The independent., 1903-04-16
THE PARENT TRUST
xr. Van vorhis Tells Secretary Martin
some Wholesome Truths About the
National Banking Trust

1t cannot be doubted that the coal
strike, anti-merger suits, convictions
of the beef trust, ETC., have too gen.
orally diverted attention from the ma
tional banking trust. Hon. Flavius
j. Van Vorhis, however, is one writer
who never loses sight of his objective
point, and in his references to the
American Free Trade league he has
never failed to show the folly OF eX-
pecting even a small reduction in the
tariff as long as the national banks
are the beneficiaries of a tariff sched-
ule which wrings from the peoples
pockets surplus over and above even
extravagant expenditures.
The letter following is to the secre-
tary of the American Antitrust
league. Mr.. Van Vorhis again calls
attention to the folly OF antitrust agi-
tation which does not include the ma
tional banking trust as the chief evil:
Indianapolis, Ind, April y, lS03.-
Mr.. H. B. Martin, Sec'y American
Antitrust League, Washington, ID.
C.-Dear Sir: Your communication re-
ceiyed. l am always glad, OF course,
to do what | can to assist in the work
you are doing, but l am not SO sit
uated now that | can give it any n
nancial assistance.
[ am doing all | can in Indiana to
arouse public sentiment upon the
trust question. Under separate cover
send you a number OF clippings
which will give you some idea, If you
have time to glance over them, OF
what | have been doing.
In my Judgment, after having given
the subject very careful study for
number of years, the parent trust is
the national bank combination. call
it the parent trust because | think II
it were destroyed, it would destroy
most if not all other trust combina-
tions. | must express some surprise
that, of all those who are eAertlng SO
much energy, and eXpending so much
time and money, in contest with
trust combinations, there are so few
that have anything at all to say
about this, the greatest Of all the trust
combinations. 1t is the only one or
them, so far as | am aware, that has
the authority of the United States law
for the organization. This comblna-
tion was authorized, or, rather. had
its beginning in 1862 and 1863, and has
by repeated legislation been increas-
ing its special privileges both in num-
ber and in value since that date.
Today the New York national banks.
which form the very center and head
of this combination, are the very
storm center of financial and COM
mercial danger. Notwithstanding this
is so clear a proposition that way
faring man, though a fool, need not
err therein there is only here and
there man who takes interest
enough to speak out upon this ques-
tion. In this state, in 1900, the COM
mittee of both parties were dominated
to the point Df absolute control by the
national banks of New York city, as
sisted by the banks of the state
| see here and there, as you state,
that a large amount of educational
work is being done, and that some
successful assaults are being made
upon the power of commercial trusts,
but as sure as there is future, Mr..
Martin, it will be found that very lit
tie inroad can be made upon the pow
er of these commercial and transpor-
tation trusts until the power of the
financial trust, shielded and protected
by the national bank law and the
banks organized under it, has been
broken. With this view, you will
readily understand that, while | give
assistance to any reform or to any eff
fort at palliation, cannot regard any
antitrust movement as likely to pro-
duce any permanent result that does
not lay the AK at the root of the tree
You may think it a little extrava-
giant, but L believe time will prove