The Washington herald., 1913-02-24
MONEY TRUST IS
PROVED BY PUJ0
Committee viii Place Findings
Before the House and Rec
ommend Legislation.
REPORT is RADICAL
J. Pierpont Morgan and Allies De-
clared In Control of Credit
and Wealth.

The Money Trust" Committee will sub
NIT its report to the House this week.
The chairman, Representative Pujo Of
Louisiana, and Samuel Untermyer, the
counsel for the committee. have com.
pleted the preliminary findings. which &c
before the committee to-day.
1t is understood that the report will be
accompanied by several measures de-
signed to correct existing conditions. They
will be made public Friday.
The report is drastic in its nature
The committee is prepared to hold that
the existence OF a money trust as out
lined in the committees resolutions au-
thorizing the investigation, has been es-
tablished. The committee will charge that
the concentration of wealth and credit is
built upon J. p. Morgan & Co and their
allies through their control of banking
interests in New York, Boston, and Chi
rago.
II the plans of Samuel Untermyer and
the chairman of the committee go through
a radical report will be presented to the
House. This report will not cnly propose
series of sweeping reforms in New York
Stock Exchange methods, but will present
recommendations for the control of clear
tng-house associations and for the ter
mtnation of the present system Of inter-
locking directors and for a readjustme mt
of the relations between private bankers
and the interstate corporations. whose Sc
curities these bankers have handled for
rears.
The Washington Herald told the other
day OF the opposition that has developed
IN the committee to any attempt on the
part OF Congress to compel stock ex-
changes to take out Federal charters
The committee will leave the matter Of
the Incorporation of the stock exchanges
TO the State governments but sentiment
nrl1ir for 1Ia
eral legislation which will compel the
exchanges to take out such charters
This will be accomplished through
denying the use Of the malls and the
transmission of Quotat tons over telegraph
wires to exchanges that fail to incorpor-
ate themselves under the State laws.
The present plan also contemplates the
definition by Federal statute OF certain
other conditions which must prevail be-
1ore an exchange shall be entitled to the
use or the mails and the telegraph sery-
Ice In Interstate commerce These con-
oiuons will be directed against The man.
ipulations Of the market
Ihere also will be restrictions against
the rehypothecating of securities by any
member of the exhange and every b,oker
VIII De obliged in making applicat ations
Tor loans TO disclose the amount Of his
customer s collateral. There will also he
provision for full publicity in regard
TO promoters and bankers profits on
every security issue listed on the ex
change.
Additional Reforms.
Here are the principles other reform |
recommendations which the committed
VIII consider to-day and the most of |
which they probably will adopt:
The prohibition Of any national bank
rom joining clearing house associa-
lion unless 1t is incorporated. holds its |
membership open to every solvent hank
and confines its functions to the clearing
OF checks for banks in the association
a proninltion against the same indi- |
Viduals sitting on the boards of noten-
TALLY competing financial institutions
and limitation upon the size of the
board OF directors of national banks
Inc application of the cumulative sys-
tenn OF stock voting to the election Of
directors of national banks and inter-
state corporations. the purpose being to
give minority stockholders the legal right
or representation on the governing
boards.
prohibltion against officers and di-
rectors Of national banks particfpatinr
In underwriting syndicates and accent
ing bonuses In the making of loans TO
the banks customers.
prohibition against ofRcers and Al
banks
Full publicity of the assets and stock
holders of national banks.
One Of the most interesting recommen-
cations that the committee has under
consideration contemplates a limitation
upon the amount of money q national
bank shall be permitted to loan ON stoclr
exchange collateral. the Limitation to be
In proportion to the banks assets
while the investigating committee is
not yet definitely committed to any prop
ositons, the chances are that Samuel
ontermyer's radical views on many of
these subjects are likely to prevail The ,
committee has been largely under his
control since the investigation began, and
there is little reason to believe that
there will be any change. now that the
time has come for framing the report
to the House.
Ihe rerort OF the committee. however, I
AAH hA@H M1Do 0l NJ g.,