The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-08-16

PROTEGE OF LYMAN j. GAGE WHO
HAS ADVANCED IN THE WORLD.
From n Struggling Newspaper Re-
porter He Has Become One of the
COuntry's Prominent Financiers.

Special TO the indianapolis Journal.
WASHINGTON. Aug. 15.-Former Secre-
tary of the Treasury Lyman J. Gage and
former Assistant Secretary OF the Treas
ury Frank A. Vanderlip are now living to-
gether in a handsome apartment house in
Sixty-ffth street. New York. The former
chief IS the president OF the United States
Trust Company. and his coworker is q vice
president Of the National City Bank, the
largest institution of its kind in the coun-
try. The elder Of the two is a widower OF
sixty-hve and the younger is a bachelor Of
thirty-eight. They are very congenial and
are happily situated. Mr.. Gage says he has
an easy job" which will give him all he
wants to do until it is necessary to retire
on account of age. He is now in Bowlder
county, Colorado. where he is looking over
some mining property in which he is in
terested with his brother-in-law. The
younger man has a very hard job. but there
is a vast future in sight for him I'm the way
of material success. He is now in Europe
looking things over for his concern.
The cOmpanionship OF these two men Is
very interesting to those who like TO take
a second look at the stronger workers in
the world of affairs. Mr.. Gage has had an
eminently successful life as a banker and
business man, and he now settles down TO
the honorable task Of taking care OF the
savings of retired capitalists and OF the
funds of estates and trusts. This other. who
has been a protege of his venerable friend
for a decade. is just beginning to feel his
full strength in the great world Of finance,
and is making a progress which is amazing
to those who knew bin a few years ago as
the assistant secretary Of the treasury h
was looking after the routine Of a great de-
partment Of the government. 1t was even
limited that when his powerful chief retired
from the treasury that the New York fnan-
cial Institutions would have no more to do
with him. Exactly the contrary has proven
true. He is constantly growing stronger
and more useful and is intrusted with more
and more important work as the days
go by.
Twenty years ago he was struggling out
of the little town of Aurora, Ill. where he
was born, to get an uncertain place on a
Chicago newspaper. His progress has been
most difficult. but now he is looking after
important phases of the European business
Of one Of the largest financial institutions
in America Then he did not know where
his next weeks board money was coming
from, now he is a welcome guest In the
homes of the financial princes of the old
world. When he retired from the treasury
TO become vice president OF the City
Bank he was told by President Stillman TO
go TO Europe and look things over. lie
came back with a very definite proposition.
He was sent back TO perfect It. Success
rewarded his first important effort.
While in England he noted the fact that
one Of the most important OF the British
securities was not owned in this country
at all. English consols were not traded
in in this country because Of the difficulty
in buying them. These consols are mainly
held for investment by Englishmen, and
II is the policy of the Bank OF England
that they are TO be kept at home. To Sc
cure this the 0WVnaFGhfn lie maintained In a
very peculiar manner. One who cares 10
invest in English consols goes to the Bank
OF England and pays cash for them. The
amount purchased is set down in "A big book
and the purchaser on a line below signs his
name, -signifying acceptance. AT stated
intervals he is credited with interest. which
is paid when called for and the big book
is signed again. The purchaser is given
no bond or script 10 indicate ownership.
There are ways Of securing payment OF
interest through designated financial in
situations recognized by the Bank Of Enk-
land, and the cOnsOls themselves can be
sold through these agents. but az no time
is the holder given anything by the bank
which shows ownership of these standard
government securities. The agent can issue
TO the owner a receipt which shows that
they have been given power OF attorney
over this investment. and they can certify
that the holder OF the receipt is the owner
OF consols. shown on the pages OF the big
book OF the bank.
Mr.. Vanderlip arranged so thai his bank
could buy these consols In 100 and 500 lots
anu IL IftFlUAH lMllEdAlNE ONIltfrfllD It-
ceive certihcation from a large American
trust company. with a branch i'm England.
The New York bank then resOld these re-
ceipts TO its own customers who were seek
Ing gilt-edged investments. They could not
be listed on the stock exchanges of this
country. but hey were In such n shape
that they formed attractive investments
for the capitalist
At the beginning Of the Boer war the
value OF English consols was over 10. To-
wards the last they sank as low as 90
Many Americans had confidence that Eng
land would pull through her South African
troubles and that the price would rise
gradually TO approximate the old figure.
To these the feat Of Mr.. Vanderlip was
very useful and probably profitable. This
old friends Of Mr.. Nanderlip In the treasury
are inclined TO regard IL as highly imp0r.
tant.
II is intimated that the object OF his
visit 10 Europe now is 10 secure high-class
government securities OF foreign countries
for investment and trading In this cOun.
try. The announcement Is jast made thai
the Russian government has decided "a
list its bonds on the New York Stock Eek.
change. Those who are familiar with what
Mr.. VANDERBILT has attempted 10 accomplish
in the past are disposed 10 think that this
is another OF his successes. Whether n,
has induced the Russian minister OF
finance. NJ. Witte, 10 send his bonds q
America 10 sell does not interfere with ths
fact that Frank VANDERBILT. six years age
a reporter on a Chicago newspaper. Is nov
doing pretty well.
otto CApNTCuAEr.