The Washington herald., 1914-08-13
WARBURG SHOWS
SELF ASALIRUIsT
Tells Senator's He Has Dr.
vested Himself of All
Financial Interests.
MOTIVE SIMPLY REFORM
Appointee to Federal Reserve Board
Says-He's Glad to Be QuixOtic
for Sake of Result

Paul NJ. Warburg's testimony before the
Senate Banking COMMITTEES. made public
yesterday, revealed that as member OF
the new Federal Reserve Boarl he Will
diyest himself of every financial interest,
although not required by law to do 50.
Mr.. Warburg said he had made ar
rangements to sever all his banking con-
nections, even to sell all his bank stock,
and retire from the European firm with
which he has been connected for twenty
years.
Senator Reed-May 1 ask what your
motive is. or your reason for making that
sacrifice?
Mr.. WarburK-My motive is that
have. as you know. taken a keen interest
In this monetary reform since / have
been In this country. / have had the
success which comes to few people Of
starting an idea and starting II so that
the whole country has taken II up and
IL has assumed some tangible form.
Senator Hitchcock-You have enough
to live on. Mr.. Warburg, during the next
few years?
Senator Pomerene wanted to know
what prejudice Mr.. Warburg had in mind
when he said that he never had thought
that he would be considered for the
Reserve Board.
Explains Prejudice.
THE prejudice which is rampant in
the country that a Wall Street man is
n Wall Street man always" said Mr..
Warburg, and that you have to be
afraid of him: that Wall Street man
would have money trust ideas, or other
IDEAS 1hf.h
the high ethics of other people. Gcner-
ally speaking. the country is preJudlced
against Wall Street, and l do not know
whether my record has shown that !
deserve the confidence or not, but any
how II is one OF the things that Lempc
me to show that a Wall Street man does
deserve the country's confidence in carry
ing on this thing"
Senator Bristow. in his futile effort to
build up opposition TO Mr.. Warburg, re-
lied chiefly on the findings Of the So
called Pujo money trust committee. He
read large chunks of the Pujo report
into the proceedings, and about the only
result was to elicit from Mr.. Warburg
somes interesting comments on the rela-
tons of big banking houses in New York
and elsewhere to each other
THE impression which you have ap-
got from that report is not
quite correct" said Mr.. Warburg The
impression has generally gone out that
these firms work together: that one 81
them was always seeing that the other
made a profit. As a matter of act. there
is competition and Kuhn, Loeb and
Company have no interest in seeing that
J. P. Morgan and Company. who are
their main competitors. make money.
Nor are J. p. Morgan and Company in
terested in seeing Kuhn. Loeb and Com
pany make money. II anybody comes
to us who has gone TO Morgan or who
has gone to Speyer's or to Blair's. and
them, We would do as We did in the
Baldwin locomotive case. We negotiated
with them. and at the same time they
were negotiating with the Morgans, And
the Morgans won"
VIII Lose Money at Start.
Mr.. warburg added that while he was
not in accord with the conclusions Of the
Pujo committee, he was not in sympathy
with some of the banking conditions that
existed when the investigation was on.
Mr.. Warburg said his bank stock in
had not turned out well; that
he would lose a great deal of money by
being obliged to sell at this time.
Il want to know" said Senator Bris-
tow. after reviewing the details OF the
Chicago and Alton syndicate, IF you
think that is legitimate business financ-
ing?"
Mr.. Warburg declined to be drawn into
passing judgment on that.
Il told you in the beginning" said Mr..
that I would not discuss the
affairs OF our firm"