The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1907-10-24
THURSDAY. OCTOBER "a. 1907.
The only happiness II brave MAN
ever troubled himself about WAS
hnppiness enough to get his work
done.-Cnrl.fe.
uoItsE-CLEANING.


In n recent issue we referred to the
good work done by the New YORK
Clearing House Association in ousting
Mr.. Heinze and his associates from
the banking business in that city. The
manner in which these promoters
forced their way into New York bank.
ing is now related by the Evening
structive narrative.
About six years ago men of affairs
in New York were startled by the en-
travagant prices paid for certain pank
stocks in that city. AT the highest
price paid these stocks yielded rev.
enue of only . per cent. The source
of the buying was finally traced to
so-called financiers. who desired TO
get control of banks in order to use
them in their Syndicate undertake
imgs." They did not have the neces-
sary money to buy outright. and oper-
ated by the Exiting" process They
would purchase a controlling interest
in the stock of q moderate-sized New
York bank put up this stock as col
lateral for loans in another bank, and
use the proceeds of such loans to buy
stock in still other institutions--re-
heating the operation with each sue
cessive purchase. In this way they
gained control of group of banks
through mere ownership of stock pur-
chased on a margin.
with this control" says the Even
ing Post, they packed the boards of
directors in their own interest"
They exploited these banks to the
limit, in their own interests. and all
went well with them until their out
side speculatiohs collapsed. Then be-
gan the trouble with the hanks which
they controlled. The Evening Post
confirms the view expressed by The
Times-Dispatch. that it was the for
tunate side OF last weeks United Cop
per incident that it gave the Clearing
House Committee the power to act
against these fake bankers and put them
out of business. When the Mercantile
National applied for assistance 1t was
forced to make an exhibit of its loans
and collateral. The committee of in
quiry found. as they expected. that the
speculative owlnHsss. Of at least one of
the "chain OF banks had been loading
its surplus account with their own
dubious securities. The investigation
was pushed farther into the affairs OF
the other banks in the "chain," and the
Clearing House Association then de-
manaed peremptorily that the officers
In control should forthwith resign ant
retire from the banking field They
Z had no choice in the matter, and were
compelled TO take their medicine.
1t was happy riddance. and al,
though their on lions brought on
uanic. great goo i'll come eventually
out of the disaster and the financial
district OF Gotham will have learned
a lesson which it will not soon forget
=-------------
CONSIDERATION FOR THE RAIL.
The State Corporation Commission
= yesterday handed down an opinion de.
nying the motion OF the Attorney
General to increase the assessment fo1
taxation in 1907 upon the roadbeds ant
tracks of the railroads of Virginia
The commissioners point out that TIN
state already receives from the tax OF
roadways and visible property OF tia
railroads a yearly revenue of S256l2
and from the franchise tax Of ! pc
cent on their gross receipts a rev
enue OF s4l9,GT2. In addition to this
a,,ta
counties tax the railroads TO the eX
tent of sS5s,59S per annum, and TIL
commissioners think that this i
Enough in View of business condi
lions which an this time prevail" The:
say. 1--WE are Of opinion that a SCUM,
consideration of justice and broa
public policy require us to deny TIL
u motion, and no change will be mad
s In the assessment for 1907"
The railroads of Virginia are oper
ating under increased expense and
rsd,,~ passenger rate. They are ais
Il the money market to use current earn
ings to make needful improvement,
and extensions. They are not in cor
siition to pay more taxes at this tim
A ana we. feel sure that the decisio
n or the Corporation Commission. whic
Y is just and courageous, Will be ger
aiss rally approved by the public. The per
IL PIE OF Virginia are determined th;
tho railroads shall obey the law Al
provide q good and safe service a rs;
L spnabie rates. but they haze mo ddiisps