Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1914-01-30

II YOUR child becomes graVely all |
should YOU leave it to its fate and do |
nothing to try to save it?
Should an army general turn tail |
and run whenever he fears a battle |
NAV possibly go against him, or
should he fight until the last hope is |
gone?
If YOU are in business and your po-
sitfon becomes shaky, should you lie |
down without a struggle and let your
,reditors shift for themselves?
or course not. Emphatically NO in
all three cases.
should bankers identified with a
railroad desert it when it becomes
weak or stand by 1t and strain every
nerve to pull it through?
The Interstate Commerce Commits
son has made the amazing sugges-
ton that they should! Incredible,
Almost; but listen to this from the
Commissions report on the st. Louis
and San Francisco Railroad receiver
'fSpeyer & Co. should haze been
a,rare of the poverty of the Frisco
and of its difficulties in obtaining
funds"
Should have been aware!" Great
Scott, they WERE aware. So was
every American adult knowing the
rudiments of finance and business. So
was every French banker who put out
Frisco bonds-at a handsome profit.
Is the Commission to lay down
rule that no banker must supply
funds to any but strong, fourishing
railroads? Apparently THAT code
of banking ethics would please 1t.
Suppose the Interstate Commerce
commission had had the power it now
seeks of vising all proposed issues of
railroad securities and thereby hold
ing in the hollow of it's hands the
soyency and bankruptcy of all the
country's railroads, would it have for
hidden the late Edward H. Hartman II
to save" the Erie after j. P. Morgan
& Co. had decided to let the road be-
come a CROKER? Hartman was
aware of the poverty of the Erie"
He surely was.
Would the Commission have for
hidden this same firm of Speyer &
Co to extend succor, more than once,
to Edward P. Huntington when he
was striving to keep the Southern
Pacific on its feet? Speyer & Co
knew full well that the road was
poverty stricken. But their action
saved the situation.
~ |
forbidden to supply sinews to Hac
riman to build up the Union Pacific
because it was for long poor as
church mouse? Certainly" says the
Commission.
We're every banker IN the United
States and every Interested banker in
Europe to Immediately act upon the
principle favored by the Commission.
what a melee there would be.
We would have a worse deluge Of
railroad, industrial, mining and mer-
camille failures than ever encountered
even at the height of the worst panic
in a generation.
For take it from me, there are
quite a few enterprises not exactly
as strong as Gibraltar!
No more asinine statement was
ever made in a governmental report
han the sentence quoted near the
beginning of this article. The com
mission was not asked by the Senate
for expression of opinion on the
Frisco affair, but this did not deter
he commission, always anxious TO
besmirch wall street bankers" and
everybody associated with railroads,
from offering gratuitously more than
one very emphatic opinion.
The serious question raised by the
commisison's extraordinary attitude
is this:
Should bankers desert properties
nat become 9oedE?
Well, should they?
Or should they put their shoulders
to the wheel and seek by might and
main to avert disaster, not quitting
until the last chance of saving
property has gone?
! am we'll aware that the Frisco
was honeycombed with inside jug
glery. 1 was the first to show up the
rottenness of the Yoakum regime and
10 call upon the Interstate COInineIGe
Commission and the Government TO
act. The Hearst newspapers devoted
columns to the subject before other
newspapers woke up to the facts.
publicly declared that Speyer & Co
could not afford not to have full
Investigation made and the whole
truth laid before the people, as the
circumstances of the last piece of
financing tended to cast odium upon
them.
The facts have since come out, and
not one crumb of evidence has been
adduced rejecting upon the honesty
or the honor of Speyer & Co. Wheth-
er they should have let the Frisco go
broke before they were forced to do
so is a matter for individual opinion.
Bankers having regard for their rep
ltation don't usually let one of their
properties collapse until actually
obliged to. As a matter of fact, had
The Chicago and Eastern Illinois sale
10 the st. Paul been consummated, as
Intended the Frisco would not have
gone under. Had monetary condi-