Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1913-11-09
THRIFT WINS
HUGE RICHES,
DESPITE OLD.
CYN|C'S SAW.
MachiaveIIi'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-
velli's postulate that no man could
ever rise to great wealth without re
sorting TO fraud. The premise was as
unsound when II was written as it is
to-day, as unreasonable as most OF
the political and economic axioms OF
the author OF THE Prince"
But 1t has prevailed. 1t is accept
ed as truism by many people who
may be excused-because of tgno-
rance-for believing 1t, and by many
more people whose educational ad-
Nantages make their belief inexcusa-
bic. In the latter's case, no doubt,
prejudice and envy have their part; a
prejudice provoked by the numerous
American fortunes whose incipiency
was fraudulent
The wealth Of the Astors of a Mo-
ses 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 were engaged
All Were Investors.
The frst Aston did not cOnfne his
money 70 the fur trade. Taylor. Pea
body and Field did not derive their
millions from mercantile commerce
Busch's immense accumulations were
not wholly due to the brewery bust
ness.
They were investors after they had
become fur traders, merchants and
brewers. They got their start in
their respective chosen commercial
spheres and made money, but the big
money came from investing the com
paratively small money made,
John Jacob Aston 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 100000, 900, an enormous for
tune in his day-became a supermil-
lionaire by backing the Lackawanna
road at a critical period in it's af-
fairs, and after thorough investiga-
tlon
Legitimate Dollars.
Peabody was r. shrewd buyer of
railway and industrial securities
Marshall Yields securities holdings ex-
ceeded his real estate holdings.
Busch's inves tments 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-
tions, the former in railroad and tele-
graph stocks and bonds, the latter in
telegraph. telephone and electrical
companies Peabody waited until a
railway was 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.
telegraph telephone. electric light,
power and the wireless telegraph
money was lost The industries
themselves were beyond a peradven-
ture technically successful, but finan-
ciaily they were an experiment for
years.
People who rushed into them lost
, all they put in. The original Marconi
company - 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
and so are I'm most instances the eleo-
trio light and power companies. with
The latter the remunerative Contin-
gency--in most cases sumptuous- Is
the management. not honest man
cement alone. but slSillful manage
ment.
Peabody and Field had an unerring
scent for electrical orga nizations with
}arge paying potentialities Field was
The earliest and heaviest shareholder
n the various Western companies.
The rapid growth of this industry
: evidenced by the number OF con-
sumers in Chicago What is now the
Commonwealth Edison Company had
bout 5000 customers in 1898. To-
day the clientele numbers over lSO.-
200
During this time. however the
business has called FOR alert manage
rial qualities-as e. had likewise IN
the earlier periods of the railroad.
telegraph and telephone Industries.
Fifteen years ago the investment Ut
he Chicago concern per customer
was Si,b1e. and the gross income from
the individual user OF electric WgIt
was $40. Currently these items are.
respectively, $4l7 and So
Efficiency the Answer.
Improvements and the skill IN
handling the improvements have
made the reductions possible, with
out decreasing the earning power O..
the company or impairing the sta
bility OF its securities,
Efficiency must be requisitioned
from the start in the engineering OF
construction. After that, selling en-
cheering plays a vital part In the
prosperity Of this industry. which is
attracting the investor increasingly
with succeeding years.