The Washington times., 1933-01-27
SENATORS TOLD
II. HE FIRED"
!. FARRELL
Metal Union Official Charges
Big Banks Dominate,
I, Injure Industry

A charge that j. P. Morgan
forced the retirement Of James
A. Farrell as president of the
United States Steel Corporation,
as a preliminary to wage reduc-
tions in the steel industry, was
made today at Senate hearings
on the Black bill for a COM
pulsory five-day week.
John P. Frey, of Cleveland,
secretary-treasurer Of the metal
trades department Of the Amer
lean Federation Of Labor, was
the witness. .
Frey pointed out that Farrell
retired from the steel corpora
tion's presidency soon after he
had made a speech in 1929 vigor-
ouSly opposing wage cuts.
Wage Cut Sequel
The witness then offered tes-
timony that three Of Morgan's
partners were directors in the
steel corporation. Frey said:
"SOOn after Farrell stepped
out, the corporation began
sIaShing wages"
An intricate system Of inter-
locking directorates between lead
ing private and commercial banks
Of New York and thousands Of
business firms was revealed by
the witness.
These firms included public
utilities, railroads and other
transportation agencies and man.
ufacturing establishments.
Frey read telegram from w.
E. Soderstrom, secretary of the
Gibbs Press, Inc, New York city,
asking to appear as a witness in
the inquiry.
SoderStrom declared he could
furnish list Of New York banks
refusing to cooperate with indus
try"
Lists Dominant Banks
Frey charged that a few large
private banks in New York city
dominate or are in a position
to dominate eight large CONNER
cial banks"
The commercial banks were
listed as the Bank of America,
National Association, Bank of
Manhattan Trust Co., Bankers
Trust Co., Chase National Bank,
Chemical National Bank and
Trust Co., Guaranty Trust Co., Ma
tional City Bank and New York
Trust Co.
These eight banks, Frey de.
clared, in turn exercise control
over 3,741 other banks, insurance,
transportation and manufacture
ing companies through director
ships. He added:
~ am working on a larger
List Of "a banks holding $3.50
places on boards of corpora
tlOns over the country"
The list Of 3,741 directorships
included 381 on other banks, 521
on public utilities, $50 on trans
portation companies and 846 on
manufacturing companies.
Chase Lineup
The Chase National Bank has
representations of seven private
banks on its board, Frey stated.
The private banks represented
are Dillon, Reed & Co., Kuhn
Loeb & Co., Lee Higginson, White
Weld & Co., Goldman-Sacks, s.
II. Schroeder and S. and w.
Seligman.
Frey declared:
"TO show how these private
banks, commercial banks, and
industrial and business firms
are tied together by interlOck-
ing directOrshipS, let me point
out that the Chase National
has a total of 855 directOrships
in business firms.
"They include SO director
! ships in other banks; 81 in IS
insurance companies including
! six of the "a places on the
board Of the Metropolitan Life;
236 on manufacturing corpora
tiOns; 1873 on transport agencies
A4ACAuSAAAAS AoAA O0NSS OGCnAAS11p
lines and airpIane transport; 73
ON public utilities, and 262
miscellaneous"
The witness described the rela-
tionship Of the Chase Bank and
the railroads as an example of
j bankers control generally. He
: added:
Links Banks and Cuts
eff the banks had been Op-
posed to cuts there would have
been no cuts.
! There is a complete tie-up
between private bank, CONNER
cial banks and the marvellous
structure of holding companies
over the producing utility COM
panies.
| ''The wealth produced by
! these companies, instead Of 60
ing into lower rates or to the
! producing company is lost in
the maze of holding companies.
|. .-"The domination Of industry
by private and commercial
banks can only be fairly graSped
If this structure Of interlOcking
! dictatorship is studied in de-
tail"