davidaulloa/AmericanStories huggingface dataset:
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-01-25
from The Tribune Bureau
Washington. January "A.
Secretary knox's Reply.

IAN admirable legal brief, wholly inno-
cent of diplomacy seems to sum up the
opinion which many OF those versed in
the conduct of international relations en-
terrain of Secretary Knox's reply to the
British protest against the provisions Of
the Panama Canal bill. In other words
it is maintained that with so much logic
on the side of the United States IT wouid
have been advantageous TO emoody IN us
presentation little more suavity ana
little less incisive reasoning. especis"!
as the latter was likely to cause lrri-
tation where it was desired TO soothe' ana
to make it the more difficult for Great
Britain gracefully to recede from the po-
sition taken, obviously prematureiy' by
that country. II is contended IN some
quarters that while Mr.. Knox makes IL
very clear that as yet Great Britain mas
no cause for complaint, still that country
is likely TO be excessively annoyed by
having that fact not only pointed out
but rubbed in.
So far as the effect OF the reply on the
Senate is concerned. ii appears to be AL
most devoid Of any, at least as yet. Ihose
who have insisted that the United states
was wholly within It's rights are not less
insstent since reading Mr.. knoxs very
logical argument in support Of their con-
tention. and equally, those who maintain
that there is a question of honor in
volved, and that the free tolls provision
should be repealed. at least pending the
settlement OF the controversy, are no less
insistent as result of their reading OF
the State Departments brief
There is. however, one phase of the
Secretary's argument which will strength
en- the hands of the would-be repealers
That is his conclusive demonstration that
the remission of tolls TO the cosstwise
shipping is nothing more or less than
subsidy which must be paid out OF the
United States Treasury as surely as II
tolls were collected and later handed
back under the name of subsidy. Sena-
tor Hitchcock Of Nebraska. for instance,
was emphatic to-day in his declaration
that once the people OF the inland states
realized this fact-and now that they
had the word Of the Secretary of state
for il they could not fail 10 realize it
they would demand the repeal Of the free
tolls provision.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-01-25
Tn. Senate and the Reply.

As was 10 be expected. those Senators
who favor the retention of the free tolls
provision and who are opposed TO arbitra-
tion find considers Die comfort In the Knox
note Senator O'Gorman. for instance
said to-day:
81 am very much gratifed that the Sec
rotary OF State. who is distinguished.
an astute and an able lawyer, should so
emphatically take the view that the law
does not violate either the spirit or the
letter of the Hay Pauncefote treaty.
Senator McCumber. on the other hand,
remarked: 81 do not see that Secretary
Knox's argument alters the situation III
the slightest degree. We have given our
word Of honor to arbitrdte such questions
as are presented in this controversy, ana
We are in honor bound 10 keep It,
Many Senators declared they wished TO
studx. the note further before expressing
any. opinion for publication. Senator
j .Sd K. sbx III e. Nay has promised to de-
liver lecture before tn. Naval War Coz
lege Extension in Washington w which
he will make clear his views on the sub
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-01-25
BRITISH PRESS CRITICAL
Tone OF Mr.. Knox's Panama
Note Fails to Satisfy

London. Jan. 25.-In the excitemen,
caused by the debate in Parliament on
woman suffrage and the Turkish revolu-
ton the daily newspapers have hardly
noticed the reply Of Secretary Of State
Knox to Great Britain's protest against
the Panama Canal tolls act
|, The Spectator protests against the
manner in which the British suggestion
for arbitration Of the question at issue
has been met by "a government profess
ing solicitude for the cause OF arbitra-
tion. aud says il rejoices that the Ameri-
can people are showing by abundant
Of their government.
Referring TO Senator Roots appeal
for strict observance Of the spirit of the
treaty, The Spectator" says:
This is the language OF a respected and
great American. British shipping would
survive the unfair tax. but the relations
between Great Britain and America
would not easily recover from the feel
ing in Great Britain that the word of an
American statesman was no longer TO be
taken AT It's face value.
The Nation" suggests that Switzerland.
having no maritime interests. is tho natu-
raj arbitrator OF the dispute. The news
paper regrets that while Mr.. Knox's re-
ply makes no new point II indicate no
weakening in the American contention.
The Westminster Gazette" generally
looked upon as the mouthpiece OF the
government, says that the reply does not
bolt the door. but il can scarcely be said
to b. satisfactory. The suggestion that
at any time II is thought British shipping
Is shown injustice the United States is
pro rGrcd To- submit the facts 10 a court Of
inquiry. says the newspaper. leaves the
,or open 10 q long series Of chickering's
Y hicl would do much TO undermine the
GOOD relations OF tho two countries.
THE Pail Mall Gazette says:
oming from any other country than
the United States. the tone OF Secretary
;, rox's reply would be deeply resented in
tits country. Unless International law
oy, rides municipal law when treaty
1.zhts clash with 4. International law has
no rAiStentc aid peaceful intercourse be-
trctn states becomes impossible.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-01-25

Mr.. Hill testified he was director In
the First National Bank OF st. Paul, one
Of the largest banks i'm the Northwest
lie disagreed with Mr.. Untermyer's sus
eestion that minority stockholders ue given
representation in directorates through
cumulative voting. He said such a sys.
tenn might allow competitors TO secure
corporations secrets by securing a place
or its board.
On the question Of interlocking directors
Mr.. Hill said he held that the propriety OF
the practice rested entirely on the char.
acter OF the individual man.
Gardner NJ. Lane. of Lee. Higginson q
CO.. Boston, was questioned along similar
lines. He opposed the principle of ..cu.
muIative' voting by stockholders.
II think that minority representation ON
directorate might do more harm than
good he said.
+. l.. Hine. president OF the First Va.
tional Bank OF New York. who follow a
Mr. Lane. gave n list OF tho banks with
which he is connected In addition IN
banks. he said he is director in thirty
| I'VE other concerns, mainly industrial cor
porations.
Mr. Hine was questioned as to the stock
holdings of the First Security COMPANY
lie produced a list, which the committee.
agreed not to make public, OF the securi-
ties held by the company without regarl
to their value
Asked as to the method Of valuing the
securities held by the company, Mr.. Hnc
could not give the value of the stock
turned over to the First Securities Com
pany when it was organized by the First
National Bank. He said the securities
were all held on the books Of the bank 1T
the price for which they were bought.
But why should these securities. worth
between S40.ooO.0O0 and 100000, be held
at book value OF $40 IO,ooo?" asked Mr..
| Untermver.
For business reasons which are salts
| factory TO ourselves" said Mr. Hne
Joint Stock Operations.
The question of joint stock operation,
OF the First National, the National CID
and J. p. Morgan e. co. was thrashed ~
al length.
Mr. Hine said his bank usually handb
! bond issues jointly with J. T. Morgan &
Co. and the National City Bank and thu
banks with which he was connected often
took participations in these issues. ON
| GERS of the bank also took these psrtic-
patlons lie saw no objection to this
practice.
Mr. Hinc further said he saw 70 reason
for replacing the present Clearing H5yse
bank examiners in New York "by a com.
petent efficient government examination"
Publicity Of bank assets. the witncs'
said was unnecessary, in his opinion. and
/ he could see 10 reason for publishing list'
Of banks stockholders. He added that he
| observed no trend toward concentration
OF credit in New York lately.
II have observed the contrary" said
Mr. Hine. There are sixteen more banks
in New York to-day than there were in
1900
When Mr.. 1Iine was excused. Chairman
! Pujo adjourned the committee subject
TO call by the chairman
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-01-25

down grade currents. He said The ciu-
Gems of New York Endorsed the plan Tor
an extension OF the piers, and they "ou'h
not hold this belief If they thought IL
would iniure the traffic Of the harDcr.
Frank y. Dalzell. president OF the Ma
tional Board of Steam Navigation said
he hao never found the Hudson congested
in his thirty-three years in the towing
business. The extension proposed In the
sulzer bin. he said. would not increase
accidents
CAPTAIN Frank Hopkins and h. NJ. Turn
me. Sandy Hook pilots. testified mat inc
proposed extension would not cause con-
gestion of traffic.
Others from New York VINO were pres
ont Al the hearing included t. a. Z.
Smith. p. A. $. Franklin. Of the interna-
tional Mercantile Marine Company: FRANK
:. Gardner and Judge Charles r. Mac
I,ean.,o Of the New York Board OF iraue'
the Mayor OF IIoboken and Wilmerdihs
Rug OF the New York Produce exchange
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-01-25
Resuscitation Of the Peace Treaty.

Secretary Enox's suggestion that the
ratification Of the arbitration treaty oil
August 9. 1911, be completed was greeted
with considerable satisfaction by many
members Of the Senate who nave leared
that with the Panama controversy hahe-
ing fire, il might be difficult to secure
the approval of the upper house OF 'oh-
gress for a convention TO take the pace
Of that which expires by limitation on
June 4. next or the desirability OF having
AN arbitration treaty with Great Britain
all friends of the cause OF arbitration are
satisfied. and Mr.. Knox's Suggestion
wholly apart from it's relation to TINS pa
tic,Ilar controversy. is an occasion oil
qualification
There is. moreover a feeling that TINS
controversy may. II the high JONI com
mission provided for in the eNistinS reaN
is employed. demonstrate to marhe'
degree the utility Of such body 10 eA
anime into the facts. CONSIDER inc a'e'
merits and make report. win ie'o'"
mendations. The members OF sue"
body would have the advantage oil peiis
able to put their legs under the sa"''
IA BILE and OF arguing out the pros ana
cons Of the controversy face to race III
stead OF employing the somewhat ,uhsa'-
isfactorv method Of diplomatic notes ana
cypressions conveyed through ambassa-
doris and charges Each side would De
better able 10 grasp the viewpoint OF 'no
other. and. despite the fact that the l'ho-
ings OF the commission would not nave
the character Of an arbitral award. theE
would possess a moral force which "ouio
carry conviction TO the people, and mus
make easier the task of an administra
ton which found itself compelled 10 TAKE
stand which might otherwise ran 70
command popular respect and approval.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-01-25

ulation OF monopoly, as was strongly
favored by many financiers and business
men who gave testimony.
There also appeared practically a
unanimous opinion in support Of the
contention that the present law as
whole should not be disturbed. but that
changes should be in the form OF sup
Elemental action to strengthen the orig
inal intent of the Law. which IL inter
preted as meaning that all combina lions
interfering with competition should I've
held 10 be illegal
differences Of opinion arose in CON
nection with the discussion Of the SUI
preme Courts Interpretation TO the eff
feet that the word reasonable" should
be considered in the law Some mem
bcrs were opposed TO that 1t 10 ex-
pected that Senator Cummins's report
Will be presented at a meeting in about
a week
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-01-25
Bowleas and Equatorial Surplus.

Al the instance Of Senator William Al
den Smith. the President now has under
consideration the question OF whether
bowlegs should keep man out OF the
marine corps. Accompanied by con
sttuent whose legs will not conform to
tho arms OF A compass the Michigan Sen
stor went 10 the White House to-day anu
asked Mr.. Taft TO make personal cN-
animation Of the warped underpinhins OF
his constituent. Al the outset, II ~ H.
derstood, Senator Smith said he DID not
believe his constituent should be kept out
of the marine corps just because OF this
physical defect. Yet. sorrowfully eN-
planned the Senator and hopelesslN acq"-
esced the constituent, the latter appH-
cation had been turned down.
The story goes that President Taft
caused Senator Smiths protegt TO back
up against the wall IN the Presidents
office. Mr.. TAFT meanwhile making
mental note OF the peculiar brand Of bow
legs possessed by the Michigan applicant
Mr.. Taft II is reported. also asked several
questions. Senator Smiths constituent
said his condition was good, that ne
hadn't an ache or pain and that there
was no reason on earth why he should
not he appointed from civil life as second
lieutenant in the marine corps, eNcep;
that his legs We're crooked.
After the examination vas over Senator
Smith was assured that the President
would take the matter under advisemcnt
and determine whether the examining
board should be overruled. Senator Smith
acknowledged that he had another con
s,ituent who was in trouble. The Latter
had been given a temporary appointment
az an assistant surgeon in the navy. the
understanding being that within the next
month he would reduce his equator one
inch The President. however. was not
appealed to in the case. q. G.. II.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-01-25

You know, do you not, that the bonds
OF states and municipalities and the red
eral government are sold by competitive
bidding?"
II know efforts are made to sell them
that way"
Would you disapprove OF requiring tnst
the bonds OF railroads and great inter-
state corporations should be sold by com
petitive bidding. instead Of in the present
method"
II would dsapprove entirely
And your answer Is not al all affected
by your own business"
Mot al all"
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-01-25
Too Many Banks, Says Schif.

Before resuming the questioning "t
Mr. Dawson when the committee met
to-day Mr.. Untermyer put into me
record a letter from Jacob II. Semi u
ampl,fy his recent testimony BEFORE
the committee. The letter read in part
If had had the opportunity to MAKE
proper answers to your questions
should not have hesitated to state ND.
the MULTIPLICATION of banks and trust
companies has heretofore led to an over,
extension Of credit. to over-traGing anu
10 illegitimatc conditions in genera, anu
financial dcpressions that have precedeo
IL have largely been brought on py tn1
too great multiplication of banks anu
trust companies.
When Mr.. Dawson was recalled Mr..
Untermyer took up the bankers state
ment OF yesterday that the conceh-
tration Of banking resources IN Ne"
York was sufficient 10 care for thS
busine-e of the country at its present
development"
Their is less consolidation in New
York banking to-day than there was
ten year; ago" said Mr.. Dawson. 1hc
resources of the New York banks arc
only IS per cent OF the resources OF the
entire country.
I'VE are dealing to-day in larger
units. industrially. commercially ?nd
every other way. In many instances
corporation may want 10 borrow up TO
So DOC. 900. II is much 10 that corpora
tons advantage to be able TO MAKE
that loan from single bank than To-
have TO go shopping around making
loans Of 100000 here and there
Don't YOU think II would be an adj
vantage to have good many inde-
pendent banks in New York. so that he
could have some place 10 go shopping
around II he had to-" asked Mr.. Tn
termyer.
II think the banks OF New York are
independent" replied Mr.. Dawson, VINO
added that he knew Of no bank in New
York controlled by another bank.
Mr.. Dawson distinguished between
control Of stock and control II the
management of banks. He reiterated
that a law preventing ''interlockinc di-
rectors" would set the country back
twenty-five years He agreed with Mr..
Untermyer that 1t might be well To-
cut down the size OF boards OF directors
OF banks.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-01-25
URGE TRUST LAW CHANGES
Senate Committee Favors
Amendments to Sherman Act.

Washington. Jan. ELECTROMAGNETIC
lions in favor Of several amendments
10 the Sherman antitrust law we're
practically decided on to-day at an ex-
-ecative meeting Of the Senate Interstate
Commerce Committee. held 10 discuss
report on the hearings curing 1911 and
1912.
/ The committee took no positive action
beyond requesting Senator Cummins' OF
Iowa. 10 prepare its report but the dis
cussicn indicated that the members were
in substantial agreement on an amend
ment for ,he maintenance of the prin-
ciple of competition rather than the reg
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-01-25
ROCKEFELLER MOVING ON
Quits Jekyl Island After Only
One DAYS Visit.

Brunswick. Ga. Jan. 2i.-Af,er visit OF
only day at Jekyl Island 10 Inspect his
winter home which is being remo1olled.
William Rockefeller left with his part
late yesterday afternoon. It is understood
their destination was Palm Beach. al
though Officials on the island said Mr..
Rockefeller was expected TO return there
IN few days.
Whether Mr. Rockefeller Intended to re-
turn North 10 be examined by representa-
tives OF the Puio committee could not b.
ascertained.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-01-25
Morgan to City's Rescue.

Mr. Dawson then referred. as an NUS
trstion OF the handicap OF selling bonus
by competitive bidding. to the issue OF
bonds by New York City in 1907
The Mayor and the Controller SAID
he. came TO J. r. Morgan and said they
found themselves confronted with the
situation of having offered bonds 10 the
public and with being unable TO dispose
OF them. They wanted to know what
could be done. Mr. Morgan then arranged
a small syndicate and told them II they
would offer the bonds he would under
write them. They did offer the bonds
then and the city got the money
Mr. Dawson offered in evidence letters
that had passed between j. p. Morgan &
60. AMI Mayor Gaynor.
II don't object to your encomiums on
Mr. Morgan" said Mr. Untermyer. put
do not think they are germane."
The committee decided to take under
consideration later the admitting OF the
letters into the evidence.
Mr. Dawson said he would favor a law
enforcing compet. publicity Of interme-
date profits made by hnanciers in hoatins
securities and would approve Of forbid
ding bank officers and banks from partici-
nation I'm syndicates formed for floating
securities
Mr. rntermyor brought out that on NO.
vember / J. F. Morgan & Co. had deposits
OF 100000. and had in various BANKS
sl6OOOO
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-01-25
Must Have Currency Reform.

II want TO say this" continued Mr..
Dawson There t. a situation IN this
country which will be remedied only when
the currency system is reformed This
concentration not only is not "A peril. but
/, has been benefit 10 the country under
present conditions. a.
Then YOU think II ohght to be ex-
tended"
Il decline TO answer that question.
"Would YOU say that II would be a
greater benefit II all the banks OF Ne"
York were consolidated?
That could not be done. ] say that the
situation In New York to-day IL a benefit
and not a menace. But this concentra-
ton will continue 10 increase until the
currency laws are reformed said Mr..
Dawson.
And YOU would aid II TO increase
we would do what is best for the coun-
try" said Nj. Dawson. with some en-
phssis.
You mean what you believe Is best FOR
the country?
"yes What NC believe is best for the
country"
III all the resources OF the banks OF
New York were concentrated In the hands
Of Mr. Morgan. Mr.. Stllman. MI Baker
and ,bcir associates. wouldn't that in
crease the concentration OF credits in
their hands," asked Mr.. Cnterm!er.
MFR. Dawson replied that II would UNI
doubtedly result In the concentration of
the resources III their hands. but would
no, increase resources or the concentra-
ton Of general credit.
The witness was not opposed 10 the
system Of cumulative voting In corpora
lions. but was inclined to believe there
should be some restriction In the case of
financial corporations.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-01-25
VERMONT DIscARos oALLoWs.

Montpelier VI. Jan. 2..-Death BY cleo
icIty was substituted for hanging an the
official form Of capital punishment IN
Vermont. when Governor Fletcher signed
a bin 10 this effect to-day. Both branches
81 the Legislature voted last Tuesday In
ia,v. Of the measure.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-01-25
Mr.. Davison's Argument

Mr. Dawson then offered his statement
relative To concentration, which the con'-
r,Ittee later decided TO receive as an ar
crment." The statement follows:
There have been presented to your com
u,i,,ec ella borate tables from which IL has
been Inferred and i'm many ne"spap.,tass
stated as proved that group OF lo'
directors controls tie assets OF corpo.,a
lions whose aggregate resources are 40
pO.uo60. !,
No such control exists and 10 such de-
duction can he properly made from thcsc
tai les Those who have made Shcn d'
auctions have fallen into several obvious
errors. They fail 10 observe. nrst' 'nal W
the total number OF Sirectorates IN these
particular corporations this group rev
r,scnts only about one-quarter; second
that. upon this assumption, these men, IN
order to exercise control. must act 'hl
vote i'm every. instance as unit, AZ
,tourh they come from different parts Of
the country and represent diverse ana ire
qtently conflicting interests: third, that
upou this assumption, the directors OUT
SIDE of this group must be mere dum-
mics with no voice or opinion OF their
own who In almost every instance, are
oyerruled by a minority: finally that THIS
=, m Of TWENTY-FIVE billion dollars rs not
qctual cash or liquid assets. susceptible
of manipulation or misuse D\ 'he VI.
IectorS the fact. OF course. being ,hai
tho great bulk OF this enormous sum iS
and Tor many years has been. tied up IN
tho form OF rights OF way, rails. ties
equipment. factories. plants. tools, manu-
featured goods and other forms OF cor
unrate property necessary FOR carrying on
railroad and industrial business In the
country.
II is most regrettable and harmful That
either Congress or the country AZ large
should gain the wholly erroneous lhpirs-
sion that these great resources are at the
disposition of a small group OF men. or
that corporations themselves are con
trolled by a minority of their various
boards.
Concentration in New York.
As 10 the point OF so-callcd conCentfa-
L.. 4, IL. nnnnes finneh ftcf ihAf Now
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-01-25
James J. Hills Holdings.

James J. Hill. who followed Mr.. Davi-
son as witness. gave list OF his d.
rcctorships in New York and Chicago
banks and I'm the Great Northern and Bur
llneton railroads. He said the Great
Northern and the Northern Pacihc rail-
roads were competitors.
When the Northern Securities Company
was dissolved. Mr.. I'm said. he received
:, 900 shares OF Great Northern and Co.
900 shares OF Northern Pacific He now
had 90. 600 shares Of Great Northern and
his son. louis W. Hill. had i3.500 shares
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-01-25
NO MONEY TRUST"
DAWSON INSISTS
Continued from FIRST page.

will make arrangements for the examl-
nation Of William Rockefeller. Mr.
Untermyer will open negotiations IN
New York tomorrow with John T.
Carver. counsel for Mr. Rockefeiier'
with a view to having a private eXaml-
nation conducted next week.