New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-06-14
1907 CRASH AVERTED BY
TREASURY, NOT MORGAN
G. B. CorteIyou Tells How He as
Secretary Deposited S40,OOO.-
600 in New York Banks.
TILTS WITH UNTERMfER
Doesn't Recall Morgan Lent Free
Money at His Own Rate
Pujo Hearings End
for a While.

How the government saved the tinan-
cial situation i'm the panic days of Octo-
her. 1907, by turning over $40,OOOOoo INTO
the New York banks, without interest
charges. and how a major part OF that
money apparently was handled and dis
tributed to the various banks by agree
ment, and through the guidance Of j. L.
Morgan e. Co. was brought out yesterday
i'm the testimony Of witnesses before the
Puio Congress committee which is m
vestigating the money trust
From figures furnished the committee
it was shown that the government de-
posits I'm the national banks from Octo-
her % to october 80. 1907 amounted to
sS7. 697 .OOO There had been S6,00o,ooO
deposited prior to that table pro
duced Jv charles steele, = partner IN
tho firm Of j. T.. Morgan q Co., showed
that on October - fourteen banks agreed
10 loan the stool, Exchange S2S,55o,OoO,
but ACTUALLY loaned only SlS,"45.ooo. ON
that dav sia. 900 was transferred from
the Sub Treasury to the national banks
II was on the same daE that K. II.
Thonac. president of the stock fN-
change ~ dat time. went to Mr. Morgan
for help. and the latter told him that we
are COINS to let YOU have the S25'oooo"o
ia relieve the situation according to
Thomas's previous testimony
Mr.. steele testified that he thought
George W Perkins. then member oil
the Morgan firm, made the detailed ar
raneements for the distribution of the
money to the Stock Exchange brokers'
presumably under instructions from MI
Morgan
Cortelyou and Morgan Conferred
George Il. Cortelyou, who was Secre-
tarv Of the Treasury at the time oil the
manic. told of his conferences with MI
Morgan and other bankers on October
20 and the days Immediately foiloWlhs'
and said. though Mr.. Morgan was not
president of bank, general OPINION
nlaced him as the leader of the rescue
movement
The evidence of the government manu-
Of nlenty in the panic was evidently
nleasing to Mr. Untermyer, counsel Tor
The committee, in the light that 1t ma
teriaTv detracted from the exclusive
credit which some were disposed 10 give
Mr.. Morgan for saving the SITUATION
But the committees counsel eXerleu
himself. neverthelo- ), in emphasizing III
his examination of witnesses the pre-
dominating influence and engineering
skill of Mr.. Morgan in the plans for
financial safety.
Mr.. Untermyer read into the record
the amounts of government money
which each of the favored banks re-
ceived. lie took the figures from those
furnished by the SubTreasury. he
formulated a table for the record show
ing how much each bank had received
how much it had promised to loan and
how much it actually did loan.
The National City Bank got S9.OOO'ooo'
agreed to loan $S,O00,000 and did loan
SO, $50, 900; the First National Bank re-
ceived $9,250,000, agreed to loan S4,OOo,-
900 and loaned ,2,6S0,00O; the Hanover
National Ban.s received $4,S2o,OO1
agreed to loan 81 100000 and loaned ST.
355.OOO. the Chase National got $1,000
900, agreed to loan S1,0O0,OO0 and did
loan S1,000,OO0; the Mechanics National
Bank got 81, 100000 agreed TO loan $500
coo and loaned $200,0UO; the Chemical
National Bank received S1,OOO,OOO and
loaned 100000, and the Merchants Ma
tional Bank got the same amount
Smaller Amounts Deposited.
Th'- was of money supposed to be de-
posted by the government from October
% to %. The Citizens Central, the Con-
solidated National, the Liberty National
and the Merchants National banks were
recipients Of smaller amounts during
that time. About 100000 was de-
posted in small sums in the various
banks by the government from October
70 TO 80
The Congress committee finished its
hearings in this city yesterday and adj
journed sine die, to hold it's future meet
ings in Washington. Chairman Pujo
issued a statement at the close Of the
hearing. in which he said,
The main line of the inquiry relating to
the concentration OF the control of money
and the use of our financial and industrial
corporations TO that end has not yet been
touched upon TO any extent. That must
await the removal of all questions of the
power Of the committee by the passing OF
the pending bill, and must be followed by
months of preparation and investigation.
The inquiry upon collateral branches re-
lating TO the Clearing House and the Stock
Exchange are also uncompleted. That as
20 the Stock Exchange has barely begun
The committee hopes and expects in the
end with the aid OF further power, TO &c
cure the data on which to base permanent
constructive legislation.
Mr.. Cortelyou was called as a witness
early in the hearing and proved to be an
unwieldy one i'm the hands of Mr.. I'm
termyer. He insisted that he should be
allowed to give more explanatory an
sw ers than merely yes" or no" az
counsel suggested and the witnesses
firm resolution i'm that respect brought
a round of applause from the large crowd
OF bankers and brokers who attended the
hearing. Chairman Pujo promptly called
he spectators TO order announcing that
he would have the room cleared If there
was any more applause. Mr.. Untermycr
and Mr. CortelyOu INDUCED in frequent
TITS. and the lawyer was not successful
~ innng the witness down to short
and definite answers.
Tells Of Seeing Bankers.
~ The start Mr. Cortelyou said that
some Of the events of the panic of 1907