The Pensacola journal., 1913-01-25
II ASSOCIATED PRESS,

Washington, Jan. 24.-The existence
of a money trust was denied and CO.
operation among financial interests was
charged to Inadequate banking laws in
a statement presented to the house
'm6ney trust committee today by
Henry P. Dawson, Of J. P. Morgan &,
Company, of New York. The commit
tee today closed for the time it's in
vestigation.
To refute the contention that a
group of $50 men in the world of
finance, through interlocking diree-
gregating $25,00o. .o0o,o 900, Mr.. Dawson
offered to the house money trust in
vestigating committee a long prepared
statement calculated to controvert
statistics prepared by the committees
accountants and put into the record
for the purpose of showing such a
condition.
Mr.. Dawson offered his statement at
the conclusion of his testimony and
the COMMITTEES decided to deliberate
whether to admit it. The document
reviews the inferences drawn from the
c ranittse's tables aud says IN part .
NO CONTROL EXISTS.
"No such control exists and no such
deduction can be properly made from
these tables. Those who have made
such deductions have fallen into sew
eral obvious errors. They failed to
observe, first. that of the total number
OF directorates in these particular cor
porations this group represents only
about one quarter; second, that, upon
this assumption, these men, in order
to exercise control must act and vote
in every instance as unit although
they come from different parts of the
country and represent diverse and fire.
Quently conflicting interests; third
that, upon this assumption, the direc-
tors outside of this group must be
mere dummies, with no voice or opinion
of their own, who. in almost every in
stance, are overruled by a minority;
finally, that this sum of twenty five
billion dollars is not actual cash OIL
liquid assets, susceptible of manipula-
ton or misuse by the directors, the
fact of course being that the greai
bulk of this enormous sum is, and fol
many years has been tied up in the
form OF rights of way, rails. ties, equip
rnent. factories. plants, tools, manufac-
tured goods and other forms of cor
porate property necessary for carrying
on railroad and Industrial business in
the country.
'It is most regrettable and harmful
that either congress or the country al
large should gain the wholly erroneous
impression that these great resources
are at the disposition OF a small grouI
OF men or that the corporations them
selves are conrolled by a minority OF
their various boards.
1.-THE great accumulation Of money
and credits in New York is due in
part to purely economic conditions anC
IN part to the defects of our banking
system. II this country possessed 6
proper and scientific banking system
such as is possessed by almost every
other civilized nation, interior banks
would no longer be obliged to concen.
trate their reserves in New York
LETTER FROM SCHIFF.
Before resuming the questioning OF
Mr.. Dawson, Mr.. Untermyer put into
the record a letter from Jacob H
Schiff to amplify his recent testimony
before the committee. The letter read
in part:
"If I had had the opportunity tC
make proper answers to your ques-
tions, I should not have hesitated tt
state that the multiplication of banks
and trust companies has heretofore let
to an over-extension of credit, to over.
trading and to illegitimate condition.
in general and that the financial panic
Of 1907 and other financial depressioni
that have preceded it. have largely
been brought on by the too great null
tiplicatioH Of banks and trust com.
panies."
James ]. Hill. the railroad magnate
was on hand when the committee con.
vened, accompanied by his son, Loui.
w. Hill, and his counsel, former Sen
ator John c. Spooner.
Mr.. Untermyer took up Mr.. Davi.
sons statement of yesterday that tn,
concentration Of banking resources il
New York was sufficient to care fol
the business of the country at it.
present development.
There is less consolidation in New
York banking today than there wa.
ten years ago" said Mr Dawson. 9Th,
resources of the New York banks ar,
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