The sun. [volume] (New York [N.Y.]) 1833-1916, 1913-08-23
CAUCUS TAKES ACTION
Adopts Resolution Calling
for Reform Affecting In
terstate Corporations,
UNDERWOOD CARRIES DAY
Speaker Clark Votes With
the Insurgents in Their
Losing Fight.

WASHINGTON, Aug. :2.-A letter written
by Secretary Bryan indorsins the Admins.
tration banking and currency bill and
expressing disapprovai Of proposed amend.
ments BY Representative Henry Of Texas
and other radicals was read In the caucus
OF the House Democrats and caused q biz
stir to-day.
speech made by Representative Glass Of
Virginia. in charge Of the bill. who dashed
tho insurgents. while the conservative
element applauded.
Mr.. Bryan's enthusiastic Endorsement of
the Administration bill and his suggestion
that II should not be encumbered with
amendments. such ~ that aimed at inter-
locking directorates. turned the tide
against the insurgents who appeared to
be gaining strength In their onslaughts
against the measure. Mr.. Henry, the
insurgent leader and nearly all those
associated with him have been recognised
AZ ardent Bryan men. They were deeply
chasrined when they found that their hero
and prophet had turned publicly against
them.
Champ Clark's Insurgemcy.
While Mr.. Bryan was appearing IN the
role of a regular" Champ Clark. Speaker
OF the House and candidate for the
Presidential nomination before the Balti-
more convention last year. was taking
his place among the insurgents He voted
against the Administration and the Under
wood leadership. Nt Lr.
While the Underwood leadership aided
ny Bryan. was successful In defeating
the attempt to incorporate In the banking
bill legislation aimed at ins6rlocklnG
directors. II was Obliged to make con-
cessions which commits the party to such
an enactment. A resolution introduced BY
MIR. Underwood was adopted by the eau
Gus which instructs the House Committee
on the Judiciary to report bill pro-
hibiting interlocking directorates not only
in national banks but In railroads. indus
trial and other corporations that are en-
BaSed In interstate commerce.
The enactment Of such law will
compel changes in the directorates Of
many Of New York's bis financial institu-
lions and In the directorates OF many rail-
roads and industrial corporations. There
Is little likelihood Of such legislation at
this session. but II will come up surely
IN December.
The spectacle OF Mr.. Bryan and Mr.
Underwood. old time enemies joining
hands to prevent recognized Bryan men
from undoing the plans Of the .Adminis-
tration caused nearly everybody at the
Capitol to gasp. In the opinion Of many
Democratic leaders Mr.. Bryans advocacy
OF cause supported by the regular
democrats will strengthen him with an
element In the party that has fought hin,
for sixteen long years.
The Bryan letter was appiauded In a
manner that indicated that it gave great
satisfaction to the regular leaders. who
apparently enjoyed the shock administered
10 Mr.. Henry and his followers. AZ the
same time the fact was not overlooked
that Leader Underwood and the regular
leaders were mighty glad to grasp Bryan's
helping hand.
Mr.. Dryan's Letter.
Mr.. Bryan's letter to Chairman Glass
follows:
MY DEAR Mr.. GLASS: Replying to
your inquiry l beg to say that / have
ior many years advocated a law prevent
ing a duplicating of directorates. While
the principle applies to banks as we'll as
10 trusts-although I think In less de-
Sfee--the plan has been considered mainly
as means Of dealing with the trust evil
Competition cannot be effectively pre-
vented when the same men act as directors
OF competing companies. I am as much
IN favor of the remedy now as I was
'"nen ! began to advocate II; In fact
more so. because recent disclosures have
gwen further proof Of the employment
't this means Of eliminating competition.
'ut do not think II wise to make II q
part OF the pending currency bill.
IN attempting to secure remedial legis-
ii'ion, care must be taken not to overload
good measure with amendments. how
ever good these amendments may be In
M 'nselves. A boat may be sunk II you
attempt to make II carry too much, how
ever valuable the merchandise. A bill 10
u'uaiiy the result Of compromise. The
PRESIDENT and Secretary NcAdOO In con-
junction with the chairman Of the Cur
f'ncy Committee Of the House and Senate
nav" formulated a tentative measure. 1t
,Tas prepared after extended Investigation
ana the comparison Of Views. 1t embOdies
certain provisions Of great importance
ana Is, believe, fundamentally sound.
The provision In regard to the Gov. !
eminent issue Of the notes to be loaned
To the banks is the frst triumph OF the
People In connection with the currency |
! i'sla,ion In d generation. II IL hard to
"'erestimate the value Of this feature Of
the bin.
In the second place the bill provides
'"r Government control Of the Issue Of
,"'s money. that 10 control through Q
hoard composed Of Government officials
''"r'ed ny the President with the sp-
'ovai OF the Senate. This 10 another
osnnct triumph for the people. one with.
Su which the Government issue OF the