Omaha daily bee., 1908-03-18
BURDEN PLACED ON CAPITAL
Senator La Toilette Closes Discussion
on Aldrich Bill.
FINANCIERS CAN MAKE PANICS
Two wealthy Men, He Claims, Can
Control the Industries of the
Country Through Their
Money Power.
FINANCIERs CAN MAKE PANICS


that the recent financial stringency in the
country was brought about by the influ-
ence of Standard Oil and j. Pierpont
Morgan. Senator La Toilette of Wisconsin
today, in a speech practically closing the
Adrich currency bill, entered upon de-
nunciation of men high in the financial
world
In the beginning Of his speech in the
senate today Senator La Toilette took
cognizance of a generally current remark
that by eliminating railroad bonds from
the Aldrich currency BILL the finance COM
mittee has taken the wind out of Mr.. La
Follettes sail. He declared that the ac-
tion of the committee had rendered what
he would have to say against railroad
securities more pertinent than 1t would
have been If such action had not been
taken. He said in part:
There were no commercial reasons for a
panic. There were speculative, legislative
serve special interests. There were busi-
ness scores to settle There was legislation
to be blocked and currency measure
suited to the system to be secured. There
was a third term to be disposed of and
policies to be discredited.
a panic came. l believe that 1t needs
only to be followed step by step to show show
as such proceeding is subject to control
after once in motion.
Scenes of the Panic.
The senator recounted in vivid language
his view of the events of october a. when
Wall street was in the throes of the cur
rency stringency and continued:
But back of the scenes Morgan and Still
man were in conference They had made
knew when the next installment of aid
would reach New York. They knew just
how much 1t would be. They awaited its
arrival and deposit. Thereupon they pooled
an equal amount and held it. Then they
waited Interest rates scared. Wall street
was driven to frenzy. Two o'clock came
and interest rates ran to $50 per cent. The
smashing of the market became terrific.
Still they waited. Union Pacific declined
1O1A points; Northern Pacific and other
stocks went down in like proportion. Five
minutes passed-ten minutes past o'clock.
| Then at precisely at 2:15 the curtain went
up, with Morgan and Standard OH in the
money-twenty-five millions of money
giving it away at 10 per cent
Whole Country TerrOrized.
How beautifully it 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 $500. 100000, nearly all of which was In
the vaults of the big bank groups. 1t sup
piled 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. In this connection
the operations OF Morgan and Standard
Oil furnish additional evidence of the char
acter OF the panic. We have record proof
of their utter contempt for commercial In
terests. not only for the country generally,
but for legitimate trade in New York City
as well.
Mr.. La Toilette reviewed the growth of
industrial reorganization from the year
! 1898. which he said saw the beginning of
that movement He discussed the economic
development Of the country and laid es-
pecial stress upon the growth of financial
combinations, declaring:
There are twenty-three directors OF the
National City bank STANDARD OiD; there
are thirty-nine directors of the National
Bank of Commerce CMorgan) ENamina-
tion of these directors shows that these
two groups are being knit together in bus-
ness associations, suggesting their full
Identification.
Fourteen of the directors Of the National
combinations representing 3S per cent OF
the capitalization of all the industrial
trusts of the country.
Controlling Periods of Prosperity.
| Speaking of the great stores of money
in New York, in connection with the vari-
Gus Industrial institutions Mr. La Toilette
continues:
With this enormous concentration of
! business II is possible to create artifically
| periods of prosperity and periods of panic.
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 and artificial stringency may
be relieved and prices advanced and the
| illegitimate profit raked Off the agricul-
tural industry may be pocketed In Wall
street.
He severely criticized the provision of the
| Aldrich bill by which railroad bonds are
TO be made security for emergency circu-
lation and charged that it was a scheme
to defeat legislation which might lower
railroad rates.
He insisted that the Interstate Commerce
commission is pot empowered to ascertain
the value Of the physical property of the
railway companies of the country and
strongly favored such valuation as the