Daily press. [volume] (Newport News, Va.) 1896-current, 1908-03-18
.ALOR|CH BILL WILL
CAUSE PANIC FOR LOOT
Senator LaFOI|stts Exposes The FL
RaRcIa| Measure Which Is Back.
ed by Republicans.
INTEREST OF CAPITALIST CLASS
Federal Treasury Used by Morgan
and Standard Oil to Squeeze Out
Small Investors and Fill Pockets OF
Men in Cont; OIL Calls it Govern
ment Conspiracy.
tRy AssocInted PROSE-

(By Associated PrcssJ
WASHINGTON, l.. c.. March IL -
Senator LaFollottc. taking the Aldrich
i>bill as his text, launched broadslde
against tho trusts and consultations
~ the business. industrial and finan-
cial world today. lie read Il list of
ll3 men. who. he declared. practically
cvonirollcd all the railroads. indus
rics. mines and banks of the whole
country These men raised prices or
lowered them at will They moved
crops or stayed them as they pleased
| or these l13 men 80, lie asserted. were
III the directories of the two great
banks OF New York. the National City
pank. the Standard Oil concern. and
The National Bank of Commerce. J
+. Morgan's institution.
The ability of these groups" he
said. through their connecting In
tore SITS. to engage in underwriting. 10
inancc nLemotlon schemes, where the
'profits resulting from overcapitaliza-
zion represents hundreds of millions
of dollars. could have no competitors
elsewhere in the country Their abil-
lty to take advantage of conditions
ID wall street, even II they did not
create these conditions. forcing in
ifrest rates on call loans MS high as
100 per cent, will enable them to
comm2nd almost at will. the capital
oil the country for these speculative
purposes"
Government Conspiracy.
me senator took up the question
of the Aldrich bill. contendinp that
Inc test which the bill applied for
the protection of the government in
the matter of municipal bonds was
different from the test which it np-
Ilplied for the acceptance of railroad
bonds. He then said:
roday we are confronted with the
astounding proposition that Congress
shall hold out constitutional induce
nent for the eXaction OF transporta-
uon charges which shall net n contin
uous four per cent. dividend or rail-
rcad capitalization. II is idle TO say
that this measure Is limited I'm it's
scope; that 1t has reference simply
70 limited issue OF bonds as surety
lie ~ blind indeed who does not see
me ultimate effect of n proposition
which directly or indirectly raises a
,tandard for the payment OF n fixed
dividend upon railioad capitalization
without regard to the value of the
property. The certain effect of this
acfson by Congress is to stimulate cv-
cry railroad company in the puryiew
of this statute TO maintain the nosI
ZION OF its bonds within the favored
class, and every other railroad com
pahy TO Qualify at the earliest posi-
bic moment for admission to the ia
Vored class. II is plain as the noon
day SUN that the direct effect of this
proposition will be to advance rail-
soad rate charges. and that IL will
identity the government with n main
fenance of rates in all cases where
IL has accepted railroad bonds for cur
rency circulation.
Could any plan have been devised
witch would be more effective in
blocking the way of legislation for
valuation OF the physical properties
of railroads. and defeating the final
reduction of rates to just and rea-
sonablc basis? Coming. as they do
ing credit, these bonds re made TO an
pear as promoters of public inter
est
Manufactured Panic.
Senator l.aFolcttc then reviewed the
recent panic. holding that it was man
Hfactnred and not real.
Can any sane man Doubt he said.
the power of little group of men
in whose hands are lodged the con
troll OF the railroads and the indus
tries outside of agriculture. as wen
os the great banks. insurance and
trust companies, of the principal mon
cy center of the country. 10 give com
mercial banking and general business
n shock at will. They could turn their
power TO advantage financially.
Taking the general conditions OF
Tho country, 1t is difficult to find any
sufficient reason outside of manipu-
; 'aticn for the extraordinary panic of
OciOhnr, 1907