The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1913-01-24
BY ASSOCIATED PRESS.

washington, Jan. 23-The present
concentration of financial resources in
New York Is Sufficient to care for
the business and commerce of the
country, while question of further con-
centration depends upon the develop
ment of industry" was the statemnet
of Henry p. Davidson. He favored
the combination and control Of indus
tries under government regulation, as
opposed to free and unrestricted COM
petition" and said he thought the
courts should not interfere with trusts
"as they have done" He thought that
regulation and not disintegration is
the better plan.
Samuel Untermeyer, counsel for the
committee, pointed out that England,
France and Germany prevented the
control of by interlocking OF di-
rectorates. I'VE haven't even started
concentration in this country, con-
pared with European nations" the
witness retorted.
Thomas w. Joyce, an employee Of J.
P. Morgan, was the first witness ex-
amined. Henry p. Dawson, one of the
members Of the firm of Morgan & Co.,
and members of Boston banking and
brokerage houses were to be examined
before the committee closes its hear
ings tomorrow.
STATEMENT OF DEPOSITS.
A statement of the deposits of ]. P.
Morgan & Co., was produced showing
that the firm on November 1, 1912,
had s11.0oO,ooo on deposit with New
York banks and 100000 in Boston
banks. Mr.. Untermeyer endeavored to
get from Mr.. Joyce the holdings of J.
P. Morgan in the constituent compan-
les which were combined in the Unit
ed States Steel Corporation. Mr.. Joyce
could not remember whether any such
stock was held.
Henry p. Dawson, g. member Of J.
p. Morgan & Co., since January I,
1909, testified that he negotiated the
purchase of the stock in the Guaranty
Trust Company for the organizers of
the voting trust, for the trust COM
company. George F. Baker, he said,
had nothing to do with the negotia-
tions. Mr.. Baker was at that time
connected with both the Mutual ami
the Guaranty Trust. Purchases of
5000 shares from Mrs. 2. H. Hartman
and 5000 from the Mutual Life In
surance Company, Mr.. Dawson said,
gave the organizers control of 10000
out of the 10000 shares Of the COM
pany.
Mr.. Dawson said the Guaranty
Trust Company was acquired by him.
self and his associates with the idea
that it would be merged into the
Bankers Trust Company. He made
this statement as to the voting trust
agreements:
ORGANIZED BANKERS TRUST.
I'VE younger men organized the
Bankers Trust Company in 1903 and
at that time we organized the voting
trust. The purpose of this voting
trust was to preclude the possibility
of the purchase Of control of the stock
by men active in New York at that
time whose credit and responsibility
was questioned. When we came To
plan to take in the Guaranty Com
pany the voting trust had worked so
well in the Bankers Trust we organ
plan also, that it might easily be taken
over"
Mr.. Untermeyer brought out in the
the Bankers Trust Company were
ty years old.
ON VOTING TRUSTS.
"On this question of voting trusts -
said Mr.. Dawson. 81 am perfectly will
ing to recommend that these voting
trusts be dissolved The voting
as such, have had no more to do with
the real management of the business
than the Pujo committee.
Mr.. Untermeyer and the witness in
dulged in an argument over the use
fulness of voting trust arrangements
for the control of financial institutions.
We'll" said Mr.. Untermeyer, I'VE
will be we'll satisfied with your state
ment that you will use your influence
to dissolve these voting trusts.
But didn't say that" objected Mr.
Dawson. 'T say that I now see no
useful purpose to be served by these
voting trusts and on mature consider
alton I would probably recommend, so
far as my vote is concerned, that they
be dissolved"
Mr.. Untermeyer brought out that
the votes of two of the three trus-
tees of the Bankers and Guaranty Com
panies could dissolve the trusts and
that Mr.. Dawson was a trustee OF eacl
company.