New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-07-15

iAiHoHf ~ NiN'hiNo diN dkdln ~ n.
troll.
Profits Gathered in
Continuous Cycle
We thus have a continuous r.,
of profit gathering; first, S,,ougt >
ganizing and selling securities, q,
ond, through financing and man,
ing the company; third, througs ;
organizing the same conw,
fourth, profits gathered thr,urA !
advance information which he
terie has pending the process q =
organization. The investing pu,
especially the stockholders, AYR
pays the bill. Sometimes hi, y
Torrance Of organizing and n,
canizing has been repeated 81
and again, as in the case Of Ii, Z,
and Atchison.
This vicious practice in Anga
corporate affairs has been yeaa,
drain upon the savings Of the Arg
can people, and has also 50 s-:,
tered the public and legislstsr
that it has become impossible Z
railroads and public utilities to 4
fair rates for the service they y
der, the public feeling, and v.
some justice, that the more ralsa:
and utility corporations receive :,
their services the greater vi !.
opportunity be for fnancisa W
control, but do not own, a-rls
TO enrich themselves.
These facts that / state m w,
not been unknown TO the svrg
thinking man. This method sntr r
ess of draining the invcsl4 p
lies savings has been aired, q
cussed and condemned by the Wa
country, including the courts lgi
latures and the press, but rca'
has been done to curb or eratla'
this most vicious phase Of Oa' 4
nomic and financial life.
The Rock Island stockholders b.
succeeded in making some hsssH
against these public wrongs IL
succeeded, for instance, in var
eff the blows directed agains! "
by the so-called protective coz,
tee headed by Charles A. Pei'@'
which requested the court to iei.
the interest on the refundlns M'
Sc that the entire slll,0OO,ON p,
cipal might become due, a p'ooS'
ing that would have annlhlls'S Z
only the stockholders equity 7
that of the debenture bOndi'T
and other junior security holfsH
well.
But the recent shifting Of The 30
Island directors by the reslgi'-
Of some members Of the board :
their replacement by other; ih''a
OF giving the stockholders az oPP
tanity to exercise their l'is''
right to elect their own direon |
the coming annual meeting y rs.
Der causes me to believe that w
and more aggressive T'"
necessary If the advantage o.
through their efforts is to D" :
If We hope 20 eradicate s''' !.
porate practices Of fnaneia - I.
lessness as were brought to ~ /
the Interstate Commerce .'n !.
sion in its investigation Of ',' y :.
Haven. Rock Island, Frisco a~ !.
cinnati. Hamilton & Day''n = :
Pere Marquette, and to a'o.a -,
tition Of the international M''''..
Marine scandal and other hn'', !.
wrongs with which America
pora;e history is repleie'
Permanent Association
or Investors Formed
With this end in view, ,', ~.
independent investors met 20, -. Va
Mt the Hotel Biltmore, in New ~ -,
and organized a permanent p. ps |!
tive association under "e -, 4
Investors Protective Associate l.., {
America. with an advisory Gun y q
forty or more public-'plEl''s,-, ,. !
from all parts Of the e0. ,. "
which organization
named president. . ,ris y
The association aims 70 o., ~
security holders OF AIne'~ ~, "
its leadership, so that they Ii .,ss
the power of asserting ~. nm b 4
and Of taking active !Pr"S...sr'I
matters mat affecting their i NJ. .ss,
The advisory council OF , -. ~
ton, as we'll as the pre; ~. ".s,,.ss
without compensation. ~ .s..oci,s
of the activities of the '..l ness
will be betrayed by nOn''
shin dues of 50 a year. /