Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-03-17
WHY THE PANIC CAME
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creation OF fictitious wealth. The success
of these organizations led quickly on TO a
consolidation Of combined industries until
mere handful Of men controlled the in
dustrial production OF the country. The
opportunity to associate the reorganiza-
ton Of the Industrial institutions of the
country with banking capital presented
itself. Such connections were powerful
offered an unlimited field for speculation.
1t was tremendous. temptation.
Financial Combinations.
He discussed the economic development
Of the country and laid especial stress
upon the growth of financial combina-
tons
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 COM
munity of interest between banks. rail-
roads and all the great industries de-
clared Mr., La Toilette.
There are twenty-three directors Of
the National City Bang STANDARD Obj;
there are thirty-nine directors of the Ma
tlonal Bank of Commerce tMorgan). EX-
animation of these directors shows that
the two groups are being knit together in
business associations. suggesting their
future identification.
Subject TO differences which may arise
between powerful individuals Of these
different groups. resulting in occasional
collision. they are practically monopoly.
and as far as the public is concerned.
practically one group. The business part
ner of the head of the Morgan group is
found, on the directorate Of the chief
financial institution which heads the
Standard Oil group. And one Of the lead
Ing directors of the National City Bank
STANDARD OLD is a member OF the board
or directors of the principal financial In
stitution in the Morgan group. The d.
rectors of the leading organizations COM
prising the two principal groups are
bound together in mutual interest as
shareholders in the various industrial
concerns which have been financed by one
or the other of these groups in recent
years.
Remember that these ifty-two men
who are directors Of the two important
bank groups are not additional to the list
OF the less than one hundred whom / have
referred to as controlling the industrial
hfe of the nation. but part of It,
Fourteen Of the directors of the Ma
tional City Bank are at the head Of four
teen great combinations representing
3S per cent of the capitalization Of all the
industrial trusts of the country.
The railroad lines represented on the
board OF this one bank cover the country
like network. Chief among them are
the Lackawanna. the Chicago, Burlington
and Quincy. the Union Pacific. the Alton
the Missouri Pacific. the Chicago, Mill
waukee and st. Paul. the Chicago and
Northwestern, the Rock Island. the Den
yer and Rio Grande. the Mexican National
the Baltimore and Ohio the Northern Pa
cific the New York Central. the Texas and
Pacific, he Erie, the New York. New
Haven and Hartford: the Delaware and
Hudson, the Illinois Central. the Man
hatton Elevated of New York city and
the Rapid Transit lines Of Brooklyn.
These same twenty-three directors
through their various connections repre-
sent more than $50 other banks. trust
companies, railroads and industrial cor
porations. with an aggregate 'capitaliza-
ton Of more than twelve hundred million
dollars