The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-01-09
Permits Comptroller to
Furnish Meagre Infor-
nation to Committee
HE is EXAMINED
FOR THREE HOURS
Agrees With Untermyer That
Present Bank Act Is Ineffec
tive and Inadequate-Baker,
Who With Stillman and
Morgan, Controls Wall
Street, Will Appear.

Washington. January s.-Fsults in
the national banking laws were dis
cussed to-day before the House money
trust committee by Comptroller Of the
Currency Lawrence .. Murray. MI
Murray spent more than three hours
under examination b. samuel Inter
myer. counsel for the committee, ana
agreed with many Of the criticisms OF
the national bank act advanced oy
Mr.. Untermyer. lie asserted that the
act as at present constituted was IN
effective and inadequate.
Mr.. Murray furnished the commit
tee such data from mis- Office as Presi-
dent Taft had directed him TO sup
ply. which. however, was but small
part OF the information the committee
asked the comptroller 70 furnish.
The committee tomorrow Will hear
Geo. f. Baker. OF the First National
Bank OF New York, who. Mr. Inter
myer SAYS. with James Stiliman and
J. p Morgan. constitutes the trio Of
most powerful masters Of finance In
wall street The connection between
these three men. the institutions IN
which they are interested and the
funds controlled by these institutions.
viii form the basis of Mr. Bakers eA-
animation. He arrived in Washington
to-day with his counsel. Fisher \
Baker. former Senator John c. Spooner
and several other attorneys
Condemns Practice.
Mr. Murray condemned without reser-
walton the practice. which. he said. was
a growing evil OF directors o. officers
OF national banks accepting personal
compensation from borrowers 10 "hom
the funds Of the bank are loaned
oh
passed providing for criminal prose
cutfons" Of the practice.
He favored a provision 81 law which
would prevent the stockholders OF
banks transferring their stock on the
verge Of collapse of their banks and
Also indorsed a scheme to force banks
% make public the list OF securities
held as assets by national banks. PUB
ycitv Of lists OF stockholders in ma
,i.nsl banks. he said. would De bene-
fetal.
Questioned BY Mr.. Untermyer. Mr-
Murray outlined the method or th-
examination Of national banks by MS
Office. and asserted that under the
pfesen, system the inspection was IN
elective"
Il, is merely A superficial exami-
nation. Is il not" asked Mr. Inter
nver. yes. that IS about all replied
tn. comptroller
The >omp;roller said there are ABOUT
los bank examiners 20 superlntend the
Affairs OF 900 banks. In reply 10
questions. he said that in New ofk
Citv these inspectors worked with the
bank examiners Of the Clearing House
Association and co-operated with them
in connection with the appraisal OF
loans and securities held ny banks
Mr.. Murray said his knowledge 81
Gearing house associations was mere
Iy Incidental
We have received complaints from
tine 70 time from banks who said that
certain clearing house rules were Oct
-s-nentaI 70 their business. he con-
tnued. but Nc have always told them
W had no Jurisdiction
The comptroller said that bank eS-
znin.rs nxed the value o. securities
~ .bs ,rice on the New York Stock
Exchange when the stocks were listed
there.
Then. IL the stock quotation IS Tor
a false or fictitious value the eN-
aminer discovers it," asked Nj. Tn
termyer.
Yes" said the comptroller.
Mr. Tntermyer asked about the re-
lstions OF the First National Bank 10
the First Securities Company and III"
National City Bank TO the National
CITY Company. Mr. Murray said his
ofice had no record of the relation o.
these concerns
..Rut vo, know that the President
ara Attorney General have had thesc
cases under consideration asked NJ.
Untermyer.
YES answered the witness
Charter. sometimes withheld.
Mr.. Untcrmyer further questioned
Comptroller Murray as 10 the points
considered in connection with the
granting OF national bank charters in
localities where banks are already
operating. Mr.. Murray said that IN =
Few cases charters had been refused
because h b,Iieved ~thc locality was
already oTcrbanksd."
DO sou think this committee can
ascertain as TO whether or not There
Is a concentration OF money and cred
sfx without knowing tho details or the
r,anaeeueut 81 national bsuks2' asked
Ar. Untcrmyer.
Mr.. Murray replied that he could say
nothing on shat point. and then he and
Or Untcrfnyer became nyoivcd ir ?
lengthy discussion % the domination
Of national banks b. IarSc dcpositors.
larx. stockholders and mon who can
supply business 90 the banks.
Mr. Murray stated that ~ the re-
auest Of the committee. ~ had pre-
rs-e5 a statement u tho loans Of
hanks which could loan more than
81 ooo. 600 % an indis iduai. but that n
could not submit the statement to the
committee until directed 70 10 80 by
4hs President. There were but thirteen
national banks. he said. which could
make loans % sf.oooooe 20 an indisid-
nal But he could not say how MANY
could ioaa siopo.ee, n the SAM in
,s-.s, bv divi5inE the iosn among IN
dividusis representing iho same Inter
81
About a dozen national banks were
s~usfed With securities companies. VT.