The Greenville journal. [volume] (Greenville, Ohio) 1850-1918, 1913-03-06
HITS MONEY TRUST
PUJo COMMITTEE DEMANDS
LAWS TO CURB COMBINE AS
PERIL TO NATION.
RAPS ]. P. MORGAN & COMPANY
Declares Banking Concern ls Domlnat-
ing Influence Of the Financial and
Credit World In the U. S.-5ody
Differs on Finding.

Washington, March 3.-Members OF
money trust investigation presented
three divergent reports to the house
late on Friday.
The majority report, signed by
Chairman Pujo and the six other
Democratic members of the commit
tee, found that money trust exists,
according to their understanding OF
the term.
This report names as "the most
active agents in bringing about the
concentration of money and credit" "
J. P. Morgan & Co., First National
and National City banks and Kuhn,
Loeb & Co. Of New York, Lee Hig-
ginson and Kidder, Peabody & Co. Of
Boston.
Two bills accompanied the report,
one forbidding the use OF the mails
to stock exchanges which fail to OBJ
serve prescribed stringent regulations
as TO the conduct Of their business
and the other prescribing rigid rules
for the conduct of national banks
their officers and clearing house as
sociations, as to which they belong
This report is substantially in accord
with the conclusions presented to the
committee by Samuel Untermyer,
counsel.
The first minority report, signed
by Representatives Hayes Of Califor
MIA, Head of Delaware and Guernsey
of Maine Republicans, set forth thai
the investigation has not disclosed
the existence OF any so-called money
trust" but added, 1T has, however
disclosed a dangerous concentration
Of credit in New York city and to
some extent in Boston and Chicago"
while agreeing substantially with
the majority" said the report, "on
many OF the abuses. to be corrected
in the financial system, the stock ex.
changes and the clearing house asso'
Citations. the undersigned have doubts
as to the wisdom Of some of the RENE
dies proposed by the majority"
This report further set forth the
belief that before definitely recon.
mending any remedial legislation
testimony should be taken covering
more fully the effect of the various
changes in the laws that have been
suggested.
1T is manifestly impossible" the
report concludes. that any of the
proposed legislation can be consid,
cred by this congress, and it seeme
to us wise to leave the matter OF
recommending complete remedial leg.
islation to those who will be charged
with the responsibility OF formulating
and reporting such legislation to con.
gress."
An individual minority report, filed
by Representative McMorran of Mich.
igan, Republican, was q fiat, detailed
disagreement with the recommenda
tions and findings of the majority.
The majority report, after declar
ing the existence Of a money trust
said that the increased concentration
of control OF money and credit had
been effected principally as follows:
Il. Through consultations of com.
petitive or potentially competitive
banks and trust companies, which con.
solidations in turn have recently been
brought under sympathetic manage
ment
"2. Through the same powerful in.
terests becoming large stockholders in
potentially competitive banks and
trust companies. This is the simplest
way Of acquiring control, but since ii
requires the largest investment of
capital it is the least used, although
the recent investments in that direc.
tion for that apparent purpose amount
to tens of millions of dollars in pres.
ent market values.
"3 Through the confederation of
potentially competitive banks and
trust companies by means of the sys.
TEN of interlocking directorates.
a. Through the influence which the
more powerful banking houses, banks
and trust companies have secured in
the management of insurance compa.
MES, railroads, producing and trading
corporations and public utility corpor.
ations, by means of stockholdings, vot-
ing trusts, fiscal agency contracts or
representation upon their boards of
directors, or through supplying the 1
money requirements of railway. indus.
trial and public utilities corporations
and thereby being able to participate
in their financial and business poll.
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