Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1913-08-27
MONEY TRUST IS
CAUCUS WAR BASIS
Twenty N. J. Banks Have Di.
rectOrs in N. Y. Bank in
S4O,000,OOO,OOO Pool.
INSURGENT DEMOCRATS
WANT SYSTEM ABOLISHED
ProgressiVes Plan FiIibuster
Tactics to Delay Currency
Bill Indefinitely.
Star Bureau,
Metropolitan National Bank Bldg.

WASHINGTON, Aug. 81.
Through interlocking directorates
twenty New York banks have
representation on the boards of di-
rectors of financial, public utilities
and industrial corporations with a
total capitalization of nearly forty
billions of dollars.
The great corporations controlled
by these twenty-seven banks through
interloclIing directorates include more
than 300 banks, trust companies and
insurance companies, with capitali-
zation of over nine billions; about 500
railroad nd utility corporations with
a capitalization of more than twenty
billions, and nearly 300 industrial
corporations with combined capital
of nearly eight billions.
Twenty New Jersey banks, trust
companies and insurance companies
have directors who are directors or
officers in one or more of these TWEEN
ty-seven New York financial insti-
buttons.
Fifty Vote for Amendment.
These are the conditions which
form the basis of the insurgent fight
in the Democratic caucus. The in
surgent Democrats demand that the
pending currency and banking bill
shall forbid interlocking bank direc-
torates. Something like fifty Demo-
cratic representatives voted for such
an amendment in the caucus. A
large proportion of these fifty have
served notice that they are not bound
by caucus on this question and will
carry their fight to the House, where
they expect Republican and Progress
sive support. If defeated in the
House, the fight against centraliza-
tion of the money power in New
York through the medium of inter-
locking directories will be carried
to the Senate.
President Wilson is opposed to any
provision in the pending bill affect
fig the Capitalization of bank control
through affiliated directorates. He
does not want this method, which the
insurgents charge with giving the
money trust its greatest power, in
terfered with by the pending Leg
islation. He has insisted that
this question should be left to
be dealt with by itself next
winter Acting under his orders, the
organization leaders in the House
caucus side-stepped the issue by or
dering the interlocking directorate
amendment referred to a committee
which is to report a bill on the sub
Ject at the next session of Congress.
Plan to Renew Attack.
While the Democratic insurgents in
the caucus have abandoned their fight
for permitting national banks to ac-
cept corn. wheat and cotton ware
house receipts as security for loans,
they are planning to renew their at
tack on the money trust. At least
one Democrat, L'Engle of Florida,
has refused to attend the caucuses.
An attack of rheumatism gives him
valid excuse for his non-attendance.
Half a dozen others whose records as
progressive fighters are unassailable
have told The Star correspondent
that they will refuse to be bound by
caucus to vote for bill unless it in
cludes the clause forbidding inter
locking directorates. If the caucus
refuses to give them permission to
vote for this amendment on the floor,
they declare they Will bolt the caucus
and attack the administration and
its big stick methods in the open
House.
While the Democratic insurgents
are trying to organize their forces
for the final fight in the caucus, the
PrOgreSS1VeS and Progressive RepuD-
licans in the House and Senate are
planning an attack on the admins
tration bill all along the line.
Predict Bill VIII Not Pass.
Despite the confidence of the Presi-
dent and administration leaders that
they have successfully steam-rollered
all opposition and are going to put
their bill through speedily. predic-
tions are being made that the meas
IRE will not be passed at the present
session of Congress.
There is little or no opposition left
to the bill on the part of the conserv-
atives in either the House or Senate.
Practically all of the men who are
planning to fight it are basing their
fight on the declaration that the
measure is purely bankers bill,
which will benefit nobody in the
country but the bankers, and will
curtail no part of the power of Wall
Street and the money trust, which
they declare now exists.
Republicans and Progressiyes who
do not believe the bill to be more than
a makeshift will attack the methods
by which it is being damned through
Congress, as well as the merits of the
bill itself. They will recall that in
his address to Congress the President
urged the members to write legisla-
ton on the currency, assuring them
that he had no specific remedies to
rronose and that the question was a