The Sunday globe., 1901-07-21
WHY IT BUSTED.
The Big Thieves Eat Up the Lit
tie Ones.
PERRY HEATH'S WATERLOO.
Morgan and Rockefeller loo Much for The Mo-
KinIey Pei and His Bank Went 10 Tho Wall.
Now is The Time 10 Fire Heath Satellites in
the POSmbSter,GeneraIS Depahment-The
Presidents amabIe Weakness.

Two men rule America-John D.
Rockefeller and j. Pierpont Morgan
They are partners in the most gigantic
combinations that the world has ever
seen. The Standard Oil trust, with its
SSO,0O0,000 Of annual dividends, and
four great trunk lines of railroads rep
resenting, with their branches, half the
mileage of the United States, are but
two out of many combinations which
these two men have under their absO-
lutte control.
The latest and most signi 1cant proof
OF their subteTranean power, not only
over the business interests Of the coun-
try, but also OF the Government itself,
is shown in the closing of the Seventh
National Bank of New York This in
stitstiOn was taken out Of sixty years
of obscurity in May 1899, when Fletch-
er Heath, brother of Perry s. Heath,
First Assistant Postmaster-G General, ac-
quired control of a majority OF it's
stock
The entire investment was only
about $4,000, but by shrewd manipu-
lation and 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 postof-
flee. They were taken away from the
Chase National Bank, which had hand
led them for years, thereby laying the
foundation for a banking jealousy
which served it's turn.
But the bank prospered under its
new management and carried its depos.
its up to over S6,0OO,OOO The Heaths
were enterprisng and made connec.
tions with various interests. It's big,
gest customer was the firm OF Henry
Marquand & Co. Marquand G. Co. were
backing the construction of the Pitts.
burg Shawmut & Northern Railroad
which is to run from Pittsburg to Lake
Erie, opening up over a thousand
square miles Of undeveloped coal lands
in Pennsylvania.
Here was the milk in the cocoanut
This new railroad not yet completed
is hauling out $500 tons Of coal a day
and promised within a twelve.mOnth
to develop an output of ever three mil
lion tons a year Being an independ
ent 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 in.
terests. The road had to be crushed or
controlled at all hazards. At the prop
er moment the machinery was set in
motion to accomplish this end. The
National Bank Examiner at New York
has always been a creature Of the ma
tfnnal hgp1rg FThapo &c a o1
bank in New York, nor in the country
so far as that Is concerned, which is
not in persistent and continuous viola
ton OF the National Banking Act.
They all do IT, The National Bank
Examiner reported to Comptroller
Dawes that the firm Of Marquand & Co.
owed the Seventh National Bank one
million six hundred thousand dollars,
and that he did not consider the Sc
curity good.
Comptroller Dawes Immediately or
dered the Seventh National Bank to
demand cash for the Marquand loans
and secure 1t within four days or he
would place a receiver in charge of the
bank, Any business man who under
stands banking knows the difficulty of
transferring a heavy debit account
We're such a demand made upon the
heaviest customers of each OF the ma
LOnal banks OF New York it would pre-
cipitate a financial panic that would
close over half the banks Of that city.
10 was intended this time to close the
Seventh National Bank and crush Mar
quaRd e. Co.
10 might have been thought that
Terry Heath, the former close friend
Of President Mckinley and Mark Han
na might have ayerted the disaster
through his political pull But Perry
Heath scared the Administration when
he saddled Nicely and the Cuban postal
frauds on the Department.
And now the completion Of the soft
coal combine has been announced,
Aarquand & Co. have been crushed,
md the wreck Of the Pittsburg shaw
NUT & Lake Erie Railroad will be
found TO be In the hands Of the COM
bine.
There Is to be a general advance In
the price Of coal which will carry It to
over a dollar a ton more than the