The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1913-12-16
Work Of the Puja Committee
Points the Way, Declares Re-
former-Further Light
Now Needed
GREAT FORTUNES BUILT
BY EXTORTIONATE TOLLS
Huge Commissions Collected by
Those Who Control Avenues
to Capital

OanKers, wnen issuing securities, 10
make public the commissions or prof
Its they are receiving. Let every cir.
cular letter. prospectus or advertise
ment Of bond or stock show clearly
what the banker received for his mid
diemanservices, and what the bond
and stocks, not the issuing corpora
tlons.''
This, according to Louis ID. Bran
deis. Is the crux of the publicity
medicine" which should be applied to
rid the country of the evils OF
money trust" Attorney Brandeis in
the fifth OF his series of articles on
Breaking the Money Trust" which
appears in Harper's Weekly today.
discusses. What Publicity Can Do"
Publicity Is Justly commended as
remedy for social and Industrial dis
cases." claims Attorney Brandeis.
And publicity has already played an
important part in the struggle against
the money trust Through the dis
closure of facts by the Pujo money
trust Investigation. concerning hnan-
cial concentration, Attorney Brandeis
believes an important step has been
made toward ultimate attainment OF
the new freedom. Publicity attend
ing these disclosures, according to
Brandeis, has meant that "the battle
field has been surveyed and charted;
the hostile forces have been located
and appraised" But there must be
further call upon publicity for SER
vice. pleads Brandeis. That potent
force" he says. must. in the impend-
Ing struggle, be utilized in many ways
"a a continuous measure" Pointing
out that combination and control
of other peoples money and business.
eu6 the wealth OF the investment
banker are the main factors In the
Development OF the money trust,
Brandeis declares that 1t has been the
great wealth OF the house or Morgan
that has made possible the poweriui
alliances with great financial institu-
tlons. The main cause OF such large
fortunes, he asserts, is the huge tolls
charged by those who control the
avenues to capital and investors
toll that Ia literally all that the traf'
f,c will bear" Continuing Brandeis
says:
1.-THE question Is asked: why have
these excessive charges been submit
ted to Doubtless because OF banker
control: exercise through interlocK-
ing directorates. or kindred relations.
and indirectly through combinations
among bankers TO suppress competi-
tion. The investors servility 10 due
probably to his ignorance OF facts.
Coming to the remedy for these evils,
Brandeis says:
"The bankers compensation should.
OF course, vary according to the FISK
no assumes. Where there Is q large
risk that the bonds or stock Will not
be promptly sold at the Issue price.
the underwriting commission (that is
the insurance premium) should De
correepondingly large. But the bank
or ought not to be paid more Tor get
TIM investors to assume larger FISK.
Now the law should not undertake
(except incidently in connection with
railroads and public service corpora.
tIons) TO fix bankers prohts. AND II
shouh not seek to prevent investors
from making bad bargains. But II is
now recognized In the simplest mer.
chnndiging. that there should De ruii
discloeuree. Require full disclosure
"a the investor Of the amount OF COM
mdseaons and profits paid; and NOT
only win investors be put on tne,r
r,ard. but bankers' compensation VIII
tsnA 10 adjust itself automatically 10
what II fair and Reasonable