The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1912-12-15
Committee Confident of
Sensations in Money
Trust Hearing.
MERELY SURFACE
HAS BEEN SKINNED
Members Express Satisfaction
With Information Secured and
Say That fragrant Abuses
Have Been Shown-Recom-
mendations for Remedial :,
Legislation to Be Made. /
Especial to The Times Dispatch


Washington December 14--"WeYe
only SKINNED the surface so far.
This was the declaration tonight OF
a member of the money trust invessi-
eating committee. Confident that a
great public expose OF the amassing
o. miilions-the operation OF stock eN-
changes and banks-has only begun
the committee this afternoon tctaii*a
up results of its weeks work and iai"
lines for more exhaustive inquiry re1t
week
Privately. the prooers expressed
great satisfaction with the Information
disclosed during the last weeks near-
ings. They declared that abuses DE-
handing correction have bean clearly
shown 1t was learned authoritative
" that recommendations Cor leSisia-
ton to meet certain OF the alleged
financial abuses will follow WITHIN
month or six weeks.
Necessity for such legislation IS
based upon the following principal 0e-
velopments OF the inquiry so far:
Gambling Exists.
That gambling exists in the New
York Stock Exchange. to an extent at
least.
That most brokers consider short
selling of stocks legitimate.
That stock pools, have been OPP
Grated TO blind investors and bankers
as well as damaging, sometimes Inv
operators themselves
That stocks have been violently
manipulated by a single operator.
That the New York stock Exchange
compels its members by ironciao
rules 10 trade only In securities nsteo
on that or the curb" exchange.
! That the exchange sells for 100000
! a year its quotations to the Western
] Union Telegraph Company for distrs-
/, button to all points Of the world
That brokers rehypothecate seeur1-
ties of their customers
/ That brokers speculate to great
7 extent on their own account, without
paving commissions charged the puo-
/ lie.
Thot the entire capital stock OK
many corporations is sold over time
in a single day.
That a small per cent of stock sold
is actually transferred on corpora
TONS books.
That securities of brokers who fail
are first used TO pay other brokers
before Gust omers or creditors are cared
for
That six governors" of tho Stock
Exchange control the membership
and listing of stocks
Under No Control.
As to clearing houses, a reeaDitula-
. tion of the weeks testimony SHOWS
! That clearing houses are voluntary
/ organizations. without Federal Or other
supervision.
That some clearing houses prescribe
arbitrarily both the loan rates and
interest rates to members.
That some giant institutions are
controlled by voting trustees with
the directors as mere dummies
That banks may be closed BY refusal
of the clearing house to clear" for
them.
That issues Of great stock are only
partially restricted and supervised by
national auth ority.
How each of three banks in New
York. with over S40O.000.000 assets. is
controlled by three voting trustees
was a startling phase OF the testi-
mony.
Next week the committee quiz prom
ises to turn from the Stock Exchange
and clearing houses u the alleged
concentration Of wealth by the sys-
tenn known as 'interlOcking directo-
rates
While the Pujo committee is secur-
ing the facts. the cries ot reform are
being considered by another commit
tee OF the House Banking Committee,
invested with authority TO investigate
currency reform. This committee.
headed by Representative Glass OF
Virginia. will begin hearings January
to consider the Aldrich currency
plan and countless other reforms pre-
scented BY eminent currency experts