Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1913-06-05
FRISCO SCANDAL
CROWS WORSE
WITH TINE
American Credit Abroad in Dan
ger of Being Assassinated
by It,
BY 3. c. FORBES.

- D -. FOHbESs
he latest scandal in American
High Finance grows worse on closer
acquaintance. Nothing quite so BAG
has occurred in years. American
credit abroad is in danger of being
asssssinated.
Let me assure the Government
that an investigation of the St. Louis
q San Francisco Railroad. if it get:
at the real, full facts, will disclose
something worth the pains. ! am mol
speaking at random.
Tho proposed probe by the Inter.
state Commerce Commission is i'm
peratiVsIy demanded. BUT THERE
is A LARGER PROBLEM IN
VoLVED; THE SSIoN
SHOULD HAVE JURISDICTION
OVER RECElVERsHIPs. 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-
posters seldom got any satsfac-
ton, the funds usually going into
the pockets of the receivers, their
lawyer friends and other hungry
gentlemen during long drawn out,
go-as-you- please. leave US alone pro-
oeedings. Former State Bank Super
intendsnt Clark Williams had the
Legislature empower the Banking
Department to handle failed institu-
tons, and the cost to deposltors was
intinitesImal.
Could not the Interstate Com
neroe Commission achieve similar
results with bankrupt railroads? Why
should this body be given almost IN
limited control Of solvent roads and
have not one word to say after dis
sstsr comes, when investors are in
urgent need Of protection, when in
teliqent, expert supervision is more
than ever necessary
To allow President Winchell and
Director West Of the Frisco sys-
TEN, full sway n treating the thou
sand Of investors who have been
cauuht in disaster was fraught with
dancer. for Il would stir up public
antaaonism, public distrust and pub
lie suspicion that could not fail
10 feed sociaIistic olamor. In
deed a Socialist said to me yester.
day: This is fine Il shows that
the present oapitalistic system IS a
failure. These men wreck 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
NAV exoect. Government ownership
"a necessary steppingstone-is al
ready within sight
asked 3. r. Yoakum, chairman
Of the Frisco road and its control
ina power, a few plain, courteous
questions,
ask weeks ago your company
cave French investors assurances
that earnings we're doing very well,
and that your maturing Indepteoness
,,JouId be taken care Of" I said. Can
49,, not sxplsir. for the satisfaction
~ All interested, what has happened
since then 70 cause you TO throw the
road into bankruptcy? Don't you
think the public are entitled to this
information?
NJ Yoakun1 said he did not care
% make any statement on the sub
aDid YOU notice that il is pro-
ICED 70 start an Investigation by
he Interstate Commerce Comn1's-
sion. Mr.. Yoakum2'
M Yoakur7 indicated that he had
no objection to any investigation
Ra,orts we're again plentiful IN
vusU Street. Speyer & Cos legal
rsoressntative is due from st. LOUIS
- a statement describing exactly
,.,hst preceded the sudden appoint
,,er4 Of receivers is expected, Frienus
~ This old-estab'ished banking hrn'
are uraing IL to come forward WIN
E,rI sy,i7nation showing how It was
ris'ed how the management fa'lso
=. rFH certain pledges and how the
Iof..,tior cor receivers upset all pre-
.E.r. calculations Speyer q Co.
ko,.ayer. have 50 far made no othci7
-t-ts,,s,. further than that they were
- consulted about the appointment
nov 9 S oo,;se,,s Later the whole inside
I.,aro1uerts may be made known
d, the battle that is pending GER
81, regulations can not but be NOR
tally wounded.
r,.-,o~Ii,ary disclosures con
-;-- +bs operations OF the French
L-.se-s who distributed the. $1,000
6a0 Frisco bonds IN Paris m Apr
-4a In communication re-
-- last evening from a FRIEND
D.. Who is in the inner circles
% Es,-ca there. This letter was
60 before the receivershtp pro
~ ---s-7 fact that makes II n1orC
sianff5ant and prop7e.tie.
-aF FRISCO BONDS WERE
-rGaTED m PARIS At 81 Al
IH55-znGTy NEW YoRK AT 70 / 4
9y1SGzN TuE NEW YORK QUOTA
MAS s. "a THEY WERE
IGN GEID m PARIS AT So IL
a DIFFERENCE Or SO"G z
POINTS.
NV weII-informed friend, writing
IN Man p. says IN part;
The ignorance .. ..t- ...-
r--- things American is suCf
.--- Oh. S4"H'-'.. genera. .-- l..'-
--. T--TH. "l... CTS y
-.-. four weeks ago al L'.l
-.-z and Paris.nW-St ana Iar SANG Pr
-7-.-z. were zraaa.if -at 'N
che very time that mos. same
E N