The Richmond Virginian. (Richmond, Va.) 1910-1920, 1913-03-01
]. P. Morgan & Co. Dominates
Through Allied interests
in Big Cities
TWO BILLS EMBODY
VIEWS FOR REFORM
Public Reports From Private
Banks and Incorporation Of
Stock Exchange, Among
Recommendations

WASHINGTON, Feb. 2s.-The Pup
committees report and two bills EN-
bodyfng its most radical and cofnpre-
hensive recommendations were intro
duced in the house late this after
noon. The bills, If enacted into law.
will not only revolutionize the great
banking systems OF this countr. but
will work far-reaching changes in the
management of the New York Stock
Exchange and clearing houses
throughout the United States The
committee accepted all of the suu-
gestions made by Samuel Untermyer
it's counsel
The committee says 1t has found
the existence of a money trust as
defined under the resolution which att
thorixed the investigation. The money
power is pyramided on j. r. Morgan
& Co, and allied interests In New
York, through groups of bankers In
Boston, Philadelphia and Chicago.
To curtai1 this power the commit
tee presents a long list of reconimen-
dations, which. If accepted by con-
gress, will wipe out of existence i'm
terlocking bank directories ard IN
terlocking stockholdings among hanks.
and will prevent the consolidation OF
two or more national banks except
under the approval of the comp
troilsr of the currency.
Strikes at Morgan q Co.
The recommendation also strike at
the present fiscal relations between
great banking houses like J. F. Nor
gan a. Co. and Kuhn, Loeb & Co, and
interstate corporations Fiscal agree
ments such as j. p, Morgan &C Co.
now have with the New York Central
and. the Now Mavem. are" prohibited.
The security issues of intesstate
railroads are placed under the Super
vision of the Interstate commerce com
mission. and in the disposal OF the
securities Of these corporations COM
petitive bidding Is to be invited as III
the sale OF State or municipal bonds.
The committee seeks to impose pub
lie reports on J. p. Morgan g. Co. and.
other private bankers.
A Limitation is recommended upon
the proportion of its capital and sur
plus, which a national bank may In
vest in State, municipal and corporate
bonds, and national banks are pro
hibited from engaging in underw riting
securities
Stock Exchange Rule.
The Stock Exchange is to be incor-
porated and stringent regulations
complied with, or it viii be denied
telegraph wires in Interstate corn
msrce. Also clearing house associa
lions are to be subjected to enforced
Incorporation.
The bills introduced today include
all the committees recommend tons
affecting the Stock Exchange and the
clearing house associations. and such
of the recommendations concerning
money and credit concentration as
may be carried into effect through leg
fslation governing national banks
Bills covering the rest of the radical
program of the committee will be
drafted later.
Democrats Sign Report.
All seven of the Democratic mem
bers Of the committee signed the re-
port. Two of the four Republican
members fled minority reports.
The committees report consists Of
1865 printed pages and attached to 1t
are charts and diagrams illustrating
the document About one-third of
crate review. and discussion of the
evidence intended to show the re-
lations OF the clearing houses and
Stock Exchange to the financial sys-
tenn Of the country. The main part
of the report, however. is devoted TO
proving that there is definite COM
bination having for its purpose the
control of money and credit.
Two Minority Reports.
WASHINGTON, Feb. 2S.--Two mi
nority reports by Republican mem
bers of the Puto committee were filed
tonight. One report was signed by
three Republican members of the
e--Representatives Hayes.
of California: Head. of Delaware,
and Guernsey. of Maine--and the
other by Representative McMorran.
of Michigan. Mr.. McMorran attacks
the methods that his colleagues have
pursued, and also the conclusions Of
the majority of the committee.
The three Republicans who jointly
signed report held that the testi-
mony has not disclosed the existence
of any money trust. but has shown .
dangerous concentration Of credit in
New York, and to some extent In
Boston and Chicago.
Doubts About Remedies.
While agreeing substantially with
the majority upon many of the abuses
to be corrected" says the report Of
the Republicans. the undersigned
have doubts as to some OF the renee
dies proposed by the majority"
The Republicans contend that there
has not been sufficient time to digest
the testimony. and that they are not
prepared, therefore, fully 10 approve
the bills proposed by the majority OF
the committee.
Says Peace Is Near.
LONDON. March 1.-The Daily