Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1912-05-31
HIGH F|NANC|ERS
GROW LESS BOLD
An Excavation Among the
Ruins of "Them Happy
Days" Is Interesting.
sy q. c. FORBES.

vations among the foundations of Ameri-
cas- biggest fortunes governmental in
vestigators have unearthed quite a few
interesting specimens of high finances
handiwork. Most of our 500, 600 for
tunes have come from corporate deals
of one kind or another The richest
killings were made when mergers were
all the rage, when our captains of in
dustry corrailed scattered plants and by
methods known only to themselves-then,
at least-transformed them into huge
combinations. The financial feats then
performed were enough to make the
fairies of fables hide their heads and
wands. Done in darkness, it is only
lately that details of these deeds are be-
coming known.
This week the diggers into the fpan-
cial achievement of a decade or more ago
discovered a transaction that surely is
unique in either American or European
industrial history Without as much as
by your leave" an important company
was cody brought under the wing of the
steel trust. There was no bargaining
bargain, in fact. The steel trust bankers
simply told its victim to consider itself
sold and bought. The smoothness, the
harmoniousness. the entire friendlness of
the little proceeding was most captvat-
decapitated painlessly that he did not
know an operation had been performed.
So bright financial gem deserves a
better setting than it received from most
of the newspapers. Here is an account
OF the proceedings as set down by a
trustworthy authority:
That J. p. Morgan & Co, in bring
ing about the absorption of the Ameri-
can Bridge Company by the United
States Steel Corporation, did not go
through the formality of getting the
stockholders consent, and even didn't
bother the president of the bridge
company with any negotiations.
the burden Of the testimony elected
yesterday at the steel trust hearing
from Percival Roberts, Jr., one of the
defendants in the governments dis
solution suit.
The witness said that j. P. Morgan
& Co. issued a circular to the share
holders of the American Bridge Com
pany. saying that they would ex-
change stock of the steel corporation
for that of the bridge company.
do you mean to say" asked Mr.
Dickinson, that there were no nego-
tiations preceding this proposal-no
discussions about the basis of the ex-
changer"
absolutely nome" answered Mr.
Roberts The bridge company took
no corporate action whatever in the
matter | was it's president at the
time, and heard of no negotiations.
"Do you mean to say that the first
knowledge you had of the desire of
the steel corporation to exchange it's
securities for yours was through that
circular"
No l had had an interview with
NJ p MORGAN e Co
and at that interview he told me that
the United States Steel Corporation
was proposing to exchange its stock
for that of the American Bridge Com
pany Then he asked me ii would
become director of the corporation
said l would. That was all
Painless dentistry what is it in com
parison with that?
Other disclosures since the insurance
lid was raised have shown that certain
capitalists did things in a most high
handed fashion If they could not find
way leading to their ends, they made
one, illegally, if need be. simultaneously
with the uncovering of the bridge swal-
lowing feat comes new proof of nefarious
operations by the founder of the sugar
trust, q concern now reformed. Certain
railroad exploits also come to mind, eX-
ploits that were perpetrated without pro
test at the time--protests in those days,
like injunctons against notorious poll
tician, didn't go
Now, these things are here recounted,
not in undertaking spirit, but mainly
in order that contrast may be drawn
between conditions then and now. Would
such doings be tolerated today? Would
fnanciers dare act so cavalierly? Would
heads of corporations dream of thus arbi-
trarIy treating stockholders? Consider
the procedure attending the steel trust 5
assimilation of the American Bridge Com
3any ard its absorption of the Tennessee
Coal and Iron Company. The former was
done as already described the latter was
not attempted without the sanction Of
the presideI of the United States. Have
we not travelled a goodly distance since
capitalists played fast and loose with
companies they coveted?
Admittedly crimes are still committed
bv men in high places Too many law
yers are still engaged to facilitate the
evasion of laws instead of to show how
to comply with them. Efforts are still
made to tamper with legislation. Fla
grant instances of unfairness toward
competitors and occasionally toward en-
ployees are still coming to the surface
and no doubt will continue to come, for
human nature has not Deen transformer
into lily Wilderness. But is it not some
thing TO reflect that at least some prog
ress has been made in making Big Bust
ness amenable to law, to decency and to
humanity?
ASKS DISMISSAL OF WARRANT.
r B. Lumpkn today asked for the
dismissal of the warrant against Louis
Weinberg in Justice J. B. Ridley's court
Iumpkn had accused Weinberg of mis-
appropriatng clothing delivered to him.