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


acquaintance. Nothing quite so bad
has occurred in years. America
credit abroad is in danger Of beino
a5sassinated.
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
peratively demanded. BUT THERE
is A LARGER PROBLEM IN
VoLVED; THE sSION
SHOULD HAVE JURISDICTION
OVER REcEIVERsHIPs. 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 satIsfae-
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-
eeedings. Former State Bank Super
intendent Clark Williams had the
Legislature empower the BANKING
Department to handle failed institu-
tions, and the cost to depositors was
infinitesinal.
Could not the interstate Com
nnerce 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
aster comes, when investors are in
urgent need OF protection, when in
telligent, expert supervision is more
than ever necessary?
To allow President WinchelI and
Director West. Of the Frisco sys-
tenn, full sway in treating the thou
sand of investors who have been
caught in disaster was fraueht with
dancer, for It would stir up public
antagonisn1, public distrust and pub
lie suspicion that could not fail
to feed sociaistic elsmor. In
deed, a Socialist said to me yester-
day; "This is fine. It shows that
the present oapitalistio system IS a
failure. These men wreck a prop
erty, and then they are allowed 70
treat the suffsrers-the security hold
&
these little deals, and our party will
Get into the saddle sooner than you
may expect. Government ownership
"a necessary steppingstone-is al
ready within sight"
I asked 2. 2. Yoakum. chairman
Of the Frisco road and its control
ing power, few plain, courteous
questions.
"six weeks ago your company
cave French Investors assurances
that earnings we're doing very well,
and that YOUR maturing Indebtedness
would he taken care Of ] SAID, Can
you not explain for the satisfaction
Of all interested. what has happened
since then to cause you 10 throw the
read into bankruptcy? Don't you
think the public are entitled to this
information"
Mr.. Yoakun7 said he did not care
to make any statement on the sub
Did you notice ih7t ii is pro-
POSED to start an Investigation by
the interstate Commerce Comm's-
sion. Mr.. Noakum2"
Mr. Yoakum indicated that he had
no objection to any Investigation
Reports we're again plentiful in
Wall Street. Soever & Cos legal
representative is due from ST. Louis
and a statement describing exactly
what preceded the sudden APPOINT
ment Of receivers is expected. FRIENDS
Of this old established banking firm
are urqinq it 20 come forward with
a full exclamation showing how Il was
nisied. how the management failed
to fulfill certain pledges and how the
application for receivers upset all pre-
vious calculations. Speyer Co.,
however, have so far made no otficia.
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
cerninu the operations Of the French
bankers who distributed the 5000
goo Frisco bonds IN Paris m April
are made in a communication re
ceived last evening from a trleno
in Paris who is IN the inner circles
Of finance there. This letter was
written before the receivershIP pro
ceedings-a fact that makes it mora
significant and propnst'o-
The FRISCO BONDS WERE
FLOATEO IN PARIS At 6L
THE MOMENT THEY WEEK
QUOTED IN NEW YORk At = r.
WHEN THE NEW YORK QUOTA
TION WAS 65 "a THEY WERE
STILL Held m PARIS At S. u.
A DIFFERENCE OF SOME q
POINTS,
NV weII-irfornred friend. writing
on May p. says IN part;
The ignorance nf -rs rf.H.N na.-
ur about things American is su-7
thar the Sa0pDHrn general Hen bonds
,r the Frisco. which We're 1i8FHStN oil.
-a~a forfr weeks ago los Nassr1- H.T-
rar-F and Prrf--nH-r. and '1. hslNa-
Prfye- were -rasa'iy sEaHH.. .H
o. ar The very time that those l,
bonds r...r- quoted at 3 GA 'F Nt'
W. and TnrErr OF course TN.