Los Angeles herald., 1908-03-18

ROBEhI Ia FULL 2
but for legitimate trade in New York
city as well.'
The Morgan and Standard Oil banks,
he said, pursued in that critical mo
ment the course of the specializing
bankers.
"They ministered." he said, ito the
needs of Wall street, quite deaf to the
needs of commerce. Their course was
that of men who were playing with the
credit of the country for purpose"
Mr.. La Toilette reviewed the growth
of industrial organization from the year
1888, which he said saw the beginning
of the growth of that movement.
'"These organizations were at the out
set limited to those turning out finished
products similar in kind he said.
within a period of four years fol-
lowing, 142 organizations were effected.
In making those organizations oppor-
tunity for a large paper capitalization
offered too great a temptation to be
resisted. This was but the first stage
in the creation of fictitious wealth. The
success of these organizations led
quickly on to a consolidation of conf
bined industries until a mere handful
of men controlled the commercial pro-
duction of the country. The oppor-
| tunity to associate the reorganization
country with banking capital presented
itself. Such connections were a power
| full aid to reorganization, and reorSan-
! ization offered an unlimited field for
| speculation. 1t was a tremendous
temptation"
On Financial Combinations
He discussed the economic develop
ment of the country, and laid especial
stress upon the growth of financial
combinations.
1.-THE bare names of the directors of
the two great bank groups STANDARD
Oil and Morgan) given in connection
with their business associations is all
the evidence that need be offered OF the
absolute community of interest between
| banks, railroads and all the great in
dustries," declared Mr.. La Toilette.
There are twenty-three directors of
the National City bank STANDARD OLD;
there are thirty-nine directors of the
National Bank of Commerce (Morgam.
Examination of these directors shows
that these two groups are being knit
together in business associations, sur
rounding their full identification.
Subject to differences which may
arise between powerful individuals of
these different groups, resulting in oc-
casional collision, they are practically
a monopoly, and as far as the public is
business partner of the head Morgan
group is found on the directorate of the
chief financial institution which heads
the Standard Oil group.
And one of the leading directors of
the National City bank is member of
| the board of directors of the principal
! financial institution of the Morgan
group. The directors of the leading or
ganization comprising the two princi-
| pal groups are bound together in mu-
| tual interests as shareholders in the
various industrial concerns which have
been financed by one or the other of
these groups in recent years.
81 remember that these fifty-two men
who are directors Of the two important
banking groups are not additional to
the list of less than one hundred to
whom | have referred as controlling
the industrial life of the nation, but
part of it.
Control in Hands of Few
"Fourteen of the directors of the
National City bank are at the head of
fourteen great combinations represent
ing SO per cent of the capitalization of
all the industrial trusts of the country.
1.-THE railroad lines represented on
the board of this one bank cover the
country like a network. Chief among
them are the Lackawanna, the Chi
Cago. Burlington & Quincy. the Union
Pacific, the Alton, the Missouri Pa
cific, the Chicago, Milwaukee e. st.
Paul, the Chicago 81 Northwestern, the
Rock Island. the Denver & Rio Grande,
the Mexican National. the Baltimore
& Ohio, the Northern Pacific, the New
York Central, the Texas & Pacific, the
Erie, the New York, New Haven &
Hartford the Delaware &; Hudson. the
! Illinois Central, the Manhattan Ele-
waited and the Rapid Transit of New
York.
"These same twenty-three directors,
through their various connections, rep
resent more than $50 banks, trust COM
panies, railroads and industrial cor
porations, with an aggregate capital-
cation of more than 81 200 900, ,000"
Speaking of the great stores of
money in New York. in connection with
various industrial concerns, the sem
ator said:
"With this enormous Capitalization
of business it is possible to create arti-
ficially periods of prosperity and pc
riods Of panics. Prices can be lowered
or raised al the viii of the SYSTEM
| When the farmer must move his crops
a scarcity of money can be ordered and
prices lowered. When the crops come
into the possession of the speculator an
artificial stringency may be released
and prices advanced and the illegiti-
mate profit raked off the industrial
world and pocketed I'm Wall street.
IF an effort is made to make one of
these great interests obey the law it is
easy for them to enter into a conspir-
acy to destroy whoever may be respon-
sible for the undertaking"
He severely criticised the provision of