Gloucester County Democrat. (Woodbury, N.J.) 1878-1932, 1904-09-22
STANDARD OIL FINANCE.
Editor DEMOCRAT.

years onto the respectable highway OF con-
yersation
But in view of the somewhat uncertain
attitude Of both parties this year on the
trust question, the contribution of Thomas
w Lawson Of Boston, now appearing in
"Everybody's magazine is interesting if
not applicable.
It is called "Frenzied Finance, The
Story Of Amalgamated, but more concise
title and one not less to the point would be
s'The confession of Capitalist
Newspaper readers no doubt remember
that Mr.. Lawson was one of the promoters
of tie Amalgamated Copper Company that
caused so much loss not long since to those
who were not on the inside.
AS described by Mr.. Lawson the method
followed by the Standard Oil magnates in
this transaction was as follows
The Standard Oil people, together with
Lawson and few others who helped engin-
eer the deal, agreed to pay Marcus DAILY
and Others S39, 00o, 900 for certain copper
mines, this payment to be in the form of
a check on the National city Bank of New
York, which is controlled by the Standard
Oil company.
1t was further stipulated that the money
called for by this check should not be with
drawn by Daily and the others for given
time, but should remain on deposit at
low rate of interest
At the same time the bank agreed to
loan the Standard Oil magnates:-viz.
Henry II. Rodgers and William Rockefeller
500, 900, 900 at the same rate Of interest, the
deeds of these mining properties being de
posted as security.
In other words, the mines were bought
on time, using the bank as an intermed-
larry.
A number of Standard Oil clerks and
Office boys were then organized under the
corporation laws of New Jersey into the
"Amalgamated Copper Company, with a
Capital of SIS, 900, 900.
These clerks and Office boys Immediately
voted in their corporate capacity to pur-
chase the above mentioned copper mines
from Rodgers and Rockefeller for S75, 000,-
900, giving check for the same.
Rodgers Rockefeller then bought the
mines back from the clerks and Office boys
for SIC, 0O0, 600 giving them the same bogus
check Fin payment. And finally the Office
boys and clerks resigned as officers and
directors of the Amalgamated Cooper Com
pany in favor Of the Standard Oil magnates
the entire transaction being effected in
one day.
The effect of this transaction was that
Rodgers and Rockefeller now owned copper
mining properties valued at $75, 900, 900
which had not cost them dollar in actual
cash.
The next step was to issue S75, 600, 900
in Amalgamated Copper stock in shares OF
500. each which was offered for sale to
the public.
To induce the public to buy, the National
City Bank offered to loan purchasers of
these stocks $50 on each one hundred dol
lar share, provided the shares were deposited
with the bank as security.
The public eagerly took advantage of
this offer and bought amalgamated copper
paying from 500 to S115 per share in
money borrowed from the National City
and other banks controlled by Standard
OIL.
The result of this shrewd fnaneeering
was that Rockefeller, Rodgers and their
partners now had over $4,000, 900, out of
which they were able to settle their $685.,
600, 600 Indebtedness to the National City
Bank, which money the bank turned over
to DAILY and the others of whom the mines
had originally been purchased-while there
remained to the promoters of the scheme a
clean profit of over S36, 900, 900, without a
dollar in actual cash having been invested
by them.
According to the terms of the agreement,
Rockefeller, Rodgers and Lawson were
each to have one-fourth OF the profits, while
the remaining fourth was TO be divided
among the other promoters Of the deal.
But Rockefeller and Rodgers in open de-
fiance of their bargain, gobbled nearly all
the profits which so disguised Lawson that
at last his eyes seem TO have been opened
to the enormity of the swindle that was
being perpetrated on the public.
1t is likely that most people will have a
suspicion that had Mr. Lawson been per-
mitted to remain in the deal and receive
the share of profit that he anticipated, he
would never have experienced his change
Of heart in regard to Standard Oil finance;
but as it was, be openly explains the whole
transaction, with much apparent vindica-
tiveness against his former partners
After some months the banks demanded