Evening star., 1914-07-19
Missouri Senator WithhoIds
Approval of Presidents Sc
lection for Reserve Board.
ADMISSIONS AT HEARING
BASIS OF HIS OBJECTION
Will Never Vote for Man CHARGED
With Being Party to Vio-
lation of Law.


Senator Owen. chairman Of the banking
and currency committee. giving his
hearty Endorsement of Thomas D. Jones
OF chicago as member of the federal
reserve board Senator Reed of Missouri
last night gave out a statement in which
he carefully compares the statements
contained in the Presidents letter and
the testimony of Mr.. Jones before the
banking and currency committee. Sena-
tor Reed is one of the democrats of the
banking and currency committee oppos-
ing the confirmation of Mr. Jones be-
cause of his connection with the har-
veSter trust.
Statement by Senator Reed.
Senator Reeds statement was in part
as follows:
After the appointment of Thomas D.
Jones was sent to the Senate President
Wilson wrote Senator Owen. chairman
of the banking and currency committee.
letter with reference to Mr.. Jones,
which contained this language:
He (Mr. jones' went into the board
Of the International Harvester Company
for the purpose Of assisting to withdraw
1t from the control which had led into the
dSlS anu pIdCllCeS WHICH nave pTOuehl
it under the criticism of the law o4icers
of the government. and has been very
effective in that capacity. His connec-
ton with those acts and practices Is alb
solutely nil. His connection with it was
a public service, not a private interest
miration for his courage in that matter
The exalted character Of President
Wilson renders impossible the thought
that in making the foregoing statement
4 hest foSfh
set forth absolutely what he believed to
be the truth regarding Mr.. Jones' con-
nection with the harvester trust It
must have been on this confidence and
belief that the President acted when he
made the appointment He clearly re-
garied Mr.. Jones' connection with the
harvester trust as a disqualifying pedi-
ment. unless Mr.. Jones purpose In going
into the trust was to withdraw It from
the control which had led 1t into the
to the criticism of the government.
Interprets Presidents Meaning.
PLAINLY, the President meant in effect
to say in his letter that it was only be-
cause Jones had gone into the trust in
spired by the exalted purpose indicated
that he was entitled to be exonerated
from blame. Just as clearly it appears
that the President regarded the prac-
tices of the trust as illegal and as In
imical to the public welfare, because
he declares Mr.. Jones' connection with
1t was a public service, not a private
interest," and he has won additional
credit and admiration for his courage
in that matter.
I'm view of this letter Of the Presi-
dent it is absolutely fair to assume
that If he had not believed that Mr..
Jones had gone into the harvester COM
pany for the purpose of reforming it.
on ho uyith hiDh nurSlIpd
that purpose to successful end. he
would never have named him as a
member of the great board which is to
control the finances of the United
States.
Mr. Jones vas asked to come be-
fore the banking and currency COM
mittee hearing. II his own testi-
mony had borne out the statements
not shown to an absolute demonstra-
ton that his connection with the har-
vester trust was diametrically the
opposite of what the President be-
would have received the vote of every
democrat and of some of the repub-
lican members of the committee. To
claim any democratic member of the
committee. is opposing the appoint
ment of Jones because of .antipathy to-
ward the President is absolutely
groundless.
Comparison of Facts.
Il ask a candid and discerning pub
lie to compare the facts as the Presi-
dent believed them to be with the
facts disclosed by Jones' own testi-
mony.
In order that the force of this tes-
timony may be clearly apprehended. I
Gale attention to the following facts
admitted by Jones. His testimony
throughout shows his familiarity with
the original organization Of the COM
pany. He details how Ave great con-
Germs engaged in selling agricultural
implements were brought together in
one vast corporation through the in
strumentalfty Of ]. P. Morgan and
George w. Perkins This oSo eorIoratiHn 1oo
principal owners were Cyrus McCor-
mick. Deering and the Morgan inter-
ests. represented by Perkins.
"A voting trust was created, the trus-
tees being Perkins. Mccormick and Deer
Ing. These men were given the right alb
soiutely to vote all of the stock for ten
years. Every share of the stock was de-
posted with Morgan for ten years.
The concern when created controlled
s. to 90 per cent of the harvester ma
chinery output of the United States. The
company proceeded to gather in various
factories. to make exclusive
agency contracts. and by the methods
commonly employed by trusts promptly
CoeduiASACu il6CiA dS d IlohoPoAs oau was
able to dictate prices throughout the
United States.
These, then. were the practices OF the
company which were in vogue and must
have been the practices referred to in the
letter of the President, which the Presi-
dent thought Jones went In to reform and
change.
Jones admitted that he knew of the
bringing Of the suit by the state Of Mis-
souri, in which the International Har-
vester Company was charged with being
a criminal trust. operating in restraint Of
trade. He admits that in 1912 the Attor-
ney General informed the harvester
company that it was violating the law
and that negotiations were entered into
between the company and the Attorney
General of the United States looking to-
ward the taking Of such action by the
company as would cause it to be no
longer a lawbreaker.'
Extract From the Testimony.
Part of the testimony Of Mr.. Jones.
quoted by Senator Reed in his state
ment, was as follows:
Senator Reed-Now. Mr.. Jones. what
did you do, If anything. toward endeav-
oring to secure a dissolution of this mo-
nopoly here in the United States which
the Attorney General was charging and
was a monopoly?
Mr.. Jones-Well. / cannot claim. SEN
Continued on Eleventh PaSe)