The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-01-30
Morgan Representative Says
Customers Of His Firm
DO Not Need 1t.
GIMBELS FAVOR PLAN
Cashier Of Henry Siegel 4 Co.
Flatly Contradicts Vogel's
Testimony.


told the Senate Banking Committee. in
ves,igating private banks. yesterday that
in his opinion supervision OF the large
banking houses In the Wall street dis
trict was neither desirable nor desired.
| The class of people who keep money on
deposit with j. +. Morgan Co and
similar institutions know exactly what
they are doing and do not seek them TO
bank their savings.
| Jacob GImbel OF Gimbel Bros. who
conducts n private bank in connection with
their department store testified that his
| firm welcomed any kind OF supervision
| AT any time. Mr.. Gimbel said his firm
has s550.000 on deposit and that II is
80 invested that the depos!tors can be
paid of dollar for dollar at any time
None OF II is lent to the mercantile es-
| blishment
| The testimony of Jacob Markell OF
Markell Bros completed the testimony of
private bankers Mr.. Markets bank IL
not exempt from supervision under the
present law and he spoke OF It as d
hardship.
Has Check Accounts.
! Mr.. Glmbel was the first witness He
, testified that interest is allowed on all
deposits over month in the Climbed pri-
vate bank and il is paid semi annually.
pass books and allows Withdrawals by
checks ut is a regular banking bust
ness" he said
How do you invest your deposits
asked Daniel l.. Hays for the commit
tee.
we invest the money in safe securi-
ties" was the answer. "and deposit the
cash in the Knickerbocker Columbia
Trust Company. the Fifth Avenue Trust
Company and the Franklin Bank OF
Philadelphia Everything is In such
shape that Il is possible for us 10 pay
every depositor one hundred cents on the
dollar Al any time
Mr. Gimbel. closing. said:
81 am wholly in favor OF having pri-
waite banks placed under the control OF
the state Superintendent of Banking
Mr. Porter declared that he did moi
thing it right to class firms like J. +
Morgan * co. With banks which do q
savings business
Business of Morgan Firm.
/, we do n general banking and loar
business" he said. deal in foreign ex.
change issue letters of credit and sci
railroad and other bonds. We have moi
done much underwriting in recent years
The purchase and sale OF railroad bond'
; Is our principal business.
There il very large foreign ellen
| tele" Mr.. Porter said. and the books
OF the Arm are the same rs the books %
any incorporated bank. The firm accepts
some deposits and pays per cent. oi
ordinary deposits and per cent OF
those subject TO ninety days nHice o
, withdrawal"
Mr.. Porter said he could not tell how
. large the deposits are now. II wa
admitted before the PuJo committee
, that sometimes the deposits exceed
,, What are your minimum deposits?
he was asked
Mr. Porter said few deposits. If any
. fell below $4,000 or $4,000. The nrn
4 could not AFFORD TO handle less tha
: SIS .OcO. Firms like ours are not dom
9 business with the class Of depositors yo
are seeking to protect" he told the com
o fnIttce because n few dishonest me
= become private bankers should not max
o the real private bankers liable 70 legis
K lation that would hamper the proper con
( duct Of good business
What do YOU mean by real bankers /?
asked Mr.. Hays
II speak OF firms like j =. Morgan
CO. Kuhn. Loeb & Co. Sehgman n 60
Brown Bros and dozen more like then
" Favors Proposed Plan.
i consider that the plan already dis
/, cuss.d viii be effective" he added, "tha
n -. placing private bankers who pay In
II tcrcst ON deposits less than $1,000 an
who display "A banking sign, under IN
= same supervision as state banks. | d
e not think they should be made to compl
z with the same regulations, howevc
r, They should have little latitude, ut
= should be under the supervision OF N
v Superintendent of Ranking"
e f. l.. Champion. cashier of the bank {
. Henry Siegel & Co. said the first he kne
II OF collateral TO secure the loans OF N
Siegel enterprises was about three week
n before the failure. when Frank T.. Nog,
n handed him sealed envelope. He opene
e this envelope few days later and foun
e statements that the $4,000 shares
e Siegel stores Corporation common wer
security for all the claims This was
direct contradiction OF Nogers testimon
hefor. Judge Holt. when he declared Il
security had always been up
r. Champion also swore that BY order
of Vogel. Henry Siegel never received
bank statement Why this was
N did not know Champion also test
If fled that their excess deposits went
p the stores
ii The committee adjourned without dat