The Bon Homme County independent. [volume] (Tabor, S.D.) 1904-1913, 1912-12-12
DENIED CLEARANCE
HOUSE PRIVILEGES
Money Trust Hearing Begins
Bankers Tell Of Close Cor
p~oration Methods.

washington, Dec. 10.-The House
money trust investigating committee
got down to work today after a recess
of several months. The program for
the nsxt few DAYS includes the calling
as witnesses of several New York bank
ers, among them Jacob III. Schiff, and
some representatives or the New York
stock exchange.
At the opening session OF the com
mittee today Chairman Pujo made q
statement in which he ~repudiated pub
lished reports OF what purported to be
the committees Intentions. for the
course Of the inquiry.
The first witness was William Cloud.
president OF the State bank OF Mary
land. Samuel Untermeyer, counsel for
the committee, took up his examination.
Mr.. Cloud said his bank had applied
for clearing. U priviieges, mao
Der OF the Baltimore clearing house.
but desired to clear through another
bank that was.
10 This Throttlins2
Does the Baltimore clearing house
prescribe rules which prevents a bank
making its own price FOR exchange on
out OF town checks?p asked Mr.. Inter
Yes, ii amounts to that" answered
But that is throttling competition.
wen. / wouldn't say throttlins.s said
the witness.
Among the other witnesses on hand
to testify were @. A. Pugsley, president
OF the New York Bankers association;
W.. e. Frew, chairman of the New
York Clearing House association;
Charles r. Rushman, counsel for Mr..
Frew; August Wardrop. president OK
the Peoples National bank, OF Pitts
burgh, and Harrison Nesbit. president
OF the National bank, of Pittsburgh
One Finally Gets IN.
John r. Bland, president OF the Uni
ted States Fidelity a. Guaranty com
pany, followed Mr.. Cloud on the stand.
Mr.. Bland said his company has
sought In vain to secure the privilege
OF clearing out OF town checks through
its banks OF deposit, which were mem
bers OF the association. or to secure full
membership in the association, but
within the last few weeks, however,
he had been given to understand that
arrangements were being made by the
clearing house to take care" Of the
trust companies.
Al a result of the agitation of this
committee you object has been ac-
complished? 2" asked MI. Untermeyer.
well, ! could not say as to that"
t#A. EuEGhG LGNOAAAByH RIcSiuGhI VI blAN
National Bank OF Commerce, of Balti-
more, and chairman of the clearing
house executive committee, produced
the constitution and rules Of the Baltf-
more clearing house. .
When the committee began the hear
ing on the money trust investigation
today, Chairman Pujo made the fol-
lowing statement:
"In resuming this inquiry the scom-
mittee feels that the many unauthor-
lied, misleading and inspired reports
that nave been circulated concerning
It's work and plans should be corrected
and that the public should be warned
against placing any credence in them.
There has been a consistent. hostile
effort In certain directions to embar-
rass the inquiry. No statements have
been or will be made or authorized on
behalf OF the committee at any time
except s:ich as may be openly an
nounced at the hearings.
No Friction, He Says.
AT no time a there ever been any
friction, misunderstanding or difference
|remaininB between the members or
with or between counsel. The utmost
harmony has prevailed, from the be-
ginning and the reports TO the con-
trary have been sheer fab~rications. Nor
is there any authority for the persis-
tent published report as to proposed
TeIlSulSS OF iSBb5laIlOn. me question
has never been before the comHittee,
and il would be premature to consider
it.
THE committee is not yet I'm posses
sion of the facts on which to base a
Judgment. Tt has barely reached the
threshold of the inquiry SO that any
opinion as to its action is premature
to say the east. Attention is called TO
the fact that the outset of hearing
last Mag and since frequently repeated,
that the terms of the resolution under
which the committee is acting cannot
be fully carried out unless or until
congress shall have enacted the bill
that has passed the House, and is now
pending in the Senate, removing all
existing doubt rs to the power OF the
committee to inquire into the part, IL
any, that is played, by the national
banks In the alleged concentration and
control of money m credit.
Meantime the committee will press
forward with the other heads of the
inquiry with~the view of submitting an
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