Martinsburg herald. [volume] (Martinsburg, W. Va.) 1881-1920, 1913-03-08

"a 20 u money trust, out not
formed Ia consequence Of any
definite agreement Is asserted by the
Democratic majority Of the puio com.
mittee 10 be In actual existence IN the
United States.
In an exhaustive report, presented to
the house Of representatives a few
days ago. the seven Democratic mem.
bers Of the committee summarized aud
discussed the evidence presented be-
fore the body at its many sessions dur
ing the winter.
They hold that the most active
agents. in bringing about the concen-
tratlon of money ana credit, alleged to
have been disclosed, are J.. T. Morgan
& Co, the First National bank Of New
York. the National City bank of New
York. Lee, Hisginson & Co. Kidder.
Peabody & Co. Of Boston and Kuhn.
Loeb & CO. Of New York.
what the report describes as the in
ner group" In this combination con
slsts Of j. p. Morgan & Co. tue recog-
nizcd leaders. aud George r.. Baker
and james atllluan in their individual
capacities aud IN their Joint admiuis
t~ration and control nj the First Nation
Il bank. The National city bank. the
National Bank or Commerce, the Cilase
National bank. the Guaranty Trust
company aud the Bankers Trust cor,
pany. with total known resources ~
THESE corporations alone in excess OF
81 .%200.o990a0'
The FIRM Of Kuhn. Loeb & Co. is de-
seFibed rs being only qnaHdedIy allied
with the inner group"
How the Combination Controls.
The report. after asserting that the
money tr1lst existed, said that it had
come about largely as follows;
"First Through consultations of
competitive or potentially competitive
banks and trust companies. which on.
solidations3 IN turn, have recently been
brought under sympathetic manage
ment.
"Second.-rhrough the same powerful
Interests becoming large stockholders
in potentially competitive banks and
trust companies.
"Third Through the confederation
of potentially competitive banks and
trust companies by means Of the sys-
tenn Of %interlocking directorates
Fourth Through the influence
which the more powerful banking
houses. banks and trust companies
have secured in the management of
insurance companies. railroads. pro
ducing and trading corporations and
public utility corporations, By means
of s%tockholdings. voting trusts. fiscal
agency and contracts or representation
upon their boards of directors OF
through supplying the money required
"Fifth. Through partnership or
Joint account arrangements between a
few Of the leading banking houses.
banks and trust companies IN the pur
chase of security issues Of the great
interstate corporations, accompanied
by understandings of recent growth
sometimes called banking ethics
which have bad the effect Of efTectual-
~ destroying competition"
Two Reform Bills Proposed.
In order to carry out some Of the
many reforms suggested by the ma
iorlty TO end the alleged evils, the ma
jority presents two bills. One pro-
poses changes in the national banking
laws for the regulation and restraint
OF concentration aud control Of money
and credit,
The committee urges legislation at
fectlng bank consolidation, interlock
ing Directorate, i%nterlocking stock
holdings among hunks. voting trusts.
security companies as adjuncts tc
banks. fiscal agency agreements, baak
investments ia bonds. reform OF rail
road reorganization. limitation OF hor
rowings by officers from their
banks. publicity Of assets and similar
matters
ghe committee advises that clenrlns
houses be Incorporated end seeks 90 ac-
complish ttj. by prohibiting national
banks from ai,.iation Win am uniucor
porated clearing house or any clearing
aouse association tia adopts ru,es
thIt infringe ou the rights of national
banks unGer their charters
TIE report also recommends that
national baaGs be barred from eng1g
ing in undertakings and that the in
terstatc commerce commission receive
power to supervise the reorganization
of interstate railroads and control tie
security issues Of such lines
The Other undertakes TO compel the
Incorporation of stock exchanges 10y
forcing Them to make certain reforms
before allowing them T. use the mgiis
This is an Indirect attempt TO regulate
the New York Stock Exchange The
committee does not recommend direct
regulation of the affairs of the ex
change eSceit through the application
Of . mail embargo
None OF the Republican members
signed the majority report. Three oi
them-Hayes of California. GuerVtg
Of Maize ana lIeuld Ut Deiaware-n80
the principal minority report. lH "a
H