The Montgomery advertiser. [volume] (Montgomery, Ala.) 1885-1982, 1908-03-18
FINANCIERS
ARE SCORED
Senator LaFollette Gives
Panic Causes.
--s--
SHOWS UP WALL STREET
Flags ]. Pierpont Morgan and
Standard OIL Company.
Severely CRITICISED the rrov@ssH q
AIdrieh Bm. ~ which RaIIrs.a
Bond. Are 70 Ne Made
security.
SHOWS UP WALL STREET

washington, March l7.-~DecIaxfuM
that the recent financial strinssncy IN
the country was brought about by tfe
influence OF standard oii'' and J. piar-
pont Morgan. Senator La Follette Of
Wisconsin today. in speech practically
closing the debate on the Aidrich cur
reney bill, entered upon a denunciation
Of men high in the financial world.
There were no commercial reasons
for q panic" said Mr.. La Foliette.
There were speculative ie4islat.xa
and political reasons why . panic might
serve special interests. There wers
business scores TO settle. There was
Legislation to be blocked. and cur
rency measure suited to the ayssem 90
be secured. There was q third term
to be disposed Of and policies to be dia-
credited.
"A panic came. I believe that Il
needs only 70 be followed step by step
TO show that IL was planned and exe~
cuted, in 80 far as such q proceeding
ig subject TO control. after once n mo-
fian. such q statement. without sup
mort III facts warFanting It. would d.
serve condemnation. TO withhold such
statement. 20 shrink from plain
speach setting forth the facts IN 20 far
as they car be uncovered, - IN the
discussion OF this legislation. wouid bn
& plain violation Of public duty."
He recounted In vivid language his
vsew az the events Of Oct. "a, when
Wall Street was In the throen 81 the
currency atrsnRency.
aFor the first time since tbs panic
began. 1880 q. N. arrived and every
body on the door Of the Stock ~
change was wildly seeking money at
any price. Interest rates whscn ne0
Tor several days ranged from ze -
SO per cent. began 70 climb highar. Set
ment must be made before o'clock.
Money must be forthcoming. Or tho
close OF the business day would we
Wafi Street a mass Of ruins and banks
ana trust eeln1antss on the brink q
collapse.
How perfact the etaEa settling How
real ii ali seemed but back e the
scenes. Mofgnn ana Stslltnan were n
cSs,fAranes. They had ntad8 their pre-
~assSAfione Il Wasntngton. They knew
Iuet how nuch It would ~ Iney
awaited it's arrival and deposit. 1aSEss
upon they pooled an equal amount ana
hsId II. Then they waited IntsrNst
rates scared. wall Street was driven
~ 4 frenzy. Two o'clock came, and M
sSrest rates ran 10 $50 p6r cent The
sraashing Of the market became telxi-
nc. still they waited. Union Faeshc
declined ten and one-hait pelnsss
6own n like proportions. Fivs niHe
,,tes passed---ten rsinutAs passed
e,rioct Then. IL 1:16, the cuFtain went
m Win Morgan and Standard OIL ~
the center of the stage win money
real money, twenty-fve mAl1one q
money. giving 4 away ex ~ ~ 800 Nv.
hlT,seIf can be hts parallel. Even 90
the duiiest person standing ~ who
81 stoned atiiI on him, q wandering eye
he seemed the master spirit q re
land"
How beautifully y All $500 49,.
rhey had the money Of the deposits q
haria ~ avery state IN the Union 80
sha amount Of s5e0, o00.0 00. nearly all %
svhtch was in the vaults Of the Big bank
groups. 1t supplied big operators VIII
money to squeeze out Anvcn-01~ ~
Sec1inn TAXING in the stock AZ an
Enormous profit. In this connecElon.
ehe onerationa OF Morgan and STANDARD
M f,,rniahed additional evidences q me
character OF this panic. We havs rec
ord proof Of their utter eontpmpt tor
commercial INTEREST," not or " sor We
country generally, but for iegltttnate
trade in New York City 50 wen.
speenlating nmnkeHs-
The Morran and Standard OIL banks.
ha said, pursued In that critical monaent
the course OF the spscuiAtfn@ panksxn'
-They ninistered." ne eatc. to 1ns
nssda az wall street Their course
~,as that Of men who were rlAytng
with the credit Of the country fpg
N. IIroiiette reviewed the growth
Of financial organization from tne
wear 1898 which he said was the pe-
ginning Of the movement. These cE-
Plantations were at the outset hraitea
10 those turning out finished productn.
siniliar In kind" he said. .elain
period OF three years following one
hundred and forty two Organisation
were erected In making these ~
organizations the opportunity zos
large paper capitalization ohs.s 49,.
great q temptation 70 De rssiste1. 80 .....
40 hi the irst stage in the cre&slon
~ wealth. the success OK these or
ganizations led quickly on % con
soIidatIon OF combined industries antis
! 49,. handful OF men controlled tina
trS,,atraal production OF the country.
The opportunity to associate the feet
znnixation OF the Industrial tpstttu~
fsona 81 the country with banking cap
sssi nressnted itself. Such connections
wera a uowerfui aid 70 reorganization.
ara reorranixatfon offered an uniin1it-
Al aeld for speculation. II was
tremendous temptation
Ha discussed the economic oeNeiop-
uaent OF the country. and laid enpeciai
stress upon the growth OF nnah1lAi
combinations
sarhe bare names Of the directors q
two great bank groups (Standard Vii
ana Morgan) given In connection WI
their business associations Is AL tnq
evidence that need be o1ered Nf me
absolute community OF interest pc
tween the banks, railroads and all the
sreat Industries" declared Mr. -
Toilette.
There are twenty directors o.
the National City Bank (standard OLD
there are thirty nine directors Of tn9
National Bank Of Comm@rce (Mcr&An.)
Examination % these directors show
that these two groups are being knit
together In business association sus-
Restivs, Of their full Identification
Real Nonopoly.
Subject 70 differences which may
Ia