The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1910-02-13
TOO GREAT POWER
FOR STANDARD OIL
Shaw Would Not Give
1t Chance at Cen
trail Bank.
IDEA, HE THINKS,
is UNAMERlCAN
Former Secretary Of Treasury
Rcncws Attack on Pet Pro-
posal of Administration.
Says Trusts Could Pay
National Debt for Such
Charter.
Special TO The Times-Dispatch.] ]

Especial TO The Times Dispatch.1
Philadelphia, Pa. February 12.-"I
do not believe tncrc can be any doubt
in the mind of any one who studies
the question in tho light of admitted
conditions. that IL a central bank Is
established in this country it will bc
owned, or at least controlled, by the
Standard Oil Company" said Leslie NJ.
Shaw. former Secretary of the Treas
ury. to-day at meeting of the Penn
sylvania Bankers Association in this
city. His topic was The Central
Bank"
There arc two diseases prevalent
in this country, either OF which Is
likely to prove fatal he continued.
"onc is Wall Street mania, the other
Wall Street phobia. l do not think
that / have been badly inoculated with
either, but l am frank TO say that 1t
seems TO me quite un-American to
place with any group of men the
power TO contract or expand our cur
rcncy at Will and to grant or with
hold credit to any bank, to any mer-
chant, and to any corporation al
pleasure.
The Coal and Iron Case.
"It was charged and as vigorously
denied that the affiliated banks of.
New York during tho panic of 1870,
simply withdrew credit from the
group of men who controlled Ten
nessee Coal and Iron, called their
loans and finally adjusted the matter
by taking over the property at a
.eH value.
wards OF $500 100000. and paid for 1T
in United states securities without
| tho exchange of dollar in money
Assuming the charge to be libeious, 1t
still illustrates what could be done
| were group of men possessing Tn
| reoujsite disposition 10 he in control
of tho Central Bank.
II thoroughly believe that The
standard OH Company and the United
states steel Corporation could AFFORD
to nav the national debt for such
charter, and ] say this independent OF
whether bank would be proiitaple
or otherwise The control of it would
he valuable beyond the power of man
TO conceive to any group of men VINO
had independent financial interests
large enough to Justify it and the abii-
ity necessary for It's operation
An Example In Finance.
1--WE all remember that the control
OF certain life insurance company
with capital of only 100000 sold q
few years ago for S9,ooo,0o0 when the
maximum DIVIDEND was fixed i'll the
| charter at per cent, or $4,000 Ger
tainly that vast sum was not invested
| expecting returns of only $4,000 pei
| anpum, when the same amount in gov,
! crnment bonds even would yield $780,
| 900. No, the company had assets ap
| proximating s5o0.0O0,000, and the con.
| troll of such a volume of trust funds
! If honest and wise, is very profitable
/; 1t has recently changed hands agar
| and presumably at a yet higher price
/ Taking the price paid for the contro
| of that life insurance company as
\ measure of value, ] do not think
| overstate the fact when / say that TIL
two largest corporations in the world
interested, as they are directly o.
] through their affiliations in nearl
! every line of business. and owning o
| controlling probably in excess Of 10
OF our largest financial institutions
with, I suppose, $4,000, 100000 in as
sets outside OF their own capitaliza
ton. can afford to pay the nationa
debt for II perpetual charter for
central bank. safeguard the smaIle
interests as You may