The Washington herald., 1918-05-04
new LEADERS
HAVE ABILITY
Holland Believes War Fl
nance Corporation Mem
bers Experts Of Finance.


auspices or any other, 1t can be SAID
that the opinion of the leaders IN the
financial district Is that w. p. q.
Harding. of the Federal Reserve Sys-
tenn, and Allen Boyd Forbes will be
IN great measure influential in the
management of this corporation. Mr..
Meyer and Mr.. Mclean have yet TO
make clear to the public ability which
already Mr. Harding and Mr.. Forbes
have demonstrated that they possess,
so that they will be known as worthy
associates in the direction Of this
stupendous corporation.
When Mr.. Harding was chosen
member of the Federal Reserve Board
at its organization the appointment
was spoken of with approval by bank
ing authorities of New York For
they had already learned something
of his extraordinary capacity as a
banker while president of leading
bank of Birmingham, Ala. By reason
of his experience. his inborn ability,
his energy and his possession of a
singuIarIy accurate Judgment. he Is
esteemed as excellent an appointment
to the War Finance Corporation as
President Wilson could have made.
Notable Career.
The career of Allen Boyd Forbes
has identified him as one Of the great
forces of modern American construc-
tive financing. He is only 50 years OF
age and was trained as a lawyer. first
at Chicago, and afterwarsd at the
Yale Law School After he received
his diploma, in 1858 he began to prac-
tice law in Chicago. having no other
purpose than to build up as rapidly
as possible a fairly profitable practice.
He must. however. in the three
years while practicing law have at
tracted the attention Of men Of great
financial capacity and high reputation.
For he was urged to join the office
of ". W. Harris at Chicago where
his duties were to be partly legal. but
mostly in connection with. the handling
of public utility bonds. In due time
Mr.. Forbes became partner Of this
house and in 1902 was placed in charge
of the New York offices.
There he served with success which
commanded respect until at last the
government, after the war began,
called him to its service. In 1910 the
firm was Incorporated and the name
changed to Harris; Forbes & Co, and
from that time until 1916 Mr.. Forbes
interest was largely increased in the
New York and Boston offices Of the
company.
The corporation dealt only in gov
ernment. public utility and railroad
company bonds, and in time obtained
the largest line of private investors OF
any financing institution in the United
States.
Protecting Investors.
This undoubtedly is explained by
the fact that under Mr.. Forbes man
agement the corporation assumed an
attitude of protecting investors which
is unique in all bond transactions.
For the corporation has been known
to pass up millions OF prospective
profits because 1t could not safely rec
ommend the properties. 1t has as far
as possible prevented speculation. 1t
has no Wall Street house or address
or stock exchange connection and in
that respect is unique.
In Government Service.
When the United States became one
of the belhgerents Mr.. Forbes was
made chairman of the committee on
the purchase and sale of securities.
This committee consisted of seven,
among whom were ]. P Morgan. He
also became chairman of the commit
tee Of the Investment Bankers Asso-
citation OF America.
Then again he was chosen chairman
of the capital issues advisory COM
mittee, whose service was the author
izing of the issues and sale OF practi-
caIly all forms of securities other
than those Of the railroads, all Of this
being for the purpose of protecting
the government while floating liberty
bonds Now the President has ap-
pointed him a director Of the War
Finance Corporation. and this brief
and hitherto unpublished sketch of his
career explains why President Wilson
made this appointment. For more
than a year Mr.. Forbes has served
the government at great personal
sacrifice which includes sacrifice OF
his business interests.
Personally Mr.. Forbes is one of the
most charming OF men. He believes
m outdoor exercise and can hold his
own with any man of his age upon
the golf links. He is also greatly oc-
cupied in his leisure moments in read
ing standard works. including history,
biography. economics and sociology.
That Great Car Order.
When it was announced that the
government had placed with one OF
the largest OF American industries an
order for many thousand cars the
comment was frequently made in the
business and financial district that 1t
would have been impossible to ex-
ecute an. order of this kind within
the time which the government Deem
ed necessary had it not been for the
remarkable constructive work of the
late Frederick Heber Eaton.
Although Mr.. Eaton lived long
enough to know that the well con-
ceived and developed constructive
work which he began and perfected
was recognized as one of the best
examples of the modern economic
spirit of unification and cooperation,
nevertheless he has been deprived
through his untimely death, of the
patriotic qualification which the pIac-
hg OF an order by the government for
many thousand cars with his corpora
uon would have given to him.
The last Of the reports which were
made by President Eaton to the great
body Of stockholders Of the American
Car and Foundry Company furnishes
excellent proof Of his extraordinary
intellectual power He possessed abii-
ny Of the highest kind on orraniza-
ton He had perfect grasp of the
profound economic principles upon
which modern combinations have been
based.
He was one Of three men who
brought into the combination eighteen
corporations. each Of which had its
own organization. In that way he
gained all the advantages which ap-
pertain to parent organization which
has authority over various subsidiary