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GOVERNMENT SENT MONEY MORGAN IS SAID OTOHAVELOANED Cortelyou, Former Treasurer, on Stand in Money Trust Hearing MORGAN'S PARTNER ALSO TESTIFIES Banks Which Received Money Agreed to Loan to Stock Exchange on That Day-Morse Offered to Reimburse Depositors New York, June 13. Evidences intended P to show that the $25,000,000 which J. Morgan has been generally credited with placing upon the New York stock ex change during the panic of 1907 was really supplied by the treasury of the United States was introduced today at the hear ing of the Pujo committee of the House of Representatives in the so-called money trust. Sainuel Untermyer, counsel for the cont mittee, obtained from George B Cortel you, Secretary of the Treasury under the Roosevelt administration, the assertion that he "understood" that the money loaned by the overnment to the banks at that time was to be used upon the stock exchange From the New York sub -treasury the attorney secured statement showing that on the day (October 24) on which Mr. Morgan told R. H. Thomas, resident of the exchange, to announce the $25,000.00 loan to the exchange loan brokers, the government had deposited with the banks nearly $29,000,000. From Charles Steele a partner of J. P. Morgan, he obtained statement showing what 14 banks had "agreed loan' to the stock exchange on tha The unt 'agreed to was $23. 550,000 amount actually loaned `statement was $18,945,000 accord All th banus. the -treasury state ment had previously rece ved de posits government money The statement from the sub-treasurs was obtained after M Untermyer had failed to procure from Mr. Cortelyou the names of the banks in which he deposited funds which the witness tes tifled amounted to about $42,000,000 during the panic. Mr Cortelyou could not call specifically what banks received the money The list furnished by Mr Steele includCity National ed the National First the Hanover National, the National Bank Commerce and several others which Mr. Untermyer noted as having Morgar affiliations. The attorney into record from the two lists showing that on October 24 the First tional had received $9,250,000 deposits, had agreed loan' on the stock hange $4,000,000 and had actually loaned $2,680,000 He made similar compurisons for other banks. Morse Offered to Refund Evidence that Charles W Morse made an offer comptrolle of the currency pay off all the depo of the failed Bank of North America was with connection the in given by Charles Hann Letters the of the had refused the offer. although Mr. Morse told that if would deposit his the with the would see that the depositors were then protected. After hearing the testimony of witness in regard to practices of the New York Stock exchange which Mr characterized as 'contrary to the law the land, the hearing WAS adjourned sine die Chairman Pujo announced that future hearings will be held in Washington. The main line of inquiry relating to the concentration of the control of the money and the use of the Industrial Corporations that end has not yet been touched upon any extent, he said. That must await the removal of questions of power of the the passing of pending bill, and he followed by months investigation. The Inquiry upon branches relating to the learing also exchange stock and That as to the stock has bare. ly begun The committee hopes and pects in the end with the aid of further power to secure the data on which base permanent legislation Cortelyou on Stand George B Cortelyou, Secretary of President Roose under Treasury was called the stand today at the hearing of the Pujo committee tigating the money trust to tell the manner in which the ment deposited $25 000.000 the New York national banks to Help stem the panic of 1907. Samuel Untermyer 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 poor subject was Witness said he came here on the night of October 22 1907, and had a conference with J P Morgan James Stillman, A. Barton Hepburn, George F Baker George W Perkins, Frank A Vanderlip and other financiers. After inquiring into the general situation promised the gov nment would aid in a general way The next evening he said, another conference took place. He was not sure that Mr. Morgan was pres. ent then At this conference witness said, he promised $25,000,000 for dis. tribu tion among the banks. 'At the he ference, con explained. first stated would not deposit dollar cept for the relief of the country gen. era 'Was there anything said where the funds should be deposited. with what companies? do not remember Witnesses and Attorney Clash Mr Untermyer asked if anything was said about the high rate of call money and the effect on the stock exchange of the failure to get money here M Cortelyou started to give an explana tion and was asked sharply to reply to the question "You know, Mr Untermyer, he said, there are questions cannot anwser yes and no to without doing myself injustice have right to plain and propose to exercise that right This brought forth cheers from the brokers and looking on and declaratic from Chairman Pujo that would have ejected repeating it Mr Cortelyou said finally: He probably did have such discussion. He could not recall, however, the deCortelvou upon being
