Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1913-06-05
FRISCO SCANDAL
CROWS WORSE
WITH TIME
American Credit Abroad in DAN
ger Of Being Assassinated
by 1t,
sY 3. c. FORBES.

The latest scandal in American
High Finance grows worse on closer
acquaintance. Nothing quite so bad
has Occurred in years. America
credit abroad is in danger of being
sssass mated.
Let me assure the Government
that ain 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
perakively demanded. BUT THERE
is A LARGER PROBLEM IN
VoLNED: THE COMM ssloN
SHOULD HAVE JURISDICTION
OVER RECEIVERsHIPs. MEN
Wild 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 sp-
pointed when banks failed, and de-
positors seldom got any satisfac-
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 lone pro-
eeedinos. Former State Bank Super
ntendent Clark Williams had the
Legislature empower the Banking
Department to handle failed lnstitu
tons, and the cost to depositors was
infinitesimal.
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
teIlieent, expert supervision is more
than ever necessary
To allow President Winohell and
Director West, of the Frisco sys-
tenn, full sway in treating the thou
caught in disaster was fraught with
dancer, for il would stir up public
antaqonisn, public distrust and pub
lie suspicion that could not fail
to feed socialistie elamor. In
deed, 2 Socialist said to me yester
day: "This is fine. II shows that
the present capitalstie system is a
failure. These men wreck a prop
erty, and then they are allowed to
treat the suffersrs-ths security hold
ers as they like. Let's have more Of
these little deals. and our party will
oct into the saddle sooner tHan you
may expect. Government ownership
"a necessary stepping al
ready within sight"
asked 3. F. Yoakum. chairman
OF tho Frisco road and its control
ING power, a few plain courteous
questions.
"Siv weeks ago your company
cave French. investors assurances
that earnings we're doing very well,
and that ycur maturing indebtedness
would be taken care Of ! said. "Can
you not explain, for the satisfaction
Of all interested, what has happened
since then to cause you "a throw the
road into bankruptcy Don't you
think the public are entitled to this
information"
MIR. Yoakur said he did not care
to make any statement on the sub
"Did you notice that it is pro-
posed TO start an Investigation by
the Interstate Commerce Commits
sion. Mr.. Yoakum?'
Mr.. Yoakum indicated that he had
no objection to any investigation.
Reports we're again plentiful in
Wall Street. Speyer & Cos legal
representative is due from St. Louis
and a statement describing exactly
what preceded the sudden appoint
r1ent of receivers is expected. Friends
Of this old established banking firm
are urging it to come forward with
a full exclamation showing how Il was
rnisled. how the management failed
TO fulfill certain pledges and how the
application for receivers upset all pre-
vious calculations. Speyer g. Co,
however, have so far made no official
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
corning the operations Of the French
bankers who distributed the $1,000
600 Frisco bonds in Paris IN April
are made in a communication ] re-
eeived last evening from a friend
in Paris who is in the inner circles
Of finance there. This letter was
written before the receivership pro
eeedings-s fact that makes It more
significant and prophetic.
THE FRISCO BONDS WERE
FLOATEO m PARIS AT 81 AT
THE MOMENT THEY WERE
oUOTED in NEW YORK At e Ia
WHEN THE NEW YORK QUOTA
TON WAS s. 81 THEY WERE
STILL HELD IN PARIS AT So IL,
A DIFFERENCE OF SOME p
POINTS!
NV well-inforued friend, writing
on May "a, says in part:
The ignorance pf the French pub
lie about things American is such
that the S.. 100000 general lien bonds
If the Frisco. which were disposed oi
here four weeks aEo ry Nassrs. B-r-
rard and PaTislowski and the B3nlue
PTiyee were greeilIy snapped Up 40
81 at the very time that those same
bonds were quoted ar 3 Is ID New