Las Vegas optic. (East Las Vegas, N.M.) 1908-1921, 1913-01-24
OFFERS PREPAREOSTATEMENT
THIS DOCUMENT DEFENDS I'm
TERLockINe DIRECTORS
ATE" SYSTEM.
SAYS IT IS NOT TFRNISIOUS
DIVERSIFIED INTERESTS PRE-
VENT A CONSERVATION or
GREAT CAPITALISTS.


Washington, Jan. 24.-To refute the
contention that a group OF lSO men
in the world Of finance, through In.
terlocking directorates, control cor.
poration assets aggregating S25, ,O0O,-
Oc 1000, Henry P. Dawson, partner
of J. p. Morgan and Company, today
offered to the house money trust in.
yestigating committee long pre-.
pared statement, calculated to CON
trovert statistics prepared by the
committees accountants and put into
the records for the purpose OF show.
ing such condition.
Mr.. Dawson offered his statement
at the conclusion Of his testimony
and the committee decided to deliber
ate whether to admit it. Mr.. Dawson
thereupon gave out copies, although
earlier in the day he and Thomas W.
Lamont, another partner Of ]. p. Nor.
gan and Company, had declared they
had no statement to give out. The
'e9 Dqment reviews thfH inference
loI swn from the comwdo1ss tables
tiesu zays Is part i LOT
4 mo such control Jet pSand no.
such deduction can be ipo9ucly made.
from the tables. Those. $40 have
made such deductions have fallen IN
to several obvious errors They fail
to observe; first-that Of the total
number of directors in these partic-
ular corporations this group repre-.
sents only about one quarter; second
that upon this assumption, those
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 divers and frequently con.
flicting interests; that upon this as.
sumption the directors outside Of this
group must be mere dummies, with
no voice or opinion Of their own,
who, in almost every instance, are oy.
erruled by a minority; finally-that
this sum OF rs billion dollars is not
actual cash or liquid assets. suscept
ible Of manipulation or misuse by the
directors, the fact Of course being
that the great bulk Of this enormous
sum is and for gears has been tied
up in the rignts-of-way, rails, ties,
equipment factories, plants, tools,
manufactured goods and other forms
Of corporate property necessary for
carrying on railroad and industrial
business in the country
Mr.. Dawson was on the stand again
in the money trust nearing todaa
MIR. Untermyer took up Mr. Dayt
sons statement Of yesterday that the
concentration Of banking resources in
New York was sufficient to care fort
the business Of the country at IFS
present development"
There is less consolidation in New
York banking today than there vas
ten years ago, said Mr Dawson
*Tha resources Of the New York baAl;s
are only Is per cent Of the resources
Of the entire country We are deal
ing today in larger units. industFiary
commercially and every other way. in.
many instances corporation NAL
want to borrow up to sg.0OO,Oo0, lt
is much to that corporations advant
age to be able to make that loan from
single bank rather than to have to|
go shopping round making loans OF
s500,00 here and there"
Don't you thing It would be an adj
vantage to have q good many lnde-
pendent banks in New York, 50 that
he could have some place TO 60 shop.
ping around If he had tor asked sir.
Untermyer
.I think the banks Of New Tork are
Independent replied Mr Dawson.