Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-01-08
ATTACKS BANK LAW
Controller Murray Witness Be-
fore Money Trust Probers.
URGES SEVERAL REFORMS
Would Prevent Bankers From Ac-
cepting Compensation for Loans.
FOR STRICTER EXAMINATION
Terms Present Inquiries Into Finan-
cial Concerns Superficial"
Baker to Take Stand.

Criminal statutes to prevent bank Off
GERS from accepting personal compen-
satlon" for loans from their banks; regu-
lation of loans by banks to their own Off
GERS and directors and stricter method
of national bank examination we're among
the monetary reforms Endorsed today by
Controller of the Currency Lawrence o.
Murray on the stand before the House
money trust committee.
MIR. Murray said that the acceptance
or personal compensation" by bank
officers from borrowers was grow
ing evil that called for imperative ac-
ton. The controller recommended some
sort of legislation to prevent bank
stock to irresponsible persons when
the institution is, on the verge Of
failure.
He said that he favored a law en-
forcing the publicity of securities held
by banks as assets, and Of lists of
stockholders, and said that his depart
ment often found it difficult to discover
the real ownership of bank stock.
Scores Banking Act.
Mr.. Murray declared that the present
banking act was inadequate and inef-
fective." He said the law was practical
ly unchanged since 1864 He also said
that under the law the present system of
national bank eXauination was super
fetal examination and Ineffective" One
hundred and five examiners, he said, ex-
amined about $500 banks.
Mr.. Murray produced large amount
of data as to national banks in reserve
cities. asked for by the committee, and
said that other data had been prepared
and would be forwarded to the commit
tee if President Taft directed it.
asfiTn I, N;,;x%
Attorney General Wickersham, has de-
clined to direct the controller to furnish
information on the loans and securities
Of national banks, such as is in his office,
or to institute Independent Investigations
to elicit the additional facts desired by
the committee.
Principal Witness.
controller Murray was the principal
witness today. MIR. Untermyer has said
that without the information which he
desires to secure through the controller s
office it will be impossible for him to
conclude the investigation.
With the present controller in a posi-
ton where he will not supply all the in
formation desired, the committee contem-
plates asking the new Congress, which
VIII convene March 4, to authorize a con-
tinuation of the investigation through the
special session which President to be
Wilson has announced his intention of
calling. Then the committee plans to go
to the new administration and ask the
President to direct the new controller to
furnish the information which Mr.. I'm
termyer believes essential.
Baker to Be Witness.
The committee expects to place on the
stand tomorrow George w Baker Of the
First National Bank of New York Mr.
Baker, according to Mr.. Cntermyer. with
j. p. Morgan and James Stilnan, makes
up the triumvrate of the most powerful
masters of finance in the country.
The fun banking and currency commit
tee will meet late today to take up the
case of George G. Henry, who yesterday
refused to reveal the names of national
banks and national bank officers involved
in the syndicate flotation of the Califor-
mia Petroleum Company. The committee
is expected to certify the record in the
case to the Speaker of the House. with
recommendation that he turn it over to
the district attorney Of the District of
Columbia for contempt prosecution.
Specialist to Be Hired.
The Pujo committee in executive ses-
sion last night determined to obtain the
services of a competent throat specialist
to examine William Rockefeller and
verify the certificate of ill health filed
by Mr.. Rockefeler's personal physician.
Dr. Walter F. Chapelle. and Dr. Samuel
w. Lamont. In the certificate Dr. Cha
to testify would endanger his life.
The committee also discussed the case
of Henry.