New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-03-01
Majority Report, Prepared by
Samuel Untermyer, Proposes
Federal Supervision of Stock
Exchanges and Clearing
Houses and Condemns
Present Methods.
TWO DISSENTING REPORTS
Three Republicans Declare Investiga-
tion Failed to Reveal Any Money
Trust, and One Member In.
sists New York Financiers
Are All Right.
From The Tribune Rurean.l

From The Tribune Bureau
Washington. Feb 2s-Condemning
the New York Stock Exchange as a
gambling institution" severely criti-
cising ]. Pierpont Morgan for the meth
DDS employed in gaining control OF
the Equitable Life Assurance Society
stock, finding the existence OF money
trust" and recommending cuasi-fed-
eral control of stock exchanges and
clearing houses. the majority members
of the Pujo money trust" investi-
eating committee submitted the Unter-
myer report to the House to-day.
\ minority report denying the exist
ence of money trust" was filed by
Representatives Hayes. Heald and
Guernsey. Republicans. Representa-
tive McMorrar another Republican.
filed separate dissenting views, which
means that three reports have come
from the eleven members Of the COM
mttee.
Democratic report. which was prepared
by Samuel Untermyer, the committees
counsel, relate TO the New York Stock
Exchange and 10 Mr.. Morgan.
Referring to Mr.. Morgans testimony
regarding his acquisition of the Equi-
table Life Assurance Society stock
from Thomas +. Ryan. the report says:
1t will be noted tn the only reason
that Mr. Morgan gave for Mr.. Lyan's
surrender Of the stock was that he told
Mr.. Ryan that he thought was
good thing for him (Morgam to have il.
1T may be that behind the reluctance
OF Mr.. Morgan to furnish n business or
other reason for this transaction lies
hidden motive based on a high, disin-
terested sense Of public duty. If SO, We
have been unable 10 discover it,
The minority members find that the
testimony has not shown the existence
of a money trust" but has disclosed
dangerous concentration of credit in
New York City and TO some extent in
Boston and Chicago. 1t is held, now
ever. that tho states should regulate
stock exchanges and clearing houses
and that Congress should not interfere
until the states have failed to act.
Mr.. McMorran criticises the general
conduct Of the investigation, especially
the agreement that Samuel Untermyer
alone should conduct the examination
of witnesses.
Accompanies by Two Bills.
The report. signed by Chairman FuIe
and the six other Democratic members
Of the sub. committee which eenducted
the money trust" inquiry, 10 accom-
panied by two long bills. ono to rssu-
late stock exchanges through forbid.
dina tho mails to exchanges which do
not comply with federal regulations,
and tire other to regulate clearing
house associations through forbiddins
national banks TO join such associs-
tions unless federal regulations are OBJ.
served In the latter bill, proposed -
an anne endment to tho national banking
act. the conduct Of national bank offi-
GERS and directors is closely restricted.
The report is largely the work OF
Samuel Untermyer counsel Tor the
committee. who drew the bills pre-
scented. On the question OF the exist
ence of a money trust" the report IL
specific and detailed.
1T would, OF course. be absurd, says
the report. ito suggest that control OF
the bulk of the widely distributed
wealth Of a great nation can be cor
rallied by any set of men. IL that is
what is meant by gentlemen who deny
the existence Of money trust your
committee agrees with them. Such a
thing. of course. would be impossible
and its suggestion is ridiculous.
"lt is not. however. necessary that q
group Of mon shall directly control the
small savings in tho banks nor the
scattered resources OF the country IN
order 20 nonopoIize tho great financial
transactions or to be able to dictate
,he credits that shall be extended or
withheld from the more important and
conspicuous enterprises. This is sub
stantiaIIy what has been accomplished
and fairly represents the existing con-
dtior."
Using Others Money.
The great bank or banker, with ae"
cess to the mainsprings of the concen-
trated resources OF other peopies
money" the report declares, can handle
the vast issues Of securities no" ue-
mandcd by the commercial and indus
trial DEVELOPMENT of the country. but
the bank reserve system. IT Is con-
Continued on fourth page. second cciuma.