Gilpin observer., 1914-06-11
Washington NEWS.
BY Edward. Heating.

leaOer OF the PrOgreSSlVeS IN the
house, is never SO happy as when he
is firing broadside into the old
standpat hulk. During the discussion
of the antitrust bill the other day
he thus repudiated the Republican
overtures looking to fusion:
There is talk in New York and in
Washington, with the aid Of the
press, In San Francisco and st. Louis
of amalgamation between the Repub-
lican party and the Progressive par
ty. Do you think there is any chance
of amalgamation between a set of
men who want to go forward, and
set of men, typified by the gentle
man from Pennsylvania q. Hampton
'Moore)who evade, dodge and side
step on everything?"
The fact is that the Democrats and
'Progressives have much more in COM
mon than have the Progressives and
Republicans and the genuine Progress
sives readily acknowledge the truth
of that statement.
UNTERMYER's SPEECH.
Samuel Untermeyer is recognized
as one of the great lawyers of Am
erica. He has amassed a fortune
through his work at the bar, but,
'a4He Louis Brandeis, he is willing to
serve his country without compensa-
tion. He acted as chief counsel of
the Pujo committee which revealed
the secrets OF the money trust and
furnished much of the material for
the antitrust legislation, now before
congress. He knows every cog in the
Wall street machine and its relation
to every other cog. Recently he was
the guest of honor of the Pittsburg
commercial associations and he took
occasion to reply to the walls OF
the interests" that the Wilson ad-
ministration is interfering with busi-
ness.
He pointed out that our financiers
were responsible for European lack
Of confidence in American securities.
The rottenness uncovered in the New
Haven, Frisco and other railroad sys-
TENS had amazed foreign investors,
he said, and had caused them to
dump their holdings on our exchange
thus depressing prices and causing
an unusual flow of gold to the other
side of the Atlantic
ha
until the national government COM
PEELED a thorough house cleaning.
such as was proposed by the presi-
dents antitrust program.
To illustrate the financial methods
which he condemned and which he
believed should be outlawed by I'm
Gle Sam, Mr.. Untermyer related the
following incident:
when a committee, named by the
New York legislature, was invest;gat-
the great insurance companies some
years ago, it was found that the Mu-
tual Life insurance company held a
great block Of stock in the New Ha-
ven railroad system. II was valued
at more than 5000 share and was
paying excellent dividends. The in
vesugating committee decided, how
ever. that life insurance funds should
not be invested in that class of Sc
curities, and suggested to the legis-
lature that the company be compell-
ed to dispose of its holdings within
five years. The legislature approved
the recommendation and passed the
necessary law to carry it into effect.
Then it developed that J. Pierpont
Morgan controlled the Mutual Life
Insurance company and through that
control was enabled to vote the com
pany's block of New Haven stock,
thus securing the mastery OF New
England's greatest railroad system.
Mr.. Morgan wanted to continue his
control of New Haven and therefore
he directed the officials OF the Mu-
tual Life Insurance Co.. to refuse to
sell the company's New Haven stock.
Instead they slipped into the New
iorb iesiSiatuTe anu secureu vie PaS
sage of bill which gave them ten
years instead of five to consummate
the transaction.
THE net result of the deal Is that
the life insurance company-and that
means the policy holders in that
company-has sustained loss OF
more than $4,000. 900. II the life in
surance company had disposed OF
its New Haven stock at the end OF
the five-year period 1t would have
secured more than 5000 a share. To
day the stock is drug on TIE mar
lset at $6S a share.'
But-the Morgan interests have re