The daily Cairo bulletin. (Cairo, Ill.) 1878-1???, 1884-07-01
As Eyomplefiod in tho Conduct
and NM 7.enCnt OF Our
3 MS.
Actions Of Bunk Directors Unpreced9nt'
cd IN the History Of the Country
or Of the World,
What Should and What Should Not be
That DepostoTs Might Receive
Their Own.

NEW YORK, June 3O.-Thc Sun in lis artl'
Gle on Wall street this morning says; "Iho
terrible liquidation ard shrnkago oil
stock exchange values during the last
three years ought to have done Il great
deal Of good to people Of this country.
True, the losses were immense, but they
carried salutary lessons. The eyes Of the
nation have been opened to the practices
Of banking institutions as wellas Of joint
stock corporations. If the law givers Of
the country do not take any step, to
remedy the existing state Of affairs
it will be the fault Of public opinion and
the press. Facts are disclosed every day
which show that the subject can 10
longer Dc handled with kid gloves. The
most searching investigation ought to be
ordered into the condition Of all inStitu.
tiOns which hold savings OF the people,
for however hgh-hauded the proceeding
may seem, nobody can object 20 it As
"uuprecedcutei." Directors have been
acting for years in 4 manner "uu-
precelCuul lot only in the
history II this country but
OF the worll and must be paid in the
same coin. There was neyera time when
men like Hewitt or Randall had a better
chance 10 secure for themselves the
brightcStpage> in the history OF American
legislation There never was q time
when a man like Ben Butler could do
more for the spread OF his horSc-scuSo
popularity with working people. Though
the saving masses are as q rule shrcWd
and intelligent their ShrcwdncsS
does not extend beyond their particular
branch Of activity. They are helpless
when it comes to the question OF the
public investment of their savings and
somebody must take care Of them. This
can only be done by the Legislature, 10
which ample proof is now given that a
radical change mustbe made if the credit
OF the country is to be maintained
abroad and confidence IS TO be restored
At home The relation in this
country between bondhollers and
stockholders is unparalleled in any
other The practice Of building
railroads with bonds is the cause Of most
OF the existing swindlcs The roads
ought 10 be built exclusively by and for
the stockholders. If In the course OF
construction, or on completion, the pro-
yretorS wish to make Improvements, aud
choose tomortgage their property instead
OF paying az assessment, they must be at
liberty to do so, but bonds should
never be other than income bonds,
with an amply provided for
sinking fund. The very word diyi-
dcud means division Of net proceeds,
D., f;
tcrcst. But a majority of people do not
seem TO understand this difference.
Strictly speaking, no dividend should
ever be paid to stockholders as long as
there is debt upon the property. No
honest merchant or manufacturer Will
ever think OF dividing any profits with
his partners when the concern is in
debt. But OF course, aS bonds have
10 be issued for certain
lyugth Of time, and the debt cannot be
paid at will of the debtor, there may be
circumstances under which a particularly
prosperous concern would be embar-
RI Sed by the surplus OF accumulatjons In
its treasury. But that could easily be
aycrted by the system OF issuing bonds
subject to calls similar to that in force
with the Government. As il stands now,
bond-hO.dcrs have all the power and
stockholders none. Any man who goes
into Wall street pays Just o. good money
whether he buys stock or bonds, yet the
buyer of bonds can any day make
bcg-ar of the buyer OF stock by adroitiy
wUrkiug the directors and forec.osiug the
mortgage. As everybody knows, there
has been a great deal of forccloSing of
! late. The condition of the street, aS it
| appears from day to day, does not cali for
comment. The market is professional
one, worked by sheer manipulation, and
the best thing for intelligent men is TO
leave it alone.
Another big squeeze of the imprudent
bears took place Friday and Saturday,
but that can not interest anybody except
those who got squeezed The squeezers
| themselves could not have made cent
| They are simply trying to work off the
contents Of the big bags they hold The
! latest story Is that Vanderbilt and Gould
had an interview with Woerishoffer on
Thursday and gave him at a low price all
| the stocks he was short of, and thus Sc
cured his support for q bull campaign.
If this be true, Mr.. Cammack and
number of big Philadelphia bears
must have turned too, and in such case
there would be nothing surprising in n
temporary advance of prices. But the
ultimate result will be the same-fur-
Their liquidation. The reputation of the
Stock Exchange for uncommonly fair
dealing seems to be 'petering out" Dur
ing the week two cases occurred which
look like sharp practice. Kuhn, Loeb 4
Co. sold out collateral which they had
received for loan, though the persons
obtaining the loan notified the firm that
they would put up more margin, and
W re, in fact, on their way with
the money when the sale was made
The question will be tested in court, but
the case is worthy of attention us show.
ING the want of confidence which exists
in Wall street. The other case, the sale
"under the rule" of stock, which Mr.
Hudson had been instructed to sci
"Quietly,n is somewhat different
though some people 60 so far a
to say that speculative member o
Mr.. lIudson's firm used the order t.
sell the market on.