Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1914-04-06
FEES
ARE DECLARED
NOMINAL
Forbes Presents Other Side of
Wall Street Argument-Serv-
ices Held Indispensable,
BY 3. c. FORBES.

out on the pral les we can see
and be seen long distances.
You fellows here in Wall Street
think that because you are sur
rounded with skyscrapers and move
in narrow. crowded streets you can
not be seen and that the people
throughout the country can not tell
what you are doing.
Don't fool yourselves.
The people have their eye on you
and are quick to discuss what you do.
ut takes brains to run a railroad
TO keep the cars moving to keep the
engines in their work to study econ
omies TO think out reductions in
grades incidental to keeping the
transportation machine going smooth
~ and satisfactorily.
But ii isn't much to brag about
IL YOU buy a block of bonds at 80
and Issue them 10 the public at 90"
That straight from the shoulder
Grafton was delivered to certain in
fiuential Wall Street bankers by
practical railroad man, risen from the
ranks. who used to be on the outside
but who is now very much In the
inside, a figure of national promi-
hence, moving among the richest Of
the rich but not corroded, and in a
position TO have his words listened to.
Wall Street" he said to me- has
done more to hurt the railroads than
all the politicians, the public and the
Interstate Commerce Commission
combined. The public iceland with
good reason-that they have not been
given fair treatment when they have
invested their savings in securities.
Some of the things done in Wall
Street have been sickening. People
have got rich who had no business
10 get a dollar. The insiders have
not scrupled to take advantage OF
their position to make money specu-
lating against a blindfolded public"
But aren't things lmproving?" 1
asked.
Yes. but the public still gets occa
sion TO complain Why. think " the
plight of the man who owned, say,
thousand shares of Chesapeake and
Ohio Without one word of warning
that anything contemplated that
would lower the value of his hold
ings the insiders announce a finan-
cial deal that Immediately sends the
price of his securities down $4,000.
Can you blame him II he complains
that the insiders had extraordinary
opportunities to speculate very profit
ably in the shares? took the trou-
BILE TO tabulate the daily transactions
in these shares on the Stock In
change before and after the recent
news, and the whole thing does not
look well"
That is one side
Now listen to this, from an inter-
national banker identified with inn
portant railroad financing:
The amount of money we put up
and the extraordinarily narrow mar
gin of profit we can get at the best
make the underwriting business far
from lucrative. And one bad issue
viii wipe out the commissions on
half "A dozen successful ones II is
not an unimportant service to guar
antee to supply railroad with
S25,000.0 600 or $4,000 900 capital when
ii needs it. The compensation is un-
helievably small. The bankers who
AosHG AidSb dAAlOuHAH VI lllOlltN AOl
railroads give a full measure OF ser
vice for what they receive@
l understand that the largest in
ternational banking firms in America
have compiled figures showing eN-
actlv what compensation they have
received for all their undertakings
and other banking services TO rail-
pnaha The paf 81
would be a revelation TO the public.
so small are they said to be. In view
OF the general opinion concerning
rake offs" It would be wise for all
prominent banking firms 10 make
public their records provided they
have nothing 10 hide, for the anti
capital spirit stalking tho country
to-day is an element Of the grayest
danger, fraught with unthinkahle
possibilities
The charge has been made-im-
properly, think--that bankers have
encouraged the issuance of short
term notes so as TO reap repeated
commissions. Well, IL viii be inter-
esting to learn that the leading bank
ers Of the metropolis have decided 10
set their faces sternly against short
udAe 1pitss Hche tilel bentN lNsIN-
ments hereafter will be resorted to
only in cases where neither bonds nor
stocks can possibly be marketed.
Bonds will be used instead OF notes,
even where apparently a sacrifice has
20 be incurred as notes have a habit
Of proving expensive in the end. And
they usually fall due at an awkward
moment
One OF the largest note issues
shortly TO fall due may be replaced.
the insiders confded. by a good bond.
thus averting feared difficulties,
This article at the start was to in
clude an interview with a hnancier
who does not want TO lose his love
for poetry and one with a victim of
the Siegel failure-a woman--whose
story would melt heart OF flint
But / have been so proliN that both
will have to wait