Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1913-01-25
MORGAN'S MAN ON
STAND IN PROBE
Continued From Page ~


resources Of the New York banks are
the entire country. 49,
units, industrially, commercially and
a corporation may want to borrow up
to 100000. 1t is much to that cor
poration's advantage to be able to
make that loan from a single bank
rather than to have to 80 shopping
around making loans Of 100000 here
and there" .N"... nyr.
Don't you think 1t would be an
advantage to have a good many indie.
pendent banks in New York. so that
he could have some place to 60 shop
ping around If he had to-" asked Mr..
Unit meyer. ,r's, 49, ~
Thinks Banks Independent.
II think the banks of New York are
independent" replied Mr.. - Dawson.
Mr.. Dawson added he knew OF no bank
in New York controlled by another
bank. a " .f e. ..st, -.a5
Mr.. Dawson distinguished between
control of stock and control of the
management Of banks and reiterated
that a law preventing interlocking
directors" would set the country back
twenty-five years. .-....
He agreed with Mr.. Untermeyer
that IT might be well to cut down the
size of boards OF directors of banks.
Mr. Dawson said that he would
favor law enforcing complete public.
ity of intermediate profits made by
finan iers in floating securities and
would approve Of forbidding bank Off.
GERS and banks from participation In
syndicate formed by floating securi-
ties. -.. 4.-. .... ......-.
Mr.. Untermever brought out that on
Nov. II J. p. Morgan & Co.. had de.
posts of 100000 and had in vari.
GUS banks $16,000,o0o. ,As ....a-
Mr.. Dawson offered long statement
relative to concentration but the COM
mittee withheld 1t from the record I'M
til it could be examined. .s
When Mr.. Dawson was excused J.
]. Hill was called.
Hear Rockefeller Next Week.
The chairman Of the committee.
Representative Pujo and Counsel I'm.
temyer will make arrangements i'm.
mediate upon the conclusion Of the
oral hearings to examine William
Rockefeller. Chairman Puio expects
that Mr.. Rockefeller will be In New
York earlynext week and it is expected
the examination will be made there.
James J. Hill, the railroad magnate
accompanied by his son Louis. w.
Hill, and his counsel. former Senator
John c. Spooner appeared ready to
testify. Counsel Untermyer, tor the
committee. said Mr.. Hills examina.
! ton would be brief. Before resuming
the questioning of Mr.. Dawson. Mr..
Untermyer put into the record letter
from Jacob H. Schih to amplify his
recent testimony before the committee.
The letter read in part: FL. II
Too Many Banks Says Schiff.
"lf had had the opportunity to max
proper answers to your questions l
should not have hesitated to state that
the multiplication Of the banks and
trust companies has heretofore led to
an overextension of credit. to over.
trading and to illegitimate conditions
FIN general and that the financial panic
of 1907 and other financial depressions
that have preceded 1t, have largely
been brought On by the too grett multi
plication of banks and trust com.
panies." 49,.
Mr.. Hill opened his testimony with
list of his directorships in New
York and Chicago banks, and in the
Great Northern and Burlington rail
roads. Mr.. Hill said that the Great
Northern and the Northern Pacific
railroads were competitors. .
Disagreed With Untermyer.
When the Northern Securities Co.
was dissolved, he said. he received
81 900 shares Of Great Northern and
$4,000 shares OF Northern Pacific. He
now has 10000 shares Of Great North
ern and his son, Louis w. Hill. has
1880 shares. Mr. Hill testified he.
was director in the First National
bank of st. Paul one Of the largest
banks in the northwest. He disagreed
with Mr.. Untedmyer's suggestion that
minority stockholders be given repre-
sentation on directorates through
cumulative voting. He said that such
system might allow competitors to
secure a corporation representation
secrets by securing place on it's
board.
On the question of interlocling
directors, Mr. Hill said he held that
the propriety of the practice rested
entirely on the character of the In.
dividual man. g..