Los Angeles herald., 1907-11-15
REALTY BOARD HAS
REGULAR MEETING
Declares Prevailing Want of cont-
dence Is in Men Who Are at
Head of Great InstI-
tutons

The Los Angeles realty board held its
regular meeting at a luncheon at the
Westminster hotel yesterday. 7. E. Glib
bon was the principal speaker, and his
theme was the present financial situation
The president, he said, has done moth
ing but declare his intention to execute
the laws of the land. What are we to
think of men who complain that such a
declaration brings disaster. Mr. Gibbon
deplored the condition in New York, the
financial center of the country, condi-
ton, he said which is humiliating to
every American citizen. A declaration
such as made by President Roosevelt
might well be expected to create con-
sternation in den of thieves, but what
of the condition that exists when 1t
causes panic among the heads of the
greatest financial institutions of the
country?
There is a want of confidence through
out the country, but it is a want of con-
fidence in the men who are at the head
of our great institutions.
Then Mr. Gibbon reviewed the various
Investigations with resulting stock and
money f1urries that have led to the pres
ent situation, beginning with the meth
DDS of the three great insurance COM
panies; then the Pennsylvania railroad
revelations. next the Hartman Union
Pacific disclosures and finally, discovery
of the tremendous street railroad steal
in New York
He showed how stocks began to go
down, because these Investigations had
caused stencil in the nostrils of the
world. He quoted from English news
papers in illustration of how the inves-
tors of that country had withdrawn their
money from institutions managed by
scoundrels in high places. The follow
ing quotation from an English editorial
was loudly applauded by members of the
board: "It has been shown that this
trouble in America, burt if it converts
the American railroad into something
better than bucket shops it will be well
worth it,
After quoting figures showing that
Thomas f. Ryan and August Belmont
have absolutely stolen $3S.000,000 in one
street railroad deal, Mr.. Gibbon explained
how the constant depreciation of rail-
road and other stocks on account OF want
of confidence in the great money kings
has affected losses secured by the stock
and has caused tight money.
The present situation. he said. is not
due to the shortage of circulating me-
dium, although he believed that more
elastic currency system is advisable ana
that the government should stand be-
hind notes instead Of national banks
and that these notes should be just as
elastic as the scrip in present use.
Abiding to the Southern Pacific pe
said that If its profits had been spent
in double-tracking the road instead OF
in buying up stock of other roads there
would not be the deplorable shortage OF
cars, which he instanced by an expert
ence of his own, showing that the
Southern Pacific has undergone loss
of 100000 in freight and caused loss 10
a syndicate of hundreds of thousands IN
a cattle deal because of its inability 10
procure transportation for the cattle
Mr.. Gibbon reviewed the general pros
perity of the country and the excelieht
crop conditions. The solution to the
present troubles, he said, would pc tne
cleaning house of great financlai anu
commercial institutions and the elinlina-
ton of some half dozen great names;
He predicted that the very men Wno
have been deprecating the interfering y,
the government with the railroads WI,
bv the time congress meets be cohpeiieu
to ask for government supervision ol .iie
railroads in order that pubic coliiuene' n
IN their management may be restoreo'
In conclusion he said thai from siue
information as to the banking sltualioi,
he believed that the worst IS over anu
that recovering from the present paliu,
or fright of panic will be more Iapiu
thon anv similar recovery yet KNOWN