The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-02-28
Sweeping Denial Made
in Letter to Pujo
Committee.
BANKING SYSTEM
is HELD AT FAULT
Regret Expressed That Belief,
So Incredible, So Abhorrent
and So Harmful" Should
Find Lodgment Anywhere.
Bitter Attack Is Made on
Attorney Untermyer.

Washington, February 27-A gem
eral denial OF the existence or possi-
bility of money trust" was pre-
sented to the House money trust COM
mittee to-day in a long letter from
j. i. Morgan & Co, at the invita- ation
Of the committee.
Upon the receipt OF the Morgan let
ter to-day. Chairman Pujo gave out a
letter written to Morgan & Co, say
Ing that the invitation to Morgan e.
Co. had been extended January 81 and
that the committee had been at work
on it's report for month.
Your memorandum" the reply con-
cluded. 'manlfcstly comes too late to
be Of value"
The Morgan letter laid at the door
Of the present banking and currency
laws the responsibility for any con
centration" of money and credit that
may exist.
System Not Scientific.
In its conclusions as to the commit
tees activities. the letter said:
we venture to submit the consid-
Grafton that. I'm "a strong public opinion.
such as exists in this country, there
lies the greatest safeguard of the COM
munity-always assuming that Con-
gress will evolve a basic system Of
banking which is scientific and sound
AS al the present time ours admittedly
is not The puhlic-that is, the depos
itors--are the ones who intrust bank
ers with such influence and power as
land. and the public is unlikely to in
trust that power 10 weak or evil hands.
Your counsel asked more than one
witness whether the present power
held by bankers In this country would
not be n menace If il lay in evil hands
Such inquiry answers Itself. All power,
physical, intellcc tual. financial or po
Ntical, is dangerous in evil hands IF
Congress We're to fall into evil hands,
the results might be deplorable. But
citizens OF this country will fl1 Con-
Sress with rascals as II is that they
will intrust the leadership of their
business and financial affairs to SET
of clever rogues."
The letter says that such concentra-
Cured Is due to the "antiquated bank
ing system" and the natural law.
which 'in every country creates some
one city as the great financial centre"
That part OF the money trust resolu-
tion declaring that 1t is generally be-
lieved that groups of fnanciers Gre
ate ard compose compa nieS' was par
ticularly attacked by the letter, Nor
gan & Co set forth that any withhold
Ing OF money or credit by one man in
any market would be promptly re-
leved by tho automatic flow OF credit
Not Vesfige of Truth.
we regret" said the letter. that
belief so incredible. so abhorrent and
so harmful to the country should for
Il moment have found lodgment any
where. And we welcome Your invita-
ton as an opportunity for us to state
that TO the extent OF our observations
and experience there Is not even q yes
tige of truth in the idea that in whole
or in part the financial convulsion of
1907 was brought on through the de-
sign Of any man or men"
The letter further pointed out that
the individuals Ito whom is attributed
the power to create pantcs." were the
ones 10 suffer most by the severe
shrinkage in values of securities dur
ing the 1907 panic.
Untcrmycr Attacked.
Washington, February 27.-Samuel
Unternyer's retention as counsel for
the House money trust Investigating
committee came in for sharp condem-
nation on the floor of the House to- day
during debate, in which the cost of
other congressional Investigations also
was brought In.
Representative Martin. of South Da-
kota. attacked the appointment of un-
tormyer and entire conduct OF the in
vcstigation.
This committee" he said, has en-
gagged in an Untermyer investigation
and now Is preparing an Untermyer
report. 1t seems very strange to me
that the Banking and Currency Com
mittee of this House. with the many
lawyers in its membership, could find
it necessary to go outside to secure
a lawyer"
Representative Moore. of Pennsylva-
MIA, denounced the entire scheme OF
Democratic Investigations as bunk,
pure and simple He attacked the
employment of Louis u. Brandeis as
counsel for the shoe trust investi-
eating committee and also the employ
ment OF Untermycr.
"The shoe investigation resulted in
absolutely nothing he said The
attorney who had charge of it is now
prominently mentioned for place in
the Democratic Cabinet. and he is be-
Ing opposed all through New England
because IL was charged he took money
from both sides" Mr.. Moore referred
to the action of the Pujo committee
in securing Untermyer as 1.-THE cham
pion of the common people,"
"Ho has been taken by the Demo-
Gratis as their champion in the holy
cause of the common people," mo
shouted. HE is n member of a firm
of attorneys for The great brewery,
mining. industrial and railroad cor
porations--a distinguished champion
ol tne Soiii'Hoh peoRlS VINO nave Deen
ground beneath the irop heel of cor
poration greed"
Representative Fitzgerald. Of New
York, defended Mr.. Unternyer. de-
clarins that his examination of Wit
nesses before tho money trust COM
mittee had been conducted with sood
results.
Report Is Ready,
Washington, February 27--The final
report OF the House mopey trust com.
;nittee on the concentration Of money