The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1912-12-10
HEADS BALTIMORE
CLEARING HOUSE
Representatives Of Two
Banks Which Had Been
Refused Conditional Mem
bership in the Association
Appeared - Newcomer
Says Clearing Houses are
Beneficial.

ny A8EG GATED PNL@@.
Washington. Dec. "A general de-
Tease of the clearing house system ot
Banking. and a decided stand against
government regulation ~ clearing
houses. were made today ny Waldo
NeWcomer. manager of the Baltimore
clearing house. before the house money
trust Investigation committee.
The committee took up the Cleariug
house situation in Baltimore. Hepreaeu-
tatiVea of tao banks which had been
refused conditional membership in the
association. appeared Manager Ncw-
conner explained that the banks were
not admitted because. a. conditional
members. they could not pc bound BY
the rules of the association nH to CUT
of-towm check exchange charges and
30 other rates. and would be iu po-
sition to compete at an advantage wtth
the other members Of the association
bound by the rules.
In prolonged discussion with sam
uel Utermycr. counsel f0r the commit
tee. ar Newcomer declared that clear
lnH houses throughout the country
we're beneficial Institutions and that
any attempt at government rcEuiatioa
would hamper their efforts
would he called upon Co nie q state.
ment showing the prcunlary interest ~
himself or his family iu any banking
louuing of hrokerawe business. under
q resolution introduced today hv Rer.
reseufativU Idndbevah of Minnesota
The reaolution SAYS tha senate com
mittee On anancs and the house com
rniftee on hankinE and currency have
mrmhsrship mostly made up ~ bank
sru and bankers iawycra and con
troiicd by those directly. personally and
hnanclalN Interested in that class OF
legislation and rto a greater oF less
eKtent any other senators and repre-
Hentatifea are similarly Interested.
THE FIRST WITNESS.
TIE hrat witness was william W
Cloud. president 80 thr state Bank 20
Maryland samuel uutcrmyer. counsel
fur the committee. took un hiH exam
lnaiion. nv Cl1ud said his bank has
applied Cor clearing house PRIVILEGES
but bad been refused because "a waa|
not member of the Baltimore clear
ms house but desired o. clear through
another bank that was
Does the Baltimore cIearirr house
prescribe rules which prevents a bank
from making Its own price fsr ra.
chmnEe on ouf-ufstown rheckaa aaked
Mr UutefmeYrr
~Yes. it amounts 20 that answered
Mr Cloud
@But that q throtuinr competition
ffnt ltg
We'll & wouldn't say throttunea said
the witness
STATEMENT ~ pUoo.
When the committee began thr hear.
ine ~ the money trust Investigation
today Chairman ruE1 made the fal-
IowinE statement.
Tn resuminE this inquiry the eam-
mIttee feels that many unnufh1rIreB
misleading and inspired reports thaf
have been circulated concerning Hn
work and plans. should be corrected
hna that the public should 81 warned
aEaingt placing any credenca IN .her,
thero has hntn a consistent haafffa ~ I
Tort ~ certain directions 90 eH1harraua
the inquiry So statements have ban-
or wih hc made oF authorires On he.
haf or the committee AZ anv firn. sx- .
trpt Hurh HH may he OPENLY an.
houneed af the hearinEa
AZ ne time has there ever h.er arv
serious misundersiandiur nr difference 4
tc'ut'nust 0n paFs rhrosJ