The sun. [volume] (New York [N.Y.]) 1833-1916, 1907-12-18
STERS UP AUGUST BELMONT
rROZIER PROVOKES HIM TO TALK
on OVERCAPITALIZATION.
incidents That EnlaVened the Last Days
Meeting Of the Civic FederatiOn-Bel-
mont says the city Ii Learning Tina
u Rs Not Easy 10 Raise Money.

ANN AAhANs AAA-N
Meeting OE the civic FederatiOn-Bel-
mont says the city Ii Learning That
II Is Not Easy 20 Raise Money.
The current Of talk which flowed smoothly
FOR the most part at the second days ses-
sion Of the National Civic Federation
annual meeting. at the Park Avenue Hotel.
again struck a rock at the close OF the con-
Guiding session yesterday afternoon with
such force as to send up the spray. Alfred
o. Crozier OF Wilmington. Del. author or
The Magnet" and fresh from an interview
with the President. was the rock. MIR.
Crozier. who stirred up things on the cur
rency question the day before. got q chance
to ask August Belmont "A pointed question
or two about DISQUALIFICATION. which
caused a depression from the subject under
discussion for a while. He took another
whAck later on at the currency matter when
everything was going smoothly and IL
looked AZ though a resolution calling upon
Congress to provide for a more elastic cur
rency system would 60 through without
debate. The resoli. on did pass, but not
without dissent.
The currency resolutiOn-the only one
adopted by the meeting had been drawn
up by Isaac n. Seligman the first day and
was referred to a committee one Of he
member OF which was Samuel Gompers.
Al the morning session Horace White. the
chairman of this committee. started 10 read
. resolution of a somewhat different form
than MIR. Seligman's. which caused Samuel
Gompers to get up and say that he had not
been consulted about il. just ais a row
seemed imminent DIR. Slicer got busy and
had it referred back. The resolution
finally reported was Mr.. Seligman's and
simply called upon Congress 10 provide for
a more elastic system without approving
of any OF the plans now under discussion.
Mr.. CrOlier was on his feet lmmediately
with ~ amendment providing that all
power 10 expand or contract the currency
should be exercised exclusively by the
Federal Government and not by banks.
clearing houses or private T%arties." Mr..
Seigman explained that there had been
a number of divergent views expressed
in the committee and th1t the committee
thought il wise TO leave the matter in The
share that il was in the resolution.
This resolution would he construed by
everybody" said Mr. Crozier, "as commit
ting organized labor. manufacturers and
the public here REPRESENTED 10 the principle
involved in all the schemes that have been
proposed; namely, that private interests
shall regulate the volume of the currency. ."
Mr.. SliCer got so excited tina he moved
10 table the resolution while Mr.. CroZier
was talking. Several other members called
for fair play. Samuel GOmpcrs said that
he personally was in entire accord with
MIR. CrozieT. but he thought that the reso-
luton in not s~recifying anything WAS all
right. Finally the amendment was lost
and the resolution was adopted.
The other chance thaJ MIR. Crozier got
to interrupt the current came when Angus
Belmont got up TO talk about trade agree
ments Most of the labor men seemed TO
think they were the solution Of the labor
problem.
Mr.. Belmont said that the trade agree
ment might work all right in some cases.
but that he believed that it was not a safe
remedy for the diificulties in public service
corporations.
an agreement said he. we did not dare
to run the risk of making a new one. The
law ought TO treat a man entering the ser
vice OF "A transportation line IA having
by that fact entered into the service of the
community and require him to give reason
able notice of any intention 10 cave the
service. Why should not he be expected
TO RulHl a contract with the community
as well as the corporation? ] believe we
should bring about some regulation Of
this kind"
Mr.. Crozier was on his feet before Mr..
Belmont sat down. Should not a cor
p~oratiOn which obtains a franchise for
nothing bc prevented from capitalizing
that franchise at 500. 100. 900 and charging
rates 10 the PUBLIC AttOiOllKlVs was N 2
question. MIR. Belmont seemed quite viii
ing 10 answer.
I'm the first place" said he. the cent
obtain franchises for nothing. You will
find that the taxation on those franchises
~ very onerOus. In regard to clpitaIiHa-
tion. il is impossible for ~ corporation 10
have the means Of development and they
can he obtained only from INVESTOR. They
are obliged to give the investor the kind NJ
securities he will take. In the case of most
a IA,. 80. - 49,
sary to Offer them a chance 10 earn on the
investment IT they succeed. The great
difficulty il New Fork transportation
gentlemen. is going To be thai money cant
be Obtained to give II. The hostility shown
toward II, while IL may beajustiticd. il sucI,
that when you are asked TO give adGit onPl
facilities IL may be impossible.
Now. the ~alternativ suggested IL th1t
the city undertake. what corporations won.
and | say that in the same vi the city in
going 10 be unable for a very long time. be-
cause the vorv threat that the city should
! undertl lIe such a thing has already had the
effect Of frightening investors in the city's
own securities
-The city. " said he. has got to 20 to the
same place for its money IA the corporation
to the Investor. Every bond Of the citv
h the same in this respect "a a railroad bond
n the day comes when the investor won't
DO anything, when as a result Of the ATTACKS
on corporations he ~ guarding his money.
when corporations are Obliged 20 make
short time notes. then what is going TO he
done? That is the condition that exists to-
day. II does not come from mismanaRe-
mcnt. but from an ~unreasoning hostility
and from the fallacy as 20 what the Govern
ment can do when the investor won't do it.
II the investor is kept in his present state
neither one nor the other will be able TO do
ANYTHING with him"
Mr.. Crozier wanted TO ask some more
questions, but the chairman shut him of.
The discussion at the morning session
largely turned on the new Cancellation law
in Canada. which was explained by several
speakers from that country and bV II. =
LIsk. of the New Zealand Parliament.
August Belmont resigned as president
At the meeting and Ex-Mayor Seth Low
was elected to succeed him.