The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-07-30
CHARGE OF WAR PLOT
BY BANKERS FAILS.
Labor "Peace Council" Ac-
cused Morgan & Co. and Re-
serve Bank Officials.
BOARD DENIES A r


Reserve Board virtually dismissed the
complaint filed with II by the so-calied
labor National Peace Council. the or
sanisation recently launched to conduct
propaganda against the exporting OF
VA munitions. The complaint was
aimed chiefly at J. r. Morgan a Co..
who, It was charged. were using the
Federal reserve banks in a conspiracy
against the neutrality OF the United
States through supplying war munitions
TO the Allies.
The peace council was brought into
being by ex-Representative Robert
Fowler n Representative Buchanan.
both OF Illinois.
Among those who have been consp!c-
Gus in its activities In Washington have
been Hermann J. Schulteis and Henry d.
Martin, who were the prime movers
OF an organization known as the anti
trust league, which was warmly sup
ported by David Lamar. the wolf Of
Wall Street" who was convicted not
long ago OF having imp%ersonated Repre-
sentative A. Mitchell Palmer. Lamar
10 o out on bail pending an appeal
from his conviction and sentence.
Martin and Schulteis were frequently
seen in company with Lamar during his
days OF activity in Washington and
were associated with him in his sue
cessful effort to bring about an In
vestigation OF the United States Steel
Corporation.
schulteis was active in distributing
copies OF the peace councils complaint
a1~t,et u Nornan Il 20 Pa yAnrA-
ssntatives Of the press.
Repudiated by Gompers.
. Samuel Gompers on behalf OF the
American Federation OF labor already
has repudiated the peace council so far
a. the federation is concerned.
The s~o-called peace council charged
In it's complaint to the Federal Reserve
Board that the neutrality OF the United
States was being violated by the issu-
ance Of Federal reserve notes and the
making OF loans by national banks In
furtherance of the expectation OF NUM-
lions.
The document charged that J. p.
Morgan a Co. was responsible for loans
discounts and advances by member
banks amounting to $500 600 600. ana
also for the arrangement of 100000 600
OF rediscounts by Federal reserve banks.
all of which 1t was commended had been
used In pursuance OF transactions In
support of the allied Governments.
II was charged that the conspirators
included bankers and officers and direc-
tors of the Federal reserve banks and OF
the member banks embraced In the Fed
eral reserve system as well as officers
and agents of the allied Governments.
In effect. the so-called peace council
Insisted that the Morgan firm was using
the credit and machinery of the Federal
reserve system to assist in the supply
ing OF enormous supplies OF war NUM-
lions to the Allies.
Governor Hamlin of the Reserve
board sent a letter to-day to Mr.. Fow-
Ter. counsel for the peace council, In
which he said:
81 am directed to say In reply that
after Analysing and considering the
and allegations contained
therein, the board has concluded under
advice OF counsel that II is without
jurisdiction to try the case presented
and that II is not within its power under
the laws OF the United States TO impose
by regulation the restrictions which you
seek to have imposed upon the opera
tons Of either Federal reserve banks or
national banks Your request for a
public hearing is accordingly denied"
Ask~ Names Of Directors.
Gov. Hamlln adds that he has been
directed by the board to repeat a re-
quest contained in a letter previously
written to Mr.. Fowler asking him 10
furnish forthwith the names OF all d.
rectors whom YOU charge In said petition
with having personally profted from
rediscount transactions OF certain Fed
eral reserve banks
In their complaint the peace council
charged on this score that Officers and
directors OF member banks and Federal
reserve banks had aided and abetted tho
conspirators and that the said officers
and directors AVE been induced 30 10
do by the consp!rators In some cases
through personal profit, to be derived
from the transactions"
The Federal Reserve Board naturally
would be interested in this charge, II
true, because It would constitute a viola
ton OF law.