The Washington herald., 1913-01-26
RESULTS
FR0MPUJOPRObE
Continued from Page One.

eminent bankers. The reforms to which
they have ascribed. however, relate
chiefly to the application Of the publicity
Idea as a preventive against wrongdoing.
and are among the less radical of the
suggestions that have been thrown out
by the committee.
While the committees report is fully
expected to contain a long list of sweep
ing recommendations. the fact Is not to
be overlooked that these will be only
recommendations. and that 1t will be a
long time before there will be any chance
OF incorporating the programme into the
statute books. As a matter of fact, the
nght viii only have begun when the re-
port Of the committee is submitted to
congress. What will amount to another
investigation in the way Of hearings be-
fore Congress committees will be neces-
sary, and there is likelihood that legis-
Iation for new currency system will
have been enacted before the recon-
mendations Of the Pujo committee are
taken up for serious consideration by
Congress.
The committees record when II con-
Guided Its preliminary inquiry yesterday
covered about 5000 typewriter pages. In
the record the fact that stands out most
conspicuously Is the Importance which
all the witnesses have attached to the
individual element in the consideration
OF the financial situation and the prob
lens involved in II.
J. p. Morgan. Jacob H. Schir. George
F. Baker. James ]. Hill. Henry p. Davi-
son. and others all insisted that the
character and integrity Of the individual
was the big factor and that without
these all the laws In Christendom would
be OF no avail. Mr.. Morgan, In defend
ing the system Of interlocking directors.
contended that when the Individual was
honest he could be depended upon to act
independently and honestly, as a di-
rector and II he wasn't honest he
wouldn't be a director long The same
was true In regard to stock control by
an individual or a firm over one or sew
eral banks. II the individual was honest
he would not attempt TO abuse his power.
and II he did his control would soon fall
Of its own weight.
Mr.. Schiff believed in relying upon the
individual Judgment and prudence OF
bank directors unhampered by restric-
tive legislation. II they were self-re1
specting. he argued. they would act ac-
cording to their conscience, and II they
were imprudent they could not long sur
vive.
1T all depends on the individual man."
said Mr.. Hill. 'AIl acts are personal
and the mind and conscience Of the in
dividual man Is what is going to govern
his actions finally In every case"
Views of Finance Kings.
Here are a few OF the more important
reforms and views suggested by the lead
ing witnesses for the committee:
]. P. Morgan-Favors a law compelling
publicity OF intermediate profits made by
promoters on all securities listed on the
stock exchange.
stork bpt
doubted the practicability OF Congress
attempting TO prevent It by statutory
enactment.
Believes no such thing as a Money
Trust is possible, not even IL all the
banks OF the country were under a single
control
Not opposed to competition. but favors
cooperation.
Condemns the idea Of short selling. but
does not see how 1t is possible to get
along without it.
Jacob II. Schin-Favors a law COM
pelling fullest publicity of tire assets
of national banks. Favors a statute pro-
hibiting officers from participating In un-
derwriting syndicates, and the officers
and directors OF banks from borrowing
from their own institutions
Favors allowing national banks to par
ticipate in the underwriting OF bonds,
but not in the underwriting of stocks.
Favors legislation against the acquiring
Of a monopoly through holding COM
panles. but would not restrict tho efforts
of activities Of the individual. Would
leave the law OF nature to deal with
individual action, which. in Mr.. Schiff's
opinion. would be a better system than
could be devised by man.
James J. Hill-Opposed to legislation
granting to minority stockholders a legal
right of representation upon the boards
of directors of banks and interstate cor
poratiOrs. Says the law might do some
good. but might also do great harm.
opposed also TO any action by Con-
gross designed to wipe out the system
of interioclIing directors in banking in
stitutions. Believes that there is pos
sIbility of some good in such legislation,
but also the danger of great harm.
George +. Baker-Beiieves concentra-
tion of money and credit OF New York
City has gone far enough. Sees a peril
in the present system II 1t should fail
lation is necessary. because an unscrup-
ulous man could not maintain control
ever large banking resources.
Against any law compelling publicity
OF banks assets, or interfering with the
present system of interlocking directors.
George W. Perkins-Favors Federal in
corporation of stock exchanges and full
est publicity in regard to the issues listed
and in regard TO the affairs of national
banks.
Favors smaller boards of directors forl