The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1903-03-15
GOSSIP FROM
MErROPO
Modern y Flnanciering as Op.
posed to the Old Style.
THE PETER POWERS SUIT
THE PETER POWERS SUIT
Interesting developments May Be Look
ed for When the WeIdenfeIt Suit
Against the Secretary Of the
Stock Exchange Comes Up
ByJohn Marthol.

(0pCClul contemporaries W nv AAh 4
Dlspatch)
! NEW y YORK, March 14-Some refer
enco has been made from time to time
to the vast business which has grown up
in what Is termed Wall Street IN financ-
Ing the product OF the certificate mill 1t
has also been intimated that the so-called
ca plains OF industry who create corpora :
tions ranging In size from billion to a
million are more active in their endeavor
to dispose OF the stock certificates to the
public" than to hold them When there
has been a sale effected 1t has general y
been attended by tho seller investing IN
real estate. Financing is the art OF sts-
tainlng or raising the quota tons Of the
product OF the certificate mill OH the
Stock Exchange and TO do this success
fully large sums Of ready money are es-
sential. Hence the growth Of trust com
panics and the multiplicity of banks. "
The So allied "nnanciers who have
sprung into prominence are strange be-
Ings. when compared with the old style
conservative. careful. loanirg money on
the sufficiency Of the security. running
no risks and seeking no great profits.
They were careful In their mode Of doing
business and circumspect In their mode
OF living. The existing class challenges
attention BY personal expenditure, cx-
travagance, daring and nerve.
Everybody knows that prosperous cor
nora tions have been welded into units and
that their futures have been anticipated
by a bountiful supply Of stock. Dropsy
Ia the result. There are billions and tens
Of millions OF purely fictitious values
quoted as to stocks. Values 4Which trust
companies and banks have been forced
to recognize and to loan upon. rms wa
ter is now dripping out. It VIII become
a cascade.
The rotten system OF up-to-date finan-:
ciering. OF jugglcd books Of ESTIMATED
profits" Of stocks that are issued with
no asset behind them than met earnings
after paying fixed charges OF nanipu-i
lation and financial sleght-o-hand IN
giving values by controlling banks %hlch
are compelled to loan on Worthiess pa,
per, Is coming to an end. Nothing VIII
do the country SO much good and save
generations yet unborn from destitution
and misery as a speedy demolition Of the
Certificate Mill and expose the crew OF
bandits who without the fear OF Goa OF
Man in their hearts are seeking to fo1st
their green goods on the Industrious ana
| frugal aborer seeking to invest smali
savings
The SUSPENSION Of Camille Weidenfeld
from the New York Stock Exchange on
charges preferred BY member who mad
no knowledge Of the facts alleged except
from heresay, has attracted great atten-
ton to the methods pursued by that IN
stitutIon. The Peter Powers suit gainst
the Northern Securities was termed "a
strike suit" by the counsel of the inter-
csts attacked; and the stock on which
the action was brought was said to have
been loaned by Wcidenfeld. The attempt
made BY the Securities Company to dis
credit the action and the parties TO 1t
was successful to the degree attained so
far In the litigation. Acting upon the
assumption that the facts elected were
conclusive, charges were brought against
Weidenfeld and the governors oftthc
Stock Exchange acting as a court of in
quiry, summoned NNedenfeld before 1t
and granted him a hearing. The defend
ant was deprived of benefit of counsel
and was compelled to act as his own
lawyer. Although no proof was sub
mitted. no evidence which would be adj
mitted to record In q court of law was In
slTtuuCGu, w HhltSl lSll 1t'iluSSt'
deliberat ton was suspended for one year,
Weidenfeld at once brought suit for 500,
600 damages against the secretary OF the
Stock Exchange as an individual. and
continued his action against the North
ern Securities.
Before the inquest was held 1t was in
timated to Weidehfeld that he would act
wisely If he would sell his seat and re-
Fryt.f IL oil N
intimated to him, prior to the hearing
that the decision would be against him.
and that he would be suspended for one
year. What the record of the proceed
ings before the inquest shows all nfor-
nation Is hcarsay But q salient TACT
exists. Weidenfeld standing on his rights
demands In the Supreme Court copy
Of the stenographic report and TINS .ne
Stock Exchange PERSISTS by counsel. The
natural inference Is that Weidenfeld
found guilty on charges would be desi-
ro,,s of sls.pressinG the evidence and not
the Exchange. However, tho reverse, Is
the fact The Exchange refuses; the sus-
pended member demands full publicity,
Behind this tacIt acquesence Of mem
bers to the DEGREES of tho Board OF Stock
that the personal rights OF an accused
member are not always In the safest
hands. Governors are men, and all NOR.
tails are subject to influences. In the
Weidenfeld case, Weidenfeld opposed the
strongest Influence on Wall Street, j.
p. Morgan & Co. This great firm would
reluctantly brush aside opposition if 1t
would thereby injure an Individual, yet
It would do SO. And il this house be-
lIeved that 1t had been Itself attacked,
there Is reason to believe 1t would not
only brush aside opposition, but crush
It's opponent, Members of the Exchange
have always asserted that the weakest
member had behind him the strength of
the Institution. This may be so, ana
may not be. This will be the most inter-
estlng outcome of tho personal suit OF
sWeidenfed IN his suit for 100000 dam
ages
Weidenfeld found himself party to the
suit against the Northern Securities. lie
Is now determined to fight II up to the
United States Court of Appeals. Let this
be as it may. Tho fact is the proof will
be satisfactory, however, produced, The
great merger, wasa valid or 1t was IN
valid, and before millions Of hard earned
dollars, the dollars which represent tho
thrift and frugality OF har'kworklne mer-
chants, and manufacturers and farmers
Il. y,,,net,1 n ie wall 10 know tho facts.