New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-12-18
Master Banker in Washington
to Testify Before the Money
Trust Investigating
Committee.
ACCOMPANIED BY LAWYERS
Lewisohn, No Longer Recall
citrant, Answers Counseps
Ouestions-How Country
Banks Pour Cash Into
New York.
rrrom The TrIbune BmeauI I

Washington. Dec. lG-ONershado"-
ing other witnesses and phases Of the
situation. J. Plerpont Morgan, master
dnancicr. reached Washington tonight
in response to a summons TO appear
before the Pujo money trust investi-
eating committee. He may take the
stand tomorrow afternoon, although
il is possible he will not be called un-
til Thursday.
Before Mr.. Morgan and his counsel
left New York they were notified by
Samuel Untcrmyer. attorney for the
committee. that the testimony OF the
dnancic. was desired on Thursday but
Mr. Morgan came anyway.
The party travelled from New YORK
by special train In advance Mr.. Nor
gan had engaged twelve-roOm suite
AZ the New Willard Hotel, and he will
remain in practical seclusion there un-
tl the committee asks for him Tho
"I,ing of Finance" maintained his Gus
tomarv silence tonight. and no intima-
tion WAS given Of the probable nature
of his testimony before the money
trust probcrs
Nearly a score Of persons accompa-
MED Mr.. Morgan in his special tram
from New York. I'm the party were
MIR. Norcaus partners in th" firm OF
1 =. Morgan & Co. Thomas W. La
mont and II. T.. Dawson. with their
wives. Joseph II. Choate. John G.
aroouer and Richard Y. LiudahurE. ~
counsel for Mr.. Morgan. j. i. Morgan.
fr W g. Hcmkel 6. II. Backus, 4.
/. Raugert and a stan of clerks aud
struographers.
Secluded IN Their Rooms.
several automobiles were awaiting
the party at the railroad station, aud
fh. visitors were taken rapidly To the
r.,.l where they went TO their rooms
~, a. rear elevator The names ol
,.,s. accompanying SIR Morgan we're
NOT entered on The hotel register. MI
J..f.g themselves To callers. and de-
.Ilr.d Zoo aII. about th" object of their
.is. rn Washington Their room-
,,,r, closely guarded. and Mr. Morsa1
refused to receive uy mt'ryirw'rs.
Mr. Morgan uas iu conference unu'
nearly midnight with one or more Of
his council Meanwhile. Samuel TN
,.rpi,.r who will conduct the cNamin-
alton Of Mr. Morgan before the Pul'
committee. was in bed asleep rct'riuS
soon after Q ociock.
when Mr.. MORGAN appears before th"
committee ne will have the advice Of
these attorneys Ex-senator John j.
4,,,,orrr cN-Al.bassador Joseph H.
Choatc. Richard V. Lindabury' Francs
ryrJe St,tsou. George T.. case and
William r. Shcehau
TN. Puio committee Will take up me
main head of the money trust inquiry
relating to the concentration of money
and credits" and it is ON this point
that Mr.. Morgan will he examined. Be
fore ne is questioned, however mass
or statistical matter prepared 10y a.
merits viii bc placed iu the records.
Committee Gets Statistics.
rho committee delved to-day INTO a
,o., of statistics gathered by }. IS.
>-i,..r q rublic accountant, engaged
to assist in it's work. These s'atls'lcs
concerned mainly the vast amount VI
denosits held 10y thirty-seven New YORK
,.o,l,s for their country correspond
cnts" comprising 19,Ol1 out-ol-'o"h
banking institutions.
Mr. Nivcns figures showed tldI '"e
total capital. surplus and undiNiued
rroflts Of 1851 of these country BANKS
for which thirty principal New YORK
hanks we're metropolitan representa-
tiroe amounted to -. 293, ,O9l0D. The
.,.tietics were offered in support OF
u.o cortantion that the high rates OF
interest charged in wall Street had
,ttracted millions Of depositors IN the
Now Yorl, banks. much of which was
loaned ont for speculative purposes. IL
was shown that on November l. l9lZ'
S7G6 7g3 600 secured by stock exchange
collateral aud securities, was out on
loan by thirty-twO OF the downtown
New York banks. these loans repre-
senting the funds Of these larger IN
stitutions as well as the funds of their
out-of-town correspondents.
In addition. the statistics offered in
dicate. there had been loaned OUT by
these thirty-two banks $40, 10000 for
their correspondents directly. An in
crease of approximately S2oO,OOo,VO
I'm the loans Of the thrty-two banks
named within the last four years was
set out. and il was further shown that
the funds loaned had been increasing
annually for the last five years.
The committee gathered these statis-
ties to demonstrate that out-of-town
banks were sending their money TO
New York in great sums to be loaned
there on stock exchange securities.
Mr. Lewisohn Decides to Answer.
Outside Of the formal hearing Of the
committee an interesting sideiight de-
veloped with reference To- the reticence
of Frederick Lewisohn. Of New York to
testify before the committee yesterday.
Mr.. Lewisohn declined to answer sew
eral questions regarding the manner in
Continued nm secoud mage. Hrst column.