The Richmond Virginian. (Richmond, Va.) 1910-1920, 1911-08-07
MONEY TRUST IS
NOW UNDER BAN
Attorney General Wickers-
ham is Ready to Go for
National City
M'VEAGH WORKS ON
PLAN FOR SEGREGATION
New System of Bank Holding
Companies is Consider
ed a Menace by the
Department

! WASHINGTON, Aug. 6.-The new
~ formed money trust has been put
under the ban of the Department of
Justice.
Under the opinion of Attorney Cen
erai Wickersham. handed To Secre-
tary of the Treasury MacNeagh last
week, this latest manifestation OF the
trust idea, as exemplified in the Ma
! tional City Company, Is in violation
of the national banking laws, and this
and all other similar organizations
created to act as holding companies
for national banks will be forced to
segregate- Interchangeable boards of
directors or trustees between such
holding companies and national banks
Will not be tolerated; nor Will any
tother method, which seeks to evade
/ the cardinal principles of the national
bank act which aims to make each
national bank separate. independent
entity.
Secretary Macveagh 10 at wor.
now on plans by which this view of
the Attorney General shall be given
effect with the least disturbance to
| financial conditions. He will hold
lconferenees during the week with the
officials of several OF the new bank
holding companies and a scheme viii
| be worked out by which the concerns
may be dissolved on the principle
which was dictated In the decisions
of the Supreme Court in the cases of
Standard OIL and American Tobacco.
| These facts We're learned tonight
from an unquestionabie source.
| Steel Must Segrgate.
| 1t can be said in addition that the
department Of Justice Is at work also
on plans by which the steel trust Will
also be compelled at least to follow
the policy OF segregation. which has
become the keystone OF the admin
isiration s antitrust porgram. The
steel trusts interlocking connection
with the railroads of the country by
interchangeable directorates has been
| engaging the attention Of the At
torney General for some time. 1t is
believed that through this arrange
Tent the trust enjoys the advantages
which amounts substantially to a mo-
nopoly.
Just what form action in the case
OF the money trust and steel trust
VIII take has not yet been decided.
After close study OF the former
| however, it has become evident 10
/ department of justice officials that
| carried to its logical end the plan
would result ultin\ .ely in control of
most OF the dominating national banks
| Of the country. With the National
| City representing the Rockefeller In
terests, and the Isirst National bank
OF New York, representing the Nor
gan interests, which has also form
ed one Of these holding companies,
| reaching out the banking field, il
Is held. might very easily be shared
| between them within comparatively
short time.
Create Money Trust.
There are generally one or two
| big banks in each of the large cities
OF the United States which dominate
| the financial situation in their COM
f*rsssay3tiessy essTsfi the formation OF d
holding company. permitted to deal
| in the stocks of national banks, 1t Is
easy to see how. in addition to the
| concentration of all the available
| stocks of banks. with directorate
| composed OF the dominatig financial
| figures in each OF the large cities,
| one or two of the big holding COM
+, panies would shortly control the en-
| tire financial system of the United
| States
1t is the creating OF such credit
| or money trust that the adminstra-
| ton In battling against. And II is
by means OF OBSERVATION-DISCLOSURES ting
| the interchangeable dtrectorates of
| big national banks and holding conf
/ panies that Attorney General Wicker
sham believes the situation may be
! COPIED with.
Similarly with regards 10 the steel
| trust and its interchangeable directors
from the boards OF directors
| of the big railroads. 1t Is the view
| of the administration that the steel
| trust should stick to the manufacture
! of steel and keen within the law in
/ that business. When tho attack on
| the steel trust is begun 1t will be
| along these lines first