Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1908-03-17
Declares Recent Financial Panic
Was Caused BY Standard Oil
and Morgan
MANIPULATED FOR PROFIT
Senator in Opposing Bond Section of
AIdrich Bill, Discredits Motives of
Big Group of Bankers-Aimed at
Profits, to Discredit Roosevelt and
Win Legislation.

Washington, March 17.-Declaring
that the recent financial stringency In
the country was brought about by
the influence of STANDARD Oil and j.
Pierpont Morgan, Senator La Toilette,
of Wisconsin. today in speech prac-
ticaliy closing the debate on the Al L.
rich currency bill, tn;rred upon a de-
nunciation OF men hlg., In the financial!
world.
There were no commercial reasons
for the panic" said La Toilette. There
We're speculative. legislative and po-
litical reasons why the panic might
serve the special interests. There We're
business scores to settle. There was
legislation to be blocked and a cur
rency measure suited to the system to
be disposed of, and policies to be dis
credited. The panic came. l believe it
needs only to be followed step by step
to show it was planned and executed,
in SO far as such proceeding is sub
ject to control, after once in motion"
He recounted in vivid language his
Wall street was in the throes of the
currency stringency, and said:
How beautifully it all worked out.
They had the whole country terror
ized They had money on deposit in
banks of every state in the union to
the amount of $5O0000,O00. nearly all
Of which was In the vaults of the big
banking groups. 1t supplied the big
operators with money to squeeze out
investors and spectators at the very
bottom Of the decline, taking In stock
at enormous profits. In this connec-
tioa the operations of Morgan and
Standard Oil furnish additional evil
dence of the character of this panic.
We have record proof OF their utter
contempt for the commercial inter-
ests. not only for the country gener-
ally, but for the legitimate trade in
New York City as WE'LL
He discussed the economic develop
ment of the country and laid especial
stress upon the growth of financial
combinations.
'"rhe bare names of the directors Of
the two big bank groups (Standard Oil
and Morgan, given in connection with
their business associations. is all the
evidence that needs to be offered of the
absolute community of interest be-
tween the banks. railroads and all
great industries" declared La Toilette.
He severely criticized the provision of
the Aldrich bill by which railroad
bonds are to be made security for en-
ergency circulation. and charged it was
a scheme to defeat legislation which
might lower railroad rates.
"As a common carrier" said La Fol-
lette, "the railway company is entitled
to charge sufficiently high rates to pay
ting expenses and reasonably
fair return upon fair value of the
which it uses for the con-
venience of the public. This is the
only standard by which to measure
rates. To secure the appli-
cation of this standard to the railway
rates of the country has been the OBJ
ject Of struggle extending over many
years. Courts have sanctioned it. Its
defeat from year to year has been ac-
only thru powerful infiu-
ences which the great transportation
of the country and those
interested in their securities have been
able successfully to exert in prevent
ing legislation"
He insisted that the interstate COM
merce commission is not empowered
to ascertain the value of the physical
property of the railway companies of
the country and strongly favored such
valuation as the only means for fix
ing railroad rates.
In beginning his speech in the sem
ate today La Toilette took cognizance
IF the generally current remark that
by eliminating railroad bonds from the
Aldrich currency bill, the finance COM
nittee had "taken the wind out of La
Follette's sail" He declared the action
IF the committee had rendered what he
would have to say against railroad Sc
.urities more pertinent than it would
have been if such action had not been
taken.