New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-01-07
Money Trust Inquiry May Await
Democratic Aid.
SALT LAKE PLANT HEARD
Utah Banker Charges Clearing
House, "Usurper," Operates
in Restraint of Trade.

WASHINGTON. Jan. 6-The operations or
the Clearing House Association of salt
Lake City. Utah, and its controversy with
the National Copper Bank, of that city.
were explained to the money trust In
vestigating committee of tie House TO-
day. Five Salt Lake City bankers tesu-
fed.
w. w. Armstrong, president OF the Ma
tional Copper Bank. recounted the CIT
cumstances that resulted In the separa-
ton of his bank from the Clearing House.
He said that when the National copper
declined to abide by a rule adopted by
the Clearing House. forbidding banks TO
pay interest on open or checking &C
counts the eight other members Of the
Clearing House dissolved the association
and Immediately formed new one, with
constitution including the rule TO which
National Copper objected.
The Copper National declined 10 sub
scribe TO the rule or TO enter the new
association. Mr.. Armstrong said that u
was costing mis- bank $500 year extra
to operate outside Of the Clearing House
He asserted that the Salt Lake Clearing
House rules regulated rates and interest
to be charged in practically every trans
action between a bank and its clients and
he endeavored TO argue that the assocla-
ton was in restraint OF trade usurping
the functions OF the officers OF the banks.
w. S. Mccormick and three other mCm-
bers of the association said that Mr. Arm
strong had stated the facts about as they
had occurred. but they disagreed with his
view Of the ethics OF the Transaction
maintaining that the association was act
ing within its rights.
Just before the committee adjourned
G.. G. Henry. Of the firm of Solomon d Co.
| New York City, took the stand. He was
examined by Samuel Untcrmyer, counsel
for the committee, as 10 the details OF the
marketing Of the stock Of the California
Petroleum Company by the syndicate
formed by his company. Hallgarten co.
and Lewiston Brothers. Mr.. Henry pro-
| duced the agreements and contracts IN
connection with the marketing Of the stock
and the organization OF the company. His
examination will be continued tomorrow.
| After the hearing the committee, with
Mr.. Unterrnyer went into executive ses-
sion. where fo- more than an hour plans
| for the prosecution Of the Investigation
| were discussed. The committee contem-
plates a suspension Of hearings within a
few weeks to allow the preparation Of an
intermediate partial report based on the
testimony already taken. 10 be submitted
10 this Congress before March T. Mr..
ITntermyer viii be able 10 examine only a
small part OF the list OF Witnesses he
wishes TO call before the hearings are sus-
pended. The examination Of all Of them
probably would occupy two OF three
months more.
| 1t has been suggested that the com
mittee endeavor TO secure from the in
| coming Congress a resolution continuing
the Investigation, and that the hearings
be resumed after the new administration
| comes in Mr.. Untermycr declares that
the inquiry cannot he thoroughly rounded
up without the Information which the
! committee tried I'm vain 10 secure through
the Controller of the Currency regarding
the business OF national banks through
out the country
With this point in mind. the committee
might wait until a Democratic admins
tration was in power In the Treasury De-
partment, and then ask President Wilson
to direct the new Controller TO furnish
tho needed information: Authorization
for the investigation, however dies with
this Congress on March 4, and authorize
ton to continue the inquiry must be OBJ
tanned from the new House.