The star-independent. [volume] (Harrisburg, Pa.) 1904-1917, 1915-01-18
BANKING Interest GETS
100000 MILES RAILROADS
Samuel Untsrmyer Tells Federal Indus
trial Relations Commission About
the Concentration Of Money in the
United States

New York, Jan. 1S.-At the first
hearing here to-day by the Federal In
dustrial Relations Commission in its
investigation of the operations of the
great philanthropic foundations, it was
announced that Samuel Untermyer
would be the first witness. Another wit
ness at to-day's session will be Roger
W. Babson, writer on economies. The
session will be presided over by Frank
P. Walsh. chairman of the Commission.
Mr.. Walsh arrived yesterday to go
over the data obtained by corps of
Investigators at work here for two
weeks.
The commission plans to hear j. p
Morgan on Thursday and on Monday
John ID. Rockefeller, Jr.. will testify.
At subsequent hearings George W.
Perkins, John Hays Hammond. Andrew
Carnegie, DIR. Charles w. Eliot, Daniel
Guggenheim, Jacob H. Schiff, August
Belmont, John Mitchell, Louis D.
Brandeis, Professor Franklin H. Gid
dings, Samuel Gompers, Henry Ford, A.
Barton Hepburn. Robert W. Deforest,
Seth Low and many other prominent
men, as well as women, will be called
as witnesses.
Samuel Untermyer was questioned by
Chairman Walsh as the first witness.
He discussed socialism and socialistic
charity at some length. The latter, he
asserted, was necessary if the people
were to receive relief.
The large charitable foundations, Mr..
Untermyer thought, were ably man
aged and did much good. He believed,
however, that they should be reorgan-
lied and should operate under federal
charters rather than under charters
granted by States.
Speaking of the concentration of
money, Mr.. Untermyer said he knew
of a banking interest which, through
the reorganization of insolvent rail
roads. had come into the control of
100, 900 miles of railroads in the Unit
ed States. When such situation ex-
lists, the witness said, shareholders have
no power at all in the management of
the roads; the directors and trustees
were controlled entirely by the banks.
Mr.. Untermyer said he thought labor
conditions in America had been more
or less demoralized, and that poverty
had been increased by the diversion of
cash in certain directions.
"The Illicit gathering of large guam
titles of money undoubtedly has caused
considerable poverty" he declared. "It
is true. however, that in the past four
years this condition has not been so
bad. The concentration of power and
capital of any kind is grossly unfair
to labor
Mr.. Walsh questioned Mr.. Untermy-
er about the Colorado Fuel and Iron
Company.
cit has been testifed'' said the
commissioner. that certain large
financial interest did not control the
company because it only held 40 per
cent. of the stock
THAT is preposterous, replied the
witness: ''The stock is listed on the
Exchange and many shares are in the
hands of brokers. 1t would be neces-
sary for a large financial interest to
have hut 10 per cent. of the stock.
When it wants to do anything with the
eorporationit just sends around to the
brokers and gets the proxies. -
Mr.. untermyer said it was rare
when directors running a corporation
from New York knew anything ABOUT
the business. "They are just figure
heads he said.
Referring slgain to the foundations
under investigation and to his declara-
ton that they should operate under
federal charter, Mr.. Untermyer said:
They should not be given a perpetual
charter. There should be limit to their
size. They shoald not be permitted to
accumulate income. There should be
governmental representation when the
time comes for replacing the present
trustees.