Phillipsburg herald. [volume] (Phillipsburg, Kan.) 1882-1905, 1901-07-20
Our Two Rulers.


and four great trunk lines of railroad
representing with their branches half
the mileage of the United States, are
but two out of the many combinations
which these two men have under
their control.
The latest and most significant
proof of their Subterranean power,
not onlyoyer the business interests
of the country, but also over the gov
eminent itself is shown in the closing
of the Seventh National Bank of New
York. This institution was taken out
of sixty years of obScurity in May,
1899, when Fletcher Heath, brother of
Perry S. Heath, first assistant post
master general, acquired control of
majority of its stock.
Their entire Investment was only
about $780, 600, but by shrewd manipu
lation and the rehypothecation of the
stock as collateral they engineered
the deal.
Prestige was Immediately given the
bank by transferring to it the postal
deposits of the New York city post
Office. They were taken away from
the Chase National bank, which had
handled them for years, thereby lay
ing the foundation for a banking jeal-
ousy which served it's turn.
But the bank proSpered under its
new management and carried its de-
posits up to over $4,000, GOO. The
Heaths were enterprising and made
connections with various interests.
It's biggest customer was the firm of
Henry Marquand & Co. Marquand
& Co. were backing the construction
of the Pittsburg, Shawmut & North
ern railroad, which is to run from
Pittsburg to Lake Erie, opening up
over thousand square miles of unde-
veloped coal lands in Pennsylvania.
Here was the milk in the cocoanut
This new railroad, not yet completed,
is hauling 1920 tons of coal a day and
promised within a twelve month to
develop an output of over 100000
tons year. Being an independent
line with entrance to PittSburg at one
end and an outlet at Lake Erie at the
other, it is the one serious menace to
the monopoly of the soft coal trust, of
which John d. Rockefeller and j.
PierpOnt Morgan are the controlling
interests. The road had to be crushed
or controlled at all hazards. At the
proper moment the machinery was
set in motion to accomplish this end.
Tho National l.
York has always been a creature of
the national banks. There is not a
national bank in New York, nor in
the country, so far as that is concern
ed, which is not in persistent and con-
slant violation of the national bank
ing act.
They ali do it. The national bank
examiner reported to- Comptroller
Dawes that the firm of Marquand s.
Co. owed the Seventh National bank
S1.6OO,O0O and that he did not, consid-
er the security good.
Comptroller Dawes Immediately Or
dered the Seventh National bank to
demand cash for the Marquand loans
and secure it Within four DAYS or he
would place receiver in charge OF
the bank. Any business man wh O
understands banking knows the diff
Guilty of tranferring a heavy debit &C.
count. Were such a demand made
upon the heaviest customers of eac Oh
of the national banks of New York. it
would precipitate financial panic
that would close over half the bar ks
of that city.
1t was intended this time to close
the Seventh National bank and crus h
Marquand g. Co. The directors of tn e
bank made gallant struggle, but see
ing the inevitable, closed their doors.
The Marquand securities are better
than three-fonrths of the trust and
water stocks on which the national |
banks of New York City do four-fifths |
of their business. At the moment Of |
writing, it is still holding out, but it !
is hardly possible that they can make
every national bank in New York |
city closed in their faces under the
malign influence of Rockefeller and |
Morgan. 1t is probable that within
the next sixty days the public will
discover that the PittSbrlrg Shawmut
s. Northern railroad has been com
PEELED to surrender to the trust
Another ramification of the Rookie
control of the govern
ment occurs in the far west Senator
Clark, of Montana, IS interested in
building short line from Salt Lake
City to, Los Angeles. 1t will develop
4 tremendous coal and iron field and
furnish him in particular with an IN
dependent outlet for his Arizona cop
per properties. This line with it's
promise of tremendous iron develop
nent is in direct conflict with the in
5erestS of the Pacific railroad combine
Ind the steel trust. In Montana, Sen
ltor Clark'S mining interests are in
direct conflict with the Rockefeller
mining interests. Every big mining
interest in the west has for the past