The Mena weekly star., 1913-01-30
FAVORS TRUSTS
 UNDER CONTROL
Henry P. Davidson Said Trusts Should Be Regulated Instead of Being Disintegrated-OppOsed
 to Holding Companies.

Washington, Jan. 23.-That the present concentration of financial resources in New York is sufficient to care for the business and con- merce." was the statement of Hen " P. Davidson of J. P. Morgan & Co.,. on the stand before the house money trust committee today. The question of further concentration, MT. Davidson asserted, depended entirely upon the development of the business and commerce of the country. Mr. Davidson went on record as favoring combinations and control of industries under government regulation, as opposed to free, unrestricted competition"
 Samuel Untermyer, counsel for the committee, and the witness en- gagged in a spirited tilt on the ques tion of the conduct of banking af- fairs in European countries. MT. Untermyer insisted that England, France and Germany prevent con- trol of banks through interlocking directorates.
 Opposes Holding Companies.
 Talk about concentrations; why, we haven't even started in this country as compared with the Eu- ropean nations," was Mr. David sons reply to this statement. MT. Davidson said he saw no objection to a law enforcing the publicity of bank assets, If the public thought it desirable" but he was opposed to any law that would force banks to make public lists of their stock holders.
 Do you favor the principle of controlling concerns through hold ing companies?" asked MT. Inter myer.
 Generally speaking" said MT. Davidson, T have a prejudice against holding companies"
 Most of the companies your firm has organized have been holding companies, have they not?" asked MT. Untermyer.
 FavOrs Federal Control.
 Yes" said Mr. Davidson, "and in this respect I want to qualify my opinion. On general principles l don't believe in holding companies, but I think there are circumstances which make a holding company the best means of handling situation"
 Do you believe three or four or half a dozen men should be allowed to monopolize any industry so long as they don't operate through a holding company"
 'I don't know how you could pre- vent it, if they had the financial backing and ability to do it.
 "I have no objection to it; if it was wrong it could not live. I see no necessity for a law to prevent it."
 Are you opposed to trusts?" asked MT. Untermyer a few mo- ments later.
 q wouldn't say that I was wholly in favor of them in the making, but I was not opposed to them after they were made. I think they were a great blessing to the country"
 Mr. Davidson further said he thought it was unfortunate for the people of the entire world" that the courts interfered with the trusts, as they have done."
 Do you think it was wrong for the courts to interfere?" MT. Un- termyer asked.
 No" he replied, but think it could have been approached better from the other direction, by reg ulation, not disintegratlon. You can not any more dissolve those trusts in effect than you can move the continent across the Atlantic ocean"
 Mr. Davidson said he believed a law forcing banks in reserve cities to be independent and forbidding combinations through interlocking directors that would "set us back 15 years"