The Detroit times., 1912-12-12
STOCK EXCHANGE
IS PICTURED AS
GIANT MONOPOLY
Long Feud Between Rivals Is
Aired Before Pujo Com
mittee
MILLIONS EXCHANGED
ON A SCRAP OF PAPER
Members of aLoan Crowd" Give
Interesting Testimony as
to Loan Rates

WASHINGTON, Dec. 12.-Picturing
the New York stock exchange as a
giant business monopoly, witnesses
before the money trust investigating
committee, today, described the long
feud between the New York exchange
and its rival, the Consolidated eX-
change.
How loans of S25.0OO, 900 are made
on the New York exchange daily
without official record, was another
vivid sidelight on Wall-st.
President De Agnero, OF the Con-
solidated exchange, told how many
big railroads, industrial corporations
and trust companies boycott the Col
solldated exchange. He said Consoli-
dated members are barred from trad
ing on the New York exchange.
Marcus Helm, a Consolidated mem
Der, described how he lost legal
fight to traders on the big exchange.
He swore that a resolution of the New
York exchange prohibits its members
from dealing with the rival organiZa-
ton.
The "Steel Trust" Pennsylvania.
Lehigh Valley and "Atchison" rail.
roads, De Agnero charged, discrim-
mated against the Consolidated. He
said many interstate corporations
limited trading of their stocks 10 the
big exchange.
How millions OF dollars change
hands daily In the New York ex
change, with the only record scrap
OF paper, was described by J. II.
Griesel, and Charles w. TVIner, lead.
ing members of the loan crowd"
They said often the loans reached
$25,000,000 a day.
Griesel, the first witness, was asked
to testify regarding the loaning OF
money on the New York stock eX-
change. His firm is one OF the largest
in Wall-st
There is post on the floor for the
money crowd" said Griesel Banks
indicate how much they have to loan.
and the brokers discuss what rate
they can get II for. At IL or 1880
each day, the loan renewal rates are
made according 10 the demand for
money"
Griesel said that the call loans were
generally made on stock exchange col
lateral, about 65 per cent on railroad
securities, and 35 per cent on indus.
trinls.
Il have loaned $4,000, 900 in one
day." he said. Our average daily
transactions are $1O,000.000."
The broker said the big lenders"
on the money exchange were the City
National bank. the Chase bank, and
the Bank OF Commerce. Among the
large private bank lenders, he said,
were ]. p. Morgan & Co., and Kuhn,
Loeb e Co.
Sometimes, FOR a month at a time,
the Morgan company are not lenders
ssid Griesel Kuhn, Loeb q Co., are
constant lenders"
Griesel reeled of the names of the
loan agents of most OF the giant finan-
cial institutions OF New York
The City bank loans most of all"
he declared. Kahn, Loeb & Co.
sometimes loan as much as any OF
the banks"
Griesel said he cleared" or hand /!
led" $4,000. 900 on Nov 29, when the |
loan rate went up. He asserted that
no record OF loans is kept. except the
aggregate amount Up to noon daily, 10 /
fix the loan rate. Afterward loans
are not recorded.
"On Nov. 20, probably only $1,000 !
600 was loaned up TO noon" Griesei
added. There are so many millions
and millions loaned every day private
ly, that it's impossible TO give the |
daily average"
The broker said the bulk OF loan |
business was done by five brokers
The Roberts & Rogers Co., he said. |
acted for j. p. Morgan & Co. NO
banker will loan money on stock, un-
/ less there Is at least 10 points mar
gin on II, To be SAFE" the broker as
serted.
Steel is the best collateral--the
best In the world. There was mar
ket for II paid a dividend" he said.
Names of out OF town banks which
loan money are disclosed in deals.
Griesel said. and the Park bank repre-
sents the most country" lenders.
The Chase bank, he asserted, was an
exception. II does not disclose the +
identity OF its country correspondents.
Griesel declared the country banks .
always loaned more when the call .
rate scared. He stated that he know ,
of no other public money mart, where .
money was auctioned.
Turner, loan agent for the National I
City bank, said the City bank never |
charged more than six per cent for
money.
III other banks did that. wouldn't ~
keep money In the country, when It Is
needed" asked Untermyer.
II believe money finds It's level"
Turner parried. The City bank.
whether from altruistic motives or
n0,. has always helped to keep the
rate down"
ATTACKS WILL LEAVING
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