Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1913-06-05

"S totSSt scandal IN Amer can
High Finance grows worse on closer
acquaintance. Nothing quite SO bad
has occurred in years. America
credit abroad is in danger Of being
ssssssinated.
Let me assure the Government
that an investigation of the St. Louis
& San Francisco Railroad, if it gets
at the real, full facts, will disclose
something worth the pains. am not
speaking at random.
The proposed probe by the Inter
state Commerce Commission is i'm
peratiVeIy demanded. BUT THERE
is A LARGER PROBLEM IN
VoLVED: THE COMMISSION
SHOULD HAVE JURISDICTION
OVER REcEIVERsHlPs. MEN
WHO RUN A ROAD TO RUIN
SHOULD NOT BE LEFT IN
CHARGE WHEN THE CRASH
COMES. INVESTORS ARE EN-
TITLED TO PROTECTION.
Friendly receivers used to be ap.
pointed when banks failed, and de-
positors seldom got any satisfac-
tion, the funds usually going into
the pockets of the receivers, their
lawyer friends and other hungry
gentlemen during long-drswn- out,
go-as-you please, leave US alone pro-
eeedins% Former State Bank Super
intendent Clark Williams had the
Legislature empower the Banking
Department to handle failed institu-
tons, and the cost to depositors was
infinitesimal.
Could not the interstate Com
nerce Commission achieve similar
results with bankrupt railroads? Why
should this body be given almost un-
limited control of solvent roads and
have not one word to say after dis
sster comes, when investors are in
urgent need of protection. when in
telligsnt, expert supervision is more
than ever necessary?
To allow President Winehel and
Director West, of the Frisco sys-
tenn, full sway in treating the thou
sand of investors who have been
caught in disaster was fraught with
danger, for il would stir up public
antagonism, public distrust and pub
lie suspicion that could not fail
70 feed sooiaIistic eIamor. In
deed, a Socialist said to me yester-
day: This is fine. It shows that
the present eapitalistie system IS a
failure. These men wreck a prop
erty. and then they are allowed to
treat the sufferers-the security hold
ers as they like. Let's have more of
these little deals, and our party will
get into the saddle sooner than you
may expect. Government ownership
"a necessary acknowledgements al
ready within sight"
asked 3. 2. Yoakunr, chairman
Of the Frisco road and its control
ina power, a few plain, courteous
questions.
"six weeks ago your company
gave French investors assurances
that earnings were doing very we'll,
and that your maturing indebtedness
would be taken care Of" ! said, Can
you not explain, for the satisfaction
Of all interested, what has happened
since then 70 cause you to throw the
road into Bankruptcy pouf you
think the public are entitled to this
information"
Mr.. Yoakum said he did not care
TO make any statement on the sub
aOid you notice that it is pro-
posed to start an Investigation by
the interstate Commerce Comm's-
sion. Mr. Yoakum?"
Mr.. Yoakun indicated that he had
no objection to any investigation
s -IozAiF,,I -
Wall Street Speyer & Cos legal
repre- sentative is due from St. Louis
and a statement describing exactly
what preceded the sudden appoint
n,ent Of receivers is expected. Friends
Of this old established banking firm
are urqinu it 70 come forward with
a full exclamation showing how II was
nisled. how the management failed
to fulfill certain pledges and how the
application for receivers upset an pre-
vious calculations. speyer g. Co;
however, have so far made no ohcial
statement further than that they were
NOT consulted about the appointment
of receivers. Later the whole inside
Developments may be made known
In the battle that Is pending Ger
tain regulations can not but be NOR
tally wounded.
Extraordinary disclosures con-
esrninu the operations Of the french
3 bankers who distributed the. S3,0Cu,,
OCO Frisco bonds in Paris IN Rpri
are made in a communication ] re-
esived last evening from friend
in Paris who is in the inner circles
OF finance there. This letter was
written before the receivershlp pro
ceedinus-a fact that makes It more
significant and prophetic
THE FRISCO BONDS WERE
ELoETED IN PARIS AT 81 Al
The MOMENT THEY WEHE
oIJOTED IN NEW YORK At q a.
WEEN THE NEW YORK QUO "a
lion WAS 65 ga THEY WERE
sTuL HELD IN PARIS At SO Il
4 DIFFERENCE OF SOME q
POINTS!
Nv weH-inforued friend, writing
on NAV q. says in part;
The ignorance of the Frencn puo-
Ws about things. American IS su.h
that the So 600 00o general lien bonds
NJ The Frisco. which We're disposed o.
bera -FOUR weeks ago by Messrs- btF-
rs~T and ParfsTouski and the Bangue
Prfyee we're greedlIy snapped uN az
81 af the very time that those same
bonds were quoted at Is ia IN Ne