The Washington times., 1922-01-22
NANCE
- AND
BUSINESS
" n c. FORBEs


don't play the game according TO
their rules is widely held and ire
Quently expressed belief In wan
Street. Exactly who they" are 10
not defined In detail. Everybody has
pretty good general idea Of who
the money kings are. While there
IL no Money Trust. there Is Money
Power-not any formal organization.
but. as In every industry, there are
leaders who pretty we'll rule the roost.
Allan A. Ryan was bold enough or
misguided enough to get himself IN
Dutch with Wall Streets They. His
famous or Infamous, Stut corner
dragged many people into trouble;
few into, disgrace.
And now 1t Is announced that
Ryan has dropped out OF, or been
dropped. by the Stutz Company.
1t Is very doubtful II Allan A.
Ryan will ever be able to get TO the
top of the heap again.
This column. will shortly have some
thing. to say about the evils OF the
stock exchange specialist" and his
practices. They badly need to be stop
ped In the interest OF the public.
The two men Europe would like to
see our government send to the
Genoa conference are Secretary OF
the Treasury Me,lCl and Secretary
OF Commerce Hoover. Hoover ID
gigantic figure, a superman, in the
eyes Of the peo.n. u Europe and
Europe's internar...a. bankers know
thai Andrew W. ...~.IC.I - a practical
banker OF the frs, calIber.
Europe's statesmen and financers
would much rather talk business with
Hoover and Mellon than with Ambas-
sador Harvey. Mr.. harvey 10 not a
financier and as q statesman has not
yet got beyond the apprentice stage.
The public certainly will await
with interest and Curiosity the Gen.
eral Electric Company's explanation
of how II came TO make $4,000 900
of profits, from its incandescent
lamp business, when the aggregate
profits from all the rest of It's bust.
ness reached only $5,000,000. The
American public are suspicious Of
monopolies. and not without reason.
II 1t be proved that the General
Electric Company practically con-
trolls and monopolixes tho electric
bulb business and that Il exacted
unreasonable prices and profits sim
ply because lack of competition en-.
abled II to do 30, then there will
be an irresistible demand that the
situation be taken in hand. Mean.
while. it would be we'll to suspend
judgment until all the facts on both
sides have been presented and
weighed.
Do not forget that the General Elec.
trio Company has spent millions of
dollars in experiments, in investiga-
tons, In tests and In other prelimi-
naries before success was attained
We would be without quite a few OF
our modern conveniences, things we
now regard a. necessartes, II America
had not had numbers Of gigantic cor.
porations financially able to spend
sums for laboratories, for inventors,
for chemists. for scientists. etc. The
amount spent each year for expert.
ments and research by such people,
for example, as the du Points, East.
man, General Electric, Ford, Edison,
Westinghouse, Standard OIL 10 enor,
nous. Therefore. It Is only fair that
very generous rewards should be re.
paid when something Of tremendous
value Ii evolved and placed at the
service Of the people.
Extortion. however. II another mat.
ter. II Ia not only poor morals, but
In the end. poor business.
The strain or the last two year,
has been very severe upon many
leading bankers. Have you noticed
recently been made among the hiRhes,
officials Of important banks?
The First National Bank Of New
York has a new president, in the per
son of former Vice President Jack
son E. Reynolds. The Mechanics ant
Metals Bank has a new president
John McHugh, formerly vice president
Gates w. McGarrah having becom,
chairman Of the board. Chairman
Herbert K. Twitchell, of the Chemica
National Bank, has withdrawn from
active duties on account Of Indifferent
health. The Metropolitan Trust Com
pany has elected a new president
Samuel McRoberts, who was vice pres
ident of the National City Bank befors
he became q brigadier general ir
charge of very important war work al
Washington. James b. Forgan, the
veteran head of the First Nationa
Bank Of Chicago, is also tightening his
load, Just as George M. Reynolds die
some time ago. by stepping from the
presidency OF the COntlnentai dnC
Commercial Bank into the chairman
ship.
The present tendency is to instil
younger blood in presidential chairs
and release older heads from routine
duties so as to give them more time
for forming mature judgments and
acting in an advisory capacity.
A setback in the stock market woult
not be illogical.
The automobile industry Is passing
through a period which will end In
the survival of the fittest and the
demise of scores Of weak concerns
The mortality among small motor
truck makers has already been ex
tremely severe; something like one
hundred have already gone out OF
existence. The passenger-car indus
try is likely to undergo a similar ex
perience. The prospect Is that the
automobile industry will have his
tory similar to the steel industry.
Concerns like General Motors
Studebaker, Dodge, REQ, Nash, Ford
and others, strongly entrenched, are
ui,o,,, 60 cot q ffrv,ar anH firm, a,