Martinsburg herald. [volume] (Martinsburg, W. Va.) 1881-1920, 1913-01-11
CHARGE THE MONEY
TRUST WITNESSES
WITH CONTEMPT
House Committee Takes Action
Against New York Banker.
BELIEVES GEORGE HENRY
HELD BACK TESTIMONY

He Refuses to Reveal Names Of shar.
ers In Petroleum Syndicate Flotatlon
Rockefeller Declared Too ~ to
Testify, But commItte viii Name
Specialists TO Make Examination.
WASHINGTON. ~ c. Jan. s.--The
House money trust" committee. In
executive session last night. prepared
forms 20 charge George q. Henry, OF
the firm OF solomon a Company.
bankers. New York city, with CON
tempt. These are TO be submitted To
the full committee.
Mr.. Henry refused on the stand
yesterday to reveal the names Of Ma.
tional banks and National bank ON.
GERS allotted a share IN the syndicate
flotation OF the California Petroleum
Company. The band officers make a
profit of 100000 and the banks a like
sum. Mr.. Henry said. without putting
up any money or even taking posses.
ion of the stock allotted them. The
syndicate. he said. simply offered
them the stock and then sold II for
them at a jroft. The full committee
will be asked to certify the case to
the speaker, with the request. that he
certify IL IA the district attorney for
the District OF Columbia. who win be
asked to take II before the grand
jury.
In yesterdays hearing the commit
te, besides hearing Of the hotation
OF the California Petroleum Com
pany from Mr.. Henry. went over the
affairs Of the Equitable, Mutual. New
York and Metropolitan Insurance
organizations, with officers OF each
OF the institutions. The fact was de-
veloped that in the Mutual compan-
les the policy holders show little In.
c~lination to control the affairs OF the
companies and exert practically no
power In the election OF officers.
Asked About Securities.
Samuel Untermyer, counsel for the
committee. examined the witnesses
as to securities held by the compan.
les mentioned, which, under the New
York state law. were ordered In 1906
to dispose of their holdings OF stock
within five years. The time has been
since extended five years.
In this connection Mr.. Untermyer
examined Charles A. Peabody. OF the
Mutual, and Judge w. A. Day, OF the
Equitable, regarding the sale OF stock
In the National Bank OF Commerce TO
James Stillman and George y. Baker.
after Mr.. Baker and Mr.. Stillman had
acquired through the purchase OF
Equitable stock by J. p. Morgan. a
contingent interest of ~one-fourth each
in the control OF the insurance So
ciety. Mr.. Day said he did not know
Mr.. Morgan. Mr.. Stillman and Mr..
Baker, were interested In the Nation
al Bank of Commerce prior TO that
time.
The sale by the Equitable TO Ben.
jamin Strong. Jr., of the Bankers
Trust Company OF a block Of stock In
the Mercantile Trust Company, later
absorbed by the Bankers Trust also
was taken up by Mr.. Day. He said he
knew nothing OF the voting agree
ment under which the Bankers Trust
had operated, in which one OF Mr..
Morgan's partners was a trustee, at
the time of the sale.
Despite Mr.. Henry's attitude, the
committee got far enough into the
stock market affairs of the California
/, Petroleum Company to develop testi-
mony that "a officers OF the National
banks in New York, Chicago. Detroit
and Milwaukee participated In a syn
! dictate formed TO market It's shares
at a profit of $4,000. None was re.
quired to put up N m
snag Is Struck.
When the committee tried to draw
from Mr.. HeRry the IN OF the
banks and their officers. It struck a
snag and the question Of the commit
tees power to inquire into the bust
ness OF National banking associa-
lions again was raised. Mr.. Henry
fatty declined to give the names and
read into the record his reasons In