Arizona republican., 1913-03-01
The Majority Report Finds That Trust Exists and Names Some Prominent New Workers as at the Head
LEGISLATION IS
 ALSO RECOMMENDED
Puio's Men Would Bar Stock Exchange Matter from Mail Unless They Observe Prescribed Reg ulatiOnS in Business
r.ssocr.rEn PRESS prsPArcH1

ASSOCI
 WASHINGTON. Feb. 2S.-Three di- vcrgent reports were presented today to the house by members of the com mittee which conducted the money trust investigation. The majority re port. signed by Chairman Pujo and SIX other democratic members of the com mittee. found that a money trust exists, according to their understanding of the term. This report names as the most active members in bringing about d money and credit trust, ]. r. Morgan and Co. Lee Higginson and Co, ana Kfdder Peabody and Co. of Boston. Two bills accompanied the report one forbidding the use of the mails to the stock exchange which fails to observe prescribed regulations as to the con duct of business and the other pre- scribing rigid rules for the conduct of National banks, their officers and the 1 clearing house associations to which they belong Ths report substantially 1 is in accord with the conclusions pre- i scented to the committee by samuel Cn- l termyer it's counsel.
 ! The first minority report signed l by Representative Hays of California i with Representative HeHId of Dcia- 1 ware and Representative Guerncsy of i Maine republicans, set forth that i the investi@ation has mot disclosed 1 th. existence of any -o-called money 1 trust" but il added it has however i disclosed dangerous concentration or credit in New York City and to
 some extent in Boston and Chicago.
 While agreeing substantially with i the majority said the report on many abuses to be corrected in the l financial system. stock exchanges i and clearing house associations. the undersigned have doubts as |" the 1 wisdom of some of the remedies pro posed by the majority"
 This report further sets forth the belief that before definitely recom- mending any remedIu legislation testimony should be taken covering more fully the effect of the various changes in the laws suggested. It is manifcstly impossible. the report closes. that any of the proposed legislation can be considered by this
 congress and it seems to us wise to leave the matter of recommending
 complete remedial legislation to those
 who would be charged with the re sDonsibility of formulation and re-
 porting such legislation to congress. An individual minority report filed hy Representative McMOrran. ot Mishigan republican and was a flat
 and detailed disagreement with the recommendation filed by the major ity.
 The majority report after declaring I S.TIt
 the increased concentration and con
 troI of money and credit has been effected principally as follows.
 First: through the consolidation '. of competitive or potentially com petitive banks and trust companies which consolidation in turn have re- gently been brought under Sympath ' etic management.
 Second; through the same power [ inc interests are becoming largt 1 stockholders in potentially compeu. | tive banks and trust companies. Thi' is the simplest way of acquiring con. troI. but since this requires the larg est investment of capital it is th' y l least used. although recent invest . | ments in that direction and for thd c 1 apparent purpose amount to tens O z 1 millions of dollars in market values
 Third; though the confederation of potentially competitive bank a and trust companies and by means O g d system of interlocliing directorates g Fourth; through the influenc C which the more powerful banking y houses. banks and trust companie = secured in the management insur s ance companies, railroads and pro d ducing and trading corporations, pub lie utility corporations by means O . stock holding and voting on trust
 and through fiscal agency contract .- or representation upon the board c d directors or through the supplyin
 of money for the requirements of m railway, industrial or public utilitie "a corporation they are thereby able
 participate in the financial bushes le policies.
 10 Fifth; through the partnership C ,- joint account arrangements betWee few leading banking houses, bank ,+ and trust companies in the pur r chase of security issues of great in -, tcrstate corporations, accomplishe
 by understandings of recent growth
 sometimes called banking ethics
 which had an effect of effectually de
 stroying competition between sue
 banking houses. banks and tru: u companies in q struggle for bus I' ness or in the purchase and sa
 of large issues of such securities.