Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1913-03-01
is MONEY TRUST,
REPORT DECLARES
Pujo Committee Makes Public
Findings and Urges Strin-
gent Federal Action.
STOCK EXCHANGES ARE HIT
Operations Through Which Finances
Of the Nation Are Controlled
Exposed.


powers should be curbed by stringent
federal regulations as TO the conduct F..
of national banks, clearing houses, .
and stock exchanges were the findings
OF the house money trust committee
set forth in the majority report of /,
its Investigations filed in the house
late yesterday.
The report, signed by Chairman Pujo F!
and the six other democratic members
of the subcommittee which conducted
the money trust probe. is a voluminous
document accompanied by two lengthy
bills, one to regulate stock exchanges
through forbidding the mails 70 ex-
changes which do not comply with
federal regulations, and the other 70
regulate clearing house associations
through forbidding national banks to
join such associations unless federal
regulations are observed. In the lat
ter bill, proposed as an amendment
to the national banking act. the con-
duct Of national bank officers and di-
rectors is closely restricted.
The report. as submitted to the
house is largely the work OF Samuel
Tntermyer, counsel for the committee,
who composed the original draft of
the report and who drew the bills pre-
scented On the question of the exist
enCe of money trust, the report is
specific and detailed.
1T would Of course be absurd, said
the report, TO suggest that control
Of the bulk OF the widely distributed
wealth Of a great nation can be cor
rallied by any set of men. If thai is
what is meant by gentlemen who deny
the existence of a money trust your
committee agrees with them. Such
thing of course would be impossible
and its suggestion is ridiculous 1t
is not, however, necessary that
group of men shall directly control
the small, savings in the banks nor
the scattered resources of the country
i. order TO monopolize the great fnan-
Cial transactions or to be able TO die
tate the credits that shall be extended
or withheld from the more important
and conspicuous business enterprises.
This is substantially what has been
accomplished and fairly represents the
existing condition"
! The great bank or banker with &C
I cess 20 the mainsprings of the con-
Centrated resources of other peoples
money" the report declares, can han
/ die the vast issues of securities now
demanded by the commercial and in
dUstrial Development of the country,
But the bank reserve system. it is fur
Their coutended. concentrates 2 large
part of the funds Of the sma Ter banks
i'm the only public money market of
the country, New York, where group
of men there have strengthened their
interest in the various banking institu-
tons the report said
COMMUNITY OF INTEREST.
IF therefore, by a money trust IS
meant an established and we'll de
fined identity and community Of inter
est between a few leaders of finance
which has been created and held to-
gether through stock holdings, inter
locking directorates and other forms Of
domination over banks. trust compan-
les. railroads, public service and in
dustrial corporations and which has
resulted in a vast and growing con-
centration Of the control of money and
credit in the hands Of a comparative
" few men. your committee. as before
stated has no hesitation in asserting
as the result OF its investigation up
70 this time that the condition thus
described exists in this country today.
ITO say that the domination OF this
group over the money and credit of
the country controlled by our largest
financial institutions and that is avail
able for financing large security issues
for the current needs of our principal
interstate corporations and of the in
dividuals conducting great enterprises
and for stock exchange loans, is a.
least as effective as for instance, is
the control Of the United States steel
corporation over the steel industry
is an understatement Of the situa,
ton, although the methods by which
this control is effected and held to,
gether are OF course essentially diff
ferent and OF a more loose character"
Accepting this as the long sought
| money ITuSI, J0S COnmlllte OuN4HSI
the mem bership as follows:
The parties to this combination OF
understanding or community of inter
est by.whatever name it may be called
may be conveniently classified, for the
purpose OF differentiation. into -four
separate groups.
The first, which for convenience Of
statement we will call the inner group
consists OF J. P. Morgan & Co, tbs
recognized leaders, and George T. Bak
or and James StiIman in their in
dividusl capacities and in their join
administration and control Of the FRS
National bank. the National City bank
the National Bank OF Commerce, the
Chase National bank. the Guaranty
Trust company and the Bankers Trus
company, with total known resources
IN these corporations alone. in exces:
of $1,000, 900 600. and OF a number o.
smaller but important financial insti
tutions This takes no account o.
the personal fortunes of these gentle
men.
RELATIONS ARE SHOWN.
Closely allied with this inner Of
primary group and indeed related Il