Dakota farmers' leader. (Canton, S.D.) 1890-19??, 1913-03-07
HITS money TRUST"
PUJO COMMITTEE DEMANDS
LAWS TO CURB COMBINE AS
PERIL TO NATION.
RAPS J. P. MORGAN & COMPANY
Declares Banking Concern Is Dominat-
ing influence of the Financial and
Credit World in the u. S.-Body
Differs on Finding.

Washington, March 3.-Members of
the committee which conducted the
money trust Investigation presented
three divergent reports to h house
late on Friday.
The majority report, signed by
Chairman Pujo and the six other
Democratic members of the commit
tee, found that a money trust exists,
according to their understanding OF
the term.
This report names as the most
active agents in bringing about the
concentration of money and credit
]. P. Morgan & Co., First National
and National City banks and Kuhn.
Loeb & Co. of New York, Lee Hig-
ginson and Kidder, Peabody & Co. Of
Boston.
Two bills accompanied the report,
one f%orbidding the use Of the mails
to stock exchanges which fail to OBJ
serve prescribed stringent regulations
as to the conduct of their business
and the other prescribing rigid rules
for the conduct of national banks,
IhCIl oIlCVlo olu LIS u oS
sociations, as to which they belong.
This report is substantially in accord
with the conclusions presented to the
committee by Samuel Untermyer,
counsel.
The first minority report, signed
by Representatives Hayes Of Califor.
mia. Head of Delaware and Guernsey
of Maine, Republicans. set forth that
the investigation has not disclosed
the existence of any so-called money
trust" but added, cit has. however.
disclosed a dangerous concentration
of credit in New York city and to
some extent in Boston and Chicago
While agreeing substantially with
the majority" said the report, "on
many of the abuses to be corrected
in the financial system, the stock ex-
changes and the clearing house asso-
Citations, the undersigned have doubts
as to the wisdom of some of the RENE
dies proposed by the majority"
This report further set forth the
belief that before definitely econ
mending any remedial legislation
testimony should be taken covering
more fully the effect of the various
changes in the laws that have bee
suggested.
ut is manifestly impossible" the
report concludes, that any of the
proposed legislation can be consid-
cred by this congress, and it seems
to us wise to leave the matter of
recommending complete remedial leg
1slation to those who will be charged
with the responsibility of formulating
and reporting such legislation to con-
gress."
An individual minority report, filed
by Representative McMorran of Mich
1gan, Republican, was a fiat, detailed
disagreement with the recommends
lions md findings of the majority.
The majority report, after declar-
ing the existence of a money trust,
said that the increased concentration
of control Of money and credit had
been effected principally as follows:
Il. Through consultations Of com
petitive OF potentially competitive
banks and trust companies, which con-
solicitations in turn have recently been
brought under sympathetic manage
ment.
"2. Through the same powerful in
terests becoming large stockholders in
potentially competitive banks and
trust companies. This Is the simplest
way of acquiring control, but since 1t
requires the largest investment of
capital it is the least used, although
the recent Investments in that direc-
ton for that apparent purpose amount
to tens of millions of dollars in pres
ent market values.
"3. Through the confederation of
potentially competitive banks and
trust companies by means of the sys-
tenn Of i~nterlocking directorates.
"a. Through the influence which the
more powerful banking houses, banks
and trust companies nave secured in
the management of insurance compa-
MES, railroads, producing n trading
corporations and public utility corpor-
ations, by means Of ~stockholdings, vot
ing trusts, fiscal agency contracts or
representation upon their boards of
directors, or through supplying the
money requirements Of railway, indus
trial and public utilities corporations
and thereby being able to participate
/ their financial and business poll
cies.'