Evening star., 1914-10-11
Drawings by E. Hopper

PEELED to seek other fields of activity
There few doors in the Street that can't be
locked with golden keys One young made his
way into the financial district by an immediate appoint
ment fourth vice president of banking house. He
is agreeable in every way pleasant fellow; yet his
socates secretly shrg their shoulders when they speak
of him. He lacks only ability Yet his rise has been
rapid He is today president of banking corporation
What the behind his advancement the power
that pushed him forward, where other brighter and
more able were left behind? He has aunt who
five hundred shares in of the most powerful
banks in Wall Street. the stock of which sells about
nine hundred dollars share. She is also of its
largest deposors She needs but to express wish to
have granted in the district below Cedar street. Her
nephew will always be well taken Of He has only
thing to do; that is, obey orders An influential
banker at the behest of his aunt looks after his promo
tion
Still, day upon day, there quiet persistent efforts
being made by ambitious in every part of the
country to break their way into Wall Street. To be
sure, many succeed for there is barrier to mans
genius and resourceulness; but small wonder that in
most cases their is marked by fgurative tomb
stones in the great hearess of the money market
THERE is notable and somewhat recent instance of
bold spirit who began this toilsome journey
toward the Wall Street goal from point somewhere in
the Middle West. He began quite obscurely by pro-
noting the construction of certain sectaran institu
tions in small country communities. He merely
qured the raising of ten per cent in cash. the balance
of the Indebtedness being paid off in instaments. The
heads of these institutions further required take
out insurance policies their ives thus giving further
security to the financial hackers of the enterprise
This genius had conceived the idea of using the notes.
insurance policies, and mortgages collateral for real
estate bonds which issued by funding company
he had organized The bonds paid four per cent. in
terest while he received from seven to eight per cent
from those who borrowed his money. Thus the fund
ing company made profit of nearly four per cent.
its TRANSACTIONS part of which profit, however,
pended in the form of bonuses banks induce
ment toward obtaining loans the companys bonds.
Slowly and laborously institutions and even
mrnities built up this plan all the way from
Michigan to Southern Texas The financial ball of the
funding company rolled eastward, gathering strength
and volume went; for the founder of the enterprise
kept Wall Street in view his goal, and great money
institution his ultimate ambition.
And he really broke into the Street with all the pres
tlge and glamour that attend success Large offices
were opened and loans arranged in dozen insti
tutions by of the tempting bonuses offered.
These gifts brbes concealed in various shapes
in order to make them righteous under the interpreta
ton of the banking laws
The entire proceeding quite legitimate and
founded good faith but incautous from the view
point of finance. All went well for time, however.
The ambitious promoter began negotiations with three
trust companies with the aim of combining them into
the great banking corporation that had been his per-
sistent dream The directors of the seriously
considered the offers The inducements made
splendid the merger the of fu1f1ment.
Then the period of contracting credit that crmped
many promising schemes in the days preceding the
Rich Mems Panic. Loans called, collateral was
scrutinized carefully by bank examiners in all
the institutions of the country and especially in
the head center of finance, Wall Street.
The four per cent. profit of the funding company
transmitted from actuaity into business
theory. The promoter struggled bravely to keep up
the interest payments his loans and his queer col
lateral still passed muster good security
There came daY however. when the promoter was