The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-10-21
Early Return Of Railroads Also
Advocated at Annual Con-
ference i'm st. Louis.
BLUE SKY LAWS FAVORED
Foreign Credits to Extend
American Trade Will Be
Considered.
Special Despatch TO TIE Sun.


annual conference, which opened to-day
at the Hotel StaIIer advocated the early
return of the railroads to their private
owners and demanded vigorous action
against wildcat schemes and stock
swindles now prevalent throughout the
United States.
Mr.. Baker declared also that loose and
dangerous ideas are being hurled about,
and that the time has arrived for clear
thinking and fearless speaking on the
part of thoughtful men and women
everywhere.
The idea that the millennium can be
attained without work ana without thrift
has gotten abroad. he said. The invest
ment bankers. he added occupy unique
position to take a stand in defence of
those principles which are fair to all"
The conference will close Wednesday
night. About $50 delegates were at the
opening session.
In reference to the return of the rail-
roads and to strengthening public service
securities, Mr. Baker said:
AT our last conference you directed me
to appoint q special commission on rail-
roads. at that time putting yourself on
record rs opposed to public ownership of
railroads or permanent public operations.
and emphatically In favor of an early
altered methods of regulations as would
insure sound railroad credit and an ade-
.quate transportation system. / APP
pointed a group of representative men,
bers.
Definite Results Obtained.
This committee has in my judgment
accomplished very definite results and
believe its knowledge of the situation
w.rllI No. 49,,
legislation as II is finally passed into
law. 1 will not undertake to speak for
this committee. but I know something
of what 1t has done. and will doubtless
do in the next few months. AS mer-
chants Of railroad securities the efforts
of the committee for a sane and safe
solution of the railroad problem have
been of enormous value to every men,
Der of the association.
perhaps no committee in the associa-
tion has had more perplexing problems
than that on public service securities
because one class of securities with
which this committee concerns itself is
that of street railway transportation.
1t is no exaggeration to say that no in
dustry in the country has been more
demoralized during the last year than
this
1T is a situation in which large
real interest. 1t is obviously impossi-
BILE for your committee or the associa-
ton to perform the miracle of making
dollar buy services, and supplies
quoted at a dollar and half. But they
have followed the situation from the
standpoint of the investment banker. and
I am saying what they would probably
be too modest to assert when l tell you
that they have had large share in
perhaps the most important study which
has yet been made of the nationwide
street railway situation.
= I'm a country like ours conditions are
not changed simply by asserting they
should be changed. Progress can be
made by the education OF the people as
TO what is sound and fair. This process
Of education Is not the work of a few
days-the advance comes only as a
result of accumulative and constant
endeavor
II am telling you no news when j
say that the two classes OF securities
most unpopular to-day are those cover
Ing the railroads and street railway
properties. Your association, through
the committees TO which / have referred.
has been assisting in this work of show
ing the public and the lawmaking bodies
just what 1t will mean for the country
to have these two great industries per-
manently discredited."
Checking the "UndesirabIes."
Mr.. Baker referred to the problem Of
checking the volume of undesirable
securities "as one of the most serious
confronting our association and added .
The question is how best to curb
the activities of the INSCRIPTIONS stock
promoters. Your committees on fraud
ulent advertising and legislation have
given earnest and careful thought and
study to the subject for a period Iof
years That We are vitality interested
In the problem is obvious
THAT every dollar that is lost in a
gwindling proposition Is a dollar with
drawn from legitimate investment is
patent. You are asking and very prop-
erly, what is the remedy
Does it not lie In our constant en-
deavor to have enforced the fraud laws
now on the statute books Of the various
States. supplemented If need be by such
sound legislation by the Federal Gov
eminent as may be possible of enact
ment? The question for us to decide n
seems to me. is whether as legitimate
Investment bankers we should not ad-
vocate national legislation covering the
question. This. Of course, is a broad
question OF policy. and when the matter
is reached for discussion in the order
or business / hope II will have the earn
est and careful consideration of every
delegate present.
ut was hoped, not only by the Gov
eminent but by all thoughtful citizens
that the millions of new bondholders
created by the hotation of Liberty
bonds would become permanent hoiders
OF Government securities. These younr
investors are being persuaded literally
b.. the millions to exchange the finest
security In the world for a promise of a
100 per cent annual income.
1T Is the duty OF every Investment
banker to meet these attempts with a
blow from the shoulder. I assume that
on our own initiation we will not per,
suade Liberty bond holders to exchange
their Liberty bonds for standard seouri
ties. but we should go much further
than this and use our utmost endeavori
individually and collectively TO prevent
neir being swindled by unscrupuloui
sellers OF so-called securities"
Help I'm Locating swiadIers.
A report covering the assistance rem
dered the Treasury Department In locat
ing sharpers who sought TO defraud pur
ehasers OF Liberty bonds by buying theil
holdings at ridiculous prices or exohang
ing them for worthless securities wal
read by Sewell Watts OF Baltimore
me report, prepared by the Government
pond committee Of the association, rec
commended that the Federal Trade Com
mission be empowered by special leg
IN sAAN