The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1913-01-17
Concentration of Capital Is
Defended by the Head
of Firm of Kuhn,
Loeb & Co.
BANK DEPOSITORS
PROTECTED BY LAW
Admits That Cash Recently
Has Been Concentrated
in Few Hands

WASHINGTON, Ian. 1s.--Liberty OF
individuals to concentrate money and
power tc the limit of their ability was
trust Investigating committee by Jacob
Fl. Schift of the Arm OF Kuhn, Loeb &
Co. Mr.. Schiff- declared individuals
should be allowed to exert their ut
most efforts to concentrate fortunes and
power until the laws ofsnature caused
the attempted monopoly ito fall Of its
own weight He opposed concentra-
ton through corpora tions and holding
companies. He could not say whether
concentration had vet reached the point
where 1t was dangerous.
Mr.. Schifr took. the view. that depos-
ciently under the present Law 'if ad-
ministered by and kept up to the teach
ings OF experience He thought there
was no objection to one bank selling
securities to another bank which IT
owned. as prudence would prevent
much OF doubtful security. and that
no further law was necessary.
TOO MUCH Law
TOO much law he said, 'can crush
the life out of a bank
Mr.. Schir admitted he had observed
the concentration or control OF money
and credit in the last few Years into
the hands Of few corporations and
that These corporations had been CEN
tralfzed in the hands Of few men.
Has this been subject of concern
TO your asked Mr.. Untermyer.
NO. 1T has not"
would It be subject of concern IL
1t continued until all control was In the
same hands?s'
IT can't answer that question: said
Mr.. Schiff.
When asked II he had considered the
effect OF concentration on his own
credit Mr. Schiff answered, 81 do not
require credit.
Mr.. Schiff said he thought the more
publicity we can have about banks the
better. He was opposed to one bank
owning another and was opposed, as a
rule, to all holding companies.
Il believe in individual freedom" he
said. IF an Individual goes too far, the
laws Of nature will interfere. The
first great attempt at monopoly was
the tower of Babel. That fell OF its
own weight. Every individual monop-
oily will do the same when 1t reaches
that point
NEVER THOUGHT OF THIS
Have you ever thought what would
happen while such a monopoly was
growing and when 1t had fallen Of its
own weight"
NO, 1 never thought of that an
swered Mr.. Schiff.
Mr.. Schiff's testimony followed that
of George Ell. Reynolds of Chicago. who
told the committee he believed the con-
centration of money and credit now
had reached a point where 1t was
menace to the progress of the coun-
try
The committee adjourned until next
Wednesday and probably will conclude
its hearing Friday. after which it will
begin formulation of its report
What are the ethics of the banking
business In connection with bond
issues?" asked Mr.. Untermyer during
the inquiry.
1T is mot considered good FORM"
said Mr.. Schiff, ito create undue in
terference or competition by banking
Arm"
He added that big banking houses
had corporations as their clients.
and that no other bond house would
endeavor to take the issue from the
banking firm recognized as the usual
fiscal agent of the corporation.
ROCKEFELLER TO TESTIFY
At the outset of the examina ton
Chairman Pujo announced that plans
for taking the testimony of William
Rockefeller will be made when the
committee reassembles next week
George M. Reynolds, president OF the
Continental and Commercial National
bank of Chicago, testified that the cap
ital OF his bank was $21 100000 and its
surplus 100000. An affiliated trust
company and an affiliated savings bank
he said. had s4.5o0.000 between them.
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EATAY " cyr-