New-York tribune., 1912-12-19
Money Trust" Investigators
Told of Enormous Financial
Resources Controlled
by His Firm.
UPH0lDS PRIVATE BANKING
Believes, He Says, in Allowing
Interstate Corporations to De-
post Funds in Concerns
Not Supervised by
Government.

| Washington. Dec. 1S.-Surrounded by
counsel, J. Pierpont Morgan, conceded
to he the star witness OF the investlga
ton. presented himself before the Puio
money trust investigating committee
| this afternoon. unde/went a short ex-
animation and Vas told to appear
| again tomorrow.
Tho hnancier and his attorneys were
| anxious to have Mr. Morgan's testi-
! mony concluded to-day. but because
/ members of the committee pleaded
/ private engagements" and Samuel
! Untormyer, the committees counsel.
was suffering from a severe cold and
headache, Mr.. Morgan had to wait. He
seemed a bit displeased at first but
when the hearing was adjourned he
| shook hands with several of the i'm
vestigators and returned in good pirits
/ TO his hotel.
! When Mr.. Morgan began his testi-
mony the committee room was crowded
with spectators, and many members OF
the House forsook the floor 10 see the
| fnancicr under the nre.of Mr. Untcr-
mycrs's examination. The enormous
deposits in the Morgan banks by cor
porations doing an interstate business
was the initial line Of investigation.
The committees counsel asked Mr.
Morgan II he thought IL right that cor
porations engaged in Interstate COM
merce and rendering. presumably,
public service, should deposit millions
in private banking institution. over
which the government did not exercise
control.
II think II is all right" said Mr.. MOI
gan. who explained that his bank never
asked a depositor whether he was en-
gagged in Interstate business.
we make no distinction between
interstate and other corporations" said
Mr. Morgan. We merely want 10
know II the account is good
You realize the government has 70
supervision over private banks" asked
Mr.. Untermyer.
II do responded the financier.
Unwilling to Give Names.
Mr. Morgan said he did not care TO
give the names Of interstate corpora
tions dcpositing in the bank of Morgan
& Co, and Mr.. Untermyer suggested.
pleasantly, that the committee 4 s
not need the names now" at the same
time presenting a statement Of the de-
posits and limiting that the names Of
the depositofs would be obtained from
other sources later.
The statement shows" said Mr..
Untermyer, that on January |, 1872, |
the siNty-slX accounts of interstate |
corporations depositing with Morgan & |
Co. amounted in the aggregate 20 SOS
1l3,3lJ II. On November |. 1912 there |
were seventy eight corporations of this !
class deposting with this private bank. |
the aggregate deposits being Ss1 ,96S,- |
42l AZ. The total capital, funded debt |
and surplus Of these seventy-eight cor |
poratons doing an interstate business |
reached the total Of 50, ,765, ,S2j,50O
In presenting the statement .Ir. |
Untermyer asked Mr.. Morgan to verify |
the figures. The financier immediately |
handed il back, saying: Il would sug- |
gest that some one else do this: some |
one who is familiar with the matters. |
II the statement came from my firm I |
stand by IT,"
Richard V. Lindabury, one of the
Morgan attorneys, was shown the |
statement, and he, too. returned # to |
Mr.. Untermyer, asking the committee |
counsel to read il.
Il presume this statement is from
the public records" asked Mr.. Linda
bury. and Mr.. Uptermyer nodded in as
sent
1t was at this point that Mr. Unter-
myer remarked that the statement did |
not show tho names of the depositors
and that he understood Mr.. Morgan /
does not care to give the names"
Aims at Interstate Corporations.
The preliminary examination of Mr.. |
Morgan bears out reports that the com
mittee in considering plans TO curb the
money trust Is working on the theory
that corporations doing an interstate
business should not be permitted TO
deposit millions in private banking in
stitutions, over which the government
has no supervision.
Prior to the appearance Of Mr.. Nor
gan, who took the stand at = o'clock.
the committee studied an immense
chart showing the "interlocking direc-
torates" among great financial institu-
tons The figures collected by the
committee purport to show that eigh
teen corporation, leading financial con-
Germs Of the country, dominate S25,-
325 900. 900 OF the nations wealth.
These concerns, the committee experts
find. are so interrelated that it is diff
cult to ascertain the exact extent of
their dependence.
When Mr. Morgan was called he
walked to the chair at the end of the
committee table and was sworn by
Chairman Pujo, standing with his
right hand upraised. In response to
Continued on hfth page, fourth column.