The daily banner. (Cambridge, Md.) 1897-2008, 1913-01-25
MORGAN PARTNER
DENIES CONTROL
Retutes Charge That $50 Men
Direct Billions.
RAPS POOR BANK SYSTEM
r.. p. Dawson Takes Issue With the
Statistics Of the Money Trust Prob

ers.
Washington, Jan. 25.-In an effort tl
refute the contention that group OF
1870 men, through interlocking directo
rates, control corporation assets aggre
eating $4,000, 100000, Henry P. Davi
son, partner of J. Pierpont Morgan, OF
fered to the house money trust" i'll
vestigating committee a statement in
tended to controvert statistics prepar
ed by the committees accountants.
The committee decided to deliberate
whether to admit the statement as eyi
dence. Dawson thereupon gave out
copies. The document reviews the in
ferences drawn from the committees
tables, and says in part:
mo such control exists. and those
who have made such deductions have
fallen into several obvious errors. They
failed to observes:
First, that of the total number OF
directorates in these particular cor
porations this group represents only
about one-quarter.
these men, in order to exercise con
troll must act and vote in every In
stance as q unit, although they come
from different parts of the country and
represent divers and frequently con
ficting interests.
Third, that upon this assumption
the directors outside of this group
must be mere dummies, with no voice
or opinion of their own, who in almost
every instance are overruled by mi
nority.
FINALLY, that this sum of $4,000,
100000 Is not actual cash or liquid as
sets, susceptible of manipulation OF
misuse by the directors, the fact OF
course being that the great bulk of this
enormous sum is, and for many years
has been tied up in the form of rights
of way, rails, ties, equipment, factor
les. plants, tools, manufactured goods
and other forms of corporate proper
ty necessary for carrying on railroad
and Industrial business in the coun
try.
1T is most regrettable and harmful
that either congress or the country at
large should gain the wholly erroneous
impression that these great resources
are at the disposition of small group
Of men, or with corporations them
selves, are controlled by minority OF
their various boards.
1.-THE great accumulation of money
and credits in New York is due in part
to purely economic conditions and in
part to the defects of our banking sys.
tenn. If this country possessed a
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.
I'VE believe that the country will
continue to be subject to financial ills
and disturbances until It possesses q
strong and mora notwithstanding and
currency system. To secure prompt
and wise legislation in these matters
our firm and, we believe, bankers
throughout the country will. by every
means within their power, cooperate
with congress"
Too many banks and trust compan
les are potent cause Of financial
troubles, according to Jacob H. Schiff
Of Kuhn, Loeb & Co., New York.
This opinion was delivered In let
ter from Mr.. Schiff to amplify his re
cent testimony before the probers, read
before the examination of Dawson was
resumed.
IF I had the opportunity" Mr.. Schiff
wrote, Ito make proper answers to
your questions, should not have hest.
tated to state that the multiplication
Of banks and trust companies has
heretofore led to an over-extension OF
credit. to over-trading and to illegiti-
mate conditions in general, and thai
the financial panic OF 1907 and other
financial depdessions that have pre-.
coded 1t, have largely been brought on
by the too great multiplication OF
banks and trust companies"