony Of
William sherer, manager of the Clear
ing House. He wanted TO know II the
witness had read the minutes Of Mr..
Sber4r's testimony. The witness said
that he had read the newspaper ac-
counts.
You could have had a copy Of the
minutes II you had so desired" queried
MY. Untsrmyer.
"oh, I've had notes from the stenoera-
phers Offering TO sell me copies, but
didn't think it was worth paying the
rrtce." rrr. vanderIip replied.
AT 10 cents folio, too commented
Mr.. Untermyer.
SIR. Untermyer wanted the witness to
supply the committee an account OF all
the out-of town check collections his
hank had handled daily for the last two
years.
Va Rip Wants Advice.