New-York tribune. [volume], June 12, 1919, Page 3, Image 3

About New-York tribune. [volume] (New York [N.Y.]) 1866-1924

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RENT PROFITEERING
If thia condition exists let us
Mt tofether and stop it
HOW?
We Have the organiiation and
facilitiaa t?r **?? making of
BUILDING LOANS. All we need
:. vour money. The more you
trnt in our GUARANTEED
flRST MORTGAGES the greater
Bttsnber of spartmenta we can
BuVnOW--DON'T WA1T
Even $100 will help.
"J5 yt'ir-< aeithaul loss to an
ir.frstor."
LAWYERS MORTGAGE CO.
RllH-KP M. HIKD, I'rf-nldent
Cspital, Surplus & Pr. $9,000,000
js uorr
'. Mor.liiuf St . Bkn.
j freaty Leak
\ Is Cleared Up
Verv Quickly
j Continued from preceding page
ners of the Morgan Banking Company?
Who are the members?
Mr. Davison: There are, I think,
thirteen.
Senator Borah: An unfortunate num?
ber.
Mr. Davison: No. we regard that as
rery fortunate. Whatever the number
il, it ia fortunate.
Senator Borah: You stated, as I un?
derstood, that you were no.t only in
tarested in this matter hy reason of
your connection with the Red Cross,
but also by reason of your position as
in international banker?
Mr. Davison: I had no question
whatever as to my right to have a
eopy of that treaty as the chairman
qf the boar.i of the League of Red
Cross societies. That was the primary
interes. that I had in the matter.
Sen.tor Borah: That was primary,
but you did not undertake to divorce
yourself from your situation as an in?
ternational banker also?
Mr. Davison?I did not.
Senator Borah?You have stated that
you were interested in this general or
gaaization of the financial interests in j
order to meet the situation which may \
arise. Have you discussed that matter i
with any one ?
Mr. Davison?I have, with very many
peopie.
N'o Light Gained on Finance
Senator Boran ?The treaty did assist
you in obtaining a more accurate
knowledge as to the situation?
Mr. Davison?As to the treaty with
'Germany, not as to the financial situa?
tion.
Senator Borah?You came by this,
treaty, as you felt, in a legitimate way? 1
Mr. Davison?Absolutely. i
Senatcr Borah?I read in the Presi- j
dent's telegram of June 7 the follow-1
ing: 'Anyone who has possession of j
the official English text has what he j
is clearly not entitled to have or to
communicate.' You do not feel that
that is a just statement with reference
to yourself?
Mr. Davison?I certainly do not.
Senator Borah?Did you hear of any
other copies of the treaty in New
York?
Mr. Davison?Yes.
Senator Borah?How many?
Mr. Davison?I do not know how to
answer that. I do not know how many
I heard of. I do not know how many
there are there.
Senator Williams?Did not pretty
nearly every man on Wall Street pre
tend to have a eopy, whether he had oi
not?
Mr. Davison?No, I think most of
them now pretend not to have copies.
(Laughter.)
Senator Williams?Well, a week ago
they were ail pretending to have them.
Senator Borah?You have no doubt:
that there are a number of copies ;
there, have you?
Mr. Davison?I have not the slightest
doubt of it.
Copies Promptly Dispatched
Senator Borah?How long have they -
been there?
Mr. Davison?I auppose they have'
been there since the first steamer ar?
rived upon which one could have left
Paris after May 7.
Senator Borah?Have other interna?
tional bankers of New York, other
firras, members in Paris like Mr. La
ttont, advising the peace conference?
Mr. Davison?Not that I know of, and
I eill say this, that so far as I know
there is no eopy of this in finan?
cial circles in New York. I have never
beard of any.
Senator Borah?The copies that you
bave reference to are outside of bank?
ing circles, then ?
Mr. Davison?Yea.
Senator Borah?Except the one which
you had yourself, of course?
Mr. Davison?Exactly.
Senator Borah?What position does
Mr. Lamont hold in this matter at
Versailles in making this treaty? What
is his position?
Mr. Davison?He is a representative
** the Treasury.
Senator Borah?Is he an officer of
tne government?
Mr. Davison?You are better able to
Jndg* of that than L I do not know.
Senator Borah?Don't you know
*hat position your partner holds?
Mr. Davison?I am sorry that I do
**t- I know he is a repreaentative of
tbe Treasury in connection with this.
Still Representa Morgan
8er?ator Borah?He is also the rep
Waeatative of Morgan and Company, is
b? not?
Mr. Davison?No.
Senator Borah?He has not ?owered
his connection with them, has he?
Mr. Davison?No.
Senator oBrah?Whatever informa?
tion he gets there, through the consid
eration of financial questions, he may
transmit for the benefit of Morgan &
Co., may he not?
Mr. Davison?I do not know just how
to answer that. I will say that, so far
as my information goes, there has been
none transmitted, because I do not
think there is any.
Senator Borah?Whatever informa
has not severed his relation?
Mr. Davison?He is a member of the
firm of Morgan & Co.
Vanderlip Says He Did Not
See Treaty; Takes Rap at League
Mr. Vanderlip denied that he had*
possessed or seen a copy of the treaty.
Senator Hitchcock asked him if he
thought, there could be a "united effort
on the part of the financial interests
of the United States to assist the man?
ufacturers and agricultural interests
of the country in supplying a credit
under which the European countries
can buy American products?"
"I would not put it quite that way,"
replied Mr. Vanderlip. "There is the
most desperate need of assistance, not
only by the United States but by other
countries that can supply things that
are needed to start the industries
of Europe. A situation exists there
that is threatening the civilization of
Europe."
Senator Knox?Do you think we
ought to guarantee their politieal in?
dependence and territorial integrity
aa a part of this scheme?
Mr. Vanderlip?I do not.
Senator McCumber?I wish, if you I
have no objection, that you would in- !
dicate to the committee just what you j
think ought to be done. financially, in j
order to accomplish the purposes that j
you have mentioned in helping Europe,
and also helping ourselves in dispos- j
ing of the products of our own mills
and factories and so forth.
Mr. Vanderlip?I feel that the situa?
tion in Europe is such that Europe
must be regarded now as a whole; that !
it will not do to aid one country, or j
even a group of countries, and leave !
others unaided. There is a paralysis j
of industry in Europe that leads to a I
lack of production, to idleness of men,
to want, and will lead, when that be
comes acute enough, to politieal
trouble; so I think we should regard
the situation as a whole and make an
endeavor to furnish the necessary
things to start industry as a whole.
"Now, the financial situation of some
of those countries is pretty bad. I do
not believe that tbis government or
American investors should lend at the ?
rresent time to those nations to re
habiluate their domestic financial sit- !
uat^ens. What is needed are those '
things that are essential to starting
industry?raw materials, machinery '?
and equipments for the railroads. The '
breakdown of transportation is one of
the series difficulties in Europe. Per- I
sonally. I think it would be better that
investors furnish this money directly
than if it were furnished indirectly
through further government loans. j
There is a disposition in France and i
in England to feel that it wouid be I
wise and just for us to fcrego the de- j
r'&nd for the repayment of the large ?
amounts of money we have loaned.
Senator Borah?What is that? I did'
not understand that statement.
Waiving of Loans Hinted
Mr. Vanderlip?There is a distinct |
feeling in France and England that it j
wculd be a just thing for us to forego |
asking the repayment of the large i
amount of money we have loaned.
Senator McCumber?At any time, or ']
just at the present time?
Mr. Vanderlip?No, sir. I mean
really forego it.
Senator Harding?Upon what theory,
Mr. Vanderlip?
Mr. Vanderlip?That theory is vari- j
ously expressed. Generally, I think it j
is that we came into the war pretty
late: that we ought to take a very full
share of the financial burden, because
the situation has become so desperate
for those nations that came into the
war earliest and bore the full brunt of
the war and the financial burdens en
tailed by it.
Senator Knox?We are not getting
any territory or any reparations, are
we?
Mr. Vanderlip?None whatever.
Senator Knox?Do you not think that
is a pretty fair offset to what they
owe us ?
Mr. Vanderlip?1 am not advocating
this statement of the duty, you under?
stand. I think this sentiment is in?
creasing, and I think therefore it ls
doubtful if the debt ought to be in?
creased in the face of that sentiment.
Senator Brandegee?How much have
j we lent to France and England?
Mr. Vanderlip?We have lent to the
' Allies $9,500,000,000. We have lent to
i France $2,800,000,000, and my recollec
j tion is about $4,500,000,000 to England.
j Well, I was going on to say what I
thought was the way to handle this
j situation. I believe the governments
I of the several countries that are in a
j position to furnish to these European
countries the material necessary to
; start their industries might well unite
| in an international loan. All the lend
; ing governments would need to do
; would be to have a sufficient amount
of interest in the matter to appoint a
: large number of bankers?this is too
j big for any single interest to handle?
i and I think those bankers, with the.
| advice, perhaps, of the ditferent gov?
ernments, should appoint a loan com
| mission, which would study the whole
situation in Europe and would allo
i cate to the different nations such a
j proportion of any proposed loan as
they might decide was just, and would
i make the loan, not in terms of money
| going into the treasuries of the Euro
j pean nations but on terms of goods
| goinj? to some industry, raw material,
machinery and equipment for the rail?
roads.
Work Declared Care for Europe
Senator Williams?You would in?
clude food in that, of course?
Mr. Vanderlip?Food to a certain ex
sB7i
SAFETY and PROTECTION
FURS
COLD
D*T AI X
arrUBAOK
?tpeit TmrtUt
*a Gtastye
H
thi:
MANIIAI I VN'
* S'J'OHAdl
<V WAKIvIIO- Sl' Cj?
SILVER?
WARE
0TOKE.J
IM
'SFECIAI. TATJI.T
IfcfiSffS Ayt. aa* ?t*S M.
?ewaitli At*. ea4 IM ?
tstapbaae Clrate J7W.
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fjQ/WK A. Wv/Of&aUR
tent; but tha sunplying of food alone
will never cure the situation. Europe
must go to work itself or Europe is
doomed.
Senator Borah?Have you any system ;
by which to make those people go to i
work over there?
Mr. Vanderlip?They will go to work I
if they have the opportunity.
Senator borah?They do not show
much disposition, many of them.
Mr. Vanderlip?Conditions are very
difficult. They have had the most seri- ?
ous trials on their morale. You take
the situation in Belgium, where there
are 800,000 men being supported by the
government and have been supported
for several years. It. is difficult to get
those conditions back.
Senator Williams--I understand you
to say that you thought this financing
ought to be done by private banking
interests?
Mr. Vanderlip?Yes.
Senator Williams?And not by the
government?
Mr. Vanderlip?Yes, not by the gov?
ernment.
Senator Williams?Your private in?
terests would not 20 into it unless the
government would underwrite it, would
they?
Mr. Vanderlip?No; I should get the
best security that Europe could offer.
I should get a security that had a
first lien upon the customs of each
country.
Senator Williams?Precisely, but you !
would want some combination of gov- I
ernments behind it?
Mr. Vanderlip?No, not the leading
governments. I think some security
can be devised that will not further
burden the lending governments, but ]
will have a basis that will warrant
private investors in buying the bonds. ;
Senator Williams?How would you '
do that, by chartering a great corpora- ]
tion, or how?
Plans for Loan Suggested
Mr. Vanderlip?My suggestion can be j
varied in many ways. It is for a fifteen
year' loan, one fifteenth to be repay-:
able each year, and this loan to be se- i
cured by a first mortgage on the cus?
toms of each country. The amount
that is necessary is not so large, in
the light of these figures that we have
come ^o be used to, because it must
be translated into actual things laid
down in Europe. It is not a sum to
rehabilitate the treasuries of Europe.
It is to start thc industries; and
translate it into goods that must be
manufactured and exported.
Senator Williams?And the trade
will pay out of its products?
Mr. Vanderlip?Yes.
Senator Moses?Do you know any?
thing about the reported refusal of
the French government to admit Amer?
ican machinery into France coming
from American manufacturers?
Mr. Vanderlip?Yes, and I think it
was very wise of the French govern?
ment to do everything it properly could
to hold down tho imports Into France.
They probably did some unwise things
in regard to certain matters.
Senator Johnson, of California?Does
your plan include Russia?
Mr. Vanderlip?No sir, not while
Russia retains the Bolshevik govern?
ment. There is no point of contact of
capital with the Bolshevik government
of Russia.
Let's Start a Band
Slang epitomizea the most valuable attribute of suc?
cessful advertising* in asking?" VVhat's the big idea?"
For example, a manufacturer in the Middle West
advertised his make of band instruments for years
and succeeded in modest measure.
When an advertising man of experience took the
account, his ouery was: 'What's the big idea?"
The idea evolved was very simple?advertisements
in magazines, headed 'Start a band in your own town "
and l.terature hinting at the pleasure, profit and dis
tinction of playing in a band right down Main Street.
What could be more alluring than to wear a fine uni?
form, and on the Fourth of July lead bravely in a martial
air, to which your. own slip-horn or cornet contributed.
As a result, hundreds and. hundreds of new bands
were formed and so an immediate and growing market
was created for band instruments.
The better the idea, the less it costs to advertise.
The Big idea may be present but unnoticed either
in your product or in its use.
Consult an advertising man of ability or experience?
he may discover the Big idea.
Advertising space tn the Butterick publications
is for sale By accredittd advertising agencies.
Butterick?PuiMer
The Delineator
Everybody's Magazine
Two dollars the year. each
Mr. Morgan Declares He Never
Has Seen a Copy of the Treaty
senator Borah began the examina-?
tion of Mr. Morgan, bringing out that
Mr. Davison, Mr. Lamont and Dwight
Morrow are members of his firm. In
reply to a question Mr. Morgan said
he did not know what position Bernard
L. Baruch held in Paris, nor what his
"business connections in New York
were." He said specifically that Mr.
Baruch had no business connections
with him. He denied that he had pos
sessed or seen a copy of the treaty.
Mr. Borah then brought out by ques
tioning Mr. Morgan that Mr. Lamont,
who gave Mr. Davison the only copy
of the treaty the investigating com?
mittee has yet discovered, still re
tained his partnership in the house of
Morgan. The questioning continued.
Senator Borah?You people are
greatiy interested in this situation
then, of course?
Mr. Morgan?As much as we are in?
terested in America financially.
Senator Borah?Your financial oper?
ations are not confined to America?
You are international?
Mr. Morgan?No. But I mean I re?
gard this as the defence of America
and the American trade situation.
Senator Borah?Yes; and I, natur
ally. Therefore you would have greater
interest in the terms of this treaty?
Mr. Morgan?Yes.
Interest in Pact Conceded.
Senator Borah?As a financier and a
banker you are interested in it?
Mr. Morgan?I am interested in
every way.
Senator Borah?Precisely; I under?
stand that. I am not seeking to get
anything except the substantial fact,
in accord with Mr. Davison's position,
that as a financier and a banker you
feel a keen interest in the situation
which may be superinduced by the
treaty ? '
Mr. Morgan?Very much so.
Senator Borah?That is all.
Senator Hitchcock?Is that for the '
reason that America can only sell
goods to Europe on condition that the
financial interests and banking houses
of America assist in arranging credits?
Mr. Morgan?America can only sell
to Europe if they can get paid for
what they sell, and that payment has
got to be arranged for until they be?
gin to produce. There has got to be a
time arranged for between the time
they begin to produce and the time
they begin to send goods over here.
That has got to be arranged with the
banking interests all over the country.
Senator Hitchcock?You feel that all
the financial interests of the United
; States have got to assist in financing
j the sale of goods to Europe?
Mr. Morgan?Exactly.
Senator Hitchcock?That necessity
j grows out of the fact that they have
j neither the goods nor products with
i which to pay?
5T2 AVErAT?46? ST,
Will place on Sale today
For Prompt Disposal?
A Group of
Smart Tailored Suits at $75
Formerly to $145
An unusually extensive assortment of high-class
styles, suitable for all occasions?developed in
tricotine, twill, silk faille and satin, richly lined
and finished with that nicety of detail character
istic of Gidding AppareL
C/ /? MO&GAN
Mr. Morgan?They have nothing with
which to pay.
Senator Hitchcock ? The exchange
would become impossible and prohibi
tory?
Mr. Morgan?Impossible. They could
not pay.
Senator Borah?Yes. Mr. Morgan,
are the securities of these European
countries which are now in trouble
held in this country?
Mr. Morgan?Which ones do you
mean are now in trouble?
Senator Borah?I take it they all
are.
Foreign Securities Discussed
Mr. Morgan?There are considerable
amounts of British, French and Italian
securities held by the American gov?
ernment, six billions and some nine
hundred-odd millions.
Senator Borah?Are there securities
of those lesser countries, or those mu
{?} UMBSQ XvOOO c- i/maeii x*oo J
ThomatS W. Lamont
nicipalities in those countries which
are now being created, or the govern?
ments of which are now being created?
Mr. Morgan?I do not know of any.
Senator Borah?What securities are
being held in this country?what
amount?
Mr. Morgan?I can send you, for
your information, a list of the securi?
ties. There-are Canadian, and of Eng?
lish, perhaps $250,000,000 of British
notes, $500,000,000 of Anglo-French,
and a certain number of French cities,
some fifty or sixty millions; I do not
remember the whole list.
Senator Borah?By whom are those
securities held, generally speaking?
Mr. Morgan?All over the country. 1
do not know.
Senator Borah?By whom were they
placed in this country?
Mr. Morgan?The French cities' were
placed by Kuhn, Loeb & Co., and the
rest by a number of bankers whom we
headed.
Senator Borah?The two firms?your
firm and Kuhn, Loeb & Co.?have
placed these securities, generally?
Russian Securities Held Here
Mr. Morgan?Yes. I have not men?
tioned the Russian securities. There
are a good many Russian securities in
the country, too.
Senator Harding?Are there any Ger?
man securities held here?
Mr. Morgan?Not that I know of.
Senator Borah?To what amount are
the German securities held in this coun?
try?
Mr. Morgan?I do not know, at all.
Senator Borah?Do you know who
placed those securities?
Mr. Morgan?No.
Senator Borah?You know that some
are placed here?
Mr. Morgan?Some were held here,
but whether they are still held or not
I do not know
Senator Borah?You say some of the
municipalities of France have securities
in this country?
Mr. Morgan?Yes.
Senator Borah?What particular mu?
nicipalities?
Mr. Morgan?Lyons and Bordeaux, I
think.
Senator Borah?To what amount, do
you know ?
Mr. Morgan?I think about $50,000,
000 in all; or it may have been $100,
000,000. I do not know. That was not
our operation.
Senator Borah?That was Kuhn, Loeb
& Co.
Mr. Morgan?Yes.
Budapest Starves Under Reds
BERLIN, June 10 CBy The Asso?
ciated Press).?Misery caused by hun
ger, civil war and a shortage in money
exists in Budapest, aceording to a spe?
cial correspondent of the "Tageblatt,"
of Berlin, who has succeeded in evading
the Hungarian Communist censorship
by a roundabout way.
"Bela Kun," the correspondent says,
"has grown intolerable again, now that
the Czechs are fleeing before the
Magyers and the Rumanians are weak
ening. Budapest, however, is slowly
starving beeause the peasants not only
have boycotted the capital, but will not
sell food unless paid with real money
or in goods, neither of which is avail?
able."
PALLMALL
^amomiQgamtiod
Where Particular
People Con^re^ate
\ClainEnch
C AKS-tailored Clothes are not
to be i&eighed by village
scales because they are not made
for village sales. A man has
got to be a New Yorker in
either habit or habitat to appre
ciate them.
Strict Custom Quality
Right Straight Through
BROADWAY AT S4th STREET
Ii
Police Guard Doubled
About German Envoys
OARIS, June 11 (By The Associated
Press).?The French govern?
ment, which has charge of the police
arrangements and supervision of the
German delegates at Versailles, re?
cently doubled the guards there to
prevent outside communication with
the Germans. At the same time,
plans were made for French repre?
sentatives to see the members of the
German delegation whenever they
desired.
Noske Sues Berlin Paper
For Attack on His Policy
BERLIN, June 10 (By The Associ?
ated Press).?Gustave Noske, Minister
of Defence, who has been a particular
object of attack by the Independent
Socialist organ, "Die Freiheit," is at
tempting to check its violent criticisms
by entering suit against the editor,
publisher and directors for insults of 1
the minister and the troops printed by j
the newspaper.
841?Sandicirh Tray, $5X0.
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