The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1904-04-27
FINANCIAL GROUND FLOORS.

there a
promotion to be entered into, or an under
writing to be conducted. few favored In
dividuals are usually asked to enter upon
the most favorable conditions, and upon
terms which are accurately described al
being on the ground floor
Two or three years ago the supply OF
ground floors in finance was quite plentiful
and many of our leading men were invited
to enter into the various schemes of under
writing and speculation at ground floor
prices, and most of them eagerly accepted
the opportunities presented to them. Be-
sides these ground floors. there were. at
that time. still larger supply Of mezzanine
floors and first stories, while the dear public
permitted to assemble, in large num-
bers, on the twenty-fifth or twenty-sixth
story of the financial sky-scrapers from
which the elevators of prices generally
descended with "a dull and deadly thud.
that made havoc of their fortunes. Some
of those, however, who got in on the ground
floor, wished that they had not done so,
and have since discovered that there is
a cellar under the ground floor, and fire.
quently financial quick-sands under that
Nothing is more disastrous than bad
ground-fioor investment, and there are
many financiers in Wall street to-day. men
whose opinions are eagerly sought after.
and whose influence is widespread, who
suffering by reason of the fact that they
were tempted, during the recent OF
promotion, to get into too many OF the
alluring ground floors. How many, for in
stance were permitted to enter the ground
floor of the International Mercantile Ma
rine, to find that the only way by which
they could escape was that of the SUBJ
cellar?
But whether the ground floors are profit
able or not. there are at least three classes
of persons who should never under any
circumstances whatever, enter into them.
First of all the newspaper man has no
business on the ground floor. especially II
topics. Ground floors are apt TO prejudice
ones views of Developments in financial
conditions. No who is the ground
floor can be unbiased in his views or i'm
pens that the newspaper man is given the
opportunity to enter into a pool or under
orally IL Is the case that the opportunity is
presented for the purpose of substituting his
pen. and after he accepts. he finds that his
professional independence is lost The
financial writer has no business to be
gagged In any speculative poor or under
writing scheme, whether on the ground
floor otherwise. His position must be
that of the unbiased and independent out
side observer He is the representative of
the public in the financial district, and
though he may lose many opportunities for
rifice his personal pecuniary interest to his
sense of honor and to his supreme duty to
his newspaper and the public that reads IT.
There is another class which even more
than these should keep out of the ground
| floor, and yet they are TO be found there
in large numbers-the public men-the Of
fcials of city and State and Nation, the
members of the Legislature and of Con-
gress. and the judges GA the bench. These
ne pools nS and ar Tev
enter the financial ground floor without
| loss of the independence and self-respect
| of that duty which should be for them
| sacred trust. Yet how many of our public
| men are to be found in Wall-street dis
| trict-most of them, ii is 20 be presumed
| in search of ground-fioor propositions How
| many of them have been let in on the
| ground floor in traction stocks gas stocks
and other franchise stocks? How many
| floor In big undertakings by great financial
| interests that desire to have friendly rela-
| lions with the political powers? The
ground floor is the meeting place Of COR
ruption In commercialism and In politics
Men who act as trustees for other peo-
| pies money have no business to get in on
| the ground floor They. no less than the
newspaper men and the politicians occupy
positions of trust which are corrupted by
personal speculation. The president of a
! bank or a trust company, or insurance COM
| pany, whose duty il is to care for the money
| of hundreds of depositors or policy holders
J represented by these institutions, cannot
1 perform that duty with clearness of vision.
with impartiality and security, who has
/ himself entered in on the ground floor Of
some speculative scheme. A man who has
something vitality at stake in the stock
market is no unprejudiced Judge of securi-
ties. His opinions of the situation which
| are vital to a faithful performance OF his
duty as trustee inevitably warped by
any personal interest he may have In under
writings or pools. 1t may fairly be asked
how many of our balk officials have been
| invited to enter in on the ground floor or
| financial schemes simply for the purpose OF
! securing their friendship and establishing
| some sort of claim on the funds with
| which they are intrusted TO invest for
| others Speculative banking. like a sub
| sidized press and corrupt Legislature. is
| an evil the removal OF which Is necessary
| for the esta blshment Of our national pros
perity upon sure foundations.