Pujo Committee
Encyclopedia
The Pujo Committee was a United States congressional subcommittee
which was formed between May 1912 and January 1913 to investigate the so-called "money trust", a community of Wall Street
bankers and financiers that exerted powerful control over the nation's finances. After a resolution introduced by congressman Charles Lindbergh Sr.
for a probe on Wall St. power, Arsène Pujo
of Louisiana obtained congressional authorization to form a subcommittee of the House Committee on Banking and Currency.
had predetermined that no money trust would be found as part of the Investigation because “There is no agreement existing among these men that is in violation of the law” and despite of the refusal of aid by the Comptroller of the Currency, the failure of the Senate pass the bill to amend section 5241 of the Revised Statutes and the lack of any authoritative decision by the courts sustaining it's ( the committee) right to access the books of the national banks
the Pujo Committee Report concluded in 1913 that a community of influential financial leaders had gained control of major manufacturing, transportation, mining, telecommunications and financial markets of the United States. The report revealed that no less than eighteen different major financial corporations were under control of a cartel led by J.P Morgan, George F Baker and James Stillman. These three men, through the resources of seven banks and trust companies (Banker’s Trust Co., Guaranty Trust Co., Astor Trust Co., National Bank of Commerce, Liberty National Bank, Chase National Bank, Farmer’s Loan and Trust Co.) controlled an estimated $2.1 billion. The report revealed that a handful of men held manipulative control of the New York Stock Exchange and attempted to evade interstate trade laws.
The Pujo Report singled out individual bankers including Paul Warburg
, Jacob H. Schiff, Felix M. Warburg
, Frank E. Peabody, William Rockefeller
and Benjamin Strong, Jr.
. The report identified over $22 billion in resources and capitalization controlled through 341 directorships held in 112 corporations by members of the empire headed by J.P. Morgan.
Although Pujo left Congress in 1913, the findings of the committee inspired public support for ratification of the Sixteenth Amendment
in 1913, passage of the Federal Reserve Act
that same year, and passage of the Clayton Antitrust Act
in 1914. They were also widely publicized in the Louis Brandeis
book, Others People's Money--and How the Bankers Use It.
House of Morgan partners blamed the April 1913 death of J.P. Morgan on the stress of testifying in the Pujo hearings, though other health factors were certainly involved.
United States Congressional subcommittee
A congressional subcommittee in the United States Congress is a subdivision of a United States congressional committee that considers specified matters and reports back to the full committee....
which was formed between May 1912 and January 1913 to investigate the so-called "money trust", a community of Wall Street
Wall Street
Wall Street refers to the financial district of New York City, named after and centered on the eight-block-long street running from Broadway to South Street on the East River in Lower Manhattan. Over time, the term has become a metonym for the financial markets of the United States as a whole, or...
bankers and financiers that exerted powerful control over the nation's finances. After a resolution introduced by congressman Charles Lindbergh Sr.
Charles August Lindbergh
Charles August Lindbergh Sr. was a United States Congressman from Minnesota's 6th congressional district from 1907 to 1917...
for a probe on Wall St. power, Arsène Pujo
Arsène Pujo
Arsène Paulin Pujo , was a member of the United States House of Representatives best known for chairing the "Pujo Committee", which sought to expose an anticompetitive conspiracy among some of the nation's most powerful financial interests.-Biography:Pujo practiced law in Louisiana, and was elected...
of Louisiana obtained congressional authorization to form a subcommittee of the House Committee on Banking and Currency.
Overview
Despite the fact that lead attorney Samuel UntermyerSamuel Untermyer
Samuel Untermyer Samuel Untermyer Samuel Untermyer (March 6, 1858 – March 16, 1940, although some sources cite March 2, 1858, and even others, June 6, 1858 also known as Samuel Untermeyer was a Jewish-American lawyer and civic leader as well as a self-made millionaire. He was born in...
had predetermined that no money trust would be found as part of the Investigation because “There is no agreement existing among these men that is in violation of the law” and despite of the refusal of aid by the Comptroller of the Currency, the failure of the Senate pass the bill to amend section 5241 of the Revised Statutes and the lack of any authoritative decision by the courts sustaining it's ( the committee) right to access the books of the national banks
the Pujo Committee Report concluded in 1913 that a community of influential financial leaders had gained control of major manufacturing, transportation, mining, telecommunications and financial markets of the United States. The report revealed that no less than eighteen different major financial corporations were under control of a cartel led by J.P Morgan, George F Baker and James Stillman. These three men, through the resources of seven banks and trust companies (Banker’s Trust Co., Guaranty Trust Co., Astor Trust Co., National Bank of Commerce, Liberty National Bank, Chase National Bank, Farmer’s Loan and Trust Co.) controlled an estimated $2.1 billion. The report revealed that a handful of men held manipulative control of the New York Stock Exchange and attempted to evade interstate trade laws.
The Pujo Report singled out individual bankers including Paul Warburg
Paul Warburg
Paul Moritz Warburg was a German-born American banker and early advocate of the U.S. Federal Reserve system.- Early life :...
, Jacob H. Schiff, Felix M. Warburg
Felix M. Warburg
Felix Moritz Warburg was a member of the Warburg banking family of Hamburg, Germany.- Biography :He was a grandson of Moses Marcus Warburg, one of the founders of the bank, M. M. Warburg . Felix Warburg was a partner in Kuhn, Loeb & Co.. He is known as a leading advocate of a Federal Reserve...
, Frank E. Peabody, William Rockefeller
William Rockefeller
William Avery Rockefeller, Jr. , American financier, was a co-founder with his older brother John D. Rockefeller of the prominent United States Rockefeller family. He was the son of William Avery Rockefeller, Sr. and Eliza Rockefeller.-Youth, education:Rockefeller was born in Richford, New York,...
and Benjamin Strong, Jr.
Benjamin Strong, Jr.
Benjamin Strong, Jr. was an American banker. He served as Governor of the Federal Reserve Bank of New York for 14 years until his death...
. The report identified over $22 billion in resources and capitalization controlled through 341 directorships held in 112 corporations by members of the empire headed by J.P. Morgan.
Although Pujo left Congress in 1913, the findings of the committee inspired public support for ratification of the Sixteenth Amendment
Sixteenth Amendment to the United States Constitution
The Sixteenth Amendment to the United States Constitution allows the Congress to levy an income tax without apportioning it among the states or basing it on Census results...
in 1913, passage of the Federal Reserve Act
Federal Reserve Act
The Federal Reserve Act is an Act of Congress that created and set up the Federal Reserve System, the central banking system of the United States of America, and granted it the legal authority to issue Federal Reserve Notes and Federal Reserve Bank Notes as legal tender...
that same year, and passage of the Clayton Antitrust Act
Clayton Antitrust Act
The Clayton Antitrust Act of 1914 , was enacted in the United States to add further substance to the U.S. antitrust law regime by seeking to prevent anticompetitive practices in their incipiency. That regime started with the Sherman Antitrust Act of 1890, the first Federal law outlawing practices...
in 1914. They were also widely publicized in the Louis Brandeis
Louis Brandeis
Louis Dembitz Brandeis ; November 13, 1856 – October 5, 1941) was an Associate Justice on the Supreme Court of the United States from 1916 to 1939.He was born in Louisville, Kentucky, to Jewish immigrant parents who raised him in a secular mode...
book, Others People's Money--and How the Bankers Use It.
House of Morgan partners blamed the April 1913 death of J.P. Morgan on the stress of testifying in the Pujo hearings, though other health factors were certainly involved.
See also
- Arsène PujoArsène PujoArsène Paulin Pujo , was a member of the United States House of Representatives best known for chairing the "Pujo Committee", which sought to expose an anticompetitive conspiracy among some of the nation's most powerful financial interests.-Biography:Pujo practiced law in Louisiana, and was elected...
- Pecora CommissionPecora CommissionThe Pecora Investigation was an inquiry begun on March 4, 1932 by the United States Senate Committee on Banking and Currency to investigate the causes of the Wall Street Crash of 1929...
- United States v. Morgan et al.United States v. Morgan et al.U.S. v. Morgan et al., more commonly referred to as the Investment Bankers Case was a multi-year antitrust case against brought by the United States Justice Department against seventeen of the most prominent Wall Street investment banking firms, known as the Wall Street Seventeen.The Justice...
(the Investment Bankers Case)
External links
- Pujo Committee Hearings - searchable full-text - Also known as Money Trust Investigation. Investigation of Financial and Monetary Conditions in the United States Under House Resolutions Nos. 429 and 504.
- Pujo Committee Hearings - Exhibit 134-C Explanation of Table of Interlocking Directorates Pujo Committee 1912