Jasper County Democrat, Volume 15, Number 19, Rensselaer, Jasper County, 8 June 1912 — SIX MEN CONTROL NEARLY 100 RANKS [ARTICLE]

SIX MEN CONTROL NEARLY 100 RANKS

Slimpse Into ‘‘Money Trust’s” Power Is Presented. REVEALED BY HOUSE PROBERS shown by Witness New York Clearing Hotlse Is Law Unto Itself Without Any Legal Check. New York, June 7. —Six men direct outright the policies of nearly one hundred of the biggest banks and other financial institutions in New 1 ork. They are: Frank A. Vanderlip. president of the National City bank. James G. Cannon, president of the ■Fourth National bank. ■' V alter E. Frew, president of the .■Corr? Exchange bank ' / . Richard Delafield, president of the N.-vonal Park bank. ■ ■ to T Bannard, president of the Nfe w York T*ust company. A Jiarton Hepburn, president of the N» w York clearing house and chairtrc h of the board of the Chase National bank. Js Clearing House Committee. The five first named constitute the n.- < F'hip of the clearing house committee, that all powerful organizatio- the New York Clearing House as- ciation It is the controlling body of the clearing house. Mr. Hepburn is a member of the committee exofficio by reason of his being president of the clearing house association. ■ ■

This committee directs only in name. Behind its members stand the small group of financial giants who constitute the money trust, now under investigation by the committee on banking and currency of the national house of representatives. Among them are J. Pierpont Morgan, Thomas F. Ryan, the Standard Oil interests, and George F. Baker. A clear glimpse into the far reaches of the money trust’s lair was afforded by the developments which came with startling suddenness as the result of the first day’s hearings in New York before the congressional subcommittee entrusted with the task of exposing to the nation’s view the most potential combination that grips the Country’s vitals. William Sherer on Stand. Under examination by Chief Counsel Samuel Untermyer. William Sherer, for twenty years manager of the clearing house, made admissions upon which the foregoing assertions are based. After describing minutely the phys icaf operations of the clearing house, Mr. Sherer was then led by Mr Untermyer to discuss the more subtle operations of the organization. Among other facts deduced from him were: The New York clearing house is a law utrto itself. There is no legal check on its great and extraordinary powers. It actually issues gold and silver certificates in imitation of the paper currency of the country which is used by the members of the association practically to increase the circulating medium. In times of panic ft issues clearing house certificates at will to brace up the credit of its members, or such of them as It pleases, and other financial institutions that may not be members. Is Law Unto Itself. The clearing house committee without let or hindrance can ruin any bank or trust company whether it be a member of the association or merely by clearing through members, by denying it the privilege of clearing directly or indirectly. Mr. Sherer admitted that no bank or trust company in New York—not even the strongest—could assemble a sufficient snpply of money with which to withstand a sudden run. such as would follow expulsion from the clearing house. Should even the strongest bank or trust company in the city be taken over by new owners it would not necessarily retain its membership in the association. The clearing house committee could refuse without cause to permit the old member that had fallen into new hands to remain a member. Thirteen years ago the clearing house committee arbitrarily fixed the fees to be charged by all its membwi and "nonine rubers” for the collection of out of town checks. The first year of the operation of this arbitrary rule yielded $25,000,000 to the money trust. Last year it yielded a round >50,000,000 —this for the mere cashing of checks sent into New York by out of town banks.