Evening star., 1933-01-27
BANKERS BLAMED
FORLABOR STATUS
InterIocking Directorates Are
Traced to Show "Strangle
Hold" of Financial Group.

Continued From First Page.)
banks, public utilities, insurance COM
panies and other corporations, Frey
said:
Private banks dominate or are ir
position to dominate these public
banks
He listed the eight banks as the Bank
Of America National Association. Bank
Of Manhattan Trust Co.. Bankers Trust
Co.. Chase National Bank, Chemica
Bank & Trusf Co.. Guarantee Trust
Co., National City Bank and the New
York Trust Co.
The 310 directors In these banks
Frey said. hold 2s7 directorships ir
insurance companies, 30l in Other
banks, 52l in public utilities. 5s5 In
railroad, steamship. airplane and other
transportation companies, S46 In manu-
featuring corporations and 120 in other
corporations.
Frey then listed "a other New York
banks whose directors. he said. hold
$3.50 directorships.
To show what he contended was the
dominant position held by private bank
ers in the affairs Of commercial banks
Frey said private banking houses held
directorships in commercial banks as
follows:
Brown Bros, Hartman g. Co., IA.
Dillon-Reed Co., 9.
Goldman Sachs, 5.
Hallgarten & Co., 2.
Kissel Kennecutt g. Co., 2.
Kuhn-Loeb & Co.. 4.
Lodenburg Thalman, l.
Lee Higginson g. Co., 6.
J. p Morgan g. Co. IL.
j. Henry Schroeder Banking Corpora
ton, 4.
j. and w. Seligman g. Co., 4.
Speyer & Co.. 8.
White, Weld g. Co., 4.
Directorships Interlock.
These directorships. Frey added, in
terlock so that while Morgan has nc
dectOrs in Chase Chase they sit with
directors Of Morgan banks"
ITO give an illustration Of how these
private banks tic up with the CONNER
cial banks and through them with
other banks and corporations" Frey
said, "thc Chase National has on its
board representatives Of seven Of these
private banking houses
He listed the seven as Dillon. Reed
Goldman-Sachs. Kuhn-Loeb, Lee Hig-
ginson, j. H. Schroeder. J. and w
Seligman and White. Weld
THE directors Of Chase" he added
"hold SO directorships in other COM
mercial banks, 262 in miscellaneous
corporations, 81 In IS insurance COM
panies. including of "a directors Of the
Metropolitan Life; 1853 in manufacture
ing corporations. 1873 in transportation
companies, chiefly railroads, and 70 ir
public utilities, making a total Of S55.
DO you think they can remember
what companies they are directors OFF,
Chairman Norris asked
Director Of 125 Companies
Frey replied that one Of these d.
rectors was director of 125 companies
and banks, adding, II don't see how he
finds time even to attend the meetings. u
Frey said that Albert H. Wiggin, for
rner chairman Of Chase Bank, was the
first banker to demand that wages be
reduced" and that his influence spread
to- other bankers.
Wiggin, he said, threatened q large
publishing house that it would lose ad-
vertisipg in its magazine If it did not
aban1on an editorial policy favoring
maintenance Of wage levels
He listed banks. insurance companies
and railroads in which Chase directors
were represented, and noted that Wig
gin was a director of several railroads
and that other Chase directors were
represented on most Of the boards OF
the big railroads.
Bankers Blamed.
After listing Chase directors tie-up
y, dc NQu,
York banks, Frey said:
Had the bankers been opposed to
demand for wage reduction on the
railroads, there would have been no
such reduction
IF bankers demanded the reduction
the railroads had no alternative but
accept"
Directors of the National City Bank.
Frey testified, hold directorships on 20
railroads.
Washington Gas Control.
"The principal activity of National
City" he added, rs not so much in
railroads as in public utilities. There
they hold u.s."
Frey said he was attempting to show
"the complete tie-up between private
banks, commercial banks and the mar
NClOuS VI SOkLPdIlICn
over the producing utility corporations. u
The wealth produced by these com.
panies, instead Of going into lower rate!
or to the producing company, Is lost II
the maze Of these holding companies.
"One Of these perfect mazes is the
one built up by Chase, through the
Chase Securities Corporation and
others"
Frey gave an example Of what he
said was "how the Chase National Bank
helped to milk the gas producing com.
panies in Washington, D. c." BY "ar
Intentionally complicated method" o1
interlocking directorates
He described a complicated set-up ir
which Wiggin played prominent part
by which, he said, Chase secured contro
of the eight gas-producing companies
in Washington and vicinity "in violation
Of the letter and spirit Of the law"
Asserting that the practise Of having
directors Of the large banks sit on the
boards of other banks and industrial
corporations was growing, Frey listed
Is New York banks whose directors, hi
said, held 1852 directorships In 1899;
3,426 in 1913 and 1924 In 1881.