The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1912-01-26
MONEY OL|GARCHY
IS DANGEROUS
untermeyer Tells Congress That the
Finances Of This Country Are
Tied up in a Big
Trust
COMPLETE DOMINATION
Money Power in New York Is Divided
Into Four Groups But He Did
Not Mention Any
Names.

8 Limited Press LEASED wire SCIVlCC.I
WASHINGTON, Jan. 26.--Expert
evidence of the existence OF money
trtst-a growing money oligarchy
that threatens dangers as grave as
anv nation has ever known"-was Civ
en- today before the house committee
ON rules by Samuel Untermeyer, for
years Wall street attorney He
urged favorable consideration of the
Lindbergh resolution for investigation
Of the money trust. ut is because of
this am satisfied that we shall never
be able to legislate intelligently with
respect to the trusts or monetary
system until we thoroughly understand
this question that underlies the others
that | am an ardent advocate of this
Investigation said Untermeyer.
Behind the money oligarchy, will
be found system, vicious and dan
serous beyond conception, but one
that is still within the law
Whether a calm, judicial, pains
taking, non-partisan investigation can
he conducted on the eve of a presi-
Dental election is for you to de-
termine.
"As a result of recent consolida-
tions OF our industrial and railroad
corporations, the control of the fin
ances of these corporations has drifted
into the hands Of few groups of men
in New Yor., City.
These, by virtue of the control Of
The funds Of the corporations, have
been able to build up and dominate
most Of the great banks and trust
companies in New York and to in
fiuence the use of the vast deposits
interested or which they approve.
Within the past five years there
has been concentration of this mon
ey power greater than that known in
the preceding fifty years. This has
been cemented through interlocking
directorates in financial institutions
that were naturally competitive. These
men are thus enabled to assist their
friends and punish their enemies in
the financial world and have the
power to crush competition and dom
mate the smaller ;financiers and finan
cial institutions
Under existing conditions inde
pendent railroad construction is at an
end in this country except to the ex
teEt that it may be sanctioned by these
interests. Competition against any
trust or industrial corporation fol
which they are sponsors is also i'm
possible. Their ramifications are sc
endless that the sources of credit are
not to be found for any new enter
prise that conflicts with their plans
Therein lies the greatest danger o.
the trust.
This same power dominates the
New York stock exchange and New
York clearing association, both O
which are eyond judicial and execu
tive control The banks and trus
companies have been for years en-
cared in promoting and conducting OF
a vast scale speculative enterprises il
partnership with these groups o
hnanciers by whom they are dom
inated-which are foreign to thei
legitimate business and may at SOM
Time, If they miscarry, bring disaste
TO the institutions and to the business
community.
We shall never escape from ou
present plight until we have ma
tlonal incorporation law. With tn
states engaged in an indecent strue
gle for the patronage of these corpoi
atoms and bidding against one anothe
IN laxity Of administration, it is hope
less to expect the restraints that ar
necessary for the just protection g
security holders or of the public"
Untermeyer declined to cite specifi
cases, declaring that he was nc
willing to discuss Individual cases, bu
desired to expose a vicious system.
he did assert however, that tn
money power in New York was divit
ed into four groups.
Answering Lenroot (repn., Wis., h
said that the Aldrich scheme of GU
rency reform would not remedy fiji
ancial conditions.
Smallpox In Asylum.
EEpnIyC