Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1904-08-31
"rReNzleD FINANCE. y

/ Another magazine has bombafded
the Port of Standard Oil and it's circu-
lation is said to be mounting upward
with the kite-like progress OF New
York stocks when Standard Oil is
boosting them. Everybody's Magazine
! is publishing an exposure of Wall street
rogues, written by one of the rogues,
which is attracting very wide atten-
ton. In the September number the writ
ter tells how Henry H. Rogers and
williafs Rockefeller made sss,oooooo
out of Amalgamated Copper without
investing a cent.
| If one could imagine John Doe and
William Roe. president and cashier of
an Iowa bank, working scheme some
thing like this, he would get glimpse
of frenzied finance. Doe and Roe go
to Jim Jones and offer him $4,000 for
his farm il Jones will promise to leave
the money On deposit in Doe and Roe's
bank for one year. Jones promises and
the sale is made. Doe and Roe then Of
fer the farm for sale at $4,000 and the
bank, which Doe and Roe control by
virtue Of their offices, offers publicly to
loan on that farm any sum up to ninety
| This offer by reputable bank acts as
an endorsement and guarantee of in
| trinsic worth to the price of $4,000, put
on the farm. so Widow Smith, Parson
Dogood Roberts, the clerk, the aged
Miss Smithers and many more of SINH
lar citizens combine their small savings
and buy this farm at the $4,000. They
don't avail themselves of the banks Of
fer to loan because they are averse to
borrowing, but since the bank made
such an offer they feel sure that they
have made Il safe investment. Doe and
Roe having stuck the preachers, the
widows and the old maids for $4,000
on that farm. pay the $4,000 which
they borrowed Of their own bank and
| transferred to the account of John
Smith on the understanding that he
would not take 1t out for one year. and
| they find that they have cleaned up just
an even $4,000. Had their directors
caught them at it. John Doe and Will
| lam Roe would have had difficulty es-
Gaping criminal sentence, but since
they did escape the town now looks up
to them as shrewd t1nanciers.
According to the magazine story
Rogers and Rockefeller made $4,000
900 out OF AmalgaInated Copper and
did not invest cent BY manipulating
STANDARD Oil stock UP to a high figure
buy other banks. Having gained con-
troll OF several banks the rest was easy.
They deposited funds of bank No.
I in bank No. and OF bank No. Q in
bank No. 8 and of bank No. 3 in bank
No. and so on around the circle. When
deposits in each had been inflated to
enormous sums these banks showed
tremendous business and were able to
secure the deposit Of government funds.
Then these gentlemen were ready for
a whirl at finance.
Rogers and Rockefeller. so the mag
azine story goes, bought the Anaconda
mine and other copper properties for
$4,000, 900. but the men who sold 1t
agreed to leave the money in the Ma
tional City Bank. the main Standard
Oil bank. for certain time. The bank
then loaned Rogers and Rockefeller
$39, 900, 900 on the copper properties and
these two capitalists deposited the
money to the credit Of the men who
sold it. Thus Rogers and Rockefeller
owned the properties and all the money
transfer made was a. process of book
keeping confined within the Standard
OIL bank Rogers and Rockefeller then
formed the Amalgamated Copper Com
pany, capitalized at $75,000,0Oo. They
used clerks and Office boys for incor-
porators but held all the stock. Anal
gamated stock was listed on change
and the Standard Oil bank offered to
loan on Amalgamatei as security up to
ninety per cent of Its face value. The
public bought all of it. Rogers and
Rockefeller paid their thirty-nine mill
ion dollar note at the National City
Bank, the former owners were then al
lowed to take their money out and
Rogers and Rockefeller had $36,0o0,oo0
left. The wonder is that such expos
ures" as these and Ida Tarbelfs ar
ticles in McClures do not wreck Stand
ard Oil stock on the Wall street market, |
but it does not. The public soon for
gets.
Puts an End to It All.
A grievous wall oftimes comes as
a result of unbearable pain from over
taxed organs. Dizziness. backachs
liver complaint and constipation. But
thanks to DIR. Kings New Life Pills
they put an end to 1t all. They are
gentle but thorough. Try them. Only
s5c.. Guaranteed by Mcdonald &
Mahood, drug store.
- H.I