Los Angeles herald., 1907-09-06
TREASURY NATIONAL
SCHOOL FOR BANKERS
GRADUATES HEADS OF GREAT
INSTITUTIONS
When Big Corporations Want Good
Men They Go to Uncle
Sans Service to
Get Them

WASHINGTON. Sept 5.-Uncle Sans
financial system must be sound, for the
men who hold prominent treasury posi-
tions are most sought after material.
The department of which Mr.. Cortel-
you is now the head has developed into
sort of breeding place for chieftains of
the great banks of the country.
from the time man becomes secre-
'ary OF the treasury, or even gains one
OF the assistant places, he becomes a
marked man on the part of the big
financial institutions.
Immediately they all want him. and he
must pe hperally supplied with cash and
PATRIOTISM TO refuse the kind of offers
they make. Salaries they extend far out
class the comparatively modest payment
that Uncle Sam allows. 1t is small won
der, therefore, that one by one thew
succumb and quit Washington for New
York, Chicago and other finincial centers.
The recent selection of George e. Rob-
erts, director of mint, to be president of
the strong Commercial bank of Chicago
is an instance of this tendency Perhaps
the directors figured that If he were skill
ful enough to make money for Uncle Sam
he ought to know how to take care of it
for them. Hence the election.
Despite his ability, Mr.. Roberts might
never have come to this preferment but
for the prominence that political life
gave him.
This is a good, practical argument for
a young man to get into politics and act
| honestly In the public service, not for
the immediate return but for the chances
1t will make for him with big financial
interests, where salary of $25,OOO is
considered very modest.
Lacey Still in the Game
The man whom Mr. Roberts succeeds
made his fame in Washington He was
James H. Eckels, comptroller of the
| treasury under President Cleveland He
resigned in 1898 to accept the presidency
of the Commercial bank, and he held the
post to the time of his death recently.
| Another comptroller of the treasury
Edward S. Lacey, looked to Chicago like
the kind of stuff of which financiers are
made, and he was attracted from Wash
\ ington to assume control of the Bank
ers National bank. This was fifteen
years ago, but his services have become
so valuable that today he is still in
charge, but at a much increased salary
over the figure he was paid when he
| first came from Washington.
| Frank A. Vanderlip, once a machinist,
| later a newspaper man, who first came
| into prominence as the business asso-
| ciate of Lyman Gage, is another exam
pie of a United States treasury official
taken from the public service because a
private corporation needed his work.
A place had to be especially created for
him in the National City bank of New
York, famous as the Institution from
which the Standard Oil company handles
its business. This bank has a capital of
$25,00O,000 and it's deposits are eight times
as great, which makes 1t the leading
financial institution of the United States.
1t has a staff of highly paid officers
and the supposition would have been
that enough knowledge of banking ex-
listed to render any outside aid unneces-
sary. But they found out that they
must have Mr.. Vanderlip Terms were
not an issue. They were willing to pay
any sum within reason to get him and
just so that he could feel at home and
get a sense of the permanency of his
stay the office of vice president, formerly
merely an honorary title, was developed
into a place second only in power to the
president Then Mr.. vanderlip came.
Gage Highly Rated
In his change from Uncle Sam to a
private corporation as an employer Mr..
vanderlip followed the lead of his old
chieftain, Lyman H. Gage, former secre-
cary of the treasury.
Gage, when appointed to the place by
President Mckinley, was highly rated in
Illinois as a financier of first rank, but
the remainder of the country, while 1t
knew his name, had never ranked MIN
among the giants.
But from the time he took hold OF the
nations finances he found himself
much sought-for man and eventually ne
capitulated and took the presidency OF
the United States Trust company.
The man who came after Mr.. Gage IN
the high office of guardian of the coun-
try's cash, Leslie M. Shaw OF Iowa, hao
an experience much similar to that OIL
Mr.. Gage.
He had made money in Iowa and had
been elected governor of the state. But
his fame as a handler of millions had by
no means gone to the uttermost enus Oh
the earth when in 1902. President Roose-
velt decided that he was the man TO put
in charge of the treasury puliolne'
At that time the appointment was even
somewhat criticised, for some of the
presidents enemies accused him of de-
string to remove a formidable presiden-
tial aspirant by making Mr.. Shaw
member of his official family. .
But the new secretary proved he had
an admirable equipment for the place
and in all the problems he raced acquit-
ted himself with credit
Those who said that Mr. Shaw was
only country banker had to revise
their ideas. There was no lack OF force
or originality in his administration.
burine the. time the responsibility OF
handling the country's finances was In
his hands there came serious is, ,,ls,, Sis,
turbances. Every one of these saw MIN
emerge a victor. In some instances tne
methods meth Cd he employed were novel but IN
every case they availed in their oosoca,
tJe was by far the most picturesque
member of the cabinet, and his homely
bnt ant illustrations made him great
favorite as a political speaker.
shaw Well Thought OF
When the offer came from tne neway
orranized Carnegie Trust company that
pte pn an,ce accent the place of president. Mr.
Roosevelt urged him to stick to she tso aan
n;, inss i;,a until congress adjourned. SO
tSat pupi'p pending @ matters could be cleared up
before the bureau was committed TO
Cortelyou -, as+ ,,otohle suc-
cess as an advocate of the gold standar1 i,,