Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-01-16
HEAD OF CHICAGO BANK
Opposes Interlocking of Directors in
Competing Concerns.
PUJO COMMITTEE WITNESS
Adjournment to Be Taken This Aft
ernoon Until Wednesday or
Thursday of Next Week.

nat the present concentration OF
money and credit is potential menace
to the country" was asserted before the
House money trust committee today by
George NJ. Reynolds, president Of the
Continental and Commercial Bank of
Chicago. Mr.. Reynolds said that he
knew of the trend toward concentra-
tion of money and credits" and that he
thought it a dangerous thing
II am opposed to the concentration of
any sort of power he said II believe
that concentration to the point to which
1T has already gone is a menace. In say
ing that I do not wish to sit in judgment
on the men who hold that power
Mr.. Reynolds said he was opposed to
the principle of 1nterlocking directors in
potentially competing concerns and that
he had adhered to that principle through
out his banking career
Thinks Competition Not Dead.
Mr.. Reynolds could not make any spe-
cific recommendation as to remedying
the concentration of money and credit,
but was sure the prevention of interlock-
ing directors in competing concerns would
have good effect. Mr.. Reynolds said
he believed that competition was not
dead" but he believed banking would be
improved by a return to competitive con-
ditions.
Mr.. Reynolds said he would approve of
law giving minority stockholders in
national banks the right of representa-
ton on the board Of directors, and would
approve law Incorporating clearing
houses SO long as it did not interfere
with the free conduct of business
II am in favor of utmost regulation
and publicity" he said.
Mr.. Reynolds testified that the capital
of his bank was $21 100000, and its sur
plus $9,OOO.OO. The average deposits
were $1S1 .OOO.OO0. An affiiiated trust
company. he said. had capital of $3,O0O.
CO. surplus of $1,J0OOOO and deposits of
$25,OOO.OGO An affiliated savings bank,
he said. had 1.jOO.OOO capital and the
same amount in surplus with deposits
of about S29,UOO.OO0 OF resources of
about 500. 900 in the national bank,
he said. about sl3O,OOO.OOO was out on
commercial paper.
Institutions Taken In.
Mr.. Reynolds said that his bank had
! taken in the following institutions: 1898
the International Bank, deposits. $1,000,
900; 19O0 Globe National Bank, $1,000 OOO;
1904. National Bank of North America,
50, 100000; 1903, American Trust and Saw
ings Company. $22,OOO,O0O. In these merg-
ers. Mr.. Reynolds said. the big bank had
| acquired about $95.0OO.OOO. In addition,
| by natural growth, the bank had ac-
quired about xS6OCO,OOO.
The Continental and Commercial, Mr..
| Reynolds said, loaned money to its own
| directors and corporations with which
| they We're connected, but did not loan
to its own officers. He did not believe
! officers should be allowed to borrow from
their own banks.
Mr.. Reynolds declared that the Chi
cago clearing house was the first to en-
| ploy bank examiner.
| Was that because you found the
federal inspectors inefficient? asked
Mr.. Untermyer.
Yes, at that time We found it inef
ficient in connection with the three
banks of John r. Walsh. The other
banks of Chicago had to guarantee the
were in deplorable condition. and they
| paid them off at loss. To prevent
such situation arising again we
formed an examining force
Adjournment to Next Week.
| At the outset of the hearing Chairman
| Pujo announced that the committee would
| adjourn at the end of tOday's session unit
| Wednesday or Thursday of next week
and that 1t was hoped to close hearings
by Friday. January 81. Plans for taking
! the testimony of William Rockefeller will
be made when the committee reassembles
Jacob II. Schiff OF the firm of Fuhn
Loeb 4 Co had been called today as the
\ Tod 4