."
,'';il&"'v,' '
IV-
JULY 8, 1904.
essential to the right development of individuals,
and to the real grandeur of nations. It Is a prod
uct of knowledge when knowledge advances in a
healthy and regular manner; but if under certain
unhappy circumstances it is" opposed by what
seems to be knowledge, then, in God's name, let
knowledge perish and liberty be preserved. Lib
erty is not a means to an end, it is an end itself.
To secure it, to enlarge it, and to diffuse it, should
be the main object of all social arrangements and
of all political contrivances. None but a pedant
or a tyrant can put science or literature In com
petition with it. Within certain limits, and very
small limits, too, it is the inalenable prerogative
of man of which no force of circumstances and no
hope of time can deprive him. He has no right to
barter It away even from himself, still less from
his children. It Is the foundation of all respect,
and without It the great doctrine of moral re
sponsibility would degenerate into a Ho and a
juggle. It Is a sacred deposit, and the love of
it is a holy instinct engraven on our hearts."
Concentration and Liberty.
While claiming that "never has there been a
wider distribution of wealth than that existing
now in this, country," the Wall Street Journal ad
mits that "there is another development at work
which is of so stupendous a character that it at
tracts the attention of every thoughtful observer."
The Journal refers to the concentration of the
control of the wealth of the cpuntry in a compara
tively few hands, and in support of its position
makes a startling showing.
It is reported that at one time $15,000,000 was
offered for $51,000 of stock of the Equitable. Life
Assurance society, although the largest amount
that that proportion of stock would earn in divi
dends would be only a. trifle in excess of $3,500 a
year. The reason that this enormous sum of
money was offered for the stock bringing a com
paratively insignificant amount in dividends is ex
plained by the Journal's claim that the ownership
of this $51,000 of stock in this insurance com
pany is sufficient to give its possessor power over
$381,000,000 of assets and indirectly the control of
important financial institutions, and with a still
Wider sweep of Influence over a financial chain
whose power must be measured by billions.
Of course, the pomparatively small amount
paid in dividends by no means represents the in
come of this insurance company. The capital
stock of the company Is $100,000 on which $7,000
is paid in dividends each year. The assets of the
company amount to $381,000,000 and It has an an
nual Income of $73,000,000.
This company, with a capital stock of only
$100,000, is an important link in the chain of
financial institutions composed of banks, trust
companies, safe deposit companies, and title in
surance companies, having a total capital and
surplus of nearly $37,000,000. It is also a laige
holder of the stock of three other banks and four.,
trust companies in New York, Chicago, Philadel
phia and having an aggregate capital and surplus
of more than $54,000,000. -
The way in, which '$51,000 of stock in one com
pany gives to the owner of that stock control
over $381,000,000 of assets is explained by the-Wall
Street Journal in this' way;
"In connection with the Mutual Life company
with which it is now affiliated, the Equitable con
trols the National Bank of Commerce, which,
with capital and surplus amounting to $41,560,000
and deposits of $147,182,000, is one of the two
greatest banks in this country.
"The Equitable, the Mutual and the Bank of
Commerce form the centre of a colossal corpora
tion of insurance companies, banks and trust'com
panles located in the four leading cities of the
country and representing in assets and deposits
more than $1,100,0Q0',000.
"Between the Eqilitable-Mutual-Bank of Com
merce group and another group of which the First
National Bank of New York Is the head, there ex
ists intimate' relations. Each grougi is represent
ed in the boards of directors of the "other. Presi
dent Baker of the First National bank and J. Pier
pont Morgan, its most important director, are di
rectors in the Batik of Commerce, and, another
of the First National directors is a trustee of the
Equitable. Both, groups are largely interested in
the First National Bank of Chicago, the largest
banking institution of the west. President Baker
of the First National of New York and Vice Pres
ident Hyde of the Equitable are directors of the
First National of Chicago, The Equitable owns a
block of the Chicago bank's stock. '
"Those two groups, the Equitable-Mutual-Commerce,
and the First National (the New York
Life, being affiliated with: the latter) represent a
The Commoner.
financial power roughly computed as bclntr in ex
cess of $2,000,000,000. This has no equal any
where in the world. '
:"So far as the Equitablo's large share in this
tremendous financial combination is concerned it
is centred in Its $100,000 capital stock.'"
It 13 understood that James U. Hyde vice
president of the Equitable, controls a majority of
this stock. Mr. Hyde, besides being vice presi
dent of the Equitable, fs a director in the follow
ing Institutions:
National Bank of Commerce, cap. & sur. $41,800,000
I'irst. Nat. of Chicago, cap. & sur 14,050 000
Mercantile Trust of N. Y.. can. & sur.. x.nnn.nnn
Equitable Trust Qf N. Y., cap. & sur... 11,500,000
Lawyer's Title Ins. of N. Y., cap. & sur. 8.00U.UOO
iawyora ivioriguge oi in. 1., cap. & sur.. 4,000,000
Commercial Trust of Phila., cap. & sur. 2,000,000
Franklin Nat. of Phlla., cap. & sur 2 41 noon
w Vf W V w
ivfcurc&nujc &aie uep. oi in. Y., cap. & sur. 300,000
Security S'afe Dep. of Boston, cap. & sur. 200 000
Missouri Safe Dep. of St. Louis .'...
"The Equitable owns stock in nearly ail of
these corporations, as well as In the Fifth Avenuo
Trust Co. of Now York, the Central Realty Bond
& Trust Co. of New York, the International Bank
ing Corporation, the Fidelity Trust of Philadelphia,
and the Glrard Trust of Philadelphia. Its hold
ings Qf Equitable Trust stock amount to $1,203,
100, of Mercantile Trust to $1,208,500, and of In
ternational Bank Corporation to $180,300.
"Eleven trustees of the Equitable and ten
trustees of the Mutual Life are directors of the
Bank of Commerce. The Equitable owns $4,500,
800, and the Mutual $3,653,500 of the $25,000,000
stock of this bank.
"The corporations constituting the Equitable-Mutual-Commerce
group Include the following:
Equitable- Life Assurance society, Mutual Life In
surance Co., Bank of Commerce, Equitable Trust
Co., Mercantile Trust Co., United States Mortgage
Trust Co., Fifth Avenuo Trust Co., Lawyers In
surance Co., Lawyers Mortgage Co., Commercial
Trust Co. of Philadelphia, Franklin National of
Philadelphia, Mercantile Safe Deposit Co., Secur
ity Safe Deposit Co. of Boston, Missouri Sale De
posit Co. of St. Louis, Central Realty & Bond Co.,
Fidelity Trust of Philadelphia, Girard Trust of
Philadelphia, Union National Bank of Newark,
and the National Banking Corporation. While
the Central Trust Co. and the Metropolitan Trust
Co. are also in a measure connected with.it.
"The First National group which is affiliated
with the others, comprises' the First National
Bank of New York, the First National Bank of
Chicago, the Chase National Bank of New York,
the Liberty National Bank of New York, the As
tor National Bank of New York, the Manhattan
Trust Co. of New York, and the New York Life
Insurance Co." .
This is, indeed, an impressive showing and
it is-no wonder that after making this showing
the Journal is prompted to say: "It may be asked
whether the people, in giving up so readily and so
often without question or limitation, the control
of their wealth of capitaland of labor to others
as trustees, for them, are not selling the birth
right for the mess of pottage. They are gaining
much Indeed In the way of income and of in
creased comforts of living, but they are surren
dering something which is far better than that,
namely, liberty. A little more liberty, even with
the loss of a little concentration, would be a good
thing."
r
Frick and Knox.
Several Instances connected with the Little
field trust bill will be of Interest at this time
in connection with the appointment of Attorney
'General Knox to be United States senator, at tho
request of H. C. Frick, the steel trust magnate,
The Littlefleld trust bill passed the house
unanimously, although, as Mr. De Armond of Mis
souri pointed out, the measure, as it came to the
house, was entirely different from the measure as
originally Introduced by Mr. Littlefleld.
If one desires to understand how it happened
that the change took place, he may be enlightened
by inspecting three newspaper dispatches, all
emanating from republican sources. These dis
patches provide an unbroken chain of significant
Incidents. M ...,
In its issue of January 16, 1903, the St. Louis
Globe-Democrat, a republican paper, printed a
dispatch under date of Washington, January 15,
"as follows:
"The plans of Congressman Littlefleld
and his associates on the judiciary committee
to report his trust bill to the house tomorrow
from the full committee have been abandoned.
This was a direct result of a conference which
was held this afternoon at tho home of Mr.
Knox. Tho publicity provision Is entirely
too drastic. Ho took the bill to Pittsburg with
him tonight and will submit a substitute for
the publicity provision which ho believes can
bo passed by congress,"
Under dnto or Pittsburg, Pa., January 16, 1905,
the Associated press sent to its patrons a dispatch
as follows:
"An Informal dinner was tendered tonight
by H. C. Frick to Attorney General P. C. Knox
at his palatial homo, 'Clayton Nono but
representative business men of tho city wore
present. No speeches wore made and the
function was purely a social affair. Tomor
row Mrs. Knox will he given a reception by
Mrs, Frick."
Under date of Washington, D. C, January 18?
1903, tho Associated press sent to its patrons
a dispatch as follows:
"There were sovoral officials prominent in
legislative and" executive circles at tho White
house In conference with thp president to
night. Among thom was Attorney Goncrai
Knox who remained with Mr, Roosevelt somo
time. It Is supposed the trust question was
considered."
It will be seen that on -January 15, Attorney
General Knox concluded that the provisions of tho
Littlofloid bill, as originally introduced, were "en
tirely too drastic." The St. Louis Globe-Democrat,
under date of January 15, announced that Mr.
Knox took the bill to Pittsburg "and will submit
a substitute for tho publicity provision which ho
believes can bo passed by congress." On the even
ing of the following day Attorney General Knox
Was the guest of H. C. Frick, the steel trust mag
nate, at Mr. Frick's palatial home, "Clayton."
Two days later, Mr. Knox and othor officials woro
in conference with the president, and tho Asso
ciated press says "It Is supposed the trust ques
tion was considered."
Is It any wondor, then, that after these things
had transpired, tho Littlefleld bill, aB It was re
ported to the house, was considerably different
from tho Littlefleld bill as It was originally intro
duced. Is It any wonder that the "entirely too
'drastic" publicity provision was materially
changed? Is it any wonder that when the great
steel trust magnate wanted a United States sena
tor upon whom ho could depend, he selected : his
old-timo friend, Philander C. Knox? ' WM
JJJ
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