New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-03-01
IN his Or their own interest and 10 Ia
Getrinnent Of the public welfare.
Wen't Rieht itself.

Getrin1ent OF the public welfare.
Wen't Risht itself.
~. do ,ot aarte 10 the cheerful pill
lo,oohy that such n situation Will righ:
! ITSELF ard that when :he man thus III
trusted with this great power ceases TO
deserve Il he will lose H. Jr. as Air. Nor
ean put IL. that deposits WI be Win
! drawn from his banks What v they are
4, he.o there buttresscd ~ voting trusts
fiscal agency agreements. diiectorshiPs'
stock holdings. and in the man! DINER
WAYS known only 10 :ne intr'cacies VI
modern finance? What I! they finally 90
! escape and the Impossible should come
/ about 81 his power being broken
al best il would require open, rsck'
/ less end isne continued abuse to GRIP
pie eewer thus intrsnehed. 1t could
Withstand many misstsps, even II they
: became known, which 10 quite unlikely.
And sitter no was crippled he would re-
vive. II in the end tho power should
b destroyed, what is likely TO happen
to the credit and prosperity o. the
country while the sdifice is erun'
biinec'
Tho COMMITTEES l.olos tina u; IS man.
rcsriy Improper and repushant 10 ~.
th~o.y and practice o. competition th.'
control Of great institutions s"o'il TX
! he'd through intcr!ock!nr dircciorate''
The report condemns the Use o. v'tlhs
t..s,s In the control Of financial 'nsu'n-
! ,ioas, and criticisr. rsivste bankers l."
The tayac!,y OF deposiiar.es 20 interstate
! Corporations. sSv.ne:
! f, ts MOI Necessary 70 question t.ie Sood
.a.:h o. ra.r dealing "f tie BANKERS n
her relations With these controlled coz
/ por.:.ons IL ordc. 20 realize the iIrpr'-
pr>ty O! perniit.ng th.s condinoH 70
| ,ont.nIe unchecked aad without super
vision. Til. ownership d: these corpora
tor. - piGeiy scattered. Their $40 b.
holder Include millions %: sman invest
o.s. aho are .nabie 20 protec' theni-
selves and who l.noT. IN tact. notn'hS
o, die MANAGEMENT Or cfesat:oa OF the
companies. except from I've reports 81
ire management"
Control Of Railroads.
! CONCERNING 'hc domination o! ra.To""S
* ,le Inner group" = fins ncicrs tni
committee declare, the road 20 domi-
mated fnclude the Baltimore Ohio
Chesapeake 4 ono Cincinnati HaH''oh
4 Dayton. Chicago G-eat Western, Er'e'
Northern PaCAc. Pcre Marquette. oo''n-
crn Reading and Union Pacific
! rs 70 tlc investments 81 national BANKS
the -cpor, declares:
The national banks in the great et-
les are exceeding their charter powers
in ths character Of tho business Troy
srs conducting and iron, which Their
principal revenues are derived. lhey
are aetna as promoters. underwriters
ard houses Of issue for the securities
, Of railroad ard industrial corporations.
Their activities hAve extended even into
FOREIGN countries ard 70 highly specu'
Ia.ivs and undsvsiepsd enterprises,
through the thin disguise o. the So
called security companies thst ere at
: tAchsd to them.
/ II r. cont-rdsd that the power 8! the
Ssnas 10 bug bonds other than govern
,u~nt bonds 4. not .ree from doubt. and
the l~port continues:
- bank .hs, holds the peoples d"po'-
90 - 80 s@n-i',ve!v situated 40 regards
public confidence tcat II cannot sateF
-. linked b. identity OF STOCK interest
anG rnanaxtr.rt With private invest
ment corporation ~ Unl.m.te! roNeTs
with 10 public duties or responsibilities
srd cot Gcpend~n; or public confidence
tThc mistakes or rns.ortiney OF the latter
are TOO l.k.ly 10 react upon tive former.
,ifoweve. profitable The narnci patton OF re
bank. whether under the auise Of mere
lender o. moncy o- unn"rvr.t"r OF puT-
chas.- Of securities "a which the security
corrpany , intrre ted the incentive 70
TIE bank 20 participate in these adventur-
ou. transactions - one that should be
removed berond th- roach OF its officers
The committee denies that the present
cur-~ncy stem has any substantial re-
!s,ion 20 or r. accountable for the con
centrat,on OF the control q money and
credit wh.cH Il ind. 20 exist
What the Comm ittee Propeses
Ia Summing Lp ~ recommendations Tor
,c..on BY Consress the committee takes
up first clearing house associations and
Proposes.
\. INCORPORATES ..Np EEGU-
I.ATION.-Clear!ng house associations
o. which national banks are mem