Jasper County Democrat, Volume 15, Number 21, Rensselaer, Jasper County, 15 June 1912 — GOVERNMENT LENT MORGAN MILLIONS [ARTICLE]

GOVERNMENT LENT MORGAN MILLIONS

Cortelyou Tells How Banks Were Aided in 1907. BROKERS STIRRED BY STORY Ex-Secretary of Treasury's Memory Proves Faulty—Could Not Recall Just What Institutions Received the Money. New York, June 14.—Testifying before the Pujo congressional committee investigating the money trust, George B. Cortelyou, who was secretary of the treasury at the time of the 1907 panic, during the Roosevelt administration, told how the governmentlent J. Pierpont Morgan the £25,000,000 which Morgan in turn lent to banks and thus broke the backbone of the panic on October 24. 1007, sending call money down from 125 to 6 per cent. Samuel Vntermyer, counsel for the committee, attempted to learn the names of the banks in which the money was deposited, but Mr. Cortelyou said his memory on this subject was poor. ’ Promises $25,000,000 Aid. The witness said he came here on the night of October 22, 1907, and had ft conference with J. P. Morgan, James Stillman. A. Barton Hepburn. George F. Baker, George W. Perkiris, Frank A. Vanderltp and other financiers. After inquiring into the general situation, he promised that the government would aid “in a general way.’’ The next evening, lie said, another conference was.held. He was not sure that Mr. Morgan was present then.

At this conference, the: witness eaid. he promised. $25,000,000 for distribution among the banks “At the firs’ conference,’’ he .explained. “I rated that I would not deposit a dollar except for the relief of the country generally and the commercial rornnu-.ni’y generally.” Feared Doing Himself Injustice. Attorney Vntermyer asked the witness if anything was said about the high rate of call money and” the effect on the stock exchange of the failure to get ntoney here. Cortelyou started to give an explanation, and wa’s asked . .sbariil.?’ to-reply to the question.. 1 ; ‘ ; “You' know. Mr I’nferriiver.” he said, 'here are qugstions I cannot anyes or no doing tnvself an injustice. 1 bare a right to make an explanation 'of rny< position, and I pre ose ’pr exercise that right.” Mr. Cortelyou finally said he “probably did have such a discussion.” but cr>H;d not r r .--all /the details. Referrec! to Treasury Banks. Corio,you,, on ueing press, d for a list qt th' bati’is in which the $25,000,000 ,w:;s deposited finally referred Mr. I. ntermyer to the records of tie treag’j: v dej :;n'.ent. “J only rememthe . witnes’si said, “that ;the money was deposited., in. national banks I could not undertake to say which ones.”