Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1912-06-07
WITNESS SAYS NEW YORK ASSO-
CIhTiON SHOULD BE IN
DER REGULATION.
Has Power 10 Put Any Bank That
Dispicases Completely out
Of business.

NEW YORK, June G-The Immense
power welded by the New YORK
Clearing House association over the
banks. over the financial centers and
arbitrarily lodged I'm the hands Of five
men, should be placed under judicial
regulation, Il was conceded by VII
Ham Sherrer, manager Of the asso-
citation, on the witness stand today
Mr. Sherrer was the chief witness
at the first hearing held hy the house
committee on banking and currency
investigating the money trust" Tho
committee came 90 New York today
10 take such testimony as It's power
will permit, pending the prosecution
Of the amendment to the banking law
now In the senate under which the
committee hopes TO be able 10 enforce
from the banks It's demands for the
information which II expects To make
the basis Of remedial legislation.
Five Men Have Control.
While today's inquiry was charac'
terized by Chairman Pujo as "col-
lateral 10 the main scope of the
inquiry, Samuel untermeyer, special
counsel for the committee. developed
through Mr.. Sherrer testimony To the
every financial institution IN NewYork
was potentially at the mercy, the
whim or the orders of the five men
who composed the New York Clear
ing House committee"
The clearing house committee, COM
posed of Frank A, Nanderlip, presi-
dent of the National city bank, the
largest in the country. James q. G.
Cannon, president Of the Fourth Ma
tlonal bank; Walter n. Free, prcsi-
dent of the Corn Exchange bank
Richard A. Delafield, president of the
National Park bank, and QUO A, Ban
yard, president of the New York
Trust Company, had fun power over
the admissions 10 mcmbcrship, ac-
cordng TO the witne-3 and the power
of suspension.
Shou,d Be Controlled.
"Then IT rests with these five men
as to whether they can keep "A com
petitor out of the association p" asked
Mr.. Untermeyer. Don't you think
that is monstrous regulation for
an institution doing an interstate bus
iness?"
The average banker has a moral
status to maintain replied Mr. Sher-
rer.
Merchants and business men, who
are the banks largest customers
would never stand for unjust dis
elimination"
81 am not speaking OF motives,
pursued the attorney but of the un-
bridled and unlicensed power of these
men. Don't you think this power
should be subject to judicial review
and control?"
Mr. Sherrer then explained that
the clearing house association was a
voluntary institution similar to a prl.
vate clIb and that no court would
hold that a voluntary institution
would be compelled to accept as a
member anyone who could not COM |
ply with its regulations.
"Bntrou know thta this great pow
er exists; should it not be judicially |
q agree with you" finally CON
ceded Mr. Sherrer. where there is |
a wrong, it should be corrected"
And this mere whim, discrimina- |
ton or whatever YOU are to call ii, TO |
stop clearing for non-members Of the |
different banks don't you think this |
should be under judicial control?"
1T is not so bad as il looks said |
Mr. Sherrer, citing a recent instance |
where the committees power was eX-
erted to prevent an institution whose
officers were not of good character |
from becoming members by buying |
out and merging with a clearing |
house
Good character often depends up
on what group of banks you belong !
to- does 1t not?' queried Mr.. Inter
meyer.
"Oh, ! don't admit that said the
witness.
Mr.. Untermeyer raised question |
of the violation OF the interstate com
merce laws when he brought out
from the witness that by taxing the