Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1913-03-01

which the moro powerful banking I
houses banks and trust companies
have secured ln the management of /
Insurance companies railroads. pro- /
ducng ana trading corporations mud /
public utility corporations by means |
of stockholdlngs voting trusts. neeal /
agency contracts or representation T
upon their boards of directors or
through appiNing the money require /
mcnts of railroad. industrial and p0h- !
Ac utilities corporations aud thereby /
being able 20 participate ln their /
financial and business policies
Fifth Through partnership ori
Joint account arrangements between /
a few ef tho leading banking houses +
banks and TRUST companies la the par /
pose of security Issues of the grent /
Interstate corporations. accompanied /
hN understandings Ol recent growth
sometimes called banking ethics 80
which hnvr hHd tht eHett eft eHeetn#l- T
b dcslroNins competition hetweon I
such hankine houses banks Huu trust /
companies in the stwesla tor husl- /
ness or In the purchase aud sale of .
large ISSUES 0f such securities
The report siened hN Chairman /
Puiu, wua accompanied hy two mils. I
one ta regulate stock exchanges
through ferhiddlng the mails lo eN
changes which do not comply with
federal regulations and the other 90
regulate clearing house associations
Through forhidding national banks 600
join such associations unless fcdcwll
regulations are observed. IN the lat
ter hlli proposed. as an amendment 10
the national banking act the conduct
of national bank Officers aud directors
is closely restricted un the question
of the existence of money trust, the
report Is specific and detailed
1T would of course he absurd.
said the report TO suggest that con
troll of the bulk Of the widely distrib-
utod wealth of great nation can bo
cormlled hy one sct of men n chat
is whit is meant hy the gontlemcn
who denN the existence of money
trust the committee agrees with
them. 10 is not however. necessary
that group of men shall directly
control the small savings IN the hanks
nor The scattered resources of the
country In order 10 monepolizc the
great financial transactions or 90 he
able to dictate credits Ia be extended
or withheld from business enter
priscs
The great bank on banner with ace
cess 10 the mnlnsprines of the eon=
ccntwtcd resources ui other peoples
money" the report declares, "cnu
handle the vast ISSUES of securities
nov demanded lY the commercial
and Industrial development of the
country but the bank reserve sys-
tenn Il Is further contondcd con
ccntratcs IA large part OF the funds of
the smaller banks Ia New York where
ID group of men nve strength ned
their interest in The various banking
institutions" The report snid
III therefore, by money trust Is
meant AN established and woll-dehned
Identity aud community OF interest
between a few leaders OF finance
which has heen created and held to-
gpther through staekholdlngs inter-
locking directoratcs and ether forms
of domination over banks. trust eom-
panics railroads. public service and /
Industrial corporations and which has
resulted IN vast and growing CON
centration of the control OF money |
and credit in the hands of IA compare
lively frW men. your committee has
no hesitation In asserting that the |
condition thus described exists la this
country today
TO say that the domination of this
group over the money aud credit of (
the country controlled by uur lmgesi |
financial institutions and If what Is
available for hnanclns large security /
issues for the current needs of our
principal Interstate corporations aud /
OF The individuals conducting great
enterprises aud for stock exchange
loans is a. least ns effective. for I'M /
stance as the control OF The United I
States steel corporation over the steel /
Industry. Is an understatcment of the I
situation although the methods hE (
which this control is effected and held /
together are, OF course. essentially dit- /
ferent and Of more loose and in Z
mngible character"
Accepting this us the long sought /
money trust the committee out /
lined the membership an follow Z
tTho parties To this combination - (
or community Of inter
est hy whatever name II mus e
called. may be coneonIeuti, classified {
Tor the purpose 81 differentiation Into I
four square groups
"The first whith We Viii 6ill the
inner group consists Of j. y Morgan
a. Company the recognized leader
ana George u. Beker and junes sIlli-
man h their individual capacities. and 4
ia their joint administration and con
tro 81 the First Nauonpl bank the
National City bunk the National Bunk
OF Commerce. The Chase Natonal
bank. the Guaranty Trust company
and The Bankers Trust company with
total known resources hi these core
porntiohs alone, in excess Df Yl3Q0i-
900 600 and Of number af smWi but
important financial Institutions This
takes no account of ihc personal for
tunes of these gentlemen.
4Cioseis allied with this inner group
ana. fidttu. ithiltH 70 lt'li fiA'tl
caly as partners Ia many Of their
larger financial enterprises, are the
powerful international banking housFs
of lee. Hisginsou a Company and
Kidder, Peabody a Company Wlth
three affiliated banks in Boston
Mass
"ln New YORK City the internaiion-
al banking house OF Messrs Kuhn
Loeb a Company with It's large fof
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