The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1913-03-05
MAJORITY FINDS MONEY TRUST
PUJO COMMITTEE FILES TIIREE
REPORTS WITH house.
An Democratic Members Declare
money Trust Does Exist and Sug-
gest Remedial Lcgislation-Threc
Republicans Say Probe Has Only
disclosed Dangerous Concentra-
fion OF Credit"

House today by the members OF the
committee which conducted the mon
ey Trust" investigation.
The majority report, signed by
Chairman Puto and the six other
Democratic members OF the commit
tee. found that a money trust exists,
according to their understanding of
the term.
Two bills accompanied the report,
one forbidding the use OF the mails to
stock exchanges which fail to observe
prescribed stringent regulations as t,
the conduct OF their business, and the
other prescribing rigid rules for the
conduct OF national banks. their OIL
GERS AM Clearing House Associations
to which they belong.
The first minority report, signed by
Representative Hayes, of California; !;
Heald, OF Delaware. and Guernsey, Of
Maine. Republicans. set forth that the
investigation has not disclosed the
existence of any so-called Money
TRUST" but added lit has, however.
disclosed a dangerous concentration
OF credit in New York City and to
some extent I'm Boston and Chicago"
while agreeing substantially with
. the majority" said the report. ION
many OF the abuses to be included
In the financial system, the Stock EN-
change and the Clearing House AS
sociations. the undersigned. have
doubts as to the wisdom OF some of
the remedies proposed by the ma
jority."
This report further sets forth the
belief that before definitely recon-
mending any remedial legislation.
testimony should be taken covering
more fully the effect OF the various
changes In the laws that have been
4 susrested.
1T Is manifestiy important" the re-
port concluded. that any Of the pre-
posed legislation can be considered by
this Congress and II seems to us wise
60 leave the matter of recommending
complete remedial legislation to those
who will be charged with the respon-
7 sibility OF formulating and reporting
such legislation to Congress"
An individual minority report filed
by Representative MeMorran, of
Michigan. Republican, was a Hat. de-
tailed disagreement with the recon-
jority
White 4 believe that attention has
been called TO grave DEFICIENCIES in
our financial laws. 1 also believe that
n sinister light has been thrown over
banking practices which was not JUS
titled by the facts. that no effort has
been made TO show the reasonable
and commendable explanations of
these practices and that In many cases
an impression has been given to tie
country as TO the character and mo-
tives OF leading bankers which is al
together unfair" said Representative
McMorran In his report.
Mr.. McMorran declared the propos-
ed scheme for regulating stock cX-
changes drastic and unwarranted."
and that there was mo real evil" in
interlocking directorates
The report. signed by Chairman
. PuJo and the six Democratic mem
bers OF the subcommittee. which
coducted the Money Trust probe. is
a volumlnous document accompanied
by two lengthy bills. one to regulate
stock exchanges by forbidding the
mails TO exchanges which do not com
ply with Federal regulations. and the
other To regulate clearing house as
sociations by forbidding national
banks TO join such associations unless
Federal regulations arc observed. In
the latter bill. proposed as an amend
ment to the National Banking Act,
the conduct OF national bank OIL
GERS and directors Is restricted cloce-
~.
The report. as submitted 90 The
House. Is largely the work OF Samuel
Untermyer. counsel for tho commit
tee, who composed the origina. Graf'
Of the report and Who drew the bills
presented. on the question or the cN-
istonce OF money trust the report
Is specific and detailed.
1T would. of course. be absurd %
said tho report. "to suggest that CON
trol of the bulk OF the widely GIa.
trlbuted wealth of a great nation can
be- corrallcd by any set OF men ~
that Is what Is meant by gouucu.u
WHO deny the existence of a money
trust your committee agrees with