Mr. UNTERMYER. The fact is you got the order? Mr. FIELD. Yes. Mr. UNTERMYER. And you did engrave the bonds of the city of New York? Mr. FIELD. We did. Mr. UNTERMYER. Were they listed or were they refused? Mr. FIELD. They were refused listing. Mr. UNTERMYER. Are they still refused listing? Mr. FIELD. Yes. Mr. UNTERMYER. With respect to the bonds of the State of Rhode Island, did you engrave those? Mr. FIELD. We did. Mr. UNTERMYER. And have you engraved bonds for various cities and public authorities? Mr. FIELD. Many of them. Mr. UNTERMYER. Do you do that work all over the country? Mr. UNTERMYER. Have you met with any difficulties elewhere such as you have met with here? Mr. FIELD. Practically not. Mr. UNTERMYER. That is about all there is to it, is it not? Witness excused. The CHAIRMAN. Gentlemen, the committee will adjourn at this time until next Monday at 2 o'clock p. m. Whereupon, at 3.30 o'clock p. m., the committee adjourned until Monday, December 16, 1912, at 2 o'clock p. m. MONEY TRUST INVESTIGATION. SUBCOMMITTEE OF THE COMMITTEE ON BANKING AND CURRENCY, HOUSE OF REPRESENTATIVES, Washington, D. C., Monday, December 16, 1912. The subcommittee met at 2 o'clock p. m. Present, Messrs. Pujo (chairman), Stephens, Daugherty, Neeley, McMorran, and Heald. Present also, Samuel Untermyer, Esq., of New York City, counsel for the committee. TESTIMONY OF GEORGE H. KENDALL. The witness was sworn by the chairman. Mr. UNTERMYER. Where do you live, Mr. Kendall? Mr. KENDALL. New York, sir. Mr. UNTERMYER. What is your occupation? Mr. KENDALL. President of the New York Bank Note Co. Mr. UNTERMYER. How long have you been president of the New York Bank Note Co.? Mr. KENDALL. Over 20 years; and an officer 30 or more. Mr. UNTERMYER. Where is its place of business? Mr. KENDALL. 75 Sixth Avenue, New York. Mr. UNTERMYER. What is its business? Mr. KENDALL. The engraving of stocks and bonds in steel. Mr. KENDALL. It is. Mr. UNTERMYER. How long has that been its sole business? Mr. KENDALL. Twenty-five years or more. Mr. UNTERMYER. Are there other engraving companies in the United States? Mr. KENDALL. Yes, sir. Mr. UNTERMYER. Mr. Field, vice president of your company, testified on Friday concerning your difficulties with the New York Stock Exchange. Mr. KENDALL. He did. Mr. UNTERMYER. You were present when he testified? Mr. KENDALL. I was. Mr. UNTERMYER. Who does the work for the New York Stock Exchange? Mr. KENDALL. The American Bank Note Co. and its subsidiaries exclusively do the work that is admitted on the New York Stock Exchange. The stock exchange itself has no engraving, pays for 10 engraving, but the corporations listing securities there pay for the engraving and should have the right to make the contracts with the engravers. They do not. Mr. UNTERMYER. Does the stock exchange supervise and determine who shall have the right to engrave securities that are to be listed on the exchange? Mr. KENDALL. Absolutely; they assume to have and exercise it. Mr. UNTERMYER. What is the effect of the nonlisting of a security on the exchange? Mr. KENDALL. The different companies through the country, like my own, of which there are perhaps half a dozen, are deprived of the right to do business. We have a plant where we can employ 500 people and an investment of three-quarters of a million dollars. They exclude us, and we can only employ 25. Mr. UNTERMYER. Has your work been admitted on the other exchanges throughout the country? Mr. KENDALL. All except Boston. All the world, except Boston and New York. Mr. UNTERMYER. You do business all over the world? Mr. KENDALL. Yes. Mr. UNTERMYER. I think you said you are the only company that confinies itself to engraving! Mr. KENDALL. Yes. The others do other classes as well. That is our specialty; but there are others engaged in the identical same business as our own. Mr. UNTERMYER. Are you familiar with the procedure on the New York Stock Exchange with respect to the listing of securities? Mr. KENDALL. Perfectly. Mr. UNTERMYER. And have been for how long? Mr. KENDALL. Thirty years. Mr. UNTERMYER. What is the effect on the value of a security of a large issue of its failure to receive listing on the exchange? Mr. KENDALL. They can not do business in New York, sir. That is not strictly true. I wish to correct myself in regard to that. There are some securities very closely held and highly appreciated, like Standard Oil, which is an instance the only very large onewhere they are able to be independent of the exchange; but the average issue must get a quotation on the exchange in order to find a market in New York. Mr. UNTERMYER. Is it or not necessary that such a security should be listed in order to be available as collateral? Mr. KENDALL. Yes, sir; generally speaking. That is 99 per cent true. Mr. UNTERMYER. What are the requirements of the New York Stock Exchange with respect to the engraving of securities that have led to this discrimination against your company, if you know? Mr. KENDALL. Bluntly stated, because we will not combine with the American Bank Note Co. Mr. UNTERMYER. Have there been companies other than the American Bank Note Co. whose securities have been listed on the exchange? Mr. KENDALL. The American has obtained control of them all. which is to the amount of some 30 companies, and they have merged all their plants during the last 40 years into their own premises, with the exception of three, not including in that statement the Boston company, which bears the name of the American Bank Note |