Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1908-03-17


board Of directors of tho principal
financial institution in the Morgan
group. The directors OF the leading
organization comprising the two prin-
clpal groups are bound together in
mutual interest as shareholders i'm the
various Industrial concerns which have
been financed by one or the other OF
these groups in resent years.
SOME TRUST FIGURES.
Remember that these % men who
are directors of the two important
banking groups are not additional to
the list OF less than 100 whom l have
referred to as controlling the industrial
life of the nation but u part Of IT,
Fourteen of the directors OF the Ma
tional City bank are at the head OF
II great combinations representing IS
per cent of the capitalization of an the
industrial trusts of the country.
The railroad lines represented ON the
board Of this one bank cover the couu-
try Ike a network chief among Them
are the Backa wanna, the Chicago Brr-
lingtou & Quincy, the Union Pacific the
Alton, the Missouri Pacific, the Chicago,
Milwaukee & ST Paul. the Chicago II
Northwestern, the Rock Island the
Denver & Rio Grande, the Mexican Ma
tional the Baltimore & Ohio, the North
ern Pacific, the New York Central, tho
Texas x Pacific. the Erie. the New
York. New Haven q Hartford, tho Del
aware & Hudson. the Illinois Central,
the Manhattan Elevated of New York
city and the Rapid Transit Lines OF
tI,ro,,,,i, fboi,. ,.,,.io,,s ,o,,1octinns rnr-
,.so,, ,,,,,,, ,i,,,,, s.o IT,. to,,t,s t,e,,,
-, IL, ~ ,,,,i',,',r;a,
porations. with an aggregate capitaliza-
ton OF more than l. hundred million
uo''''9'
Speaking OF the great stores Of
money In New York in connection with
various industrial institutions, Mr.. La
Toilette continued:
with this enormous concentration
of business II is possible to create ar
tficiially periods Of prosperity and
periods OF panic Prices can be low
cred on advanced at the will of the
system When the farmer must move
his crops scarcity OF money may be
created and the prices lowered When
the CROP passes into the control of the
Spectator an artificial stringency may
be relieved and prices advanced, and
the jlegitimate profit raked off the ag-
ricultural industry may be pocketed
in Wall street
IF an effort is made To make any
one of these great interests obey the
law, 1t is easy for them to enter into
a conspiracy To destroy whoever may
be responsible for the undertaking"
He severely ctitirized the nroylsiot1
of the Aldrich bill by which railroad
bonds are 10 be made security for
emergency circulation. and charged
that il was a scheme to defeat Iegis
lation which might lower railroad
rates,
THE REASONABLE STANDARD
"As a common carrier" said MIR. La
toilette 'the railway company rs en-
tn nav oneratinp expenses and ree-
sonably fair return upon the fair vaIus
of the property which il uses Tor the
convenience of the public. This is the
standard and the only standard by
which to measure reasonable rates. To
secure the application of this standard
10 the RAILWAY rates OF the country
has been the object of a struggle ex-
tending over many years. The courts
have sanctioned it, The Interstate
commerce commission has urged I
upon the attention of Congress and
common Justice to the public interest
demands it. Tried by this standard, IL
a railway company has grossly over
capitalized its property II cannot right
fully impose upon the public "A trans
portation charge TO pay any return on
dividend upon this fictitious capital
iZation 1t does not signify that the
public have not yet been able to Sc
cure the application OF this standard
TO the rates of the country Their
cause Is Just and its defeat from year
to year has been accomplished only
through the powerful influences which
the great transportation companies of
The country and those interested in
their securities have been able to sue
cessfuny exert IN preventing legisla>
ton
THE PRESENT ouI LOolN'
To-day we are confronted with the
astounding proposition that Congress
shall hold out Legislative inducement
Tor tho exaction OF transportation
charges which shall net a continuous
Der cent dividend on railway capital
rneosure is limited in it's scope thnt
II mas reference simply to limited
Issue az railway bonds as security. He
Is hind indeed, who docs not see tho
ultimate etTect of a propositlon which
directly or indirectly raises a standard
for ne payment Of a fixed dividend
,,r,on railway ranitaIizat5on without re-
e,a,d "a no ,,allation nf the uroueriv
mo rertaiu effect of this action BY
l,n,,,,,,oss q. ia stimulate every railrood
co,nSon, v,ithin the nuryiew OF this
stat,,to 10 maintain Tho nosition of its
$3.50 ,,2tbS,, Inc fayored class ana
e',,,,,,,. che ,ailuav companv no uuailfy
y, "a ..a,iicst ,,oaSihio rno,ncnt FOR ad
,,,,Silon ~ Inc favored class II is