Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1913-03-01
Committee Presents to The
House Three Reports.
Majority Claims a Trust Exists
Minority More Conservative.
Rep. McMorran Files individual Re.
port Which Is Flat Disagreement.

Washingtan. Feb 2S.-Three diver
gent reports We're presented to the
House, today, by the members of the
committee which conducted the money
Trust investigation.
The majority report, signed by
Chairman Pujo and the six other
Democratic members of the committee
found that money trust exists, ac-
cording 10 their understanding of the
term. This report names as the most
active agents in bringing about the
concentration of money and credit
j. p Morgan & Co., First National
and National City Banks and Kuhn,
Loeb & Co. of New York; Lee, Hggin-
son G. Co.. and Kidder, Peabody & Co..
of Boston. Two bills accompanied the
report one forbidding the use of the
mails to Stock Exchanges which fail
to observe prescribed stringent regula-
tons as to the conduct OF their bust
ness, and the other prescribing rigid
rules for The conduct of national
banks, their officers and Clearing
House Associations to which they be-
long. This report is substantially in ac-
cord with the conclusions presented to
the committee by Samuel Untermyer,
counsel.
The first minority report. signed by
Representative Hayes of California,
Head of Delaware and Guernsey of
Maine, Republicans, sets forth that the
investigation has not disclosed the ex-
isterice of any so-called money trust
but added. sit 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 i'll
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 rem
edies proposed by the majority"
This report further set forth the be-
lief that before definitely recommend
ing any remedial legislation, testi-
mony should be taken covering more
fully the effect of the various changes
in the laws that have been suggested.
IAN individual minority report filed
by Rep McMorran of Michigan, Re-
publican was a fiat. detailed disagree
ment with the recommendations and
findings of the majority.
while l believe that attention has
been called to grave deficiencies in our
financial laws, l also believe that q
sinister light has been thrown over
banking practices which was not
justified. by. the facts; that no effort
has been made to show the reasonable
and commendabie explanations of
these practices, and that in many
cases an impression has been given to
the country as to the character and
motives of leading bankers which is
altogether unfair. A sentiment has
been created throughout the country
against Wall street and many of our
good citizens do not realize what it
means that New York has become one
of the worlds leading money markets,
and that the banks of New Yerk and
their associates are now able to handle
large transactions which they were
unable to handle only a few years
since. / feel that every American
citizen should be proud of the fact
that we have city where there is
! sufficient capital to handle these en-
terprises, and should take pride also
in the character and integrity of the
men who are at the head of its finan-
cial institutions
Mr. McMorran declared the proposed
scheme for regulating stock exchanges
drastic and unwarranted" and that
there was NO real evil" in interlock-
ing directorates.
The majority report after declaring the
existence of 81 Money Trust said that ''the
Increased concentration of control OF
money and credit had been effected prin-
cipally as follows:
First through consultations of COM
petitiye or potentially competitive banks
and trust companies, which consolida-
tiens in turn have recently been brought
under sympathetic management
Second, through the same powerful in
terests becoming large stock holders in
potentially competitive banks and trust
companies. This is the simplest way of
acquiring control. but since it requires the
largest investment of capital. it is the
least used, although the recent invest
ments in that direction for that appar-
emit purpose amount TO tens of millions OF
dollars in present market values.
''Third. through the confederation of po-
tentially competitive banks and trust
companies by means of the system of in
terlocking directorates.
Fourth. through the influence which
the more powerful banking houses, banks,
and trust companies have secured in the
management of insurance companies, rail-
roads, producing and trading corpora
tons, and public utility corporations. by
means of stock holdings, voting trusts,
fiscal agency and contracts or representa-
ton upon their boards of directors, on
through supplying the money require
menfs of railway, industrial and public
utilities corporations and thereby being
enabled to participate in the determine
ton Of their financial and business poll
cies.
Fifth, through partnership or joint ac-
count arrangements between a few of the
leading banking houses, banks and trust
companies in the purchase of security is
sues of the great interstate corporations
accompanied by Understandings of recent
growth-sometimes called banking ethics
which have had the effect of effectually
destroying competition between such
banking houses, banks and trust compa
mics in the struggle for business or il
the purchase and sale of large issues O
such securities"