Index

2

The Spider's Web


Part 1 / Part 2

Let's start at the top with Proctor and Gamble. Its president is Richard Dupree, who is also a director of the Baltimore & Ohio Railroad and of the Coca Cola Company. This railroad is always in financial difficulties and going to Wall Street banks for financing and refinancing. That alone is enough to identify Mr. DuPree as a man whom they trust at Rockefeller Center.

The Coca Cola Company is also well-amenable to the Rockefeller will. The chairman of its board is one Robert W. Woodruff, a director of the Guaranty Trust Company which was formerly a Morgan-controlled bank but which is now well under the Rockefeller thumb.

General Motors has as directors George Whitney (a House of Morgan partner), and Lewis W. Douglas of the House of Rockefeller. The Rockefellers thought so much of Douglas' usefulness to them that they had him appointed Ambassador to England, to control the flow of American dollars to that tight little island, to protect the Rockefeller oil and international banking interests over there.

Colgate-Palmolive-Peet has as a director George W. Merck, president of Merck & Company - the drug behemoth whose stock structure has been inflated to 451% of its actual assets by the profits in the drug traffic. Also M. F. S. Russell of the U.S. Pipe & Foundry Company whose president (Philo W. Parker) is a big pipe in Standard-Vacuum Oil Company.

Lever Brothers makes Pepsodent and thus will do nothing to interfere with the fallacy that drugs and cosmetics and proprietary remedies are best for what ails everyone.

General Foods is so under the Rockefeller thumb that their dummy directors elected a director of the Chase National Bank (Austin S. Iglehart) president. On GF's directorate are Robert P. Lehman (of the Rockefeller-controlled Lehman Brothers banking house), Carl Schmidlapp (another Chase National Director) and Mrs. Mary P. Davies of a famous family affiliated closely with the House of Rockefeller.

General Electric has on its directorate as the Rockefeller representative Sloan Colt of the Rockefeller-controlled Bankers Trust Company.

Let's look at both sides of the picture. Let's look at both sides of the picture. Take the various directors of the Chase National Bank and see with whom they are tied up as directors:


Winthrop W. Aldrich

  • AT&T,

  • Westinghouse,

  • International Power & Paper,

  • Metropolitan Life.


Earl D. Papst

  • 10 large insurance companies


Howard Bayne

  • Public Press, Inc., of Canada


F. H. Brownell

  • Federal Mining & Smelting Company

  • Cooper Institute

  • Northern Pacific Railway

  • General Cable Corporation


H. Donald Campbell

  • Consolidation Coal Company

  • Mathieson Alkili Works

  • Western Union Telegraph

  • American Smelting & Refining Co.


Francis W. Cole

  • United Aircraft

  • 4 insurance companies


J. F. Drake

  • Pullman Company

  • Gulf Oil

  • American Rolling Mill

  • Rockwell Manufacturing

  • 9 other oil companies


Percy J. Ebbott

  • Nash-Kelvinator

  • Moore-McCormick Lines


H. O. Havemeyer

  • Kennecott Copper

  • Braden Copper


Austin S. Iglehart

  • General Foods


A. N. Kemp

  • nothing of consequence


James T. Lee

  • American Express

  • Wells-Fargo

  • 8 New York building and insurance firms


Leroy A. Lincoln

  • Metropolitan Life


Arthur A. McCain

  • nothing of consequence


Jeremiah Milbank

  • Metropolitan Life

  • Borden's Milk


Arthur W. Page

  • AT&T

  • Continental Oil

  • Westinghouse Electric

  • Kennicott Copper

  • Prudential Life

  • Panama Railroad

  • Southern Bell


Thomas L. Parkinson

  • AT&T

  • Consolidation Coal

  • Borden's Milk

  • Westinghouse Electric

  • 5 insurance concerns


A. W. Robertson

  • Reliance Life

  • Westinghouse Electric


Laurence S. Rock

  • nothing of consequence


Carl J. Schmidlapp

  • General Foods

  • Continental Insurance

  • Cuban-Atlantic Sugar

  • Rayonier Inc.

  • Chicago Pneumatic Tool

Lyne Selden

  • American Express

  • Wells-Fargo

  • Amrex Holding Corporation


Robert C. Stanley

  • International Nickel

  • Canadian Pacific Railroad

  • American Metal

  • Amalgamated Metal

  • General Electric

  • U.S. Steel

  • Copper Development Assn.


Leroy A. Wilson

  • AT&T

  • C&P Telephone


Robert E. Wilson

  • Pan American Petroleum

  • First National Bank of Chicago


This kind of setup is called by statisticians and actuaries the Spider's Web Chart. If a chart were made showing these concerns in question in a vertical column, the various directors in a horizontal column, and a line drawn from each director to the concerns he is supposed to direct, the effect would look not unlike a spider's web.

As a result of this tight control of the nation's thinking - from Rockefeller Center to these Industrial Concerns and Combines, to the Advertising Agencies, to the Media of Public Information, to the Reading Public - a sum estimated by a concensus of manufacturers as equalling $10,000,000,000 in 1948 has been paid to the drug concerns in the United States for drugs which, as we have shown, intelligent medical authorities consider, in large part, useless.

The enormous profits resulting from this enormous drug traffic - dope traffic as some outspoken physicians call it - have resulted in inflation of the stock structures of many of these Dealers in Death. Some have increased their stock structure as high as 20 shares to one. Others have just let nature take its course in the stock market.

We can get a very good picture of this from Moody's Manual of Industrials. Its current one shows, for instance, that Abbott Laboratories, by making an operating profit in one year of 87% of its actual physical assets, has so inflated its stock that it is selling on the market for 632% of the company's actual physical assets.

It shows profits of 139% over assets by American Home Products (manufacturer of Anacin, Kolynos, Bisodol and Hill's Cold Tablets), of 112% by Parke-Davis, of 109% by Pfizer & Company and also by National Drug and Chemical.

It shows a 1,839% inflation by American Home Products, a 926% inflation by McKesson & Robbins, a 750% inflation by Vick Chemicals and a 632% inflation by Sterling Drug.

A random compilation of 15 of these large drug companies is shown below.

It was a wise philosopher who said - "He who pays the piper calls the tune."


Table A
FIGURES TELL THE STORY

    Actual Operating Inflated Earnings Inflation
    Physical Profits Market over over
    Assets 1947 Value Actual Actual
      or '48 of Stock Value Value
__________(in millions of dollars) __________
Abbott Laboratories

$

24.0 20.7 151.7 87% 632%
AHP   05.9 08.3 109.8 139% 1,839%
Commercial Solvents   17.6 07.2 36.9 49% 209%
Drug Products, Inc.   00.41 00.23 00.79 57% 190%
Emerson Drug   02.6 02.2 02.7 89% 103%
Lambert Pharm.   03.4 02.5 18.7 77% 547%
Lederle Laboratories   35.1 16.8 not traded    
McKesson & Robbins   06.6 16.8 61.3 39% 926%
Mead-Johnson & Co.   05.8 03.2 76.9 55% 470%
Merck & Company   19.9 10.1 90.1 51% 451%
Nat'l Drug & Chem.   00.92 00.99 01.3 109% 136%
Parke-Davis   15.0 16.8 141.8 112% 956%
Pfizer   15.4 16.9 072.3 109% 475%
Plough, Inc.   01.3 0.67 07.3 50% 540%
Sharpe & Dohme   06.2 05.2 27.6 84% 441%
Smith, Kline & French   04.4 08.0 00.81    
No Par shares, split 20 for 1, but not traded
Squib   14.4 09.6 49.0 66% 338%
Sterling Drug   23.98 20.7 151.7 87% 632%
Vick Chemical   06.4 06.1 48.2 96% 750%

End of Chapter Two

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