Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1911-07-09
DEGREES IN PLACE OF TITLES
Universities Have Been Liberal in
Bestowing Honors.
IS ONE KIND OF RECIPROCITY
United states the Land Of Big Things,
Not only In Corporations, but In
the Matter of Making CT
Eantie MOrtRages.
BY PRESTON c. ADAMS.

By PRESTON c. ADAMS.
NEW YORK. July s--tSpecial to The
Bee.)-It is not alone in England and other
European countries that the possession OF
huge wealth secures the ,referment OF
titles. In America we find the same thing.
IL is true that in this democratic land OF
ours We do not run 70 counts. barons, earls,
dukes ana the like when titles are being
given out Tor we have no such. But the
uues are here nevertheless. For instance,
u is a hard matter to take a dozen steps In
lower Manhattan without rubbing shoulders
with doctor or two The faNorite honor
Is LID. The recipient OF this title need
not possess any marked aptitude for either
legal lore or literature
One cynic. on reading that a multi
millionaire had been elevated to the LID.
rank, asked: Does that stand for lots
and lots Of dollarsg The universities APP
parently are believers in reciprocity. For
years financicrs have been donating mil
lions to schools OF learning, and it Is only
fitting that such generosity should receive
some reward. \ degree costs nothing and
u is sort Of badge OF respectahiity.
Fancy conIerring degrees upon some Of the
stalwarts Of the stock market OF genera
ton ago, Wall street is rising in the
sociological scale.
BiR Things tho Rule Here.
American is a big country and Americans
believe in doing things on big scale We
we're the FIRST to organize a SlOo0, 100000
corporation and now we have broken all
Necords for mortgages, James J. Hills $780,
00o,0o Great Northern one having never
tendency is toward huge bond authorize
tions, as has been demonstrated by NUM-
bers Of weak as well as strong systems A
Wall street concern has compiled interest
ing data from which II may be gathered
that the aggregation Of railroad lines into
larger systems, the continued requirement
OF new capital 70 finance their growth and
steady maturity Of underlying issues have
made desirable and necessary the larger
mortgages.
I'VE find that there are now some thirty
three railroad mortgages in this country
under which the authorized amount of
bonds in each case exceeds 500, 900 0Oo OF
these mortgages sixteen have been created
within the last six years. The total of these
thirty-three mortgages Is about S5.D0.o0o.
0o, OF which the sixteen created in
the last six years. or since 1905. aggre-
gate S3,l50,O0o 1000. OF the total thirty-three
such mortgages seven provide for bonds in
the amount of s2o0,OO0,0O0 or more in each
instance All seven of these have been
created since 1906 We find that there are
still outstanding, not including remaining
1911 maturities, about $50 underlying rail-
road mortgage bond Issues, aggreEating
slightly over 80 0o0.000,0o0
Some additional bond issues may. as a
result Of railroad consultations hereafter
and authorization OF new general mortg-
ages with expenditure OF new capital
funds thereby, acquire the position OF UNI
DERIVING bonds. II is very evident. how
ever that the amount of investment funds
In underlying issues ls steadily growing less
and that the amount of investments placed
in the comparatively few larger railroad
IloIARatEb 10 AH1ltahAAG iAAohNNAs WY
rapidly"
Banking Move Excttes Comment.
The intention Of the MAJ S1nal City bank
20 follow the example of the First National
bank in organizing a security company as
an adjunct TO the banking business VIII be
sure to stir up comment all over the
George r. Baker. the actual head of the
First Securities company, has won for him
self the reputation of being the cleverest
enecrlAtOr in America This distinction, as
can readily be Imagined. has not been
easily achieved. for there have been many.
many aspirants for such a place in the
financial world. New York contains quite
a number. PittsburR a few. Boston one or
two and Chicago two or three spectators
of recognized brilliancy, but Mr.. Baker
has had the advantage of being able TO
summon 20 his aid virtually unlimited re-
sources. He has also been closely and con-
fidentially associated with certain of the
most powerful cRpitalistic groups in the
world Once he demonstrated his shrewd-
ness. his colleagues were willing that ne
should be given free hand. Ills opera
But there are those who contend that the
president OF an important bank-or even an
unimportant one-has no right 10 devote mis-
talents TO stock market maneuvers.
"Fortunate" Men I'm 1t.
Among the financiers Identified with the
National City bank are q number who
have likewise been extremely fortunate In
their stock market enterprises; James ne
| amassed hugh fortune through his own
| initiative. He no longer takes an active
! Part in the daily doings OF his bank. yet
| il is understood that his advice is always
forthcoming on important problems. Pres
ident Nanderlip has naturally been less
! heard of as an operator i'm securities. He
| has distinguished himself as an expert in
| bonds. not only in analyzing their worth.
! but In organizing department OF un-
! euualed efficiency for the distribution OF
! Investments. particularly among the banks
of the country On the directorate or the
| City bank are capitalists enjoying the very
best opportunities for knowing what ts
! going on in the inner financial circles
| The Likelihood, therefore, is that ma
tional city securities company would be
/ The chances are. however. that the greater
the success OF the innovation the more
widespread would be the criticism on the
| part of the public.
Brokers Are Alarmed.
Stock exchange brokers view with alarm
| this tendency on the part OF powerful
banks 70 appropriate new territory whiel
In past Years Years was LEFT ,- eSelS cs, :,
and took away part OF the business for
\ merly handled by commission houses. Then
the more enterprising banks began to de.
vote attention TO the vending of bonds
| and in some cases stocks Today the
! volume Of. securities purchased through
I banks and trust companies Is very great
| The average brokerage concern In tbs
| meantime has been visited by series Of
! lean years. If all the leading downtown
| banks bnOulu ueClQe 10 SET up security
companies as side lines the plight of th'
ordinary commission house would be worse
| than ever. Private banking houses ars
| also uneasy. Just how far the departur,
! Will be allowed 10 go without mourning
the condemnation OF Washington remains
| TO be seen.
The principal European banks today
show 81, 4S6 900 gold on hand, as com
pared with t2465 1861 900 at this time lasi
year. a decrease OF t2S,9So.OOo. All the
| twelve institutions reporting show in
| cresses with the exception OF the Bank Of
| England and the Bank OF France these
have sustained losses OF fl46l2,0O0 and $685.
| $4,000, respectively.
! The New York Clearing House banks
| exclusive Of ahe newly admitted trust com
| panies had on hand at the end OF last
! week $402, 29S 900 cash, as compared with
| 1927 sos, 900 last year, the increase there
I fore having been S74, $4,000
The gold holdings OF the principal Euro
| pean centers are OF special interest 10 thS
| United States at this time In view OF ths
| decline in foreign exchange rates this
week 20 AS5A for demand sterling. a rats
only fraction OF a cent per pound OF the
gold import basis. The best banking opin
! ion now is that an inflow OF gold vii
| prObablV be inauEurated JuiV HeFeto-