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3I1W ■
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yYiYitiWlli./S;..

STENOGRAPHERS MINUTES

.TEE R E SE RVE F ANK

OFGAriZATIW COMMITTEE.

■
FEDERAL RESERVE DISTRICT DIVISIONS
_QE^_EEDEF.AL_RESERVE PANES AND HEAD OFFICES.V

TS.

At.
Daie_




El Pasoj. Texas
J e t r u a ry 7 ,

1914

L a w Reporting Com pany, Official Stenographers
115 BROADWAY,-NEW YORK
T E L E P H O N E . 2 6 2 0 RECTO R

TT
T.

3097

XI Pa*o9 Texas 9 Fob. 7th9 1914.

?
ret pursuant to sdjourac.cnt at 8:00 P.W.
PHKOMT:

r
THS JBCiijfiTAiQf 0? THE TKKASUHY.

\
7KB SXCBXTAtfX O F AOKlCULTUK*.
m n m jM o m t

U« 3

. JXKWAHS (10. Paeo9 Texas)

P re s. £1 Paso Clearing

Vm m «

T. lf# /I'JOO, (XL Paso9 Texas) for ths EL Paso Clei
House.

J/WKS G. W O T , ( a

Paso, Texas)

Vice Presidsnt P i r * f

National ^ank o f £1 Paso9 Texas*
BQHKKT EHAKAU^CKI Paso, Texas) for ths Jobbers
and Uerchants o f £1 Psso.
V

H. D . SLATER, (X I Psso9 Texas) for the •K srald*.

0. V . wsmsa9( t l Paso,Texas) f o r the L ira Stock
Industry.
J. J. 0KTCHKB9 (21 Paso9?exas) SuptUEL Paao b e l t i n g
Vorks.

JMI3SS S . DOUGLAS, ( D o u g la s,A ris.) fo x Ths Bank o f
Douglas, Aria.



K o O S

3038

5 . 1 . 0RAV2B, ( Dougl&Sf A r t*.) Cashier, F l a t
Hational Bank of D o u g l u .
» * H# B. j
OPHY, (Biebee, Arliu) Preaident o f D m Bsnk
of 3isbes«
C,

¥. 50L0MDH9 (Tucson, Aria.) President, Arizona

National 3s
R# K . MDOi&t (Vorsnei, Arix.) General Manapar o f
tha G ila Vallay Bank * Trust Coop any i s Arizona.
P . P . GKKKR, (Globe, A rlz.) for tha Plrst National
Bank o f Globe*

R« H, KELLY, CDe«inr:» * . * . ) Presldsnt Ssainr, I i t l i i l )
^ank.
JACK30H 40KB, (3 ilv e r City, H#K .) Cashier, M erica n
rational Bank.
THOS. I . L O W ,

(S ilv e r City, * . » . ) Vice-Presidsnt

Silver City National Ǥnk#

PRAHK

OOOS, (Lordsburg, S . * . ) Caahier, Pi rat

National Bank o f Lordsburg.
WAitf }?. THOHPSOH, (Lao Crucss, H.M.) for tha Bo van Bank
4 Trust Co#, P i r s t nation al B aft, F i r s t Stats Bank and
JCephant Butts Watsr Users*




Asaoelation of 9e**!*xieo«

3099

p j»

J . % KBKJnXHT, ( Albuquerque, WJf#) Presiden t, State
rations* 1 B*rik.

X* A. cm00J*9 (B osw ell, » • » . ) Preeidentf P l rst Sfctional
Bank.
H . P # 3AUNQKi<St (Bo aw ell, H .M .) Cashier, AamxXcm

Yetional Basic.
V# E . S i m ,

(X I P u o 9 T exas).

0E0. T TfcOH*, (XL PMOy Tex**) fo r the 8tete National
>.
Bank of XL Paso.




pjb

0 . 8 . Stewart

3X00

OTAIEVSBT OF U , S , S W A R T .

The Secretary of the Treasury:
order.

G«ntlenwsn, kindly cone to

X see H r. Stewart l e the f i r s t speaker on the l i s t .

W ill you s ta ts your full n*ne9 real dance and occupation.
Hr* St avert:

U. S. Stewart, banker, o f S I Peso.

The Secretory of the Treoeury:
Wr. Stewart:

Whet bank?

President o f the C ity HationaX Bank.

The Secretory o f tho Treoeury:

to* you era president o f

the CXearing House also?
V r. Stewart:

Of the C learing House Association, yes, a i r .

The Secretary o f the Treasury:

What does tha Clearing

House include h ers, the sta te ae w ell as nation al b a n k *
WT. Stewart:

The etate and national banke; aXX ths bank a

o f XX Paso are members o f the Clearing House Association.
The S ecretary o f the Trsasury:

Has your C learing Houee

Aeeociation taken any action in this natter?
H r. Stewart:

We h *ro .

The Secretary of the Treasury:
V r, Stewart:

Hare you the resolutions?

W did not embody I t in a resolution; i t
e

was eimply s resolution appointing th is canalttee to present
the case.

The


Secretary s f the Trsasury:

You know our problem.

pjb

U . S # Stewart

3101

I t is to divide the country Into not le s s th%n eight nor
no .e than twelve

Federal Reserve d is t r ic t s sad to lo c a ls s

bank in eadi one o f thoss d i s t r i c t s .

W ill you kindly give

us your views in your o m way as to «rtiat should bo dons.

H r. Stewart:

To s ts ts XI P m o 's csss briefly , XI Paso

cones before your Hono r*>le Coasoittee, not os mi applicant
f o r s Regional Reserve ”
B*eik, os hsre most o f ths other c it ie s
in which he a rings hsre been held, but sinply asking that our
t e r r it o r y be kept in ta c t.

'By our te r r ito r y * I nean that

part which ws consider tho trade t e r r ito r y o f XI Paso, s s t
forth by th is nap which I w ill f i l e .

$

(Ths nay was f i l e d accordin gly.)
The Secretary o f ths Treasury:

Hot such o f Texas do you

include in this?
tfr. Stewart:

VS include ths p a rt east o f ths Pssos Hiver.

Ths Secret wry o f the Treasury:

Xou nean including 8an

fcitonio?
¥ r . Stewart:

Vo, west o f ths Pecos.

Ths Sscretary o f ths Treasury:

I do to t sss the Pecos

Indicated here.
V r. Stewart:

V e il, i t was on ths ottier nap, bat they

changed that eap9




P o o ls i s about 250 n ile s east o f hsre.

pjb

U . S . Stewart

and runs into the Rio Grwide about Sagle P u s .

3102

Eagle Pass

la the lim it o f our d is t r ic t j running north, you B i^it say,
in s di set lin e to the Panhandls o f Toxa*.
The Secretary e f the Treasury:

Where do you think this

XI Peso d i s t r i c t . Including Bow Mexico end Arisons, should
be putt

In whet d is t r i e t nshould i t beT

¥ r . Stewsrts
question.

The C learing Houee h*e held a lo o f from thst

W here not r e s lly any decided preference, the
o

id e s b ein r th at we wanted the southern portion o f Hew Mexico
and the eon the in portion o f Arisons, our trade d i s t r i c t ,
included with 21 Peso in the sense Regional Beeerre d i s t r i e t .
The Secretory o f tho Treseury:

You arc f a n i l i s r , o f

course, with tho course o f trsde and ccaeaerce throughout
th is d is tric t?
Mr. Stewart:

Yee.

The Secretory o f tho Treasury:

Where would yon say th is

d i s t r i c t should bo put, with le a s t violence to the custonsry
course o f business?
¥ r . Stewart:

W e ll, I do not -hink there i s very auch

d iffe re n c e , V r. Secretary, between Kansas C ity, Dourer and
Sn Francisco, rs r y l i t t l e .
The Secretary of the Treasury:



What would be your first

pjh

U . S . Stewart

3105

c h o i c e , e x p r e s s in g y o u r s e l f Tram th e s t a n d p o in t o f s h a t
v o u ld h e t o th e v e r y h a s t l a t e r e s t s o f t h i s d i a t r c t t
H r, 3 teverts

*sll9 I ahould say that any o f those tferee

points would servo this district equally wall.
The Secretary of Agriculture:

Vhers doss your t ade go,

Share do you ship >our cattle?
lTr. Stewart:
through ^ezrrer

Cat cl u «*re shipped vast

10

to California, north

ths finishing rzounrls in ^ o n t w b , and east

to Tuneac City and to P -rfc Yftrtb *nd ths different slaughter­
t
in g points.

Ths Seorstaxy o f ths Treasury:
H r . St ewer1 1

I

Vhsrs does

t st
so

cf i t go?

think probably that w ill t>* given in

detail in a later paper, exactly where i t all gsss, Vr.

Secretary.
The Secretary

o f the Treasury:

*111 you f il e that ss an

e xh ib it to yeur |«etiia>ro?

V r . Stewart:

Thai w i l l

csmb

in toother paper and s i l l In

f i l e d us an e x h ib it.
The Secretary o f ths Treasury;
V r. Stewart:

Very well, proceed.

X have a ve*y the it paper hero; i t i s slnply

rsfally to introduce ths question, *nd ths othsr paperc will

d a tl with I t ia



U . S . 3tewart

5104

Qentlesen o f the ? e d «ra l Heeerve Organisation Cocraitteo:

1 Paao coaoa before your honorable C om ittee, not u

an

sppllc&nt f o r o j^uglonal Peeerre ?ank, ee h&vc Moot of the .
ether e it lo s in vhlch hearings here been h o ld; but rather u k
thot the t e r r it o r y fron which she drown the greater port o f
h er business be no t divided.
This t e r r it o r y , yon a i l l obeerre frost consultin# the nop,
Jhich la to bo o p o rt o f the eYidenee su taitted f o r your
consider A ion,

r is e s * 1 1 o f Arizona and Sew Mexico,

together with thot p o rt o f Texoe ly in g vest o f tho Pecos
E ir o r .

During th is hearing SI Pooo hopes to shoo thot in this
request she i s jo in ed by tho n a jc r lt y o f bonks end business
son included within thid d i s t r i c t .

VI th this popor w i l l be

f i l e d on e x h ib it &
bowing o copy o f two telegrvao , one oent
out fro n S I Pooo by the Clearing; House to the banka in th le
d l s t r l e t and the other sent out by the Chamber o f Conaerce
to kindred organ istion o, both %
eking on endcreeaent o f our
p lea,

thot our trade t e r r ito r y be placed in the e«ne Regional

X&eerre d i s t r i c t .

Tho l e t torn and telegrsnc, too nuawrous

to read, but o i l endorsing to o g re a te r o r lcoo degree our
proposition , are aloo f i l e d oo on e x h ib it with th le paper.




---

p jb

U . 8 . Stewart

X I P eao'a p r o s p e r it y

3105

re a lly d a t e s from the tlBe direct

ra ilro a d connections ware opened with Boat o f thia te rrito ry .
The greateet a c t iv it y io ievelopaent la IQ. Paao and in XL
Paso#s trade d i s t r i c t has been since the year 19009 and the
government conses showa XI Paso has gained in population
during tha period from 1900 to 1910, approximately

23,000,

o r about 140 p a r cent.
The Secretary o f the Treaaury:

Whet

la the population

no^f

Mr. Stewart:

Xhs la a t census showed us about *>9,000

population, in 1910.

Tha directory aince then shows ua

approximately between 90,000 and 60,000, including the
suburban d is t r i c t s , *h ld i are not in the c ity lim it a snd
were not included vftten the census f o r 1910 was taken.
Our C learin g House was crgani sad in Hovember, 1907, snd
cowplete clearings are only availafe&S beginning with tha
y ear 1908.

C learings f o r 1906, $41,360,966, and fo r 1913

were #78,241,344, s gain o f $36,ad0,376, o r an average o f
approximately $8 , 000,000 per anhurc; and th is, despite the
fa c t that trade r e la tio n e with the Republic o f Vcxieo have
been Interrupted almoat continuously sines ea rly ia ths y a sr
o f 1911.




-

p jb

U . S . Stewart

*

3106

T h e papers which fo llo w t h i « w i ll deal with the question
in d e t a il,

as t h l ■ pamper la o n l y intended to place squarely
tho o n e p r o p o s i t i o n w h ich 21 Paso fe e ls

b e fo re y o u r c o m lt t e e

i s rsore Important to h er
p l e t l o n of

the g r e *

exempted), v i s : -

welfare t h wi any oth *r (th e c o sk

XLephant Butte Ir r ig a t io n p ro ject n o t

That the d is t r ie t shorn as her legitim ate

trade t e r r i t o r y be placed

ms

e whole in the s a n e Regional

Reserve ?%nk d i s t r i c t .
The Secretary tf

the Treeeuiyj

low who w i l l fo llo w yon,

V r. Stewart, and give us the fact*?
V r . Stewart:

Mr. Vingo w ill fo llo w me, and w i l l give ths

f a c t s in d e t a il, and V r . VcVary —
The Secretary o f A gricu ltu re:

'*he can give the fa c ts as

to where you keep your reserves?
V r . Stewart;

V r . Wlngo1 a paper w i ll cower a l l th ia .

i s sirjpl;' intro Aictory.
The Seerctsry of A griculture:

Then you p r e fe r totoave

these other gentlemen cone no*?
Wr. Stewart:

Yee# they w i l l fe llo w m now.
e

The Secretary o f the Treeeury:
V r . Stewart:




Vho comes next?

V r . VeVary w i l l snsric next.

Thia

J . G . 1'cHory

510?

8 TATMWT OP JAWS G . VcSAHT.
•
Tho Secretory o f tho Treasury:

You aay state your f u l l

name, reeldonee and o ocup %tion.
V r. I W f i y i
tho n o t

Jmsr-9 <2. JfeWary, Benfcer, V ice-Presiden t o f

Wational Bank, HL Poo©.

Tho Secretary o f tho Treasury*

And you ozo connected with

tho C learing House also*
V r. tfc^ary:

I r*n Secretary o f tho Cleorin# Houoo.

Tho Secretory o f tho Trooourys
V r* VcSaiy:

You

b«

y proc ud.

10. P*so lo tho natural centre o f a te rrito ry

o r e r 400,000 square tail« a in extent, cosprielng noot ctf
Arisons end Sew Mexico, and that portion o f ?«xaa ly in g
•ae t o f tho Pecos R iv e r, and the northern atoteo o f
Chihuahua end ftonoro in vexioo.

Within th ie c i r c le , or

*&eolt o f skich XL Peso la tho huh, thio o ity hoe no
coapotitor, e ith e r cor®arc*.all;' o r fin an cially*.
tory , which constitute©

Thio t e r r i­

a * r e e t enpiro in i t o e l f , lo united

to ua with a network o f r a ilr o a d *
on— unicat ion in a l l d ire c tio n s .

£lvln/r quick and ready
By in tin eto personal

ooHtiolntoneo and mmerouo kindred in tere eto , and by almost
d o ily a f f i l i a t i o n , tho people o f thie d is t r ic t are cloeely



J . G . Votary

uni tod to this c it y .

JlQ&

£1 P*to 9 as fin a n c ia l headquarters,

c la ta e a p e c u lia rly d o ae % intimate relation sh ip with
nd
tho bonks and 'bankers located in this d is t r ic t * which 'm
ie r a our natural trade t e r r ito r y ,
Vi thin th is d i s t r i c t , and including XI Paso 9 there are ‘
located 183 banks, 65 beinir national and 108 feeing sta te,
with a combined ca p ital and surplus o f over $15,000*000* and
combined deposits o f over $ 7 0 ,0 0 0 ,0 0 0 .
o f a to td. of 40

In tfew Vexico, out

national banks, 20 or 50 per cent carry

accounts in XI P as^.

Based on the c a p ita l investsd, this

percentage is increased to 72f

while based on the deposits,

the percentage increases to d3 per cent.

In other words, out

o f a to t& or ^1 /, 000,000 deposits s»ho*« by the national
banks o f N^w V
’uxico,

those carrying accounts in £1 Paso

show to tel deposits o f over $14,000,000.
national

The twenty

banks in V*w Vexico whidi do not carry accounts

in XL Paso represent only 17 per cent, on the b a s is o f
deposits, and nuch of the business representing thle
17 per cent oorccs to XI Paco in d ire c tly ,

through those banks

which carry accounts hare.
Tho Secretary of ths

Treasury:

V e i l , XI Paso is not a

reserve city, so those arc natural balances.



5X09

J . G . VoHary

X r. HcH»ryi

Yob, b i r .

Tho p e rc e n ta g e shoan from Arisons

are even worm s ig n ific a n t .

out o f tho totaX number o f

national banka in Arisons,

d5 per cent carry account* in

XI Paao, the only two exception* be in/? tho Yuma SaUonaX
and tho
$ 5 0 0 ,0 0 0 .

Ttmpe n a tio n a l, whoa* combined le p o s it* are under
Based on th* in ve*t*d c a p ita l e f national

banka in Arlsona, 9 3 p * r cent bank
the to ta l amount o f deposits,

in S I Paso, and baaed on

95 per oent are connected with

XI Paao by ac tiv e account*.
X dc not wish to take up jour time wife too &aay
•ta tia tic s and «1XX, therefor*, f i l e an exhibit shotting in
detaiX the exact degre* to *hich th* bank* of Arlsona, Hew
Xoxico and Vest Tex** favor EL Paso with their b u e ln ***,

the** fig u r e * showing percentage based on th* nuaber o f
bank*, total eapitaX and to taX deposits, and covering both
nation*! and stat* bank*.

I do9 howsver, beg ts caXX your

attention to the very interesting fact* developed by th*
recapitulation of th *** figures.

There arc X73 national and stat* bank* in our district
excXusive o f SI Paso.

The** banking institutions carry

134 account* on th* book* o f SI Pass b*mks.



The to IA

3110

J.

G. McNary

Invested capital of a ll the banks of this d istrict, exclus­
ive of El Paso,

is $ 1 2 ,2 7 9 ,0 0 0 .

The total capital of those

banks, both national and state, which carry accounts in £1
Paso, is # 8 ,5 7 0 ,0 0 0 , or 66 per cent.

The total deposits

of all barks in this d istric t, exclusive of £1 Paso is
# 5 7 ,0 0 0 ,0 0 0 , while the deposits of those banks carrying
accounts in El Paso is # 4 3 ,9 0 0 ,0 0 0 , or 77 percent of the
total. Every large and prominent bank in the district
carries an account here, and of those constituting the £3
per cent not doing business here directly,

the great majority

have connections through which their items are routed into
£1 Paso.

A great many banks in this district absolutely

regard El Paso as banking headquarters.

When they need

outside accommodation to take care of the demands of their
customers, they come to El Paso for it .

They carry their

principal reserves here and such balances as the require­
ments of their business make it necessary for them to carry
in New York and other eastern centres™ they maintain by
drafts on tneir El Paso accounts.
The Secretary of the treasury:

How can they carry their

reserves here?
Ur. McNary:




This is a reserve city for state banks.

J . a . vents?

5X1X1

Th* banks o f this distric t, both national and s ta te ,

nominally oarry in SI Paso over $4,000,000 in deposits, o r
% reserve la r g e r than they would be required to carry in
the Rsgional Reserve
X

bank i f a l l wore rembers.

wish to c e ll your sp ecial attention to ths fact that,

» • SX Paso i s not a reserve c it y , the notional books o f this
d is t r ic t which carry 11 Peso sccounta, representing e n r 80
per cent o f tho to tA ■ based both on deposits and capital
invested, cannot take c re d it fo r S X Paso balances in reckon­
ing th e ir re se rv e .
fican t

i t i s , th erefo re, apparent and sig n i­

that they havs found t h e ir SX Paso connections

s u ffic ie n t ly a ttra c tiv e

to warrant carrying balamoes hors in

s p its o f the fa c t that such balances do not count as rvserro .
Of course, in the sta te banks th e ir SX Paso so counts pass
as reserves, according to ths Xami of Sew Mexioo and
Ari » n a .
The Secretary o f the treasu ry:

Shat i s ths aggregate o f

accounts c a rrie d Ty ths n stion al banks o f SI Paso?
V r . Wcr ary:
$2,000,000.
md national

Ths aggregate o f these accounts runs around
Our bus in as s is about divided betwetsi sta ts
banks.

Ths Seoretary of the Treasury:




That do yon pay on tho os

pjb

J . G . VcHary

3112

balances'
Vr* H C fiiy :

Two and one-h%lf p e r cent.

The secretary o f the Tressury:

lh et i s your ru le about

cfreck c o lle c t io n * ; do you c o lle c t then fre e o r s o t .
V r. VcHary:

Vo9 in no it inetances, whore the balances o f

our oorreepondente warrant i t at a l l ,
charges.

there i n

no exchange

You undere tend, in thie c ir c le whi <ti m c o ll our

d ie t r i o t there ere no exchange oh arges fren the t i r e l e to
S I Peso end going beck to the c i r c l e .

But on fo re ig n

endorsements there ere gen erally exchange charge % but
w thin the c i r c le (toinir out fre n VI Peoo to e l l thie
d i e t r i c t 9 gene r a ll y speaking, there are no ch ergot.
Tho Secretary o f the Treaeujyt

You neon within thia

d ie t r io 1#
V r. Hotrary:

Within thie d i s t r i c t .

Z do not b e lie v e i t neceeeary fo r no to argue that BL
Paao banka bare ehom e u ffic ie n t strenrth and l i b e r a l i t y to
take care o f the requiressente e f thei r beefeing customers and
extend proper acer— ndatlon to then at a l l tinee 9 m the
extent to Which the banking

business o f thie d i s t r i c t hen

been centered here 9 ee shows by the above fig u r e s , i e the
b e s t p o ssib le evidence to th is e f fo c t .



pjb

J . 0 . Uoffsry

.ill*

In this d is t ric t, which *• c a ll SI P m o 'i naturA

trade

t e r r it o r y , many o f tho 'banks 020 located l a n in in - towns
whers la rg o r o » b « n o f »en are employed and heavy p a y ro lls
su e t be mot.

I a Meeting these dexaands, tho banks o f £1 Paso

have made to ta l shipments o f currsncy o f over 45,000,000
during the p sa t year to tho beaks in our d i s t r i c t .

This

fig u r e covers s t r i c t ly shipments to our customers f o r th e ir
u se.
By fig u r e s , taken f x n our books with g re a t care and
covering an average month*s bu sin ess, and mal t i p i i d by
twelve, ws fin d that the y e a rly vslwse o f outgoing items
between 21 Paso and her t e r r it o r y to ta ls $59,000,000} while
the y e a rly volume o f lt e s e comlag into S i Paso frcm corres­
pondents in th is d i s t r i c t , readhes a tetd, o f $1 1 0 , 000 , 000 .
The teetimony at Denver sho « d

thet her to ta l volume o f

incoming it e m was #2492000,000, only s l i t t l e over twice
o urs.
I a rep re eon tin e £hs above fa c ts end fig u r e s , I have not
att*c%> ted to take into account the teaena* volume o f banking
businoss from Vexioo which i s directed to SI Paso under
no ratal conditions.

The northern portio n o f Voxleo i s one

o f the ric h e st and most resourceful




sections o f this

J . 0* tfcVaxy

3114

continent, end wonderful development o f tho vast reaourcee
there w i ll fo llo w close ^pcn the settlement o f Mexico9e
present trou bles,

l a estim ating the importance and

Influence o f XI Paeo ae a bank in f c«ntr%
to lo e e eight r f

we ask you not

the g r e it volume o f bueineee end the la rg e

transactions in exchange which must pass through 21 Paso, a
oonsidcrfele portion of whicfc, involvin g cenmerclal, mining
and c a ttle operations i s actu ally centered here*
The Federal Reserve Act provides that "the d is t r ic t s
s h a ll be apportioned with due regard to the convenience
and customaxy course o f bu ein eee.*

In moot ree p e c tfu lly

p e titio n in g your C o w it tec to rsepest XI Paso*a relationship
w ith h er natural trade te rr ito ry by lo c a tin g this oity wid
thle t e r r ito r y in *-ha eame regional d le t r l c t served by a
branch bank in S I Paeo, we fuel that as are aeking only
that we be peraAtted to retain that business which i s
n a tu ra lly and r ig h t f u lly o urs.

By ao doing* you w i l l make

i t p o ss ib le f o r SI Paeo to continue to enjoy the censer e l a l
•cl* fin a n c ia l supremacy in thle d le t r l c t , 4hlch ie united
to ws by geographical p o sitio n * hy ra ilr o a d development,
by the intimate tie s o f pe.'eon%L acquaintance, and by the
e x is tin g etatue o f our eoisaerclal, in d u s tria l and fin a n c ia l



5115

J . Q. ScSary

life .

1 hare prepared fig u re s here on ex^iange i*od on -he
d e ta ils o f a l l

thia business Jhl<ti I would lik e to f i l e .

The Seoretary o f the Treasury:
e few cjueetione along those li n e s .

Yes.

Let me u k you ju s t

Where do you keep your

reserrue now, the bulk o f the*?
Wr. Wcwary:

The reaerres cf K1 Paso?

The Secretary o f ths Treasury:
Wr. VcNary:

Yea.

Of couree 9 they are kept p rin c ip a lly in

Wew York | Vcv York, Chicago, S t. L o u is, Fans as C ity and
D earer.
The Secretary o f the Treaeury:

m *h »* proportion} f o r

inetenee, hoar ouch In Wev York, «ould you say?
Wr. WcHary:

I hare not made aa attempt to analyse that*

hut I would suppose, ge n e ra lly speaking, f u ll y

50 per cent

o f our re ssrre s are in Wev York.
The Secretary o f the Treasury;
Wr. WsWary:

And hoe much in Chicago?

I would euppoee that probably 1 0 per ceat

are i a Chicago. ,
The Secretary o f ths Treasury:
Wr. VsWsry:

And how u i A in St .Louie?

X should imagine about ths seme ia St .Lou ie,

wy fig u re a on Chicago may be a l i t t l e l* w .



Takiag a l l tha

5116

Im 0 # UcVary

banka in 1910, raoybe 15 per oent in Chicago Mid

lo per cent

in S t . Loula.

The Secretary o f the Treasury;
Hr. U c lw y :
•bout 1 0 pa r

And

smzsn City?

Kansas C ity , I should iBegins,. vould run
cent.

The Secretary o f tho Treasury:
V r. Memory:

Mfl Denver*

In oor o « bonk, cure would he 10 per cent,

end other batiks in tova probably not so much.
The Secretary
tfr. McWary;

o f ths Trsasury:

How about San ?r*«ciaoo?

I do not stqipoee there i s 5 per cent of the

re sto re s in town ca rrie d in <?an yranciocD, I f that auch.
The Secretary of ths Treasury 1 Lookingit Oils probleai
s o le ly fran the standpoint o f what would be b * * t fo r ths
d i s t r i c t , where would you sap t > »t th is te rrito ry ehould bo
pu tj

should i t be attached to S«n Francisco o r Denver o r to
v
Kansas City?
V r. KcSary;

I f you would permit fee to answer that ques­

tion in that way, our om fo o lin g I s that i t i s no t o f w r y
gro at i^ o r t a n c e vo us what d ia t r ic t we should be attached
to, so lone as i t i s a strong d i s t r i c t and we go with out
t e r r it o r y .

The C learin g House o f 21 Paso has not f s l t

in c lin ed to fa v o r by d e fin ite action any reserve c it y .




pjb

o. TfoKaxy

J*

3117

because we da not fe e l that i t le v i t a l*

Te arts p e rfe c tl:

trillin g to leave that to the d iscretio n and (rood Judgpent of
! the Consult t-eo,

eo long ae they I s are us oar fcerri to xy, «h id )

we f e e l i s v i t a l .
The Secretary of the Treasury:
testinony frcsi Arizona,

V have h ad a good d^al o f

uopresaixif; a preference fo r San

Francisco, becease t h e !r r e la tio n s , o f course, are aore with
Ce11fo ra le , they say*

Vow you have inoludod that in thle

d is tric t.
V r . VeKery:

Yea.

They a l l baafc with us.

The Seoretary o f the Treaeury:
were thrown soaewhere else,

i f th le whole d is t r ic t

th is western end of i t night not

be eo * 1 1 s a t is f ie d as wi th C a lifo r n ia ! s o , viewing ths
' general s itu a tio n , would you say that your in tere sts would
be ju a t as w e ll served i f you were attached to

Sm

Trm

ciaoo

ae to Stover o r to Kansas City*
XT. denary:

I

thihk

the general fo a lin g in S I Paao i s

th at our In te re sts would ba properly served i f ettaehsd to
a sank in aan Prancisoo, i f our t e r r i toxy sees there*

That

would not bo d isp le a sin g to us s t a l l .
The Oceretary of

the Treasury:

Your «hole point i s to

keep this t e r r it o r y Intact end not d ivid e i t .




p jb

J* O* McFary

Vr* VcWary:

3118

To keep thia t e r r ito r y intact and not divide

i t , and we b c lie r c that in no st o f our te rrito ry that ie
th eir paramount wish, too*
The Secretary o f the Treaaury:

There are bank era here

f r o * point a in 9ev Kexico and Arizona eho w i ll preaent their
▼l^ws?
V r* Kciveiy:

yea, a dozen o f then, who would lik e to

express thercsslrss to that e ffe c t , i f they nay*
The Secretary o f the Treasury:

vare yon eone exhibite to

file t
Wr* Bowery:

Yea*

The Secretary o f the Treaaury:

Hare you them in t r i p l i ­

cate?
V r. Votary:

Yes.

The Secretary o f the Treasury:

Kindly f i l e

them*

(The papers were accordingly f i l e d . )

STATEKEirT <F 7* V* TOTfQ*
The Secretary o f Agriculture:
d m o

,

reside* co

Vr* ftn&o:

atad

You nay sta te your f u l l

occupation*

T* V* Winro, V ice-P resid en t, Hio Grands V alley

Baidc & Trust Company, and V ice-P residen t Clearing Houae



pjb

T . H . Win^o.

3119

Association, HI P&ao.
Tha Secretary o f A gricu ltu re:
V r. Winro:

W st do you wish to present?
h

1 here prepared some s t a t is t ic s hero on

Paeo* s fin a n c ia l conditions*

SI

Z ffish to say our bonk has mode

application f o r ad&iesion, fra s stfrts bank, into the system.
The Secretary o f A gricu ltu re:
Wr. wingo:

Yes.

The Secretary o f A gricu ltu ral
¥ r . Winn©:

You ore • s tste bank?

Whet i s the lear in this

m Whet respect?

The Seeretaixy o f A gricu ltu re:

Way & state beak subscribe

to stock in these banks?
Wr. Wlago:

80 f o r as ws are advised, there v i l l be no

objection re ise d by our State 'Basking Department.

We here

written to Washington f o r the proper papers end w i l l put
them up to the Banking Cesssissloner as soea ae received.
Oar stockholders h e rs favorably considered the p rep ositio n .
The Secretary o f Agricultures

The Bank Superintendent

has ra is e d no objection?
Wr. Wiago:

He t e ll e ue he b elle v e e there w i l l be ao

objection ra is e d .
The Secretary o f A gricu ltu re:
there w i l l be none raised?



tad i f >e raises none,

T.

Wr. Vin£o:

*in *o

Ho, I do not think so*

The Secretary o f Agriculture:

lfr* w'in^ro:

3120

You may proceed,

SI Paso doeuno t cttaa before your Honorable Com
­

mittee askin/? f o r anything «t

tho expense o f any other city

nor seeking any unwarranted fsTors f o r h e r s e lf nor f o r anyone
e ls e .
She doeanot intend t

occupy your tine with claims

or counterclalaa Intended to influunovi

jou in the s l i g h t e d

In the s e le c tio n o f the citius that w i ll he headquarters for
D is tric t Reserve bankc.

j£l Paso only ssks the r i^it to

exiet Mid to enjoy and fu rth e r develop the te rrito ry thst her
geographical lo c a tio n , her transportation f a c i l i t i e s s»nd
her enterprise have marie her own.

Tho ri^tt to exist, I

Bay, advised ly, for i f , as has been suggested

ss p o ss ib le ,

but wo cannot believe probable, 21 Peso should be thrown
into a Regions! Reserve D is t r ic t with headquarters at say,
ffew Orleans, or some Texas C ity, *ew Vexlco plaoed in a
d iffe re n t d i s t r i c t w ith headquarters at say Kansas City or
Denver, and Arisons in s t i l l another d is t r i c t with C a li­
fo r n ia , the connections and business rela tio n s XI Paso
has been years in bu ildin g up would be seriou sly Impaired,
end the e ffe c t very detrim ents!, not only to XI Paaovs



T # V . Vingo

5121

banks, but to her general businessinteree ts as

-e ll.

While doing a ls r g s amount of bus ins bs outside these
boundaries, S I Paso claims as her special trade te r r ito r y
that p a rt o f both Y e s Mexico and Arsiona ly in g south of
the Santa Fe Rail say and that p a rt e f Texas vest o f the
Peooe River*
S I Paso i s 9 commercial and fin a n c ia lly speaking, not a
p a r t o f Texas, but i s with le v Vsxloo and Arizona.

Her

growth and development as a fin a n c ia l contxs has a t a l l times
b*-en in d ire c t r e la t io n and proportion to the development
o f Arfcona Mid Hew Mexico and th e ir in te re sts at a l l times
mutual and interdependent.

The importance o f £1 peso ss a

ban):inr cent is r e a lly dates from ths construction o f ths
SI Paso Ji Southwestern Railroad across Southern Hew Vexico
and into the copper

cam ps

o f Arizona.

Host other sections

hare several c it ie s that are in d ire s t competition fo r the
business o f any given d i s t r i c t , but throughout p r a c t ic a lly
a l l o f the trade t e r r it o r y claimed

SI Paso, her lo oatlon

and transportation f a c i l i t i e s , with ths so much gre ater
distance to any other centre o f importance, place her
competition as a fin a n c ia l and c le a rin g oentre.
Tc esiphasizs the veiy close r e la tio n between the




beyond

pjb

T . V . *ingo

3122

development o f 21 Peso aa * banking centre and tho develop­
ment o f tho d is t r i c t claimed by horf I beg leave to su tait
a l l t t l o h is t o r y .

At the beginning o f the y ear 1900 there

were coBparatively turn banks ia this te rrito ry *

These few

were such em ailsr in s titu tio n s thsn they ore today*

X have

been unable to obtain exact fig u re s f o r the to ta le o f the
d is t r ic t «

o f the y e s r 1900, but con state from personal

re c o lle c tio n that there were Xess thsn on.;-third as many
banks in the d i s t r i c t then ss now, with Xese than o n e -fift h
the tot*,

resources o f the present day.

Xn 1900 J L Peso
£

hsd two banks with combined c a p it a l and surplus o f $236,000,
and total depoelta o f $1,607,000, o f which $163,000 were
deposits from other batiks, presumably from the d is t r ic t
under consideration,

Aa the mininr d is t r ic t s o f Arizona

and Vow Vexlco were developed, new li n e s o f ra ilro a d
conetrueted, lands brought under lrro g a tio n and ranchea
developed in stock, new bsnks were organised th rou^hout the
d i s t r i c t , and the business o f those already established
increased, a l l lo ok in g, n a tu ra lly , to El Paso m t h e ir
c l caring house and aa the point where they could most
quickly obtain c re d it f o r th e ir items, and in the shortest
time receive the supplies o f currency




and coin required fo r

p jb

T . If. V l A f *

3123

enormous payrolls j *nd further, Where they, or Bone o f then

at le a s t , could cone as personal acquaintances f o r s s s ls t ­
r
ance in the handling o f such loans as they a lrfit not bo
a b le , from various reasons, to hmidle theraselvos.
odd that bozo than one e untry bank

I sig h t

obtained os s i stance in

S I Paso in 1907 a ft e r having been denied i t fu rth e r aw%y.
While Z knor o f no source from whl di exact fig u re s corering
a civen period o f time can be obtained, Z nay say that at
no time during ny experience o f 14 years in J L Paso has ‘
Q
been a time that M Paso batiks were not carrying loans
e ith e r d ir e c t ly o r in d l ec tly

f o r country correspondents.

AS n early is Z cag % certain the amount d ire c t and
s
in d irect canebd at th is time i s approximately $600,000,
and this I s doubtless much le s s than s t any time during the
la s t eight months*
The growth o f mutual in te re sts and businsss has been so
rapid that now ths $£35,000 c a p ita l an d surplus o f XI Paso
banks in 1900 has grown to be $2,993,000, the nuxber o f
banks, ten, ths total deposits #15,957,000, and the deposits
from country banks, # 3 , 5 2 7 , 4 1 6 .

XI P a s o * a clearin gs hare

grown from # 3 2 ,0 0 0 ,0 0 0 in 1 9 0 7 , the dots o f tho organisation
o f the C learin g House Aseo ela tio n , to $ 7 6 , 2 6 0 ,0 0 0 in 1 9 1 3 *



p jb

I . V . Win^o

I t is worthy o f note,

3124

m showing their strength and con­
i

serve t i s a , that at tha l a s t c a ll SL P aso's banka showed
cash and exchange o f $6 , 5 1 1 ,3 5 6 .7 3 , o r 41 per cent o f a l l
deposit l i a b i l i t y .
The Secretary c f the Treaeury:

You sta te there that at

the la e t c a ll of the C o n t r o l le r you shoved 41 per cent o f
your deposits in cash and exchange?
Mr. Vingo:

Ycev that i s a l l deposit l i a b i l i t i e s .

Tht Secretary cf the Treasury:
t

Ihy i s that, because you

could not le n d the money, o r were you ju s t strengthening
your reserres?
Jfr. Vingo:

Ve u su ally fig u r e wo are sc f a r f t h e

base

here that we need tc oarqr as rsuch as 55 p e r cent, and the
batiks here ge n e ra lly fig u re ae much as 35 p e r cent; that
includes a l l balan ces, not n ecessarily technical balances,
but a l l working reserve baft fences*

tte are situated here so

that so here to cany wo dcinr balances both ssst and t a a t ,
in C a lifo rn ia and Kansas City and seas c f ths Texas towns
and S t . L o u is, Chlco#> and Hew York,
The Secretary e f the Treaeury:

You w i l l not fin d i t so

neceasaxy to do thst wider ths new systen.




»

p jb

T . V . Yingo

V r . Wlngo:

V b do not fe e l that we v l l l .
*

The Secretary o f the Tressury:
aery

SI

i t w i l l rt duco the neces-

mount o f resarres n e t e r ia lly .

V r. Wingo*

And we fe e l that ie one o f the neoeeeaiy

re su ite o f the new aye tea*
The Seeretary o f the Treaaury:

I f the banks here take

aoM o f tha crop morixur funda la a t f a l l .
V r. Wlngo:
in te re sts

So.

We hero very l i t t l e a g ric u ltu ra l

at the preaent time.

The Secretary o f the Treaaury:

What other c ity would you

a ay Vew V exico'e buainaaa rela tio n e wara More intimate alth?
V r. Wlngo:

The nor the xn p a rt haa quite a d r i f t into

--ansae City and Denver, and the southern p a rt to some extent
to rsn sas City and Demrer.
The Secretary o f the Treasury:

Which should you cay

mostly?
V r. Wins©:

Probably Kansas C ity .

Our connections with

Bearer are not quite eo d ir e c t .
The Secretary o f the Treaaury:
V r. Wlngo:

Arisons i s mostly west.

The Secretary o f the Treaaury:

V r . WiagoS


How about Arisons?

To Ssn Pr an cisco .

W e ll, to San Francisco?
And I b e lie v e thst s

pfb

T . ¥ . Wlngo

3126

majority o f sentiment, i f tha distric t mrm taken as a
sholc, would be inclined

ths California way.

Tho Secretary of ths Treasury:
H r. Wingo:

I t i s my opinion*

I t would?
With ua i t makes but

l i t t l e d iffe re n c e , hut I b elie v e a c a jo r it y , taking in ths

whole d i s t r i c t , would vote that way.

But

nost o f our

frie o d e hare —
Ths Secretary o f A gricu ltu re:

Vould that ha true o f Vest

Texas?
lfr. ?in£o:

P robih ly not*

Our business east of here i s

' gen erally lirrh t, and they are ge n e ra lly favorin g e ith e r sorao
Texas C ity o r Kansas City*
Ths Sseretary o f ths Treasury:
XI P a s

How nuch o f Texas sa s t o f

would you say would ce rta in ly want to fee included

in this d i s t r i c t , about 4h i 6 i there would ba no controversy?
lfr* Vlngo:

I think probably not fu rth e r than Alpine on

ths Southern p a c i f i c ,
Texas & P a c if i c .

*»nd not f& rthsr than Psoos

on the

That i s a d i s t r i c t that keeps accounts

h ers, and beyond that as hare no bus Inass*
The Sseretary o f the Treasury:
Hr* Wingo:

Yes.

The Secretary of



Peeoa and Alpine?

Agriculture:

Bet so far as Kagls Pass?

5X27

T . V . Wingo

V r. Vinco:

Eagle P as* would p ro b a c y p r e fe r to

Houeton, o r p o s s ib ly Hew O rleans.

to

Z do not know; m do

not consider that m part o f our trade t e r r it o r y , we do
Tery l i t t l e eaat o f Pecos.
The Secretary o f th* Treasury:
c a s t lin e o f Bow Mexico, extending
H r. Yingo:

Would i t go a* f a r * * th*
south?

That ia a l i t t l e beyond Pecos, the point I

gSVS.

The Secretary o f th* Treaaury:

I t would be along the

lin e o f the Santa Pe Railroad?
U r. Vingol

Yee, that i * th* P *co * V a lle y Boad on th* map.

Th* bonk* o f M Paao bought and sold during th* year
L
1913 $28,000,000 in Tread, can money and exchange, and thi*
i s th* la r g e s t and most i^>ortan t Mexican money market in
the United S ta te s.

As V r. VCHary hae gone sore deeply

into cur re la tio n s with
fu rth e r e la b o ra te .

country banks, I w i l l not

You w i l l aleo hare presented to you

fa c t s and fig u re s showing 21 Paao tc be the centre fo r the
southwest in mining, li v e stock, jo bbin g and d is trib u tin g ,
buying, ra ilro a d s and manufacturing, and as your H o n o r*Is
Committee has announced i t s intention o f d istu rbin g as
l i t t l s aa p o s s ib ls ex istin g trade and business Movement*



pjb

T: If.

Wlnpro

3128

we fe e l sure that you w i l l adteilt the Justice o f our p e titio n
that w bo not esparated f r o * our frien d a and business
e
asaociateav in Hew Vaxico and Ariaona.
Ifr. Stewart:

Vs a llo t t e d about one hour to £1 Paso and

about 90 minutes to the others here, but ws /111 Cut that
down to s u it your convenience, i f you p r e fe r ts hear these
other Rentlezaen.
The Seorotary o f the Trsasury:

Z think we had b e tte r hear

from those out o f town gentlemen.

Your case i s in p rstty

w s ll, nowp i s i t not?
H r. Stewart:

We would lik e to have Hr. Krskausr o f S I

Paso, and then take op ths oth ers.

STATKCTT <F BOSKS KRJKflJBtt.

Tho Seoretary of ths Treasury:

V i l l you sta te your f u l l

name, residence and o coup stion?
V r. Krskauer:

Sobert Kra- auerj Z aa Secretary o f Krakauer,

Pord & If aye Successors, Incorporated.
The Secretary o f A gricu ltu re:

In* you are president o f

the Chmsber o f Cosnerce?
V r. rr&toausr:
time.



Y s s , Z have that d is tin c tio n a t ths present

9

p jb

E . rrakauer

The Secretary o f tho Treasury:
tfr. rrak au er:

3129

You may proceed,

In fo llo w in g ip tho statements node and

dote siven by the bankers o f XI Paso i t ml£it be w ell to
say that o f couxee thot coaeaerelal la te recto o f our city
ore

bo

c lo e e ly a l li e d and latenaoven wl th banke and banking

thot the w elfare of Jobbers, noaufocturere and r e t a ile r s
d i k e i e iden tic s i with thot o f the fin a n c ia l in s titu tio n s .
Ths trede t e r r it o r y thot ie covered by tho bueinese
houeee o f XI Peso ie p r a c t ic o lly tho same as that in which
our banks do th e ir business.
A* the representative o f tho mercantile inters©to o f
our c it y , I mirht say that we have cone before >ou asking
only at thic tine thot you act favorably upon our appeal
that we be not separated, i f I nay be allowed tc use the
expression, from the la r g e s t p a rt o f our oomnerclal and
fin a n c ia l

fa m ily .

The baele o f our reqpeet i s , o f course, we Bust
acknowledge, e e e lfis h one, and yet one o f ifliich you w i ll
eee the ju s t ic e , m are sure, i f you w i l l t £te into con­
st ds ra t ion a few fa c t s and flg u re e given below.

A ll c f

these w i l l tend tc show that the very heart o f our bus ins ee
would be v i t a l l y affe c te d should ws be placed in e separate



pjb

H . Krakeuer*

5120

Reglonal Heserre Cl s tr ic t frc n our frien d s in Arizona, Hew
roxico snd Vest Texas*

Our fa c t e snd fig u re s srs as nesr

corrsct ss c a refu l In v estigatio n csn make the® and sre fo r
19 13, shlch y ear was no t s noraal one in parts o f our trade

t e r r ito r y , ovine to lo osl conditions in those d is t r ic t s *
In p ro of o f our c la in that HI P aso's in te re sts are in
cosnon with tho e o f Kcw Xexlco, Arizona and West Texas, m
bog leave to suttsit the fo llo w in g fa c t s :
The nusber o f trav elin g salesmen

representing; the manu­

fa c tu re rs snd w holesalers, together -wl th f i m s carrying
branch stodcs in this city, number 212} o f wtii di u6 t r s r e l

as f a r vest as Phoenix, Arizona; 6? no rth as f a r as Albu­
querque, Vcv Mexico, on the lin e o f the Santa P s}

65 as fa r

north as Tucuacari on the eastern d iv isio n o f the El Paso

k Southwestern System; 55 on ths lin e o f ths Texas Ji
P a c if ic to Barstow, Texas, and 37 on ths A tlan tic S. stem
o f the Southern p a c i f i c to Sanderson, Texas*
ths 212 S I Psso eslesnen there a n

In addition to

approximately 60 Sen

traveling fr o a this c it y representing eastern f i r a s ,

and

making th is th e ir headquarters on account o f the excellent
railw a y , telc grarh , m ail and a long distance telephone
f a c lllt ls s , enabling them to keep in the very clo sest touch



fi. Krakauer

51oI

wl th their cu a toners i n the territory sen U o n e d .
Tho approxim ate ? A u « of the shipm ents made by the
nanuf acturers,

whole e e l era and firas h a v in g etocka i n t h ie

c i t * to X I P a s o *s

trade t e r r it o r y i n

near $ 1 6 ,0 0 0 ,0 0 0 .
m erchandiss oent in t o
city ,
of

the y e a r 1 9 1 3 was very

T h is does no t in c lu d e the value o f
the d i s t r i c t by the r e t a il e r s o f our

aa v s h * r e no manner o f a r r i v i n g a t the correct secant

t h e ir sa les .
The tonnaite forw arded b y f r s l g h t fo r ths same p erio d to

the sane t e r r i t o r y wa* 7 2 4 , 9 1 2 , 3 0 6 p o u n d s .

I t w i l l be

no ted that t h is amount is only f r s l g h t shipm ents
o f exprsas and p a r c e l p o s t
t h i s very

9

the w eight

fo rw a rd in g s would tend to

cone id e rtri&y.

In o r d e r to p la o e t h is c it y ss a d is t r i b u t i n g p o in t in
the e l o s s s t

touch w ith t h is s s c t l o n ,

a nention o f the

f r s l ^ i t m erchan dise s e r v ic e may not be o u t o f o r d e r .

—

.

u

. . »

Ship-

~

the eeoond mo m i nr# end all p o in te intc m ediate p rio r to

that time j fo r the Dougl ae-Bisbee district ths delivery is
i

rnsde the next
Art ion ^




f o s o o n after shipment^ for difton- Uorenci,

and surrounding points, the second m orning for

pfb

R . rrakauer

the Globe-vised. rainin/: d le t r l c t ,
Arizona,

3132

the eeoond evening j Tucson,

ths eeoond no nin^i Phoenix and the S a lt River

V a lle y p o in ts, ths third morningj S ilv e r Ci ty, Hew Mexico,
dletrlct, delivery ie made ths Aay fo llo w in g shipmenti
Albuquerque, ifew Uexlcc,

second mo m i n e j sandereon, Texae,on

the Atlantl e System o f the Southern p a c i f i c , eeoond evening}
and Barstow, Texas, on the Texas & P a c if i c , the second
forenoon.

Tho service i e daily, Sundays excepted, which

enables the purdhasere in '.his t e r r ito r y to secure quicker
delivery than can be given frora any other c ity .

The

atf> fixed by our conalttee w ill brine; to your attention
in a fo r c e fu l and clear wsor ths districts to whidi reference
r;ie cade In thle argument.
Lem? ^icttmco telephone lines reach from S I Paso to
j ractlcally every town of any Importance in the entire
|
section in which *e wish to be included, Mid several in ter­
secting lin es give ue

two wires to zany points.

illustrate to you mote clearly the superb

I t may

telephone service

we hare by mentioning some o f ths ssctlons to v&lch the
llnee extend, for exanple, down the Hio orande V *11 ey, which
I connects with soother line reaching Peoos, ^arstow, Fort




R* Krakau ert

3133

Stockton, and other points i a Texas; M other one northeast
through tho White Oaks section,

whence c u t extending fro a

Carlsbad l a the low er p o rt o f the pecoa V a lle y o f Wev
Vexlco, north through that T e lljp to C lo v is, Vew Vexlco;
d ir e c tly aorth through tho Bio Graade V alle y T ie the
Slephaat Butte Data* Albuquerque, T,*a Vegaa and Seat* Pe to
Baton, Vev Mexico; another to 811Ter C ity, the coatlguous
xaininf: section and mining d is t r i c t o f the Xogolloa tSountain s;

to the Cl i f ton-Vo r e n d mininr and smelting d i s t r i c t ; through
the G ila V a lle y to the G lo b o -tflo a ls e c tio n ; to Douglas,
Bisbee, Bogales and Ruceon; to the Hap-Hqyden d i s t r i c t ;
throuf^i tho S a lt H irer T a lle y to Fhoenix; north to Prexeott,
United Verde Copper caap, and a le o extending east to F lagotagg, Holbrook and other points*
Tho Woe tern Union end Vackay telegraph-cable aerrice
i a ao cozaprehensire that i t p laces our d t y in ^Uick con­
nection with every town regard less o f e ls e , in the atates
o f Arizona, Vev Mexico and V est Texas.

On ths Southern

P a c i f i c east from this c ity there are fo u r v ir e s , Texas k
P a c if ic seven* Northeast through Vev tfexloo on ths Baste ra
r

%

D ivision o f ths South west era System; fo u r; on the Santa Pe
Syetea eigh t. Southern P a c if ic Lines vest nine, Western



pjb

3154

D ivision Southwestern 8yst«m fo u r, or ft total o f 36 lin * e
rt .chiiur from £ 1 P m o.
Ve b e lie v e our e t s t ls t lc s w ill shoe that Arison*, E&w
Vsxico end West Texes can tru th fu lly end f a i r l y be con*
sid sred 1 1 ?esof s legitim ate end most important trede te rri­
Vs look to tfcsB fo r the 1 argost percentage of our

tory.

business, end they in turn to us, we ere eefs in storing,
f o r en enoxaoue shers o f th e ir supplies end merchandiss in
e l l lin e s ,
G eograph ically, o f course, we ere situated in Texee,
but fin a n c ia lly atad oom acrdally our In terests are Identical
with the two s ts tc s to ths west, with s small portion o f
ths western p e rt o f th is S tate, and we ask that In consider­
ing

in Shat d i s t r i c t you w i l l place El Paso, that you w ill

b o *r In mind our business re la tio n s with our neighbors,
p a r t ic u la r ly

to the north and M a t o f ua, not fo rge ttin g

that m coneldor that our vary bualnaaa U f a l a at etake,
*ti<l thtt

m

are p lead in g « l f t js u n>t u

aaparata ua f r a .

tho a. with who* wa hare enjoyed d o e c hueineea lntercouree
f a r a any yea r e , to whoa aa look In tha future f o r aid In tha
upbuilding of thia o it y , and who h rre at heart In coMon
■i*> *1 Paaa tho fu ta ro prograaa and praeperity o f thia



3135

H« Frakausr

greet Southwestern s e c tio n .

The Seeretery o f the Treasury:

Ho* about your n a il

f a c i li t i e s ?
V r. Fxsk suers
fo r

Thot w i ll ba taken up by » asperate paper

two or three minutes.

The Secretary o f the Treasury:
X r . Krakau o r :

Vho w i ll present that?

lfr. S t i l e s .

The Secretory o f the Trsasury:

t e t lfr. S t ilo s Just

file

i t ss an e x h ib it, because we aay waat to r e fe r to thot date.
?rr. 8 tewart{

yes, we w i l l .

I t ehowe about l o hours

throughout this d i s t r i c t .

The Secretory o f A griculture:

Wow f a r ie i t from El Peso

to non Francisco?

y r . KraVauer:

1250 m iles.

The Secretory o f the Treooury:

How nuoh tine ie required

fr o a here tc Ktoeae Ci|y?
Hr. S t il e s :

27 hours 90 adnutea.

The Seoretary o f the Treeeury:
v r . S t ile s :

That i s ths f a s t a a i l .

The Seoretary o f the Treeeury:
y r . S t ile s :

Hbw i s i t to vmuwotf

33 hours.

The Secretary o f the Treasury:



That i e the fa e t s e ll?

How is it tc B&n Pr so cisco?

p jb

R« v rakauer.

V r. S t ile e :

5a hours

5156

45 minutes.

Tho Secretary o f A gricu ltu re:

You ore nearer to ^anaao

City?
V r. 3t i le o :

Yea.

The secretary of
1ST. 8 t i l e 03

tho Treaeur./:

Haw about Loo Angulos?

That i s 24 houro 50 nitrates.

Tho Secretary o f Agrioul ture:

Ih a t io ;he tine to S t.

Louie?
V r. S t i l e s :

S t. Louie ie 40 hour's, and Chi cago 42 hours

15 minutee.
The Sc or o tery o f A gricu ltu re:

You aay f i l e

thot data*

<The otatonent «ae accordingly f i l e d . )
Mr. Stewarts

Vo would lik e to h aie TJr. Douglas, o f

DcflSlae, Arizona, apeak f o r a moment*
The secretary o f tho Treaauxy:

How many of thooo w it»

neeeoa represent Arizona, Wr. Stewart?

H r. Stewart:

S ix ; fro® V r* Xtosglae do«n to and including

Mr. Greer*e n«ne on that H o t , end below that are repre*
eentatives i reae Hew Mexico.
The Secretary o f the Treaeury:
from d iffe r e n t p laces in Arizona?
V r . Stewart:



Y ee .

Are those gentlemen a l l

5137

J« s# DoufiXtm

STATKISB5T 0? JAHKS 3 , TX>U0LAB,
Tho Secretary o f the Treaeuryx You M y etate your f u l l
n*ae, residence end occupation?
V r, Douglas:

Jaaos S, Douglas} I as President o f s baok

In Douglae, Arisons,

the Btnk o f Douglas,

The sscretary o f the Treseuryi
Mr, Douglas:

A s tste bank?

Yes,

Tie flecrotsry o f ths Trsasury:

What Is your T ie * ss to

where you would be best served by a pedersl Bs^srre Benk?
V r, Douglas:

On ths Co sat.

The Secretary o f ths Treasury:
V r, Douglas:

rvn ths western Coast*

Yss, s ir * f o r the fu tu re ,

Ths Seorstary o f ths Trsasury:

Y s s,

Do you think that

I s ths gsneral ssntinent o f the bm kors and buslnsss laen In
Douglas?
Hr, Douglas:

Y ss, s i r .

The secretary o f the Treaaury:
Jfar, Douglss:

And Blebse?

Yes, s i r ,

Ths Seoretary o f the Treasury:

Are you f m i l i a r with i t

thsrs?
V r, Douglas:

http://fraser.stlouisfed.org/ Ths Sscrstary
Federal Reserve Bank of St. Louis

Yss, s i r ,
o f Agriculture:

Are your relstlons In timet s

J•

pjb

s.

Tb u ^lM

3156

with SX Paso?

W , Douglas:

Xeu# a ir , vezy.

he bulk o f the current

of ear buelnese now ie te J3L Paso, against the oeest.

Ve

do not do the business with the coast et present that we do
with £X P m o ,
The Secretary o f the Treasuxy:

But you think i t would

preserve the general trade relation sh ip and sxdiange
relation sh ip b e t t e r i f this te rrito ry was thrown into the
C a llfo n iia d i s t r i c t , do you?
M r, Dougleej

Z do#

Ths Secretary o f Agriculture*

ifeuld you p r e fe r to be

conneoted with 3an Fran cisco, even I f XI Paso were connected
with another d le t r lc t , or i s i t paramount that you be in
the ease d i s t r i c t as XI Paso?
K r. Douglas:

ve would rather be in the etas d is t r ic t

w ith XI Paso.
The Secretary o f A gricu ltu re:

Even though you m l^it be

conneoted with a city to the northeast?
V r, Douglas:

Z aca not quite r r s of that.

I think that

we have hoped in Douglee, in the eouthem p a rt o f the torrid
to r j in the State o f Arizona, that we would be put in the
s m s d i s t r i c t with Hew Wsxioo acid XI Paso, and XI Paso, Sew




J. 3. TfeugXa*
¥ . tf. trophy.

3159

Vexlco and Arizona would be oonneetcd with the Heglonal Bank

on the coast*
the Secretary o f Agricultures

You want to fo llo w XI Paao

towords the wost?
Hr* Douglas:

Yea,
STATEMENT OP TO. H* BMBflT*

The Secretory o f the Treasury:

Vr* Brophyv you may state

your f u l l nuae9 residence and occupation*
Mr. Brophy:

m i i a a H. Brophy9 President o f the Band: o f

B i*b e *, and general manager o f Pholpa-Ttodge Mercantile
Company.
The Ssorotary o f th* Treasury:

IDtat i s your Tiew

about

thia quest ion 9 V r. Brophy?
Vr* Brophy:

i t i s Tery sim ila r to Vr* Douglas'

who has ju s t spoken.

Bis bee i s only 2d zailss d ista n t from

Dougla * 9 and ths eene condition* pertain to Bisbos as to
Douglas*
Our preference 1* to be in th* r * e * r r e d i s t r i c t on th*
P a c ific Coast*
and o f s

Our re la tio n s with KL Paao are Tery d o * *

la rg e volume at the present tin e .

Ve chip our

currency from J& Paso9 and handle s la r g s volume o f our




▼, H , "Qrophy,

co llection s

through this p o in t.

3140

And representing the

banking and conriercisl in terests o f Blebee, thsy desired
to s t r e s s th e ir r le e s the* they hoped 21 Peso would bo
assigned to tho sane d is t x le t so Arizona*
Ths Seerstary o f the Treeeury:

Yould you p re fe r Sac

Francisco to Dearer o r Kansas City, fo r instance?
V r, Brophy:

Yes, a i r ; i t would be p re fe ra b le .

The Secretary o f the Treasury:

Bo you represent a

cl caring houee o r coons r el a l organisation of any kind?
V r, Urophys

Z prepresent the fchrse bsnke o f Blsboe, the

bank of ehich Z an preoidCnt and the other two banka,
Ths S ecretary o f the Treasury:

Are e ith e r o f those

national banks?
lfr, Brophy :
31sbos,

S s ith e r,

There is not a national bank in

There are three s ta te banks v l 8 i a capitA

and

surplus and p r o fit s o f approximately $400,000 and deposits
o f *4,000,000,
The Secretary o f the Treeeury:

ie i t the intention o f

any o f then to enter the syetexs?
Wr* Brophy:

u e i l , Z think sens o f thsn w i l l .

The Secretary o f A gricu ltu re:
it?



Does ths s ta ts le e p trsd t

3141

X . V , Gram s,

V r , nrophy:

Yes, I think so,

Th* Secretary o f ths Treasury:
Wr, Stewarts

That i s a l l ,

thaak you.

¥s would lik e to Kara V r, Grawus speak.

He

I s a national banksr in Douglas,

S tA tM B ? 0? S , W, GfcAWiS,
The Seorotary o f A gricu ltu ral

V i l l you please state your

naee, residence and occupation?
Mr, Graves:

E. V, Groves; Cashier o f ths F ir s t V *tio n *l

Dank o f Douglas, Arisons,
The Secretary o f A gricu ltu re:

Do you repreesnt any

organisation?
V r, Graves:

Yes, tho Chsnber o f Ooosaoroe and also ths

Bank o f Douglas as w ell as ths F ir s t national 9 * ,
are only two bank sin Douglas,

There

Z have le t t e r s f r o * ths

Chamber o f OoBseerce and Vines and fr o s ths Bank o f Douglas,
Ths Secretary o f ths Treasury:

Tho as * * y bo f i l e d ,

(The papers were f i l e d end ars as fo llo w s :)
Ths Douglas Chamber o f Coaaere* and tflnss,
Douglas, A r ia ,, Feb, 6

, 1914,

The Honorsble Venbsrs o f ths Orgeatissiisn Coswittas,



S i Faso, Texas,

£• V , Graves.

p jb

3X42

GentlemenI
In introducing Hr* 1 « w, crave*, representing the
hanks snd m ercantile in tercet* e f Ttouglaa, Arisen*, ir* wish
to **y th*t th* *fflcl*n o y and in te g rity ahc*n by Vr# Graves
during h i* y * * r * o f r**id *n o * motif: our citiz e n *

give* u*

th* p r iv ile g e of sta tin g that any fig u re s or statements
cade by him w i l l he given in the acne whole hearted mannar
that has characterised

h is every action maong u *.

Vo take th is opportunity to second the a ffo r t s o f Wr*
Graves in presenting to your Honorable C oedttoe the wish o f
3 L Peso to he placed in the imm d i s t r i c t as the reet o f
D
the southwest.

Our in te re sts are mutual and we ah all be

g re a tly pleased to see 81 Paso placed in the ama* d is t r ic t
s s Arlsona and How Bexloo,
Ve wish fu rth e r to say that from our personal knowledge
o f the business re la tio n s o f our merchants in dealing with
other c it ie s e f the United S tates, that while the fr e ig h t
ra te s at the present time era euch that s la rg e percentage
o f th* buainss* 1 * now transacted through the northern and

|

eastern c it ie s , ws b elie ve that with the completion o f the
Pantos Canal, there w ill be s r * adjustment o f business trans­
actions to euch an extent that within twa years 75 per cent



3145

* # V , Graves

o f our business re la tio n s w i ll be through tha Pacific Coaat
c it ie s .

Tor that reason, we re sp e c tfu lly p e titio n your

Honorable Com ittec to include this p a rt of Arison* in ths
C a lifo rn ia d i s t r i c t ,
Tours very truly,
& . G . Arthur,

P residen t.

The Bidk o f Douglas.
Douglas, Aris, *o b . 5 , 1914.
Y r. S . V . ttraves,
"ash le r F i r s t National Baiik,
rv>H^laa, Arizona.
Dear S ir :
As you have be on delegated to represent the banking

and other oossiercial

in te re s ts o f Douglas before the Federal j

Roaarve Organisation Committee at i t s hearing in £1 Paso
on February 7th, 1914, wo beg to eutaait to you the fo llo w in g
expression of cu r views ae to the nesda o f tho coMsunity.
On account o f the d o e s buainsss re la tio n * due to
geographical lo ca tio n end tranayortation routes, i t i s to
the best in te re s t o f the ooonuaity that KL Paso be Included



3144

K . V . Oraives

in tho a ana d i s t r i c t with Arison a and Vow Voxioo*
Owing to tho p ro b a b ility o f Increasing o on ero t with
woo to rs poin ts, duo to tho Patient* Canal,

and to tho fo o t that

increasing quantities o f our food aupplies auet com from
e
tho west, wo b o llo ro i t to tho boot in t e r e s t o f those states
that Arizona

und Sew Vsxioo be included i s tho P a c ific

Cooat o r San Fran ci a go d i s t r i c t .
Tho fo llo w in g table Ohows tho d iffe r e n t percentages
o f our fo re ig n

business oent to e*ch important p a rt o f tho

oountiy during tho lo o t a ix month®:
Vow Tor*

37

Chic*£© * ran a as City

15

XI Paso

19

Lo s Angelos

6

San Francisco

7

A ll other

16
Tours Tory tru ly ,
c ,o . m i s .

Cashier.

Tho Secretary o f Agricultural



You hare heard the Tisw s

3145

E . W: Grave*

expressed by Mr, Douglas,
y r , Graves:

Yen, s i r 9 and vs concur in them*

The Sucretary o f A gricu ltu ral

And you

on our in them,

do you?
Vr« Grsrros;

Yea, s i r ,

Ths Sseretary o f A gricu ltu re:

You p r s fs r to be attached

to Sen Francisco?
U r, Graves:

Y ss,

I mi girt

say that with El Paso ws carry

probably 1 0 p e r cent o f our to ta l cash resources, slthou^i
o f oourso, i t i s not a rsssrvc c ity ; and in ths six non ths
ending Dsoember 31st, ws hen died 29,2 p e r cent o f our en tire
tran sit items through TH Faso,

(I

Ths Bank o f Douglas

in that same tine handled 19 per cent o f th eir tra n sit items
h sre,
Ths Sscrstaxy o f Agri culturs:
data as an

Do you wsnt to f i l s

that

ex h ibit to your testioony?

y r . Graves:

Yss, i f you p le a se ,

(Ths statement f i l e d by V r, Graves, and la ae

fo llo w s :)

T ran sit Items f o r ths P sriod o f S ix Von ths
finding December *1 , 1913,
Ba* York
K an«M Cltgr



Jl,020,162.
116,310

37.4jf

4 .j#

2 , T, arares

p jb

3146

6699544

21 Paoo

2 5 .2 ^

5 5 ,4 6 2 , )
)
9 9 f0 1 5 . )

Han Francisoo
Los Angeles
Sundry

S .8^

.

i2jL

i a a a « .
$ 2 ,7 2 9 ,7 4 8 .

100

B , V# Graveaf

OMkitr,
Hr, Stewart:
Graret

m

W ill you pleaso repest tho question to Hr,

to whet s e le c tio n would be fo r * reserre city*

The Secretory o f the Treasury:
H r, areves:

Whet i s your preference?

P s rs a n s lly i t seems to m tvet Km is as City
e

would meet our requirements, but i t scene to Be that thst
i s fcn immaterial point*

Yo hope to be in the sane d is t r ic t

snd desire to be in the sataa d is t r i e t with HI Paso, and in
the hope o f hanrinic s breach bank established here* in
thst f»eo i t would be rether immaterial.

But as I under­

stand, the opinion o f ths m ajority o f the Arisona banks i s
in preference f o r San Francisco,
The Secretary o f A gricu ltu re:
question Z asked V r, Bougies:

Xet m aek you the seas
e
Suppose £1 Paso were

to some c it y to the northeast, would you s t i l l p r s fe r to
here Arisons in ths San Francisco d is tric t?



•

3147
E. f . G r » Y « .

Mr. Grave*:

8 s f i r as our personal Individual in terests

are conoem si, no would p ro fe r to be in the sane d is t r ic t
with El Paso*
Ths Secretary of the Trsasury:
V r. Graves:

Tee.

Bo n a ttsr where i t is put?

Ths preference o f the other banks is

fo r 8an Francisco.
The Seorotary o f A gricu ltu re :

Do you think the banks in

ths s a s ts m d i s t r i c t o f Sew Mexico would bs b s tts r ssrvsd
i f they were connected with San Francisco than with Kansas
City or aoae othsr s a s te m point*
Mr. Graves:

Ths s a s ts m d is tric t?

The Seerstary o f A grlo u ltu re:
( in d ic a t in g )•

Tes, this ssction here

Take ths s a s ts m t h r s « -f if t h s o f Arlsona,

would that be better aerved in flan FrancIscoT
Mr. Gravss:

Do you say i t would bs be tte r served at San

Francisco?
The feecrotary of A gricu ltu re :

No, can Kansas C ity , St.

Louie or Denver, or sons other c ity to the southsaat serve
that section better?
Mr. Gravss:
portion.

1 do not know how i t would be with the other

1 can speak fo r our own in d ivid u al concern.

The Secretary of Agriculture:



1 judge fro* that nap that

C. F. Solcacn

314*

the influence o f SI Paso reachee e sp e c ia lly to ju s t west of
the centre, west of Glendale and Preeoott, ju st to that
lin e *

i

Mr. Graves:

I think El Pee© draws accounts fr o * prac­

t i c a l ly every o ity in the s ta ts.
Mr* Stswart:

A ll the banking towne are suppossd to bs

shown on th is map, whsthsr they keep th eir accounts in El
Paso or net.

In that t s r rito ry blank thsrs are no fcanks.

Ths sso rstary o f the Trsasury:
Thank you.

That i s a l l , Mr. Graces*

Ps w i l l hsar Mr. Soloaon.

sTftMMK or chables f . solomoh *
Ths peorstary o f ths Trsasury:

you way sta ts your amis,

rssidsnos and occupation?
Mr* 80 lowers:

Charles F* 8 olo»on, Tucson, Arlsona, P r s s i-

dent o f the Arizona National Bank.

Can I su ba lt this

to you gsntl^aen.
Ths gscrstary of ths Trsasury:

Yss.

Thsse are your

o rs d e n tia ls , authorising you to appear hsre?
Mr. 8olowon:

Tee.

Also

statement of ths banks,

o f which thsrs are fo u r, two national and two stats*
Ths o*cr«tary of ths Trsasury:



You way fils the*.

C . F . Folcifccn

3149

(Th# etatensnt is aa follow s:)
OF c* ¥ e b c t #

Tucson, Arisona, Fab. 6 to, 1914.

Hon. ?. G. McAuOc, and
David F . Houston, o f tha
Org n ia a tio n C oaxittee.
QenU eaen:
haa
T;.e Tuoaen Cusaber o f Cena eree/appointed Hr.

Charlee F. Solcaon to represent thia organisation in pre­
senting our p s titio n to bass El Paao lncludsd in tha aaaa
raaanra d i s t r i c t with Arizona and How vexicc, and while Mr*
Soloaon w i l l ba able to feeder tha (round thoroughly, wa bag
to praasnt ths fo llo w in g srguaente on which wa f a a l very
etrongly.
El Paao ia tfea la rg a a t ra ilro a d oantar in tha inland
aouthwast and aoat important trada centra in the region*
Our in ters eta are therefore conaon, and i t w i l l esriouely
a f fe c t our businaee rela tio n e ware El Paeo and Weet Teaaa
to be placed in another district.
Ve n a tu ra lly c a l l upon SI Paso f o r aasistancs in any
n a tt«re which we fin d i t iap o ssib le to handle alone, and
tha quick communication poeeible with that city ie very



C.

valuable to us.

F.

3X50

So lo so n

Ws f s s l that El Paso Is an important part

o f this buniness coaxunlty, and that tc divids ths ccsu>.unity
in any way w i l l work an in ju ry .
Vs sin ce re ly tru st that our present ouoinsss sndbanking
re la tio n s with F I Paso w i ll continue undisturssd through
placing that c ity in our rsssrws d is t r i c t .
Vsry tru ly yours,
L . H. Manning,

Presldont.
Ths Sscrstary o f ths Trsasury:
ooaaunity?
Hr. Solowon:

What is ths v is * of your
^

W fe e l very strongly’ on ths point, s s e

po d a l l y so f a r as E l Paso is concerned.

We want to go witfc

FI Pas©, vh rover you put us.
Ths Secretary o f ths Trsasury:

you

see® to be pretty

strongly wedded to El Paso?
Mr. Soloaon:

Yss, s i r ; we fe e l Tory kindly to El Paso.

Ws think our business ln t s r e s t s , in svery ssnss of ths word,
are interwoven so that i t would bs an in ju s tio s fo r you to
ssparate us.
The Sscrstary o f the Treasury:

What would bs your prsf^rsn -

cs as to ths lo catio n o f a Rsssrvs Bank?



I
C . T . Soloaon

Mr. Solo»on:

8an ^rancisoo.

The Secretary of the Treasury:
Mr. Solowon:

3151

Ban Franolsco?

Tee.

The Secretary of Agriculture:

What would be your sscon:>

oholoot
Mr. Solonon:

Under thcee questions you submitted to the

national banks, our second choice is Loe Angeles, an£ Third
I I Paso.
The Secretary of Agriculture:

Tou bare not gone as far as

fouefch and fifthT
Mr* Solomon:

We do not know anybody elss eaet of El ?aao*

The Secretary of

Agriculture: la that your view of all your

banke and business «en?
Mr. Soloaon:

They fee l very strongly on ths subject,

and Z thin* that letter w ill cover the subject very
thoroughly, i f you w ill peralt ®e to read it .
Tho Qecretary of Agriculture:

you aay read it .

(Mr. 8olo*on then read the letter above referred to.}
Mr. Solouon:

I just want to state that 1 reprssent the

First watlon 1 Bank of Cllftcn , Arlr.ona, and their relations
are just as close.

For instance, on the exohangs—

The Secretary of A g ric u ltu re :



Where is CllftonT

*

C . F . Soloson

Hr. Soloacn:

3163

^

I

On tho o a stsm 11ns of Arizen*, near tbs

■Ining section.

They use a great deal of currency up thsrs

and have to use large voluxes.

Thsy svsn kssp as auob as

50 par cent of their available reserves in El Paso in
ourrenoy*

It being a wining town they havs to pay cut a

great deal of currency, and they fssl strongly on ths
subject.

I think 1 stated I represent four banks in Tucson,
»
two national and two state, and also ths Bank of Clifton*
Ths Secretary of ths Trsasury:

Havs you any statistics

you want to file ?
Mr. Rolcuon:

lot any in typewritten fora*

I can give you

the figures.
The Secretary of the Treaeury:

That Bay be Incorporated

in the record*
Hr* Boloaon:

Arisona Rational, capital $100,000;

eurplue and undivided profits $30,000; deposits $700,000*
Continental National, oapital $100,003; eurplue and
undivided profite $150,000; deposits, $1,503,000.
Southern Arisona Banking & Trust C o ., oapital, $75,000;
surplus and undivided profite $50,000; deposits $950,000*
Merchants Bank A Trust Conpany, oapital $50,000; surplus




C. I . Ssloaon
R. E. Moors

f

3153

snd undivided p r o fit s f 15,000; deposits |36?,000.
Total c a p it a l $335,000; surplus snd undivided p ro fits
\ | 3 4 6 f000i deposits $3,51?,000.

8 TATEMEWT OF * . E. MOORE.
Ths pecretary o f A g ric u ltu re :

W ill you sta ts your na^e,

1 residence and occupation?

Mr. M ere:
o

R. E. Moors.

I sn general sanagsr of tfcs

G ila T a lle y Bank A Trust Coapany, in Arizona.
The Secretary o f A gricu ltu re :

Just where ie thst, at

Globs or GilaT
Mr. Moors:

we have sig h t banks, we are a strin g of baius,

one naln bank an i eevan branches.

The again o ffic e i s at

Morencl, and ws have a branch at C lift o n , at 3 affo rd ,
G lob*, Miami, Hayden, Ray, and Winklej*an.
The Secretary o f A g ric u ltu re :
Mr. Moore:

A l l in the southeaet?

In the eouth and cen tral portion.

The Secretary o f A gricu ltu re :

What is your view ontthle

queetlon?
Mr. Moors:

W e ll, we such p re fe r to have El Paao in ths

ease d le t r i c t that we are in , becauee we do about 70 per
cent, o f our business through ths banka in E l Paso,



Those

3154

H. E . Mocro

to ^ w are # 1a l l Mining tc*ns and we ship a coed deal of
3
m m j

out there fo r paying the p a y ro lle .

Vo can got our

lteae quicker and got our oaeh quicker from El Paso than wo
oan fro a any other largo toim.
Tho Secretary o f A gric u ltu re :

Where do you do the other

3 0 per cent of your bueiness?

Mr. Moore:

V e i l, 1 ouppose about 30 per cent in He* York,

and the ether 10 par cent in San Franc loco and Loo Angsles.
The Secretary o f A gric u ltu re :

What le your preference fo r

the location o f the reserve hank*
Mr. Mocre:

you bo^ji ae to Kanoae City or San Franc ieoot

Ths Secretary o f A gricu ltu re :

Tee, any oity that would

serve this t e rr ito r y .

Tho Secretary of the Treaeury:
Mr. Mocre:

Or Denver?

W do no buslneee with Denver, and very l i t t l e
e

with Kansas C ity , and quite a l i t t l e b it with San Francisco.
Z euppoee we would porefer that, but i t would bo but l i t t l e
d ifferen ce to us.
The secretary o f A gric u ltu re :

Your aaln d esire lo to bo

Included in the ease d le t r lo t with El Paso?
Mr. Moore:

yee, s i r .

Tne Secretary



f A g r ic u ltu re :

Thank you.

ffave you

P . P . Greer

3156

anything you would 1 1 ke to eu balt, any cradontiale?
. Mr. Mocro:

Ho, i did not ooeo prepared with any.

STATnin? or p. p.
Tho secretary c f tho Troaoury:

on**.

w i l l you otato your * 090 ,

residence and occupation.
Mr. G reer:

P. P. Greer, m oooupatlon lo banking buoir.too,
y

and ey rooldonco lo Globe, Arizona.
Tho Secretary of tho Treaeury:
Mr. O raer:

What bank do you represent?

The F lr e t H atlcnal Bank of Globe.

The Secretary of the Treaeury:

Do you represent any

other banka or co ae ere lal organisations there?
Mr. Greer:

l o . I do not.
w

The Secretary of the Treasury:

*

What lo your view about

th is a a t te r , Mr. Greer?
Mr. Greer:

W ell, s i r , ay ideas ars that our Into res to

are Id e n tical with K1 Paco, that wo ehoula bo aescci&ted
with E l Ptso in whatever d le t r lc t they may bo plaood.

Z

think wo have gone on reoord ae p re fe rrin g San Francisco
fo r the Regional Bank.
The Secretary o f A gricu ltu re :

Did you have a represent
a

tatlv o at Loo Angelos, or did you send that to Waohlngton?



3156

P* P . O r t ir

Mr. Greer:
Loo Angelos*

I do not think we fcad a representative at
I hod a I s t t e r fron our ssoretsry of tho

association quite recon tly, hut I do not know whether they
oent a delegate to Loe Angelso or not*

W p re fe r El Paao
e

because about 70 per oent o f our business i s aone through
E l Paso.
Ths Secretary of A grlo u ltu re:

What would bs your second

ohoies f o r ths looation of a Reserve Banit?

You indicated

San Fra cisco as your f i r s t *
Mr* O rssr:

I think ws haws not any sp ec ia l oholce*

W
o

have not sny buslnsee re la tio n s with Kansas City or Denver*
The Secretary e f the Treasury:
Mr, Gr^er:

You have no second choioe?

W have no sscond choice, no.
e

The Secretary of the Treaeury:

Couldn't you think up

one?
Mr. O rssr:

Oh, I would not object to r*neae City at a l l *

The Secretary of the Treasury:

I f you did not have Sen

Francisoc, you think probably K nsae City would bs bsst?
Mr* O reer:

Z think Kansas City would beet serve our

in te re sts probably*
Tho Secretary e f the Treaeury:
than Denver?



You think i t .would be bettor

0

3157

H. H. Kali y

Mr. Greari

Toe.

PT/TFVTJT Of F . " .

The Secretary of the Treasury:

K F IL T .

Please state your full

na*e, residence and ocupatio n *
Mr. Kelly:

Harry H. Kelly, President Decing National

B an/, Demin;;, flew Mexico.
The Secretary of tho Treaaury:

That ia in the eoutfa here

( indicating)?
Mr. Kelly:

Tea, a ir .

The Secretary of the Treaaury:

You have heard what these

other ritnessas have said about thia probleo.

•'hat are your

viewa?
Mr. Kelly:

Our deaire ia to be placed with El Paso regard­

less of where the Regional Pesarve bank for this section ie
established.
T^e Secretary of the Treasury:

J'here do you think it

ought to be established to best serve the Interests of this
terri tory*
Mr. Kelly:

The natural trand of business is eastward,

and rv personal sympathies, and I think ths interests of




H. H. Kelly

3158

our bank would b« boat aerved i f the Regional Reoerve bank
would ba eetabllshed in Kansas City*

Howsver, i t la

la x a t e r la l with ua where i t la located; wa aorely daalra
to ba plAced in tl.e 000 a d is t r ic t with FI Paao*
Tha Secretary o f too Treasury:

You bars acre buolnooo

with Kan a as City than with 8 an Franciecc?
Mr. K e lly :

Vo hove no buolnooo whatever with San Francisco*

The Seoretary o f A gricu ltu re :
Mr* K e l y :

How about Denver?

W have eone business with Denver, and tho
e

banks in our town are divided on that subject*

sob *

p ro fs r

Denver and some Kansas City*
Tho seoretary o f the Treaeury:

Have you any that p refer

San Francisco?
Mr* Kelly:

Ho, w havs no western buolnooo whatever*
o

The Seoretary of the Treaeury:

What would be your oocond

0*0100?

Mr. K e lly :

Poreonally i t would bo Denver*

The Secretary o f the Treaeury:

And San Francieco would

coae third i f you had a th ird choice?
Mr. K e lly :
(Laughter)

I would oven give D allas th ird , I think*
Mr. McAdoo, I w i l l etate that 80 per cent of

our buolnooo lo done in El Paeo, and coneequently wo have



3169

H. H. Kelly
Jackson Agee.

get to be placed with El Paso.

I f we are not placed with

El Paso, it would put ue out of business.
The Secretary of the Treasury’

As long as you are married

to El Paso, you are satisfied?
iir. Kelly: We are satisfied.
The Secretary of the Treasury:

That is a l l ,

thank you.

STATEMENT OF JACKSON AGES.
%

The Secretary of the Agriculture:

Please state your name,

residence and occupation?
Mr. AgesP Jackson Agee£ Cashier of the American National
Eank at Silver City, New Mexico.
The Secretary of Agriculture:

Silver City is in the

southwestern part of the state?
Mr. Agee;

Yes.

The Secretary of Agriculture:

Do you represent any

organization?
Mr. Agse:

I have a resolution from the Chamber of Commerce

which I would like to f i l e .
The Secretary of Agriculture:

Yea, what is the essence

of it .
Mr. Ages:




That the business interests of Silver City

3160

Jackson Agss

dselre that we be annsxed or in the sae-e d is t r i c t aa FI Paso
and not be ssparatsd fr o * her*
Tha Secretary o f A gricu ltu re :

*?avs you any preference as

the where ths Regional Ban* should he?
Vr* Agee:

None whatever.

The Sercetary o f A gricu ltu re :

What is the d irectio n of

your busineee in that eection?
Vr* Agee:

W e ll, f o r the s a i l f a c i l i t i e s Kansaa City

would po ssibly s u it us better*

I t is nearer than say ether

town.
Ths Secretary of A gric u ltu re :

I t would e u lt you better

than Denver?

Mr. Agee:

Yes, I would r r e fs r Chicago to Denver.

*3 are

Just abcut the sans tia s to Chicago as we are to Denver.
The Secretary o f A gricu ltu re :
Mr* Ages:

W s ll, ws wouldnot object to San Francisco

if it s u its E l Paso*

E l P*eo.

How about San Francisco?

Ws do a great deal of buslnsss with

We li v e in a Mining country and i t requirse a

great 1**1 o f casfe, and we have

to get i t fr o * El Paso*

could get i t quicker and it costa ls s s to ship it in.
The Secretary c f A g ric u ltu re :

That ie a l l ,

thank you.

(The resolution s presented by Mr. Agee are as f o li o s * )



3161

Jackson Ages

RESOLUTIONS ADOPTED EY THE CEAMEER OF COMMERCE OF
SILVER CITY , GRANT COUNTY, NEW MEXICO ON
THE SIXTH DAY OF FEBRUARY,

A. D.

1914.

WHEREAS, the country is about to be divided for
banking purposes into regional districts,

in conformity

with the provisions of the Act of Congress commonly known
ae the Currency E il l ,

and

WHEREAS, it is believed that such division w ill be
made along lines caluulated to promote and conserve the best
interests of the various parts of the country to be affected,
and
WHEREAS, Silver City is, by reason of good railroad,
telegraph and telephone f a c il it ie s , closely connected with,
and in a business way largely dependent upon El Paso, and
WHEREAS, from statistics furnished by our local
bankers it is believed that fully fifty (50) per cent of
the banking business of Silver City ani adjacent country
comes through El Paso banks, while there is not more than
one (l£) per cent of such business that comes through the
combined banks of California, and
■
*
*
%
WHEREAS, it is believed that it w ill be a great




Jackson A & M

B

detriment to the buainaa* in te re st# o f S ilv e r City and
adjacent country, to be aaparatel fre u an l placed a it 'iin
a li f f e r e n t reg io n a l d is t r ic t f r e * XI P&m,
SO*, THEEETOBZ, BE XT H230LVXD, that i t 1# tc the
boot in te re s t# o f S liT o r City and the country aljac en t
th ereto, that i t he attach ad to end inolud-d within the
m m

reg io n a l d is t r i c t in

CL ^ e o i e i n d u led, ant

BE IT FUXCnZER HSXJLVED, that the o f f ic e r s o f the
CMisbcr o f Co^^oroe he, and they a re hereby authorised and
l i roc tot to take ouch step* &t to thct. a h a ll m
\
i n the premises.

proper

STATU OT/UEUCO

couarr or o a isr
r : , tho u U reigned, Htrry J, Durceac, a * P r e ^ li e n S r ^ ^
end E. l o c i h u i l, ae Seoretary, do hereby c e r t ify *a f o l i o vat

That the sail Harry J . Burgees iu tho proaiion t and tho
sa id E. V ooiliull l a the Seoretary, re s p e c tiv e ly , o f
Chanfrer o f Cosaseroe o f a i l r c r C ity , Grant County, lew

Mexico* and that the foregoing reso lu tio n i s a true and
correct transcript of a reso lu tio n duly presented and
adopted by tha aaid Chaa&ar o f CoW are e o f S ilv e r C ity ,




Jrjotam A«o<5
9. L. Low®

0

3163

Grant County# How Mexico* on tho sixth day o f February,
A, D. 1914.
Dfvtol at S ilv e r C ity, low Mexico, th is sixth lay
o f February, A. D. 1914.
H. J . Burgess,
President.

I Attoots
!
E. Wooihull*
Secretary,

STAmOCST OF T3Q3. L . LOffE.

The Secretary of tho Treaeury:

Ur* Loirs, vfill you state

your ruu&e, residence end occupation?
Kr. Lo.ve:

Thos.

Love; Tice President Silver City

Rational Bank, Silver City, Vow Mexico.

The Secretary of the Treasury:

What are your ideas about

this problem.
Ur. Lose:
precoded as.

1 an very mck like the parties she have

» We desire to b4 placed in the eaiae district

with SI Paso.
The Secretary of the Treasury:




Vhat is your first choice

D

T. L . Low®

31*4

F„ R. Coon
for the location of f Regional Rooerre bank?
t
Mr. Lowe:

Dourer.

The Secretary o f the Treaaury*
J£r. L o w

to * aecont?
-

Earaae City*

The Seorotary cf the Treaaury:
llr. Lowe:

t

Ar.i thiri?

Pooalbly San Francisco.

The 3ooretary of the Treaaury:

You ie ^«at of your

buainae* with El PaaoT

H r. Lowe:
with El Paso.

We 6e probably 90 per cent ef

mt

bnelweoi

Aa Ur. Agwe aai-1, a few ninutoa a£0# ve are

/

a canine country and ahip a great i «a l o f currency an! it
a l l comee froto XI Paae.

We do cot f e e l that the existing

c o n U tlo n a ah ou ll be changed*
The Seorotary o f the Treasury:

That l e a l l .

Thank you.

3TAT3U23T OF F. R. COOT.
T*>e Seorotary o f A gricu ltu re :

W ill you a la te your nac^e,

re e iie n o e and occupation.
Mr. Coon:

Frank R. Coon; C»ahiort F ir s t Sation al Bonk*

Lorio'~urg, Hew Mexico.

The Secretary of Agriculture:
Mr. Coon:




Sow far le that froo herot

It le about 144 Rilaa.

D

P. H. Coon

Th# 3dorotary of Agriculture:

3165

What la your Tiew of thia

problem?
Ur. Coon*

Lisa tha wltnaaawa who hare gone before, we

1 jelre to ba in tha iiatriot with S . Paao*

We la nearly all

our businaoa through EL Paao.
Tha Secretary af Agricultural

What la your choice far tha

location of a Regional Raaarra Bank?
Ur. Coon:

Va have expreeeed a flrat choice for Damrar

on tha carlo whloh hare been sent ta by tha d^part^ent.
Tha Secretary of Agriculture:
Hr. Coon:

Toe, air.

The Secretary of Agriculture:
Mr. Coon:

You hare receive i those?

Ani the eeconi choice?

B&naaa City, X preau»o, would ba our decani

choice.
The Secretary of Agriculture:

What would be your third

choioe?

I r Conn:
O.

Z bad not thought af that.

Poaaibly Loo

An^eloa or S u Pranciaco.

The Secretary of Agriculture:

That ia all, thank you.

8TAT5&OT OP J . B. HER3B0B.
The Secretary of the Treasury:




W ill you etate your full

J . B. H^m ion

D

3166

naise* residence ani occupation.
Mr. Henadsn:

J . B. Hornlan; AlbutjMer«jue* low ilexioo;

Proeilent 8tate national Bank* and I re^rwant three other
banka In lew Maxloo.
Tha Secretary ef the Treasury*
Mr. Herndons

Ho.

Have you any credential at

I a* Preaiient of two ef tha banka ani

Vice President of the other; one national and two atate
banks.
The Seorotary ef tha Treasury*

That is your T ie * about

thia *ueatlon, Mr. Heralcnt
Sir. Herndon:

Our relations with El Paso are Tory eloae*

and we woult like to be in the aacse d is t r ic t .

My first

preference f o r a Regional Besenre Bank is Xfcnsas City and
seeend Denver.

The Seorotary of tha Treasury*
Ur. Horn ion:

And third?

Chioc^c.

The Secretary of Agriculture:

What is your connection

with Kansas City* what is tho osail tliue?
Mr. Hem ions

About 60 hours.

The Secretary of the Treasury:

You are closer tc Denver*

are you not?
Mr. Hern ion:




I believe* a little.

3167

J . B . Herndon

D

Tho Seorotary of Agriculture:

ait you prefer Kansas

City?
Mr. Herndon:

Yea, sir.

The Secretary of the Treaeury:

Do you hare more business

with Kansas City?
Mr. Herndon:

Yes, more than three times as much.

The Seoretary of the Treasury:

Where do you keep your

reserves?
Mr. Herndon:

Kansas City, Chicago and lew York.

The Seoretary of the Treasury:
Mr. Herndon:

In what proportion?

Well, about 40 per cent each in Kansas City

and Chicago, and 30 per oent in Hew York.
The Seoretary of Agriculture:

How many other banks are

there?
Mr. Herndon:

There are five banks in Albuquerque.

The Secretary of Agriculture:

Do you know what th eir

preference is?
Mr. Herndon:

The First National Bank, the largest bank

in Hew Mexico, wants to be in the same distriot with El
Paso.

They express no particular preference; they want

todo what El Paao want8 to do.
The Secretary o f the Treaeury:




Wpuld you think that

D

J . B . H a m Ion

3168

ths interest* of that aaction of Heir Mexico would Ue serve!
by a Beeenre Bank In 3an rreuacisoo e^olly as well aa a
aeservo Baal: in genftiui City.
Hr. Herndon:

Ho, I io net.

The Secretary ef the Treaeury:

Vhat l e the tt&e to 8an

fnatiaotT
Ur. Herndon:

It would be only a guess; I think 48 to 60

hours.
The Secretary o f the Treaeury:

T5hat ie the view ef the

other banka there, the aa£»e ae ycurat
Ur. H e m ’on:

In Albuquerque?

The Secretary of the Treaeury:
Ur. Hem Ion:

Tee.

Ten.

At a meeting of our Executive

Coe-lttec, representing tha Bonk Association of Hew Mexico,
they livid a*

the state; part of tH«* favored Denver and part

e f thee, Kuu&s City.

1 aent out letters uyaelf to all the

banke which would be eligible for s*mber*>iip, and X sot 39
replies; aa favored Kaneaa City sad the others favored
Denver.
The Secretary of the Treasury:
in

How o a n y b a n k a are there

the etatet
Ur. Herndons




There are 93, but only soae forty odd Which

D

J . 2 . Herndon

3168

would bo eligible; the others hare too asall capital*
Tho 3eoretary or the Treasury:

How oany national bonks

arc there?
Ur. Honvlon:

I think 43.

The Secretary of tho Treasury:

And how cany national

banka replied?
Ur. Hem Ion:

About 28.

They wore all national banka

that rep 11 e l.
The Secretary o f the Treasury*

Jtni hare

letters with you?
Mr. Hem Ion:

3o, 1 have not.

The Secretary o f tho Treasury:

I l o f t th«a at

They hare since

1 preeuoe, to the department, in response to that
Hr. Herndon:

Yes.

The Secretary o f the Treasury:

That i s

^

STATEKEET OF UAH£ B. THC&SPSOI^
The Secretary of tho Treasury:

thank
\

I

You nay

residence and occupation.
lir. Thomson*

Mark E. Thompson; Las Cruces*

X a& representing tho Bcnwaan Bank A Trust Co^>
tho Firot Rational Bsnk of Las Cruces, tho First Sta




D

St. 3 . Thom son

3X70

Bazik o f Lae Crucoa, ani tho Elephant But to l& ter Uaora9
Aeaociation o f le v Mexico.
The Secretary o f the Treaaury:

You have hoard theviewa

expreeaod by theeo other gentleoan?
U r. TJiocipaon:

Yoa#

The Secretary o f tho Traaaury:

Do you concur in th eir

viewe aa to tho lo catio n o f tho Rea e rr e BankT
U r . T ioc^aon:

In a general way, yea, a ir .

The Secretary of tho Treaaury:

Where do you think i t

ahould be putt
H r. Thompson:
B&na&s C ity.

Tho preference t&ere, I think, l a fo r

However, i t l e o f no m aterial in te r eat to ua

aa long aa wo aro attach e! to SI Paeo.

I t l a extroaoly

v i t a l that we should bo on account o f the government project
there and the fin ancing o f i t under p e c u lia r con 11U ana,
a l l tho land being mortgaged to the govom&«nt.
The Secretary o f the Treasury:
can bo attached to the record.

Theae re&arka o f youra
That l a in aubstance a l l

you wlahed to way, waa it?
U r . Tlo&paon:

Yea, a i r .

The Secretary o f A g ric u ltu re :
you d ia ir e to eojh aalse.



Unless thare l a aot&e point

D

U . B . Thoifipaen

U r. T h e r e o n :

3171

Thay are a ll coTarei in asy brief hare*

Tha Secretary o f A gricu ltu re:

Tiank you* U r. Thc^aen.

( r a pj/.para f i l e d by llr. Thompson a re a a fo llo w *}*
Laa Cruce#, .»e* iiexloo, Fab* 6t h , 11>14.

T h i* l a to c e r t ify that Mark B* Thot*paon l a tha duly
a c c r e ilt a d re^rcaentative o f the Boetan Bank A Truat Co^any,
Laa Cruces* Hen Mexico, to appear In the in te r eat o f a a ll
bank b e fo re the Honorable, The Secretary o f the Treaeury,
and the Honorable, The Seoretary o f A grlo u ltu ra , at a
hearing to be h e ld in the C ity o f SI Paeo, Texae, on
Saturday, February 7th, 1914*
H. D. B m m A |

Preai lent,The Be*c*n Bank A Truat Co.

EL Paae, Ta*a.i# tebru&ry G , 1‘ 14*

Tnie i e to c e r t ify that Mark B. The* peon i s the duly
aoore t lt e i repreaentatiTa o f the F ire t Hational Bank, Lea
Crucea, Hew Mexico, to appear in the In tero o t o f a *ld bank
b e fo re the Honorable, The Secretary e f the Treaeury, end
the Honorable, The Seoretary o f A g rlo u ltu ra , at a > earing
to be held in the City o f 21 Paeo, Texaa, Saturday, February
7th, 1914.




J
•

0

H . B« Th o m so n

2X73

3* F. Campbell,
Cashier, The F ir e t la t io n a i Bank*

Las Cru.es, I r v ttexico, February 6# Xj *4*
Thia i s to o s r t ify that Mark 2* Thorton ia tha fu ly
a c c re d ita i representative a f tha F lr a t Stato Bank a f Las
Cruoea, Las Cruces, law Heaico, ta appear in tha in tareat of
sa id bank before tha Honerable, Tha Secretary o f tha
Treaaury, and tha Honorable, The 8 ecr»tary e f A gricu ltu re,
a t a s e a tin g to be b a ld in the City o f EX Paso, Texas, on
Saturday, February 7th, 19*4.
T. H. H* S sith ,
Pro. si lent, F lra t State Bank o f Lae Cruces*

Las Cruces, le a ttexlco, Feb. G, 1914.
This i s to c e r t ify that under and by v irtu e o f a
re so lu tio n o f the Board o f D irectors o f the EXephant Butte
Water U sers1 Association o f la a Mexico, passed a t the
re g u la r beating held at the o f f i c e o f the said Association
on tha 2nd day o f February, A. D* 1814, Mark B* Thomson
wa# duly appointed aa tha aooredited representative o f eald
A ssociation to appear befo re the Honorable, The Secretary



mmm

D

M. B, Thompson

SL73

o f th# Treasury, and th® Honorable, The 8®orotary of
A g rlo u ltu ra tp repree«nt th® in te re st o f said Association
a t the hearing to be held a t CL Ba*o, Texas, on Saturday,
February ?th, 1814*
Witness cy hand ®nd the seal o f sa id Association
th is 6th lay o f Tebruary, A* !). 1314.
Fred S. Hess,
Secretary, Klephant Butt® Water User®9
Association o f Hew Mexico.

STATXMEHT C l BSHALF OF TII3 BIO CRAOTE VALLET
o f hew

aszxco.

That portion e f the Rio Grand® T a lle y o f le v Mexico
to Which the attention e f the C o h e s i o n l e directed, begins
a t d e p h a n t Butte a t whloh point 1® located an impounding
daia e f the United States Bedaxaatlcn S ervice.

T i s point

1® about one hundred and twenty sdle® above th® C ity e f
K1 Paso ant the v a l l « y between the ELephcnt Butte and El
contains 110,000 acres o f i r r i g a b le land o f which about
G £ ,0 3 C acre® a r e in c u ltiv a tio n at the present U a ® .

On

c ith e r side e f the v a lle y la y the t a b le la n l® ooibprlsing
some very ric h graxlng land®, end along to th® ®&®t o f the




j

D

M* 31 Thompson

3X74

r a i l ay a re tha San A n irM # Oregon snd Franklin n u ^ M , a l l
o f which are h igh ly m ineralised ani in which arc a number of
T*ry promising wines; h eretofore a groat deal o f mineral
has bean shipped from thaaa mines and eatenaive preparations
a r e nos being m
ada to work thee* on a la rg e scale.

Situate*

in th is T alley are three banka, the Bowman Bank A Trust
Company, a s ta te in s t it u t io n ; the f i r s t Rational Bank; and
tha Y lr a t State Bank, a l l located in the town o f Laa Cruoea,
and a new s ta te bank has Just been a t a r t ad at Anthony, near
the Texas border* which hue not aa yet is^ u e i any fe r s a l
statement.

The town o f Laa Cruces l a situated 45 m iles

north o f £1 Paao, and l a a city o f about *>000 people.

One

r a ilr o a d trarerae e the e n tire length of the T a lle y , tho
Atohison, Topeka & Santa F « Cc .^sny, bcine a [branch o f the
main li n e running frota Albuvjuer<?ue to El

The Bowman

Bank & Trust Company i s an in s titu tio n >mvx*g rseeuroea
e f $454,165; i t deposits in the City o f E l Paso 65 per cent
o f a l l of l t a fu n is ; l t a correspondents are looated in El
Paao, Chicago and Saw York; in c le a rin g s from £1 Paso they
re c e iv e 90 per cent o f i t e m in somber and TO per cant in
amount, an! o f c le a rin g s to 23. Paao 90 par' cant




o f ltecs

D

tt. B. Thoispaon

diacounte o f tlilo bank are handled in tho City
Tha T l r « t » U m

3174

S i Paao*

l Bonk o f La Cruoaa te a a to ta l amount of

jj/>##©ur:;ee, o r $185,000; i t deposit# 06 per cent o f i t # fund#
in XI ?e.»o; tho R¥«rag« o lcarin g# s it h S i Paao th# paat 30
day# aggragato $84,600; clearin g# with E l Paso inoo^ing
L amount to $61,&49; th i# in a titu tle n o a rri# # a reaonr# in
J 3 m York and Chicago, and ha# correspondent# in El F&ao,
j/.Chicago and San York.

The F ira t State Bank ha* to ta l

j r#aouroeo o f $260,000; i t o arri# # 80 per cant o f i t # fund#

j on top#ait in th# City o f 21 Paao, and ha# correapor.denta in

S i Pa#o and S#cr York; i t # clearin c# fr o a S i Faao Mount to
about 90 par oent o f itao # in number and 70 per oent in
aoount, and outgoing clearin g# are han d le! through El Paao
a# w a ll a# a l l re -U a c o u n ta .

In b r i e f , p r a c t ic a lly a l l

o f th# banking bu#in##a o f thi a region i # done d ire c tly
with SI Paao.

Boring the la t t e r part o f 1307 i& en it became

necessary to iasue c l oaring house c e r t i f ic a t e s , th#
o # r t ific a t # a froai th# C learing House o f El Paao circ u la te d
in thi a region to the #a^a extent ae they did w ithin th#
City o f El Paao I t s e l f .
The United statee OoTerraent, through i t # raclafa&tion
ae n rio s, 1# now open ling the etas o f |1 0 , 000,000 in thi#




D

317*

U . a . Thomson

v a lle y In the c c n o t r^ tio n o f on Impounding re serv o ir at
Elephant Butte, and a canal ays tea necessary fo r the d is ­
t rib u tio n o f the water.

Ehan thia system i s complete i t

t r i l l i r r i g a t e about 110*000 acres which, when brought to a
proper degree o f c u ltiv a tio n , w i ll be worth a t le a e t $200
per acre, or #3^,000,000 in tha aggregate.

However, in

order to properly s e t t le and c u ltiv a te such a great area,
the paat experience o f the United States Government tpcn
the v ario u s ir r ig a t io n pro jects undertaken, has been that
on account o f apeculation and lack o f in t e llig e n t and
sympathetic fin a n c ia l aeaistance to the s e t t le r e , that the
degree o f success which was hope I f o r at the tine e f passage
o f the Reclamation Act has not developed aa an ticipated.
During the month o f Bov«nber a C o ^ it t e o o f the Elephant
Butte f^ t e r U sers1 Association met, at extended conference*
with the Secretary o f the In t e rio r and Reclamation

C o tu iasic n

to diacues the propriety o f the ir^ e d ia te construction e f
d ia trib u tin g systems and the matter o f set tier, ant o f u
x>>
occupied areas and o f the importance e f cutting up the
la r g e r areaa in to sm aller f a n u n ite.

At that tio e the

Coi~ i t tee o f the Association presented to the Department o f
the In t e r io r a statement from the banks e f El Paao and Lae




0

tt« B* Thocpeon

3X76

Crucea to tho e ffe c t that they had heretofore and were now
bending every energy to a s s is t tho actual farmer on the
l w i and the dlecouraelng o f spsculation o f euch lands and
i t was la r g e ly duo to tho b e l i e f in thia statement that tho
Secretary o f the In t e r io r order e l tho iu oediate construction
o f can als, and the Roolasation CottuAssion, in an open le t t e r
to the A ssociation made use o f the fo llo w in g language:
"That specu lative tendencies, so detrimental to tho
success o f aany ir r ig a t io n p ro jecte, have net been dominant
upon the Hio Qr*nde project in le e Mexico up to the present
ti£»e.*

A largo aiaount o f money w i l l n eoeaaarily be required
f o r the proper preparation o f the land fo r c u ltiv a tio n and
taking care o f the s e t t le r s luring the f i r s t fe e years
occupancy o f the landt and i t i s not w ily necessary that
th is ooney be forthcoaaing fo r the proper developing o f th is
sectio n , but that the fin a n c ia l in t e r e s t s fa m is h in g the
eaaie xaiat have the in t e llig e n t , ay&pathetlc and f i r s t
hand knowledge o f conditions as they obtain i « th is section.
H

Paso, being located at one snd o f the e a lle f^ haa to tho

high est degree, these q u a lific a t io n s , end there ^
o lt y w ithin a range



no other

o f several hundred cd lea , afcl i t i s

D

H . B . Thcn^M R

477

obvious that no other place could in any iLeasure hanile
th i a situ a tio n .

The Uni tod States Government through i t s

Reclrvaation Commission, has ploiged, through l t e contracts
with the owners o f these lan d s, to proviso erary assistance
f o r the success o f the s e t t le r s , and fret, conferences hold
with the Seoretary o f the In t e rio r and the Reol&i&&tlen
Cocii i ion , the Secretary o f the In t e r io r believes that the
success o f th is p ro jeo t i s probable on account o f the fact
that i t has at hand a o ity such as the City o f El Paso that
can g ir o the proper fin a n c ia l assistan ce to i t s c itiz e n s .
There i s no loubt i f th is section be plaoo-1 in a d iffe re n t
t e r r it o r y than that in which El Paso i s located, that i t
would not only oake i t im possible fo r the two sta te banks to
take advantage o f the provisions o f the Currency Act, but
that i t would very serio u sly hooper the n ational bank
th erein located and sake i t impossible fo

such bank to

render the degree o f assistan ce as i t s p o s s i b i llt le e would
otherwise enable i t to do.
U r. atovvart:

Ife have two people from El Paso, one

representing the c a t t le in te re s ts and one the mining
in t e r e e t s and a ls o another representing nanufacturlng
In t e re s t s Who have statements prepared.




T e can f i l e then
7

0

H. D. Slater

3178

i f you do not o a r* to hoar thou*.
The Secretary o f tho Treasury:

I f they aro s t a t is t ic a l,

1 think i t would bo w ell to f i l e then*, unlooo there are
setae o f the points which the witnessed deelro to efe^hasixe
b r ie fly .

I f ao, wo w i ll hoar fr o s thee^

STATHffiHT OP H. D. SLATER.
The Seooetary o f the Treaaury:

Tou laay give your name,

residenoe and occupation.

ISr. S la te r:

H. D. S la te r; Editor and P u blish er o f tho

El Paso Herald.
At the request o f the Chaober o f Cour.eroo, U r. Seorotary,
I ant aokod to <*Bfh&siiO the s o lid a r it y o f thia southwestern
d i a t r lc t , and aa an ad dition al reason why i t should be xept
together.

In c a llin g your atten tio n to the

those

rod marks in d ic atin g tho d is trib u tio n o f resources, are
not spotted upon the map a t random, but each one represents
a d is tin c t lo c a li t y where there l e a copper or s ilv e r mine
o r coal in t e r e s t , as there i s la r g e ly .
E l Paso9s f i e l d fo r d is trib u tin g tho products o f

her

f& o to rle e extends fror, the Colorado l i n e tc the City e f




D

H. D. Slater

3179

Mexioo, 1700 c a ll**, and f r e e Yuka , on tho C a lifo rn ia bortar
to Houston on tho east, 1400 m ile *.

JU to certain producte

ouch aa those o f b a r woodworking d l l s

and her sh elte r,

tho market l a worldwide.
90 lo o a l concerns are engage! in oanufaoturing to aosae
degree f o r general tra Ie; the fig u re s c i w

do not include

the r a ilr o a d shops, b u ild in g trades, exoluaiTe re p a ir ships,
or a p o d a l s e rv ic e euoh am t a ilo r in g and c l llln o r y .
In z^anuf&cturing in d u s t ria l* in £1 Paso, nearly 3000
wage workers a re employed* w ith annual payroll or $a ,500,000,

annual output o f $ 3 0 ,0 0 0 ,0 0 0 # and c a p ita l investment o f
$7,500,000.
Chief aiacng El P ^ o , e in d u stries ares
CL paeo lO llin g Co&pcny, employing 3000 ism in normal

tU -es (lu c b s r su p p lies solely frton Mexico has been cu rtaile d
during re v o lu tio n ); annual p a y ro ll $ 1 ,5 0 0 ,0 0 0 ; annua 1 output $ 6 ,5 0 0 ,0 0 0 ; ifcveotzumt $ 1 ,0 0 0 ,0 0 0 .
£1 Paeo s h e lte r , o f the American S h elter & Refining
Company, employing 1400 *-sn; annual p a y ro ll 0 1 ,0 0 0 ,0 0 0 ;
annual output $12,000,000; investment $ 3 ,0 0 3 ,0 0 0 .
Southwestern Portland Cement Company, «&pleying 160
sen ; annual p a y ro ll $300,000; annual output $ 9 0 0 ,0 0 0 ;



0

H. S. S la te r

31B0

i

investment $1 , 000 , 000 .
SI Pa#o Grain A M illin g Company, e&ploying ^

aen,

annual output $1,000*000; ln ro o ta n it $350*000.
S I Pa#o Foundry, In nonual tia.es employing 35C c*on9
(trade largely froo Mexico); annual payroll $300,000; annual
output $850,000; lnreetcant $300,000.

Product# o f El ^ o o * o awnufacturing in du stries cover
n early SO d iffe r e n t lin a e , which a re sp e c ifie d in d e ta il
oc another page fu rth e r on.

The p rin c ip a l lin e s however

are h igh ly fin is h # ! uhlte pine products; &etal shop products;
b ric k ; household furnishing#; product# o f sw elters and
fc u n lr ie # ; cocusnt, flo u r , c le a r s and food product#.
Tho bi££oat In d u strie# hare been established tilth
outside c a p it a l, which has been brought here not merely by
in v e sto rs lock ing fo r a s a fe place to put aoney, but, aoat
s ig n ific a n t ly , in every one o f theeo oases, i t has boon
brought in by s»on o f long experience in th e ir sp e c ia l lin e s ,
a c tiv e c&nufacturore, having ether plants elsewhere, but
recognisin g the tre&endcue s tra te g ic advantage e f SI Paso
aa a

ex eat

facto ry centre*

la t u r a l resources H ill bo a p o o iflo a lly a iiu io d to
fu rth e r on.




The p rin c ip a l fa o to rs entering into j&aking

H .D .S lat er

3181

5'1 Paio a most profitable factory center are:
1#

K1 Paso*s central position with regard to the

rreat source a of raw materials;

and the fact that this city

commands within her trade district the row materials for
sic re different lines of manufacturing than any other city
in the United states*
2.

Cheap labor, due to unlimited supply from Mexico,

favorable climate, wide advertising of the city, Lietropolitan character of the City and good living at lower rates titan
prevail elsewhere in the southwsst •
3.

Pure soft water in abundance at low rates.

4.

Seasonably cheap power, due to proximity of coal,

oil and rood, with highly favorable rates In Tex vs on o il,
a water level route down from the coal fie ld s , and vast
quantities cf cheap waste for fuel from the lumber working
industry.

Upon completion of the Elephant Butte ’
Dam, from

1 0 ,0 0 0 to 2 0 ,0 0 0 horse powsr will be available

in El Paso

for manufacturing as a by-product of irrigation operations.
Sew Vexieo has more coal than any other state west of
Illin o is .
5.

Cheap tr*nsportat ion

both In and cut, due to keen

railroad competition to and from



every point of the compass,

ga

H .r . Plater

3182

and water rate* affecting all t a r iffs .
6.

Comparatively <*Heap llvinp, due to metropolitan

coHsroerci il centre, very favorable freight r*tes in,

±nd keen

competition. The one exoeption ia in cost of house rent,
and there is a great opportunity here for acund investments,
yielding la^re profits and rendering

public se-vlce by

reducing this very important Item in living ccst.
increase of available caFltalfnr investment

When by

it becomes

possible to place prims v e n d o r s lien paper at six per cent
Instead of eight, and prime mortgages on inside improved
business property at five to six per cent instead of six and
a half and seven, the cost of living and carrying on all
business w ill bs very materially cheapened*
7.

The vast extent of rapidly developing markets

within the inner trade district that are and always w ill be
dependent upon XI Paso as a factory centre for the reason
that not a single other locality within 600 miles of K1
Paso in any direction has more than two of the six great
advantages which XI Paso possesses in marked degree#
SI Paso * s natural rssourees within her trade district
as to raw material for manufacture include:

fir s t , the

largest body of extra clear white pine timber In the known



fa
t

3183

H .B .S la te r

world (near 151 Paao in Chihuahua, Mexico) —
The Secretary of the Treasury:
tf^. Slater j

Yes,

That le in Mexicof

sir, three and a half million acres,

affording %n estimated output of 1 ,5 0 0 ,0 0 0 board feet p e r
day fo»* 100 years, at le»st twe-thirds of which is to be
manufactured in K1 Paso.
the world;

The product is shipped all over

it roes into British war ships and Australian

public buildings;

Into the finest Grand Kaplds furniture;

into hardweod veneered doors, sadh and moldings for foreign
and domeetlo trade;

into Purrewes1 fly screens made In laine,

and into siding for Hass.achusetts bay side cottages;

into

millions of onion eraten annually for the Texas crop, and
into bores for Oregon apples.
2.

The largest body cf yellow pine on this continent,

in Tfew Mexico and Arizona*
3.

Copper deposits now producinftme-fourth of the

w orld's copper and scarcely opened yet.
4.

Iron, silver, lead, sine, ffOld, raanpanese, quick­

silver, platintiE, tunrsten, an<* the earth metals in abundance•
5.

‘’ulphur, salt, plaster, fe r t ilis e r .

6.

Cotton in Texas,

Arizona, ^ew Vexlco and J exico,

producing more than o^e-fo rth of the world*s supply of the



3184
H. D. S l a t e r .

g re a t s ta p le .
7.

Leather, hides, hair and fertilize r,

from herds

of 1 ,5 0 0 ,0 0 0 head of cattle.
8.

Wool and mohair from millions of sheep and goats.

9.

Furs from countless wild animals.

10. Live stock for packing houses.
11.

Various fibers in unlimited quantity.

12.

Rubber and gum plants,

13.

Cement materials, all three constituents present

and sources of alcohol?

together in unlimited quantities.
14.

Lime and sand, brick,

clay and tile clay

unlimited

and cheap.
15. Cereals for milling.
16.

Vegetables and fruits for canning.

17.

Erocra straw, sugar cane and beets.

18.

Mineral springs of all kinds.

19.

Gems, onyx and paint materials.

The Statutes of Arizona, New Mexico and West Texas form
one compact unit as an industrial,

commercial, financial

and social community of communities, with El Paso as the
undisputed metropolis,

and El Paso respectfully urges that

this solidarity be respected in establishing a regional




I

H .D . Slater

385

bank d i s t r i c t .

The products of SI P »s o 's manufacturing Industrie*
cover the following lin e s :
Finished wood products, especially clear white pine,
including interior fin is h ,

siding, sash and deers, cores

for hard wood veneering, molding, box shooks, crates and
so forth.
General b u i l d i n g lumber and tim b er.

Iron,
including

steel and brass foundry and shop products,

complete mine equipments from bottom cf shaft to

top of stack;

machine*^ parts and castings, iron and wi*-e

fences.
5*heet iron and t u b in g ;

cornices and other galvanized

iron building fin is h .
All the principal aetals reduced from their ores.
Flour, meal and other certal products.
Brick,

including face brick, art brick and fire bricky

building t ile , conduits and tubing.
Portland cement, lime, composition stone products,
marbles .*nd stuccos.




Saddlery, harness and general leather goods.
Furs, wholly or partly manufactured.

H .E .S l a t e r

3186

Clpars and processed tobacco.
ttattreasea, bed sprinps, tents, awninps and eaiap
equipment.
¥a*?ona, portable houses;

Unk,

at ore and bar fixture#.

Printing and stationery, boots and ahoea, furniture,
mantela.
Baer, pene^al bottled pocda, bakery and cannery
products, coffee and spices, packed weat products, confect­
ionery, lard compounds, o ils, ice, creamery products, broom*,
pai^ta,

electrical supplies, art plaaa, ferns, jewelry,

art poods, clothinp, optical pocds;
The Secretary of Agriculture:

photo enpraYinpa.

Where ought the bank to be

for thia diatrict?
¥ r . slater:

I think, Judping from the at endpoint of a

newspaper a an, and I have talked to a preat many people on
tohe subject, bankers and others, and I should say the con­
census is for what we would tern a western c ity .

XI naao

does not wish to be included in the Wew Orleans d istrict,
for instance, but Kansas City, Benver or San Francisco,
any one of them, would suit El Paso and a ll of this district,,
so far aa I know.
The Secretary of A rric u ltu r e: p© you think it would do



H .E .8 1 a t e r

3187

any violence to the Interests of a large part of this
section to be related to San Trancisco?
H r . Slater:

?o far as any business sen and bankers 1

hare talked to are concerned, they seen to regard it as
alsost immaterial what regional bank we enter,

so long as

cur district is kept so lid.
The Secretary of Agriculture:

I « & i thinking cf this

section here, West Texas and *ew Kexleo;

where do the oattls

in test Texas go, for instance.
Mr. Slater:

Very largely tc California.

The Secretary of Agriculture:
Mr. ^later:

They do?

Y«»» s ir ; largely west, a considerable part

of the cattle shipped through El Paeo fron *est Texas and
Old Vexlco goes to California, thourh , of course, the g^*eat
bulk of our cattle roes to the northern feeders and packers.
The secretary of Agriculture:

Where does this timber in

Arizona go?
Mr. Slater:

It has not been opened up y e t. It is etlll

in the 7c rest pres*~re.
The *ec~etary of the Treasury:

There is a large timber

development at 71agstaff, of course.
M r. S la t e r : Y s s , that has Just opened up.



R .r .S la t e r
J . J.Ormsbes

The Secretary of the
X r . W aters

treasury:

3188

Where does th**t r o T

I presume it has a national sia-ket.

8TAT2UKVT 0? J . J . 0RMSB2?.
The Sscrstary of the Treasury:

You »ay state your n*a»ev

residence and occupation?
l£r. Orartee:

J.J.Ortr.sbee, Superintendent of the $i Paso

Smelt inpr Works .

I was asked to write on El Paso’ s mining

industry.
Th* Secretary of the Treasury:
statistics,

How if there are any

i f you w ill emphasize any particular point you

wish to call to our attention, it w ill save time.
Mr. Onasbee:

I think it would be better to f i i e the

whole papsr, because it has to be statistics.
The Secretary of the Treasury:

Yes, it may be f il e d .

(The statement was file d , and is as follow s):
El Paso newer has been a mining oasap, in ths ordinary
sense of the term.

Hut a glance at the map submitted he**s-

with shows that its railroad location, with reference to
the aininp districts of Arisona, lew Mexico and the northern
part of Kexico, makes it essentially a distributing point
for supplies to the many mines of th* southwest.



The pro f

mmmm i- ■
■

*a

J .J.O n a s b e e

3189

of this existe in the fact that so Bany of the lar^e aining
ttaehmery and supply houses have branches of ufeneies in
Bl P a s o .

This city t?Jces its toll frosj the supplies jroinr

to the sines find fro* the metals iroinr to rrarket•
Arizona is s t ill, and h is been for several years,
the larpest copper p-oducer of tho United States*
advance fif*u~es of the U. 3 , Geological ^ r v e y

The

indicates an \

output of over 4 0 0 ,0 0,000 pounds for the year 1913*

Sew

M exico's copper production w ill be over 50,000,000 pounds,
or about double that of 1912* An appreciable amount of
Arizona's copper and practically all Hew Mexico's production
is sheltered in SI Paso, our local sc-elter havlnf hr&ndled
over 6 0 ,0 0 0 ,0 0 0 pounds in 19 13.

(See Exhibit A .)

Arizona produces jrold to the value of about
$ 4 ,0 0 0 ,0 0 0 per year, and silver to the value of about
$ 2 ,0 0 0 ,0 0 0 .

Sowe of this is treated in California, but sost

of it either in hone plants or in K1 Paso.

Vew Mexico's

ffold and silver output is smaller but to a larger extent
roes to El Paso;

practically that does not coae here is

treated at hose plants.
Arizona's lead output increased fro® 6,800,000 poonds
in 1912 to 1 4 ,0 0 0 ,0 0 0 pounds in 1913, 75 per centof which



T
T

ga

J ./.O r m s b e s

**s w e lte r e d in Z1 Paeo.

3190

Hew Mexico's 1913 production of

lead tas about 4 ,7 0 0 ,0 0 0 pounds, over 90 per oent of which
was treated in 71 Paso.
Arizona's estimated zinc output of 4 ,5 5 0 tons for
1913 is a slight decrease, but Hew kexioc shows a total of
1 0 ,7 6 5 tons, or an increase of nearly 60 per cent.
The vanadium deposits of southern lew Ifexico and
Arizona are Just beginning to be worked.
The iron

deposits of Qrant County, Sew Mexico

hare

been drawnon heavily by the Colorado plants for 20 years.
Those of Otero and Lincoln counties are Just beginning to
be mined.
Ths quicksilver dsposits in Presidio County, Texas,
are producing steadily, as are also the silver mines near
Shaft-r.
Due to the revolution in Mexico, production fromthe
mines in Chihuahua /%nd Sonora has been greatly curtailed;
nevertheless, aw shown by the figures in "Exhibit A, the
value of Mexican metals sheltered at El Paso is very
eonsiderable.
The above f^ets show that mining in the southwest is
an Industry that i s growing rapidly.



They also give some

3191

J . J.Ormsbee

idea of the sise of this industry in the territory tributary
to £1 Paso.

Vo matter how much other c it lee s*y desirs the

business from theee dietricta, natural and transpcrtation
conditions lead it to K1 Paso.
Steel ting in the United States is barely h alf a century
eld , but recognition of S I Paso 's importance as a s&eltlng
point came 30 ye*rs ago with the establishment ef the local
smelting so tics to handle ores mined in the southwest.

The

plant grew until it became the largest lead shelter treating
custom ores, most of its r*w material originating in Vexlcc.
As a result cf changing conditions lead ore receipts fe ll o ff,
and the plant was

altered recently so as to handle copper

ores also, the bulk of the material treated now coming from
Arlxona and Sew lexico.

The payroll of this snelter now

amounts to nearly $ 1 ,0 0 0 ,0 0 0 per annum.

Its purchases of

Supplies thrcurh local houses amount to approximately three-*
qu?*rters of a m illio n.

Its payments to the railroads for

fre irh t, to a like astount.

The Talue of the metals treated

averages ever ( 1 ,0 0 0 ,0 0 0 a month, or more than $ 1 2 ,0 0 0 ,0 0 0
per annum. (Fee
Mr. Stewart:

Exhibit B. )
kr. C*hcon, of Roswell, would like te speak

Just a moment, as that seotion h«s not been represented.



S . A. Gaboon

fra,

3192

FTATKMK^T 07 S . A. CAHOO*.

The secretary of Agriculture:

Will you state your n«R«,

residence and occupation.
U r. Cahcon:

? . A. Cahoon, P-esident, Tirst Rational

Pank of Roswell, Sew Ysxico.
The Secretary of Agriculture:

Row many banks are there

at Roswell?
U r. Cahoon:

7cur.

The Secretary of

Agriculture:

Canyou speak for any except

your own?
Mr. Cahoon:

Yes,

I think I can speak for them a l l .

The Sec- eta^ of Agriculture:

What is your Judjnnent on

this matter J
Mr, Gaboon:

And I sob alsc connected with three or four

other banks in the T a l l e y .

The Secretary cf Agriculture:
Mr. Cahoon:

'that is ycur preference?'

¥e prefer Kansas City or, fa ilin g that,

could a Regional Pank be placsd at an eastern point, say
Pallas, we would prefer that, and after that S t.L o u is. We
do not desire to be placsd with Denver or San Francisco
under any conditions, in that valley, as ws haws no business



M. A.

relation* with theia.

^ahcon

3193

You can see fro» t h i* line of ra il­

road, we run straight east 32 hours to Kansas City.
The secretary cf Agricultures

Kansas City i* your fir*t

choice?
M r. Tgjhcon:

Ye*, s ir .

The Secretary of Agriculture:

What abcut your relation*

with "Si Paao?
H r . Cahoon: We would be

glad to be placed in the

soae district with S I Paso.

We have con*iderable busines*

with it , but net enoitph *o *e would care to be placed in
the district of San Tranclsco if K1 Paso wa* placed in it .
The Secretary of Agriculture;

Ycur principal b u *in e ** is

with the northeast?
Mr. f?ahocn:

Tes.

Mr. Stewart: There ia a cattle paper here which is b r ie f,
snd we can f i l e it or Mr. Hewnan can read i t .
The Secretary of the Treasury: Let him sujracarize i t .
(The following paper, by Mr. C.fc.Sewwain, wa* then
read by Mr. Krak»iu*r).
Lire Stock.
XI Paso occupies i t * unique *nd important place in
the live stock industry of the United States and Mexico cn



C.M.Vewrran

acocunt of its location.

3194

It la In the center of the iccnense

breeding district embraced within wowt h e m Arizona,

southern

TTew Mexico, Meet Texas and portions of the Mexican states of
Sonora, Chihuahua, “ urance, and Coahuila.
D

This territory

contains approxiieately 42 7,00 0 square isiles, equal to about
one-seventh of the total area of the United States, exclusive
of Alaska.

It is the largest area directly controlled by

any live stock center.
The climatic conditions of the K1 Paso territory
enable it to produce live stock more cheaply than any other
territory on the Horth American Continent.

Live stock are

not subjected to extremes of heat and cold. Consequently
they live and produce on the open ronre the year round. They
are also practically free from disease in thi6 region.
Estimates show 1 ,5 0 0 ,0 0 0 cattle, 360,000 horses, and
1 ,7 3 0 ,0 0 0 sheep grazing on this El Paso territory, valued
at approximately 1 6 0 ,0 0 0 ,0 0 0 .

Because of transportation

f a c ilit ie s and market advantages, this entire sum is a
direct XI Paso asset.
The many railroads centering at SI Paso enable the
stock raieer of this territory to enjoy the sales f a c il it ie s
of this point.



Colorado, Wyoming, Ecnt jia, KsbraSka,

pa

C .M . Yewman

3195

the rakotas and Cannula on the north, Mexico on the south,
Kknsas, Webraeka, M i s s o u r i and Texas on the east, and Kew
Mexico, Arizona and California on the vest, all send cattle
buyers to 21 Paso. This is the only market where the
California buyer competes with the eastern buyer.

This

fact fir e s the producer in the 151 Paso territory an except­
ional adv^ntajre, as ranre conditions **re sure to be jrocd at
one or the other of the points from which buyers come.

K1

Paso is in effect a clearing house for the H t * stock
interests of this preat section, since it offers an intra­
sectional, as well as inter-sectional market.
?.l Paso has fou r stockyards owned by railroads or
individuals.

The capacity of these yards is 400 cars per

dies:, and within the last six months they have handled
150,404 c a ttle.
In the past Rl Paso haw felt and appreciated the
importance cf the trreat lire stock indust ry| and to-day those
who are conversant with conditions affecting this business
int«~naticnaliy, nationally and locally, realise that the
influence of the live stock induitry in K1 Paso is bound to
increase and to continue to attract the general attention
of the country.



The eastern ranpe country is fast

pjb

C . ¥ . Fettsan

becoming u n o u i table fo r range stock r a is in g .
stock breeders are crowding into 21 Faso’ s

3196

The li v e

te rrito ry *

Arizona end Saw Mexico have been granted Statehood, *md

the

chmge in th e ir land laws i s perm itting la rg e areas hereto­
fore u n u tilise d to be stocked with c a t t le * horses and sheep.

The northern s t a t e s o f tfexico, up to the present tin e,
woefully undeveloped, axe grad u ally being occupied gad
stocked by American in t e r e s t s , and as soon as conditions
in the Republic o f Vcjdco warrant, a Marked development
o f this d is t r ic t may be expected*
The e a rly

development o f the Rio Grande V alle y * made

certain by the $10,000,000 K: ephant Butte p ro je c t, w i ll
add the

ux tensive r a is in g o f hogs to our l i v e stock industry.

Thia h eralds ths advent o f packing houses.

;*ven s t the

present time two o f the la r g e s t packers are s e rio u s ly

considering the lo c a tio n o f p la n ts at this p o in t.
We b e lie v e £1 Paso*s

li v e stock industry i s great

enough, h er te r r ito r y i s ir.xsensa enough* her control i s
stronr enough to steep EL Paso
centre.
try

I a order to develop

as A&ericac* s l i v e stock
alons broad l i n e s , th is indus­

as w all as any o th sr indu stry, must have excellent

banking f a c i l i t i e s .



S I Paso bankers here in the past

p jb

C . W, Eewman

5197

furnirfied the funds f o r th is te rrito ry * wid Intend to do ao
Their experience

in che fu tu re .

hee proven that loans made

on t h is c la s s o f aecuri to art aong th e ir best and most
r
li q u i d peper, and t h e ir assistance has supported and fostered
ths business.

VI th ths sdrsnt o f ths gorsraaent in vs the

control o f the credit conditions o f tho country, i t Is
important that the location o f s branch bank here at this
c o n t r o llin g point o f the l i r e a to dc Industry be assured.
I hare In te n tio n a lly condeened

ny renarke in ordsr

thst you* Who undoubtedly desire answers to apeeifie com­
parative question®, may give m an opportunity to further
e

e x p lsin thoes points which* in your mind, bear the strongest
on the question of bank location*
show f ir s t ,

I have tried briefly to

that i t l e o f paramount importance to the lir e

stock in terests,

atod therefore to £1 Paso, that the trade

relations of this territory

which from natural causes hare

beoomc eo interdependent and ben efic ia l, remain undisturbed
by ths alienation of the finances from thie p o int, and
eeeond, that the size o f thie Industry and the indications
of future growth

under present conditions, warrant your

decision in our fairor*
The Secretary o f the Treasury:



V r . VcHary,

ars ths

3196

J . 0 . VcHary

EX P m o banks here able to take care o f tho extreme peak
den and when I t appears?
Ur* WeEery 2

You neon la oil linos?

The Secretory o f tho Trsasury:

Yea, or do you h«rs to re­

discount largely In the f a l l .
H r . IfcNery:

Tho laot statement o f the £1 Paao banka did

not ehov any re-discoun tin g, and r e iy r a r e ly hare soy banks
ehown any re-discount a.
The Secretary of tho Treaeury:

But do you ever re­

discount at a l l , directly or in d irectly ?

Mr. 1'cSaiy:

Vo hare rediscounted, y ss , s i r .

The Secretary o f the Treasury:

tfhat ie the period of

extreno denand hors?
Mr. Vcffary:

W do not hsre any p e rio d , H it Secrete*y*
e

such ae they experience in the cotton industry, for instance,
*here they hare a tremendous demand f o r cotton.
1s heaviest in ths f a l l ,
round*

but it ie fa ir ly equal the year

Thero is alwaya plenty of deisand in £1 Paso, hut

there has never been,
in 1 9 0 7 ,

Our demand

except in extreme conditions, su<h as

o r fo r a few months last f a l l ,

when vs could not

take care of everything required without ra-discounting*
Ths Secretary cf



A g riculture:

She docs take care o f

j. o. vat*iy
r

pi
j,

sis*

every thinr required or —

Mr. HcHery:

we take core o f the dcmando o f our t e r r it o r y .

The Secretory o f A g ric u ltu re :

I Juet wonted to fin d out

i f you take coxw o f the le gitim a te denando, or when your
reeerreo got to o c e rta in p o in t, you etop«
Ifr. VOKory:

When o u r reeerreo g e t to o c e r t * in p o in t ,

o f couxbo we do not l e t the* go below thot, becouee,

m th ie

etatenent eho fe , we ehow 40 p e r cent re o c rre , and when i t
would go below thot, we would r e - d | » 7ount i a o ld e r to toko
core o f our d i e t r i c t .

W ore not a fr a id to re-d iec o u n t.
a

The Secretary o f the Treaaury:

Thot i e the p o in t.

Bo you

elnplv stop bueinooe a f t e r your ree erre s e t * down to the
ninloKun?

Hr. wcHary:

Vo.

The Secretary o f tho Treaeury;
Mr. KcHoxy:

Or do you ro-dleoount?

we ro-dieoount i f wo are requ ired to .

Ve

b e lie v e that the duty o f o bonk l e to take care o f tho
coonualty*

That l e the e f f o r t o f the JO F a « bank ora, not
.

only in thie coewsuni ty, but around uo.
The Secretary o f A gricu ltu re ;

Could you

kI t o

ua

idea

o f the extant o f the redleeountlnr in tho heevieet period?
H r. HcTTory:




X can only opeak o f thot with aecu iwcy

J . 0 . Meirsxy

PJb

5200

*
referrinr to ny own banklar ias tl tut io n.

I t h n only

sho m a statozaeat once la the l*e t 15 years showing any re- 1
discounts, ftnd i t re-discounted about ->600,000 last fa ll
f o r 90 days.

That mm about tho tine the crop moring

\
1

money was o ffered , but we thought i t was a m p le r and thicker
to get i t by ro-disoountinr than through the other Method*

The Secretary o f Agxlcul ture:

V a il , that is

a proper

function o f banking, o f course?
W r . Stewart:

I have been in KL Paso banks fo r 28 years,

and last year is the first tine there has erer been eny
necessity for re-disco untin - except in 1907 aid 13 93, both
of shieh pssiics I went throu#i in £L Peso.
The Secretory o f Agriculture:

The first time there hss been

soy necessity?

irr. Stewart:

Yes, s i r .

The Seoretery of the Treasury:

Vas there aa unusual

demand?
Iflr* Stewart:
lest f a l l .

There was an extraordinary blunp ia deposits

The deaand kept along

steady, but the deposit*

ia ia P a s st oae time last fa ll f e l l o f f .

The Secretary o f Agriculture:
conditions?



Vas that due to local

i

J . 0 . Vetfary

pjb

lfr. Stewart:
Mr* MCHary:

5201

Y ss.
And gen eral, too.
To «rhot extent ore these

The Secretary o f A gricu ltu re:

v a rie d operations in thle section financed from abroad
directly?
HT. UcNoxy:

Tor instance, you neon the manufacturing

or mining?
The Secretary o f A gricu ltu re:
K r, WcHaiy:

Y ss.

o f course, the la r g e r copper companies are

financed la r g e ly in Hew Yoik.

The Phelps-Dodge Com
pr*i% ,

tfhlcti operates here, has ca p ita l amployed in this region o f
over $40,000,000, rtiidh i s , o f course, la r g e ly eastern
c a p it a l.

Companies li k e our cement company here obtained

a portion of th e ir c a p iU l in HI Poe*, probably 20 per cent,
and p a rt o f i t from Los Angeles and p a rt from Denver.

It

i s a m illio n d o lla r corporation.
The Secretary o f ths Treaeury:

¥e are not speaking eo much

o f ths plants themselves, bu t as to th e ir normal bu sin ess.
lfr. VeHary:

That i s furnished by the £1 Paso banks.

The Secretary o f the Treasury:
ITr. Meffary:

Yee, e i r .

The Seoretary of the Treaeury:



I t is?

Throu^iout this district?

y . G. KcWary

ptfb

Vr« WcHary:

3202

Yea, a ir *

The Seoretary o f tho Treasury:

*heH you get down to 40

per oent reserve, do yon begin to ro-diseountt
lfr* Uc~&ry:

Sof e i r ,

w would not ro-diecount with a 40
e

per cent reserve.

The 3ecretszy o f the Treasury:

V e il , I understood you to

say that you naintained your rseerves a t 40 per cent.
lfr. ifcHsry:

O rd in a rily ths r e s t o f the town would show

shout 40 p sr dent.

They did in the Jtouary ststsnent,

righ t a t 40 per oent.
The Secretary o f ths Treasury:

At what point would you

begin to re-discoun t, f o r instance?
Wr. Vcirazy:

Whet point in our reserve?

The Secretary o f ths Treaeury:

VrmVOKary:
a t shout

Yes.

W would begin to re-discoun t, Z should say,
b

a 28 p s r cent reserve j i f we found ourselves

dropping below that, ws would begin to re-d isco u n t.
The Secretary o f ths Trsasury:

o f course, the law r s *

qpires yew to ksep only 15 per cent?
v r . ItaSary:

Yssv s i r .

The Sseretary o f ths Treasury:
p e r cent you would fe s l —



And whoa you m>t

to 25

J . 0 . lCcjrsry

P fb

W r, BfeWary:

3203

We would begin to feel u u e n y and want to

build up our reeerve.
The Secretary of Agricultural

Hare you any p e c u lia r paper

hero?
H * . WcVary:

Any poeuli&r peper*

The Secretary o f Agriculture:

Mr, McHary:

Yaa, in thia aection,

The only class o f paper that ia s t r ic t ly

p e cu liar to thia eection would be the Tender9 a li e n paper*
Thatf you understand, l a created on horae b u lld in rs .
The Secretary o f the Treasury:
Wr. VcHary:

That l a on r e a l e s ta te .

The secretary o f Agriculture:
H r , Uc'Tary:

There is nothing unites*

Wo thing, I ahould a ay.

The Secretary o f ths Treasury:

Mr, ¥c¥axy:

T'wt i s on r e a l estate,

50 liv e stock or miffing

we handle a great deal s f lir e stock paper

but no mining paper,

I

we handle all the llwc atockpaper

offered here, p raetioally.

The Secretary o f the Treasury:

Bo you handle much

cosRercial psper here*
Wr, lfcwar>:

http://fraser.stlouisfed.org/
Tv e
Federal Reserve Bank of St. Louis

Yss, s i r ,

Secretary of

the Treasury:

Hare you any i d e s as to

1

---- ----- ------ ' - - ~
-

p jb

-- ----

X. 0 . VcSazy

-"'•■'vm

3204

what percentage of the bualneeeof the tonka ia represented
by commercial paper*

V r. VcKary:

Vould you an aver that9 Mr. Stewart?

V r. Stewart:

I ./ould say about 60 per cent.

V r. VcHary:

I vould not a ay i t was that high*

X hare

never e a t in t e d i t exa ctly .
The Secretary o f A gricu ltu re:

You know the law glvee the

Federal Heeerve Board the power to ieflne the paper

e lig ib le

under th ia Act?
lfr. Stewart:

X understand.

The Secretary o f A gricu ltu re:
alnjpl;

X wee taking the question

to d ie cover whether there wae any paper in thia

! a action which would be unique and would hare to be ta 'e n
into coneideration in that d e fin itio n .
V r. Stewart:

The only unique paper we would hare probably

would be the mortgagee on our V alley lands which are r e a lly
second mortgages,

because o f the fa c t that the Hlephamt

Ifcitte land haa a f i a t mortgage owied by the government.
The Secretary o f the Treaeury:

That ia no t e l i g i b l e under

the b i l l .
V r. Stewart:
provision .



5o# that would come under the Land Mortgage

But our ceomurcial paper we c a ll eueh aa defined

pfb

by the b i l l ,

H . P . r %unde re
.

5206

*nd cattle and other commercial and trade

contract*.

3 T A S 0 T T 0 ? H . P . SAUBT3&R3.

The Secretary o f the Treaeury:

W ill you state your name,

residence and occupation?

VTm Saunders:

H. P . Saunders; C ash ier, American National

Bank, Bosw ell, Hew Mexico.
The Secretary of die Treaeury:

What are your views about

this d is tric t?
¥ r . Saunders:

we are fr ie n d ly in our p art e f the state

to 81 Paso*
The Secretary c f the Treasury:
V r . sauaficrs:

Yes.

You are from Roswell?

We would lik e well enough tc be in

the saoe d is t r ic t, but not well cnourh i f she goes to 3«t
?rancisco for a Regional Heserre Baok.
explain that our products

Z would lik e tc

are agricultural.

Vs hare a

great deal o f live stock *vhich roes to 21 Paso t*nd a great
deal of apples and pdatoes to Texas points.
The Secretary o f Agriculture:

What location would you

p refsx?
V r . Saunders:



We hare canvassed this with our banks

H. P . Sounders

pjb

3206

at Boswell, a n } thay fa v o r 'a n s a * C ity .

7>allae.

In d irid u a lly I favor

I «a fro * there o r ig in a lly wid wo keep a strong

reaorve there, b u t K am a i C ity would s u i t us beat.
The Secretary o f the Treasury:

H r. S tznutru;

What about Denver?

I t would not s u it us.

W have no trade
e

re la tio n s o r bank connections there.
The S e c r e t a r y o f the Treaaury:

Hr* Saunders:

How about Hew Orleans?

I t i s too f a r o f f .

The Secretary o f ths Treasury:

Have you any trade connec­

tions with JTewOrloanS?
U r. Saunders:

We have a connection with one bank in Sew

O rleans, two in Kaneas C ity and t«o in D a lla s .
The Secretary of the Treasury:

That i s a l l ,

Oentleszen, b efo re adjournment,
Who desires to be heard on this
any new l i ^ i t on I t ,

thaxic you.

i f there i s

wiyone hers

question and who can g iro us

we w i l l h ear h ia b r i e f l y . b l f not,

the hearing w i l l now adjourn.

Whereupon, a t 9:50 o 'clo ck P.M .,
adjourned.




the hearing was