The Chickasha daily express. (Chickasha, Indian Territory [Okla.]) 1899-current, 1912-12-11
Clearing House Chairman De-
clares Collection Of Country
Bank Checks Costly to
N. Y. Money Men
CONTROL OF FEW
men IS SHOWN
Brought Out that Five Finan-
ciers Dominate Banks with
Deposits Over Four
Hundred Million
Telegram BY United press.

Telegram by United Press
Washington, Dec. 1l.--WaIter Frew.
chairman Of the New York clearing
house committee, resumed the stand
in the money trust investigation to-
day He insisted that collections Of
country checks cost the New York
bai ks from s2.OOo,oOO to sS,OOO,OOO am
nually He said the loss Of interest
on accounts caused the expense.
Frew said the average collections
were $l4,OoO,0OO day. Attorney IN
termeyer had him to figure the bank
losses on this at the rate Of $500
daily
W. b Frew, president of the Corn
Exchange bank Of New York and
chairman Of the New York clearing
house committee, occupied the stand
throughout Tuesday and was put
through a grilling examination by
Samuel ]. Untermeyer, counsel for the
committee
Through Mr.. Frew, MI. Untermeyer
put into the record evidence Of trust
agreements by which five men con-
troll TWO Of New Yorks greatest finan.
cia institutions, the Bankers Trust
company and the Guaranty Trust COM
pany, with aggregate depositssof near
ly s400. 100000. The Bankers Trust
company, Mr.. Frew said, was con-
trolled by H. p Dawson, George B.
Case and Daniel G. Reed the Guar
anty company by b. P. Dawson, Geo.
f Baker and William P Porter. These
men hold and vote all Of the stock Of
the company except enough to allow
a board Of directors to qualify, and un-
dc. the trust agreements have abso-
lutte authority over the interests of the
companies. even to the acquisition or
merger Of other institutions.
Mr. Untermeyer also received from
Mr. Frew description OF the method
by which money was attracted to New
York when small country merchants
ard farmers demand funds for NOV
ins crops or the accommodation oi
their business affairs. Mr. Frew said
The money was needed on the New
York stock exchange for speculation
purposes, that country banks Aepl
large sums on DEPOSIT in New Yori
anu that when the home" deman,
for money became strong the New
York price Of money rose and thl
country banks, to gain the big inter
est charged, put their money out ii
call loans on the New York stock ez
change. All OF these loans are baseI
on stock exchange collateral, Mr.. un
termeyer elected.
Mr. Untermeyer and the witness dI
no. get along well together an
throughout the day the colloquy b.
tween the two time after time becam
heated. Mi. Frew appeared evasiy
AMI insisted upon making lengthy q
plantations which lead the discussio
far from the line Of questioning Nj
Unterneyer was pursuing When NJ
Uutermeyer endeayored to attribuf
ths enormous growth Of the Banker
Trust company to the influence Of
/, P. Morgan & Co., Mr. Frew obiecte
!. and the lawyer grew bitter. Final
he pinned the witness down to e
admission that the Morgan influence
might have aided the company NJ
Untermsyer connected up MessS
Dawson. Case and Porter with q
y Morgan company.
Mt The day ended IN a discussion
at which Ar. Frew through his couns
s. Charles +. Rushmore. demanded {
es opportunity to make certain explaf
as tions as TO his position in regazds
the clearing house provision where
he New York banks must charge q
is form rate for the collection Of out.
en- town checks, Mr Untermeyer chH
IS aqterizod this rule as a usurpation
sir power Of officers OF the bank and
tending to eliminate competition q
It'd remarked that the clearing hol
tie might just as wet prescribe g unifo
ut rate Of interest on deposits as ts di
bic urder the rnles Of the salt Lake elt
ing house