The Idaho recorder. [volume] (Salmon City, Idaho) 1886-1927, 1908-03-26
.LAfOLLETTE Is HEARD I!
Claims Combinations Brougos
About the Panic.

by the Influence Of combinations and
J. pierpont Morgan, Senator La
Toilette, OF Wisconsin. today In a
speech practically closing the debate
ON the Aldfich currency bill, en-.
tered upon denunciation OF men high
In the financial world.
There were no commercial rea-
sons for panic, = said the senator.
There were speculative, legislative
aud political reasons why panic
might serve special financial inter
ests. There was currency bin
favorable TO tho situation 70 be Sc.
cured. There was third term TO
be disposed Of and politics to he dis.
credited.
"a panic came believe that it
needs only TO be followed step by
step. to show that 1t was planned
and executed In so far as such u
proceeding Is 10 control. once IN mo.
tion. TIC maintain free speech IN
setting forth facts so lar as they can
be uncovered Is, In a discussion OF
this legislation, a plain public
duty
Mr.. La Toilette reviewed the
growth OF Industrial reorganization
from The year OF 1898. which, he said,
saw the beginning OF that movement.
These recommendations were al,
the outset limited to those turning
out finished products similar IN
kind" he said.
within period Of three years
following lac congratulations were
effected. IL making those reorpan-
ixations an opportunity Tor a paper
capitalization offered too great n
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 combined indus
tries until mere handful Of men
controlled the industrial institutions
of the country. The opportunity TO
associate the reorganization OF the
industrial institutions OF the country
with banking capital presented itself.
Such connections we're powerful
aid TO reorganization, and reorganiza.
tion offered an unlimited field for
speculation. IL was tremendous
temptation. =
The speaker discussed the economic
development Of the country and laid
especial stress on growth OF financial
combinations.
The bare names OF the directors
OF twu bank groups given In connec-
tion with their business associations
is all the evidence that need be OF.
fered OF the absolute community OF
interests between banks, railroads
aud all the great Industries. = de-
clared Mr.. La Toilette.
lie severely criticized the provision
Of the Aldricb bill, by which railroad
bonds are TO be made security for
emergency circulation, and charged
that II was a scheme TO defeat legIs-
iation which might lower railroad
rates.
"As common carrier" said Mr..
La Toilette, 1.-THE railroad company
is entitled to charge sufficiently high
rates to pay operating expenses and a
reasonably fair return upon the fair
value OF the property which II uses
for the convenience OF the public.
ribs IL the standard, and the only
standard by which To measure fea-
sonable rates. To secure the npplica-
ton OF this standard TO the railway
rates OF the country has been the OBJ
Iect OF a struggle extending over
many years. The courts have sane.
toned IL. The Interstate commerce
commission has urged II upon the at
tention OF congress and common JUS
tice 10 the public Interest demands
it. IL does not signify that the pub
lie have not yet been able 10 secure
the application OF this standard 10
the rates Of the country. Their
cause Is just and Its defeat from year
TO year has been accomplished only
through the powerful influences
which the great transportation com
panies Of the country and those inter.
ested In their securities have been
able To successfully exert In prevent.
ing legislation.
To-day we are confronted with the
astounding proposition that congress
shall hold out legislative inducement
for the exaction Of transportation
charges which shall net a continuous
per cent dividend on railway capt.
alizstion. IL IL Idle 10 say that this
measure Is limited In its scope that
II has reference simply TO limited
issue OF railway bonds as security.
lie IL blind. indeed, who does not
see the ultimate effect OF PROPOSE
tlon which directly or indirectly
raises a standard for the payment Of
direct dividend upon railway capt.
alizaticn without regard 20 the valu-
alton Of the property. The certain
effect Of this action by congress Is 70
stimulate every railroad company
Within the puryiew Of this statute
to maiDtain tie position Of Its bonds
1 ssffhtr tlaa faros.H elass and aNa..