Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1894-11-17
SHY OF OUR PAPER.
German Capitalists Insist on q
Business Reform.
ssECUR1TEsr THAT ARE INSECURE,

The Aoericss Railway Esterprise Losk ed
Upoa with susplcsoa - Coneealing .
Large Quantity Of Bwlnsss wickednsss-
Demand for Governmeut supervisloa
That wosld Prsvest FslsiAcatioa Of Ac-
counts and Other siouo.ity.
WASHINGTON, Nov. 17.-Frank II.
Mason, United States consul general at
Frankfort, In n special report to the state
department, states that American railway
securities have fallen into bad odor in
Germany. and he endeavors to point out
the reasons therefor and suggests meas
ures for rchabilitating them in the
financial world.
He says that in Frankfort, which was
the first European money market to &C.
ecpt United States bonds during the dark
~cstments Ind been popular, not only arc
eur new securities refused because Of
American origin. but those railroad bonds
and stocks held for years have been re-
turned to America and their proceeds in
vested In less rcmuncrativc Prussian con.
sols and other standard securities backed
by government credit and supervision.
Revelations nj Railway Management.
The consul general says: THE cloud
which ovcrshndows American railway Sc.
ruritics in Germany has been raised main
ly by the revelations Of the past two years
concerning the management Of several
leading railway properties. German in
vcstors were heavy losers and their losses
served to call the attention of the people
and press more sharply than ever before
60 the usurpations Of power and evasions
Of responsibility which, it is claimed, have
become so frequent in American railway
management. European bond and share
holders have been informed that the power
OF the president and directors in many inn
portnnt railway companies has become
practically omnipotcnt and irresponsible
That the accounts Of an entire railway
system my he falsificd and its securities
sustained in the market by fictitious state
ments OF earnings and concealment Of
rebates-all Of which is believed here-are
discoveries of comparatively recent date"
Want the Government Ia Control.
"The uniform reply Of German finan-
ciers, when asked what is requisite to re-
store European confidence in American
railway securities. Is that such corpora
tions should bc brought under the control
of comprehensive federal law" Consul
General Mason says that the German rail
road license system Is not applicable in its
entirety To- America, but adds in conclu-
sion: 1T is believed by many whose ex-
pcrience and interest in both countries en-
title their opinions TO respect. that it
uk..,.r -. Il
statute applicable to mt least all railway
companies Of the class now subject to the
Interstate commerce law, and which shall
he clcar. precise and inexornble upon the
following topics, viz:
Supervision of the Elections
~ Regulation OF the elections of rail-
way officers, so that such election shall be
free and open and represent directly and
fairly the wishes and interests of security
holders.
''s. Creation of national bureau Of
publicity. inspection and control, provid-
ing for the regular publication at stated
periods of certified reports. showing fully
and accurately the earnings, expenses, acts
Of directors, and all business results which
affect the value Of corporate property
- Making each violation Of law by
any act Of usurpation or willful misman-
aeemcnt crime cn;ailing Imprisonment.
and requiring federal prosecuting officers
20 institute and conduct prosecutions for
such offcnscs.
Revision NJ the Receiver Business.
-. Providing thorough revision OF
the system Of proceedings under which
courts Of justice now appoint receivers to
manage railroads, and making the presi.
dent and directors of the defaulting cor.
poration ineligible for appointment as q
receiver for the same property.
Until some general measure can be
adopted and enforced and foreign invest
ors Gun have the assurance they ask for
thnt the published statements of Amer
lean railway companies are correct and
true, and that such maladministration as
have been revealed in the affairs Of certain
systems Is no longer possible. all such i'm
vcstments in United states securities will
be more or less discrctitcd. and county.
municipal and industrial securities of
American origin will suffer-
Putting Grecnbacks Into bonds.
WASHINGTON. Nov. 1.-THE Withdrawals
of gold from the sub-treas,iry i'm New
York yesterday in exchange for legal ten.
ders amounted TO sy.5,OOO. The gold was
not withdrawn for export 1t l. assumed.
therefore, that the gold will be used in the
purchase OF bonds. Mail reports received
show other Withdrawals aggrcgating ale2. ;.
nil, making total for the day Of 81 .Og7. :.
Ul.
Just Came in To he sociable.
WASHINGTON, Nov. 11.-Major John NJ.
Kelly, acting agent mt Fort Bclknap,
Mont, Is in Washington with sdelegation
OF Gros Vcntrcs and Assinaboincs who
have come to Washington to see the
'Grcat Father" They have no grievances
TO present.