Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1912-12-09
CLEARING HOUSE
SYSTEM DEFENDED
Situation in Baltimore Taken
UP by Congressional
Probers.

of banking and a decided STAND
against government regulation oil
clearing houses were made today by
Waldo Newcomer. manager of the
Baltimore Clearing House, before the
House money trust investigating
committee.
The committee took up the clearing
house situation in Baltimore. Rep
resentatives of two banks which had
been refused conditional membership
in the association appeared. Man
ager Newcomer explained that the
banks were not admitted because as
conditional members they would lot
be bound by the rules of the asso>
citation as to out-of-town check ex.
change charges and other rates. ano
would be in a position to compete at
an advantage with the other mem
bers of the association bound by the
rules.
In a prolonged discussion with
Samuel Untermeyer, counsel for the
committee, Mr.. Newcomer declared
that clearing houses throughout the
country were beneficial institutions
and that any attempt at government
regulation would hamper their ef-
forts.
At the opening session of the COM
mittee today Chairman Pujo made a
statement, in which he repudiated
published reports of what purported
to be the committees intentions for
the course of the inquiry, He said:
I'm resuming this inquiry the COM
mittee feels that the many unauthor-
lied, misleading and inspired reports
that have been circulated concerning
its work and plans, should be cor
rected and that the public should be
warned against placing n credonce
in them. There has been a consistent
hostile effort in certain directions to
embarrass the inquiry. No state
ments have been or will be made or
authorized on behalf Of the committee
at any time, except such as may be
openly announced at the hearings.
Friction Is Denied.
AT no time has there been any fric-
ton, misunderstanding or difference
either AIMING the members or with or
between counsel. The utmost har-
mony has prevailed from the begin
ming and the reports to the contrary
have been sheer fabrications. Nor is
there any authority for the persistent
public report as to proposed remedies
or legislation. The question has
been before the committee and it
would be premature to consider it.
The committee is not yet in posses
sion of the facts on which to base
a Judgment. 1t has barely reached
the threshold of the inquiry SO that
any opinion as to its action is de-
cidedly premature to gay the least.
Attention is called to the announce
ment made at the outset of the hear
ings last May, and since frequently
repeated. that the terms of he res
olution under which the committee is
acting cannot be fully carried out or
until Congress shall have enacted the
bill that has passed the House and
is now pending in the Senate, remov-
ing all existing doubt as to the pow
er of the committee to inquire into
the part, If any, that is played by the
national banks in the alleged concen-
tration and control of money and
credit.
May Submit Intermediate Report.
Meantime the committee will press
forward with the other heads of the
inquiry with the view of submitting
an intermediate report, accompanied
by such recommendations as may be
deemed wise.
1.-THE postponement over the presl-
Dental campaign was taken pursuant
- fHa fr1n,tonfIxy onnnf1noad dafop-
mination that this important investi-
cation should not be subject to the
criticism or suspicion of being in any
way influenced by or connected with
political exigencies."
The first witness was William w.
Cloud, president of the State Bank of
Maryland. Samuel UnterInyer, coun-
sci for the committee, took up his ex-
animation. Mr.. Cloud said his bank
had applied for clearing, house privi-
leges, but had been refused because 1t
was not a member of the Baltimore
clearing house, but desired to clear
through another bank that was.
"Does the Baltimore clearing house
prescribe rules which prevent a bank
making It's own price for exchange on
out-of-town checks?" asked Mr. I'm
termyer.
Eyes, it amounts to that" answered
Mr.. Cloud.
but that is throttling competition,
ism it?'
"Well, 1 wouldn't say throttling,"
said the witness.
John r. Bland, resident of the Uni
ted States Fidelity and Guaranty
Company, followed Mr.. Cloud on the
stand.
Mr.. Bland said his company had
sought in vain to secure the privilege
of clearing out-of-town checks
through it's banks of deposit, which
were members of the association, or
to secure full membership in the asso-
citation, but within the last few weeks,
however, he had beer given to under
stand that arrangements were being
made by the clearing house to take
care of the trust companies.
LAS a result of the agitation Of this
committee your object has been &C
complished," suggested Mr.. Inter
myer.
"Well, / could not say as to that"
Eugene lowering, president Of the
National Bank of Commerce of Balti-
more. and chairman of the clearing
house executive committee, produced
the constitution and rules of the Bal