Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1913-11-09
THRIFT WINS
HUGE RICHES,
DESPITE OLD
CYN|(;'S SAW
NachiaveIIi's Saying That Wealth
Implies Fraud Upset by Story
of Many of the Large American
Fortunes Which Aren't Tainted.
BY ROERSANIER

CHICAGO, Nov. SIT was Machia-
yelis postulate that no man could
ever rise to great wealth without re-
sorting to fraud. The premise was as
Insound when it was written as it is
today. as unreasonable as most Of
the political and economic axioms of
The author of 1.-The Prince"
But it has prevailed. 1t is accept
ed as a truism by many people who
may be excused-because of igno-
rance-for believing it, and by many
more people whose educational ad-
yantages make their belief inexcusa-
bic. In the latters case no doubt,
prejudice and envy have their part; a
prejudice provoked by the numerous
American fortunes whose tncipiency
was fraudulent.
The wealth of the Astors, of a Mo-
,es Taylor, a George Peabody, of
Marshall Field, Adolph Busch-to
mention only the departed, was never
tainted 1t was clean money from be-
ginning to end.
Yet the vast store of funds was not
made in the specific lines of business
in which these men We're engaged.
All Were Investors.
The first Astor did not confine his
money to the fur trade Taylor, Pea
body and Field did not derive their
millions from mercantile commerce.
Rusch's immense accumulations were
not wholly due to the brewery bust
ness.
They were investors after they had
become fur traders, merchants and
They cta Tst in
their respective chosen commercial
spheres and made money, but the big
money came from investing the COM
paratively small money made.
John Jacob Astor bought New
York City real estate. His descend
ants augmented these purchases and
added stocks and bonds to their in
vestments. Moses Taylor-who died
worth S40,000,00O, an enormous for
tune in his day-became a supermil-
ionaire by backing the Lackawanna
coad at a critical period in its af-
fairs, and after thorough investiga-
lion.
Legitimate Dollars.
Peabody was a shrewd buyer of
railway and industrial securities,
Marshall Fields securities holdings eX-
ceeded his real estate holdings.
Busch's investments were wide and
varied.
All these dollars were purely legiti-
mate, were legitimately acquired.
Peabody and Field invested literally
in the securities of seasoned inven-
tons, the former in railroad and tele-
graph stocks and bonds, the latter in
telegraph, telephone and electrical
companies. Peabody waited unit,
railway was a success, until the tele-
graph business was on a paying basis.
Field was equally patient, though both
got in early after the experimental
money of too hasty people had been
sunk.
In the first stages Of the railway
elegraph, telephone, electric light,
power and the wireless telegraph
money was lost. The industries
themselves were beyond a peradven-
-ure technically successful, but fnan-
'ially they were an experiment for
years.
People who rushed into them lost
al they put in. The original Marconi
company is a grievous example. Pea
body and Field waited for the second
and financially assured stage of the
new enterprises and then invested
heavily.
Good Management Needed.
MarcOnis are now remunerative,
md so are in most instances the elec-
tic light and power companies. With
re latter the remunerative contin-
gency-in most cases sumptuous--ls
the management; not honest man
agement alone, but skillful manage
ment
Peabody and Field had an unerring
scent for electrical organizations with
Iarge paying potentialities. Field was
The earliest and heaviest shareholder
N the various Western companies.
The rapid growth of this industry
Is evidenced by the number of con-
sumers in Chicago. What is now the
Commonwealth Edison Company had
about 5000 customers in 1898. To-
day the clientele numbers over $780,
900.
During this time, however, the
business has called for alert manage
rial qualities-as It had likewise IN
the earlier periods of the railroad,
telegraph and telephone industries.
Fifteen years ago the investment OF
the Chicago concern per customer
was S1,579. and the gross income from
the individual user Of electric liGdt
was S210. Currently these Items are,
IL.