Los Angeles herald., 1908-03-18
LA TOILETTE
JOHND.
AND MORGAN
COUNTRY AT MERCY OF FEW
FINANCIERS
SENATOR BITTERLY AssAlLs
ALDRlcH BILL
Warns the People Against Allowing
Measure to Be Enacted That
Will Protect Watered
Railroad Stocks
by Associated Press.


the day with respect to the Aldrici
bill" said Mr. La Toilette, in begin
ming his speech in the senate on the
currency bill today. His reference wa
to the amendments made TO the OIL
by the committee on finance.
Speaking of the Morgan and stand
ard Oil banks" and looking across the
chamber toward Senator Aldrlch, Mi
La Toilette dcclared
II will show the connection of these
great groups with the bill pending
here, notwithstanding the deXterous
withdrawal of the proposition to III
corporate railroad bonds in the bill.
MIR. Aldrich said the most earnest
objection to the bin was made by the
National City bank of New York and
that Mr. Vanderlip, vice president of
that bank has opposed the measure.
1T is" he declared, mot only OPP
posed by that bank, but by all the
banks of New York. ] have received
this morning a statement from the
New York Clearing House association
saying we would better have no cur
rency legislation al all than have this
bill and stating reasons why we should
have an asset currency. | know of
no bank or banker in favor of this
bill The fact is, the banks through
out the country are against it, and
lHt StildlOl liblli w ioNOiiShi ia
studied this situation to little effect if
he had failed to learn"
Il will inquire" retorted Mr.. La Fol-
lette, what the position of Mr.. Nor
gan is?'
There was chorus of laughter in
the galleries.
Aldrich UphoIds Morgan
81 do not know" replied Mr.. AL
drich. Il know Mr.. Morgan is a man
of wide experience and wise judgment
and patriotism, and l should feel graft
fed if he approved this bill
Perhaps replied -lr. La Toilette,
in tone of sarcasm, "in some way the
chairman of the finance committee will
be able to find out where Mr.. Morgan
stands. His countenance beaming from
the gallery of this chamber while the
senator from Rhode Island spoke on
this measure rather indicated that Mr..
Morgan, the head of one of these
groups, was not entirely adverse to
the propositions embraced in the bill"
Il suppose said Mr.. Aldrich, "the
senator from Wisconsin will agree with
me that this proposition should be dis
cussed on it's merits as to what it will
do, and not in view of what men in
the position of Mr.. Morgan think
of it,"
Let me say" replied Mr.. La Fol-
lette, you cannot clWays tell from
the lines of the bill. ] should say the
proposition to withdraw the provision
to incorporate railroad bonds in this
bill throws a flood of light upon the
purpose of this legislation. Let me
say to the senator from Rhode Island
further, that it is not beyond ques-
tion that these great organizations
might put out here or there criticisms
of this proposition to give color to
1A
mighty power organized behind this
legislation"
After talking for two and a half
hours, Mr.. La Toilette found himself
unable to continue further and sus-
pended his remarks until tomorrow
There were no commercial reasons
for panic" said Mr. La Toilette.
There were speculative, legislative and
political reasons why a panic might
serve special interests. There were
business scores to settle. There was
legislation to be blocked aud cur
rency measure suited to the system
secured. There was third term to
be disposed of and policies to be dis
credited.
Panic Planned
"A panic came. ] believe that it
needs only to be followed step by step
to show that it was planned and ex-
ecuted, in so far as such a thing is
subject to control if once in motion.
Such a statement without support in
facts warranting it would deserve con-
demnation. To withhold such a state
ment, to shrink from plain speech set
ting forth the facts in so far as they
can be uncovered is in the discussion
of this legislation a plain public duty"
He recounted in vivid language his
view of the events of October "a, when
Wall street was in the throes of the
currency stringency.
For the first time since the panic
began, 1880 o'clock arrived and every
body on the floor of the stock eX-
change was wildly seeking money at
any price. Interest rates. which had
for several days ranged from 90 to so
Her cent, began to climb higher Set
tlement must be made before 8 o'clock.
Money must be forthcoming or the
close OF the day would see Wall street
mass of ruins and banks on the brink
OF ruin.
"How perfect the stage setting! How
real it all seemed! But back of the
scenes Morgan and Stllman were in
conference. They had made their
presentations at Washington. They
knew when the next installmcnt of aid
would reach New York. They knew
just how much it would be- They
awaited its arrival and deposit There
upon they pooled an equal amount and
/, held it. Then they waited. Interest
rates scared. Wall street was driven
to a frenzy. Two o'clock came and In
terest rates ran to $50 per cent. The
smashing of the market became ter
rifle. Still they waited. Union Pacific
declined 101a points, Northern Pacific
and other stocks went down in like
proportion. Five minutes passed--ten
minutes past o'clock. Then, at pre-
cisey 2:15 the curtain went up with
Morgan and Standard Oil in the CEN
ter of the stage, with money-real
money, $25,000,000 of money giving it
away at 10 per cent.
"And so ended the panic.
Country Terrorized
"How briefly il all worked out. They
had the whole country terrorized. They
had the money of the deposits of banks
of every state in the Union to the
amount of $500000,000, nearly all of
which was in the vaults of the big
bank groups. 1t supplied big operators
with money to squeeze out investors
and spectators at the very bottom of
the decline, taking in the stock at an
enormous profit
I'm this connection the operations or
Morgan and Standard Oil furnish addi-
tionaI evidence of the character of this
panic. We have record proof of their
utter contempt for commercial inter-
ests, not only for the country generally