The daily banner. (Cambridge, Md.) 1897-2008, 1913-01-08
WITNESS DEF|ES
MONEY PROBERS
Refuses to Give Names Of
Banks in Stock Deal
CONTEMPT THREAT FAILS
Committees Power to Inquire Into
Business of National Banks Raised
Again.

CommlttecS POWER 10 inquire Into
Business of National Banks Raised
Again.
Washington, Jan. s. - The house
money trust" investigating committee
got far enough into the stock market
affairs of the California Petroleum
company to develop testimony that
twenty-four officers of national banks
in New York, Chicago, Detroit and
Milwaukee participated in a syndicate
formed to market it's shares at profit
OF $4,000. None was required to put
up any money.
When the committee tried to draw
from the witness, George G. Henry,
of the New York firm of Salomon &
Co., the names of the banks and their
officers, it struck snag and the ques-
ton of the committees power to in
quire into the business of national
banking associations was raised again.
Mr. Henry fatty declined to give the
names despite the assurance from Rep
resentative Pujo, the chairman, that
the investigators would recommend to
the full committee and to the house
that Henry be held in contempt.
The witness couched his refusal in
the form of a statement prepared by
former Senator John G. Spooner, as
follows:
"T decline to answer the question
upon the advice of counsel that the
committee is without jurisdiction to
require the information called for upon
the ground:
"That the subject is one in respect
of which the congress is without pow
er to legislate;
"That the question is an unlawful
intrusion into the private affairs Of
the citizen under the fourth and fifth
amendments to the constitution of the
United States;
Generally, that the committee Is
not lawfully entitled to compel the in
formation called for"
Henry likewise refused to give the
name of the fourth firm associated in
the original syndicate with Salomon
& Co., Hallgarten & Co. and Lewisohn
Brothers.
Before the stock was listed, he said,
his firm, Hallgarten & Co., Lewisohn
Brothers and fourth firm, which had
a 121a per cent interest, had sold all
their stock. When the stock was listed,
he added, Lewisohn Brothers, for the
joint account of all the firms made a
narkes. for tie stock saaas.s
How was that done By giving
buying orders on "a scale down and
selling orders on scale up"
"That was done to give appearance
of activity in the stock?" mo, 1t was
done to steady the price of the stock"
wasn't that manipulating the mar
ket?" Mr.. Henry thought it was not.
"How high did the stock go under
this operation?" "It went to u and
q fraction from 40"
Before the examination of Mr.. Henry
was resumed Samuel Untermyer,
counsel for the committee, read into
the record data furnished by J. P.
Morgan & Co. "to correct and fill out
the testimony of ]. P. Morgan" re-
garding the total deposits in the Nor
gan banking houses in New York and
Philadelphia.
Untermyer also read correspondence
between J. P. Morgan, Jr., James Still
man and George F. Baker, by which
the latter two confirmed an agreement
by which each was to take over, when
ever the elder Morgan desired, one
quarter of the stock of the Equitable
Life Assurance company at the price
at which Morgan bought it from
Thomas F. Ryan.