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

o =. EORBES.
The latest scandal in American
High Finance grows worse on closer
acquaintance. Nothing quite 50 bad
has occurred in years. America
credit abroad is in danger of being
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. I 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 COMMISSION
SHOULD HAVE JURISDICTION
OVER RECEWERsHIPs. MEN
WHO BUN 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 satsfac-
ton, the funds usually going into
the pockets of the receivers, their
lawyer friends and other hungry
gentlemen during long drawn out
60 as you please, leave us alone pro
ceedlngs. Former State Bank Supgr-
intendent Clark Williams had the
Legislature empower the BANKING
Department to handle failed Institu-
tiors, 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
aster comes, when investors are in
urgent need Of protection, when in
telligent, expert supervision is more
than ever necessary
To allow President Winchel 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 It would stir up public
sntagonism, public distrust and pub
lie suspicion that could not fail
20 feed soc.aIistIc cIamor In
deed, Socialist said to me yester-
day: This is fine. Il shows that
the present capitaiistic 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 ltt'c deals and our party Will
oct into the saddle sooner than you
may expect. Government ownership
IA necessary ngstone-ls al
ready within SIGHT
I asked 3. F. Yoakur, chairman
of the Frisco road and its control
ing power, a few plain, courteous
questions.
"six weeks AGO your company
cave French Investors assurances
that earnings we're dcina very we'll
and that your maturing Indebtedness
would be ta<en care Of" said. Can
YOU not explain. for the satisfaction
Of all interested, what has happened
since then 20 cause you TO throw the
road into bankruptcy! Don't you
think the public are entitled to this
information p
Mr.. Yoakrm said he did not care
TO make any statement on the sub
"Did ycu notice that it is pro
posed to start an Investigation by
the Interstate Commerce Comn1's-
sion, Mr. Noakum2'
Mr.. Yoakun1 indicated that he had
no objection to any Investigation.
Reports were again plentiful. IN
Wall Street. Speycr & Cos legal
representative is due from St. LClIs
and a statement describing exactly
what preceded the sudden appoint
n1ent of receivers is expected. EfIcnds
Of this old established banking urm
are uruinu IL to come forward With
a full explanation showing how Il was
n1islcd. how the management failed
to fulfill certain pledges and how the
application for receivers upset p pre-
vIous calculations. Speyer Co.,
however. have so far made no offcla.
statement further thar t77t they were
not consulted about the appointment
Of receivers. Later the whole inside
Developments may be maze known.
In the battle that IS pending Ger
tain regulations can not but be NOR
tally wounded.
Extraordinary disclosures co n r.
corning the operations OF the Ere1Gn
bankers who distributed -0e Ss.s-..-
GOO Frisco bonds IN Paris ~ Apr.
are made in couwuu cation re-
ceivsd last evening from 'f.10o
in Paris who IS be- the inner cT1es
of finance there. THIS .a,1s- vas