New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-02-28

are only three banks with resources ~,
! excess of s2Io.U0OO. while there are Yen
I such institutions in London, ilHe III perm"
I and four i'm Paris. .,. .oo,
ni7ed that even as il is. American paii ,n
/ have not fully kept pace WIN thT
veopment OF American business. ,m
dreds of the financial TRANSACTIONS VI VI
dsy are 80 large that no sinsle pa ,,'.
commands sufficient resources 10 ''ahua,
| them. This IS especially true WIN IeSPeo'
+ to the great public utilities when are es
sertial for the development ana ,aast
of the community. Even uu, 60 cy-
hanks are seldom able separately 10 " :
| tend the credit which such undertahlilS"
require. no one national pank peine PC -.
miited by law to loan in excess ul " ~ ea
cent Of its capital and surplus 10 any - p r.,
/ individual or concern. Whei II - ~
| membered that literally HUNDREDS y, ~
/ porations I'm this country are no" opnsr,'
! 10 borrow annually sums OF hlinoIl uv
! lars and upward apiece IT Is obvious t ne,,
the size of our banks must s!o" ~ nv
pace with this demand.
Raise Doubts Of Public.
! Yet as to this natural development. me
! causes for which il is OF vital interest ~
! the whole country To realize ciearIi iia''s
3 of tho Inquiries directed TO your witnesses
! we're of such "A nature as to raise IN tne
/ minds OF an interested pubic douot 40
! To whether after all tins efiort ny oaiIns
To keep pace with growing btsihtss We
! moi a schcme Of designing group VI
men. building up enormous ihsutution'
| i'm order (we quote here again from ilVus.
| Resolution No. SOD TO aueineht tici,
| 1'thcse groups of individuals Po"si
! over the finances of the country ana W
/ Central" etc etc We submit Tor your
| consideration the opinion thdt, II ulIio
! had served you. far more adequate il,toi
nation. including instructive sta,ls,tT' 20 >,
might have been provided on 'his q"'''''''
q
| Likewise. with respect To the tendeilo9
| ia co-operation among banks, noted ,Spe
/ cially since the panic OF l"'' ". ~, "a.
/ that further statistics OF interest," On 'li ,
I nojnt can be made available. such lacts
/ going TO show. tirst. that sine. iFV' 20
/ opcration has been more active by 1851 ,on
/ Of the lesson which banks III ~, 80, ,a,
! cities then learned that, for -pfeSeL
/ walton they could not-as - posSlpie ~
/ other countrics-rely upon a STRONG aiu
| elastic banking system. nut mus, sn''
such protection by concurrent ACTON anH
second that such cooperation u sl'h.lI
! a further result of the necessity LOT
/ handling great transactions , L.
! There are not "A few railroad ootu -
! sues each exceeding SI";"; Womnany
! loan Telephone and Telegraph .0'npau;
! recently has announced one or s,v"v'v,N.
! The two traction companies operatIl'- w
/ subways I'm Greater New lotK mr. pan,
! ming TO BRING out aGgreea,e Iss r.cent
! s951osoOOl The Attorney General : r.c'n.
! approval OF the Union Pacihc s"t,Ic'l'n :,
"siie for a single commitment on TN" part
/ Of bankers Of sl26Go,"h SO that -
| nsactions of such inaEnltud" ,,,si,' r'.
/ be- carried on the country OBVIOUSLY
B o,,ires NOT only tie larger indiNlduii
/ banks. but demands also that thos. DahHiS
| shall cooperate 10 perform "n'leh"'
| the countrys business.
A step backward along this line
would mean a halt in industrial prog
res, that would affect every wage
4 Al. IN
| We lay perhaps especial stress upon
mi. point, because Of what seemed 10
a.. readiness upon the part OF your
committee TO adopt the idea that m
such co operation by bankers there lies
the uerm CT something sinister ana
danoerous. and that. to quote once
more from House Resolution No. 5O4,
such co-o peration has been developed
70 The extent that these groups OF
individuals" can prevent competition
with the enterprises IN which they are
interested, to the detriment OF inter,
state commerce and OF the qenerh
public
Nothing else certainly could bs more
, gerinane 10 an Investigation Ike mat OF
your committee than an inquiry a. 70
whether through any means cNcrt'u 10y
banks or bankers. interstate commerce y
being restrained. But a. establishing OF
have been able To ind no testimony what
ever upon tie records OF Your committee
II any such evidence l. afallanlt' We "
Hove u important that II should ne pro-
duced. So far as our Observation a'u -,
perience 70. W. can make the p"Siu,'
; statement that. EXCEPT under idNorhW"
money market conditions. "" hay" never
heard ~ any responsible ana deserving
individual. firm or corporation Dol"e "''-
able 10 secure ample credit
Free Competition tho Rule.
The House Resolution No. 90. lnclud-
| ing its preamble. contains no less IMAM
1--we separate references To IN" possible
prevention suppression elimination
or absorption of competition through
the activities of certain individuals. Nldc
publicity has been given To this resolution
under who's" authority your commute"
has acted. and. IN tn" absence OF any
proof whatsoever To- support the belief
| tina; there has been a suppression ~ cor
| poratc competition. "" venture 10 hop"
that this idea. most insidious ana harm
ful in its effect upon the mind of the
country At large. VIII IN your report hc
definitely dispeiled.
In matter Of such great moment to
the prejudioes Of our citizens. we sug-
eest with great respect that positive
statement from your committee that
no evidence has been adduced on this
vital question should be given publicity
az wide as that received by the resoIu-
ton.
Testimony. on the other hand. going 10
show not "A supprt Ssion but develop
ment of trade throughout the country
might have been OF value. as exhibiting a
natural explanation Of many of IN" hnan-
cial practices which your committee has
questioned. Many questions wcr" asked
as 10 the wisdom In having representa-
tives Of private banking houses sit upon
the boards ~ corporations whose socuri-
tics the same bankers frequently offer for
sale This practice. which has been III
vogue abroad ever since the creation Of
limited companies. has, arisen not from
desire on the part of the banker To man
age the daily affairs Of The corporation or
TO purchase its securities more chcaply
than he otherwise could. but rather be-
cause Of his moral responsibility as spon-