The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1908-03-18

reach New York. They knew just how
much il would be. They waited its ar
rival and deposit. Thereupon 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 interest
rates ran to $50 per cent. The smash
ing Of the market became terrific.
Still they waited. Union Pacific de-
clined 1015 points; Northern Pacific and
other stocks went down in like proper
4 ton. Five minutes pcssed-ten min
utes past . o'clock. Then at precisely
2;l5 the curtain went up with Morgan
and Standard Oil in the center of the
stage with money-reaI money, TWEEN
tty-five millions of money, giving it
away at 10 per cent
And so ended the panic.
Whole Country Terrorized.
How beautifully 1t 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 five hundred millions,
nearly all of which was i'm the vaults
OF the big bank groups. 1t supplied big
operators with money 10 squeeze out
! investors and Spectators at the very
bottom of the decline, taking in the
stock at an enormous profit In this
connection, the operations of Morgan
and Standard Oil furnish additional
evidence of the character of this pam
ic. We have record proof of their ut
! ter contempt for commercial interests
not only for the country generally. but
for legitimate trade in New York City
as we'll"
The Morgan and STANDARD Oil banks,
4 he said, pursued in that critical mo-
ment the course of the specializing
/ bankers.
They ministered," he said Ito the
needs of Wall lstreet, quite deaf to the
appeals of commerce. Their course was
/ that of men who were playing with the
credit of the country for a purpose"
prosperity" Capitalized.
/ Mr. La Toilette reviewed the growth
of industrial reorganization from the
| year 1898. which he said saw the be-
/ ginning of that movement.
These reorganizations were at the
outset limited to those turning out fin
! ished products similar in kind he
said.
within q period of three years fol-
! lowing 142 reOrganizations were effect
ed. In making those reorganiZations
the opportunity for q large paper cap
/ italizatiOn offered too great a tebpta-
ton to be resisted. This was but the
] first stage i'm the creation of fictitious
wealth. The success of these organi-
cations led quickly on to a consolida-
/ ton of combined industries until a
mere handful of men controlled the in
dustrial production of the country. The
J opportunity TO associate the reOrgani-
cation of the industrial institutions of
/ the country with banking capital pre-
scented itself. Such connections were a
powerful aid to reorganization and re-
organization offered an unlimited field
| for speculation. 1t was a tremendous
temptation"
Community of Interest.
He discussed the economic develop
ment of the country, and laid especial
stress upon the growth of financial
combinations.
The bare names of the directors of
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 be-
tween banks. railroads and all the
great Industries" declared Mr.. La Fol-
! lette There are twenty-three direc-
tors of the National City bank (Stan-
dard OiD; there are thirty-nine direc-
| tors of the National Bank of Com
merce (Morgan). Examination of these
directors shows that these two groups
are being knit together in business as
sociations, suggesting their full identi-
/ fication.
Practical Monopoly.
Subject to differences which may
arise between powerful individuals of
in, in,
casionai collision. they are practically
monopoly and. as far as the public
| is concerned, practically one group.
The business partner of the head of the
Morgan group is found on the diTec-
torate of the chief financial institution
which heads the Standard Oil group.
And one of the leading directors of the
National City bank STANDARD Old is
a member of the board of directors of
the principal financial institution i'm the
Morgan group. The directors of the
! leading organization comprising the
two principal sToups are bound togeth-
! er in mutual interest as shareholders
/ i'm the various industrial concerns
which have been financed by one or the
other of these groups in recent years.
Remember that these fifty-two
men who are directors of the two i'm
! porl ant banking groups are not adj
ditiCnal TO the list of less than 100
whom have referred to as control
ling the industrial life of the nation.
but a part of it,
Fourteen of the directors Of the
National City bank are at the head
of fourteen great combinations repre-
senting 80 per cent of the capitalize
i'tion of all the industrial trusts of the
country.
Control of Railroads.
THE railroad lines represented on
the board of this one bank cover the
country like a network. Chief among
them are the Lackawanna, the Chica-
go. Burlington &. Quincy. the Union
Pacific, the Alton. the Missouri Pacific
the Chicago. Milwaukee & st. Paul.
the Chicago & Northwestern, the Rock
Island, the Denver & Rio Grande, the
Mexican National the Baltimore e.
Ohio. the Northern Pacific. the New
York Central. the Texas & Pacific. the
Erie. the New York, New Haven e.
Hartford. the Delaware & Hudson. the
Illinois Central. the Manhattan Fle-
waited OF New York City and the
Rapid Transit line of Brooklyn. These
same twenty-three directors, through
their various connections. represent
mora than $50 ot her hanks tr,,S+ com,