The Birmingham age-herald., 1912-06-14
SENT
 MONEY MORGAN IS SAID TOHAVELOANED
Cortelyou, Former Treas urer, on Stand in Money
 Trust Hearing
MORGAN'S PARTNER
 ALSO TESTIFIES
Banks Which Received Money Agreed to Loan to Stock Exchange on That Day-Morse Offered to
 Reimburse Depositors

helmDufSe DeposiioIs
 New York, June 1a--Evidences intended to show that the s25.coo.oOo which J. P. Morgan has been generally credited with placing upon the New York stock ax- change during the panic of 1901 was really supplied by the treasury of the United States was introduced today at the hear ing of the Pujo committee of the House of epresentatives in the so-called money trust.
 samuel Untermyer. counsel for the cont mittee. obtained from George B, Cortel- yo1, Secretary of the Treasury under the Roosevelt administration. the assertion that he "understood' that the money loaned by the government to the banks at that time was to be used upon the stock exchange
 From the New York suh-treasury tho attorney secured a statement showing that on the day October 2D on which MT Morgan told R. H. Thomas, president of the exchange, to announce the $3b,o0O,oO loan to the exchange loan brokers, the government had deposited with the banks nearly s29.O0o.OOo. From Charles Steele, partner of J. P Morgan. he obtained a statement showing what IA banks had 'agreed tc loan" to the stock exchange on tha'
 The Aunt agreed to- was s2S.- h50,Oo amount. actually loaned. accort statement was slS945. 900. An tbi pani.s. the sub-treasurv state ment showed, had previously rece ved de- poslts Of government money.
 The statement from the sub-treasury was obtained after MT. Untermyer had failed to procure from MT. Cortelyou the names of the banks in which he deposited government funds which the witness tes- tiled amounted to about $42,Oo00O0 during the panic. Mir Cortelyou could not re- call specifically what banks received the money
 The list furnished by Mir Steele includ- ed the First National, the National City, the Hanover National the National Bank of Commerce and several others which Mir Untefmyer noted as having Morgan affiliations. The attorney read into the record from the two lists comparisons showing that on October 2l the First Ma lional had received 80 ,25O,0o0 In government deposits, had agreed to loan" on the stock exchange $4,000,000 and had actually loaned s2.eS0,0O0. He made similar com purisons for other banks.
 Morse Offered to Refund
 Evidence that Charles w. Morse made an offer to the comptroller of the cur rency to pay off all the depositors of the failed Bank of North America was brought out in connection with the testimony
 
 receiver of the institution. Letters placed or the record showed the government had refused the offer although MT Morse was told that if he would deposit his funds with the government the comptroller would see that the depositors were then protected.
 After hearing the testimony of witness in regard to practices of the New York Stock exchange which MT. Untermyer characterized as "contrary 10 the law of the land," the hearing was adjourned sine die.
 Chairman Pujo announced that future hearings will be held in Washington.
 "The main line of inquiry relating to the concentration of the control of the money and the use of the industrial Cor porations that end has not yet been touched upon to any extent" he said. 'f'rhat must await the removal of all  The passing of pending nill and must be followed by months of preparations and investigation. The inquiry upon collateral branches relating to the clearing house and stock exchange Is also uncompleted. That as to the stock exchange has bare- ly begun. The committee hopes and ex- pects in the end with the aid of further power to secure the data on which to base permanent constructive legisiation.''
 
 George B. Cortelyou, Secretary of the Treasury under President Roosevelt, was called to the stand today at tho hearing of the Pujo committee inves- tigatlng the so-called money trust to tell the manner In which the govern ment deposited s25, 100000 in the New York national banks to Help stem the panic of 1907. Samuel Untermyer, counsel for the committee, attempted to learn the names of the banks in which the money was deposited, but MT. Cortelyou said his memory on this subject was poor
 Witness said he came here on the night of October 22, 1907 and had a conference with J. P. Morgan. James StiIlman, A. Barton Hepburn. George F. Baker. George W. Perkins. Frank A. Vanderlip and other fnancIers. After inquiring Into the general situation he promised the government would aid in a general way. The next evening, he said. another conference took place. He was not sure that MT Morgan was pres ent then At this conference, witness said, he promised s25,0o0,000 for dis tribution among the banks. At the first conference" he explained. T stated I would not deposit a dollar ex. cept for the relief of the country gen. erally.'
 was there anything said where tho funds should be deposited, with what companiesT
 T do not remember"
 Witnesses and Attorney Clash
 Mir Untermyer asked If anything was said about the high rate of call monel and the effect on the stock exchange of the failure to get money here. MT cortelyou started to give an explana tion and was asked sharply to reply to the question.
 You know, Mir. Untermyer," he said there are questions I cannot anwsei yes and no to without doing myself an injustice. I have a right to ex. plain and propose to exercise thai right.
 This brought forth cheers from tho brokers and bankers looking on and q declara ton from Chairman Pujo that he would have elected anyone repeat 1 ing it. Mir. Cortelyou said finally. "Hs probably did have such discussion' ! He could not recall. however. the de,