The Washington times., 1913-06-22
NTERLOCK|NG PLAN
BEFORE CONGRESS
Directorate System Will Get
Attention When Currency
Law Is Taken Up.

1nterlocking directorates is one of the
subjects which will receive much atten-
ton at the hands of Congress as soon
as the question of currency and bank
ing reform is tackled In earnest The
sentiment in Congress in favor of put
ting stop to the present system is so
strong that 1t cannot be suppressed, re-
gardless of whether the Administration
desires to have this phase Of the bank
ing and monetary situation taken up
at this time or not.
1t is felt by large element that if
Congress would lesislate to prevent the
present system of interlocking direc-
torates and at the same time seek to
prevent the constant flow of reserve
money from the interior banks into the
great centers of speculation, il would
do all that is necessary at the present
time
In any event, the revelations of the
Money trust Investigation by the Pujo
committee as to interlocking director-
ates are going TO be freely cited in Con-
gress as reasons why this phase of the
business and monetary situation must
not be overlooked 1t is true that much
of this matter was not at all new TO
students of the subject But the Puto
Inquiry served to set the situation he
fore the country in more striking form
Heretofore
Eighteen Banks Affiliations.
One of the showings made by -he
Pu1o committee concerned the affilia-
tons of eighteen of the greatest finan-
cial institutions of the country. At the
top of the list were ]. F. Morgan &
Co. and the First National Bank of
Chicago. and in the list were various
trust companies and financial institu-
tons and such national banks as the
National City. National Bank of Com
merce, Hanover National and Chase
National of New York. and the Conti-
mental and Commercial National and
First National. of Chicago.
The $50 firm members and directors of
these eighteen institutions, the Puto
REPORT shows, hold 3s5 directorships in
forty-one banks and trust companies
having total resources of $685.. .oo0, 900
and total deposits of s., OOO 600; fifty
directorships in eleven insurance COM
panies with assets of 2,646. 100000; lSo
directorships in thirty-one railroad sys-
TENS with total capitalization of sl2,-
1as. .ooo. 900. and total mileage of 16S, 200;
"a nies and four in one steamship COM
pany with a combined capital of S49,-
600 900 and gross income of S9I,OOo,OOO;
ninety-eight directorships in twenty
eight producing and trading corpora
lions having a total capitalization OF
Sc. $50. 600. 600 and total gross annual earn
ings in excess of 81, ,l45, ,OO0.00O and forty
eight directorships in nineteen public
utility corporations having total capl-
talization of 1886 COO and total gross
annual earnings in excess of s4ss. cc.ooo
See Danger To Country.
In all. it was shown these men hold 14e
directorships in 13i corporations having
total resources or capitalization of
IS 80, ,oo0, 900.
This showing alone, in the opinion Of
many members OF House and Senate,
shows a degree of concentration of
financial power which is dangerous for
the country. So far as the national
banks are concerned, 1t would not be
difficult to reach to them and prohibit
sinterlocking directorates. But when it
comes to dealing with the situation in
its entirely, to reaching to great imam
cial institutions outside the realm Of
the national banking laws, harder
problem is presented
1t is clear, however, that when once
Congress goes at the subject of currency
and banking reform II is not going to
he content-at least a large share of IL
will not be-with merely skimming the
surface or limiting its action. as the
President wants it TO. to something in
the nature Of an emergency currency
measure.
The country probably has ahead of it
one of the greatest discussions of the
whole fiscal, momentary, and business
situation which Congress has entered
into for decades.