Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-01-24
Hope to Conclude Money Trust
Investigation Today.
DAWSON ENDS TESTIMONY
Declares Interlocking Directorates
Are Unavoidable.
CURRENCY REFORM IS NEEDED
Morgan's Partner Says Present Sys-
tenn Is Responsible for Abuses.
]. ]. Hill to Appear.

Hoping to conclude the money-;rust in
vestigation today, the Pujo committee of
the House confronted an abbreviated list
of witnesses and day of rapid-fire ex-
animation.
Henry p Dawson Of the firm of ]. =.
Morgan & Co.. who occupied the stand
throughout the greater part Of yester-
days session. was the first witness ex-
amined. F. l.. Hine. president of the First
National Bank Of New York. was the only
other witness of Importance the commit
tee expected to hear.
The chairman Of the committee. Repre-
sentative Pujo, and Counsel Untermyer
will make arrangements Immediately upon
the conclusion of the oral hearings to ex
anime William Rockefeller. Chairman
PujO expects that Mr.. Rockefeller will be
in New York early next week. and IL is
expected that the examination will be
made there.
James J. HILL the railroad man. was on
hand when the committee convened, ac-
companied by his son. Louis w. Hill. and
his counsel. former Senator John c.
Spooner. Counsel Untermyer, for the
committee. said Mr.. Hills examination
would be brief. He was hopeful that the
HEARINGS WOulu De cloScu tOuSy NOli-
templated a long session to conclude the
examination of witnesses.
Says Banks Caused Panics.
Before resuming the questioning Of Mr..
Dawson. Mr.. Untermyer put into the rec
ord letter from Jacob ii. Schiff to am
plify his recent testimony before the
committee. The letter read in part:
IF 1 had had the opportunity to make
proper answers to your questions L
should not have hesitated to state that
the multiplication of banks and trust
companies has heretofore led to an over
extension Of credit to over-trading and
to illegitimate conditions in general, and
that the financial panic Of 1907 and other
financial depressions that have preceded
it have largely been brought on by the
too great multiplication OF banks and
trust companies
Mr.. Untermyer took up Mr.. Davison's
statement Of yesterday that the "concen-
tratiOn of banking resources in New
York was sufficient to care for the bust
ness Of the country at it's present devel-
opment."
There is less consolidation in New
York banking today than there was ten
years ago." said Mr.. Dawson. THE
resources Of the New York banks are
entire country.
Business Is Bigger.
I'VE are dealing today in larger units.
industrially, commercially and every
other way. In many instances a corpora
ton may want to borrow up to s5.OO0.OOo.
It is much to the corporations advantage
to be able to make that loan from a sim
gle bank than to have to go shopping
around. making loans Of 100000 here
and there"
Don't you think it would be an advan-
tage to have good many independent
banks in New York, SO that he could
have some place to go shopping around
If he had to-" asked Mr.. Untermyer.
Il think the banks of New York are
independent replied Mr.. Dawson. Mr..
Dawson added he knew of no bank in
New York controlled by another bank.
Mr.. Dawson distinguished between con-
ment of banks Mr.. Dawson reiterated
that a law preventing 'interlocking direc-
tors would set the country back twenty
five years. He agreed with Mr.. INTER
the size of boards of directors of banks.
Currency System Responsible.
Mr.. Untermyer called attention to the
Chase National Bank. and read the
names of five Of the nine directors of the
bank who were interested in the First
National Bank.
Il want to say this" interrupted Mr..
Dawson. There is a situation i'm this
country which will be remedied only when
the currency system is reformed. This
concentration not only is not a peril. but
it has been a benefit to the country
under present conditions
Then You think it ought to be ex-
tended?"
Il decline to answer that question:
Would you say that it would be
greater benefit if all the banks of New
York were consolidated?"
THAT could not be done. ] say that
the situation in New York today is
benefit and not menace. But this con-
centration will continue to increase until
the currency laws are reformed said Mr..
Dawson.
And You would aid it to increas seq"
I'VE would do what is best for the
country said Mr.. Dawson with some
emphasis.
You mean what you believe is best for
the country"
Yes. what We believe is best for the
country"
IF all the resources of the banks of
New York were concentrated in the
hands of Mr.. Morgan. Mr.. Stillman. Mr..
Baker and their associates, wouldn't that
increase the concentration of credits i'm
their hands?" asked Mr.. Untermyer.
Mr.. Dawson said 1t would undoubtedly
result in the concentration of the re-
sources i'm their hands. but would not in
crease those resources or the concentra-
ton Of general credit.
Where would you place the limit of
interlocking directorates?" asked Mr..
Untermyer.
Il wouldn't pass any law" said Mr..
Dawson.
Mr.. Dawson said that he was not OPP
posed to the system of cumulative voting
i'm corporations, but he was inclined to
believe that there should be some re-
striction in the case of financial corpora
tons.