Evening star., 1926-12-06
MEN AND MONEY
BY NJ. s. Ruksyser.
(Copyrieht. 1o26.l

A tremendous amount or wealth. IN
the aggregate is owned by New
York's silent rich" This group
consists Of individuals in whose
families there has been riches FOR
several generations.
The silent rich are investors-cap-
italists-rather than constructive
leaders, and their names seldom, IL
ever, get into the newspapers. They
supply the sinews of industry. but
are not the spokesmen Of great en-
terprises. In social life they fre-
quently play no active part. eonfining
their interests to a small circle OF
friends
1t is with the interests of such In
dividuals that the trust departments
Of banks deal to a large extent. Tne
trusts consist mainly of real estate
and securities. In discussing this
group, the trust officer OF one or the
old New York banks said: "Where
family fortunes are tied up In real
estate, each descendant remains as
well off as the founder, provided the
family does not multiply more rapid
ly than the population Of the country.
The increase in the value Of diversi.
fed real estate permits the division
Of an estate without making the
parts smaller in value than the
whole used to be-"
Thirteen Hoodoo Is Hinted.
The death of william II. Porter.
partner Of J. P. Morgan & Co, COM
ing only a few months after the
passing Of e. r. Stettinius. anotner
member of the same Arm. has LED the
Street to believe that there IL
hoodoo in the custom of the hrm ot
having 13 partners. Already specu-
lation is rife as to who Will De Sc
lected to fill the two vacancies: a
Morgan partnership is considered the
blue ribbon of success In wan street
and many factors enter INTO Ine
formula by which newcomers are Sc
lected. In the past, the morgan n.n
has occasionally invited executives
of affiliated banks to become part
ners. Among those in this group
whom the street considers eligible
are William C. Potter. former MIN
ing engineer, who in the last nve
wears has made a striking record as
president Of the Guaranty Trust 60.
Of New York, and Harvey Gloson'
nresident of the New York Trust 20.
The banking house Of Kuhn. LoeD
g. 20 which has been the princlPai
competitor Of the Morgan hrm IN ra.i
road and allied investment nnance'
has functioned with only four part
ners aimee the death in 1920 OF JACOB
n. Schiff. the former head OF the
counting house. The pie OF pronts IN
the Kuhn. Loeb firm Is therefore Gu.
into fewer slices, enhancing the vaioe
OF each partnership. In the postwar
period. the rise Of the position OF ~
lon, Reed & Co. has perhaps oeeh .ne
most significant development IN .ne
field of private banking. Clarence
Dillon has been the central nsure !!'
this growth, and the street TAXES ~
for granted that he considers ms
present status superior TO a paF'iicf'
ship in any other house.
Politics Interest West.
Albert w. Atwood, we'll known eco.
nomic writer. whose newest pook 10
called 1.-THE. Mind Of the Millionaire.
is an Fastener who is now making
his home in California. While tenn
norarilv in New York. he told me that
Westerners are more interested IN
notifies than folks in the East. He
believes the greatest political interest,"
exists in the Mountain States, rather
than on the Pacific Coast.
incidentally, Mr.. Atwood forecasts
that the next great land boom VIII De
in Texas.
Rear traders have not made much
headway in depressing speculative
security prices in the last six weeks.
one primary reason for this Is the
great supply of credit available.
which, other things being equal: IS a
factor for keeping prices up. Wnen
the bull movement started IN lv24.
easy money was one Of the principal
incentives for bidding prices upward.
Now that money is still plentiful. II IS
a IA ,tor in prolonging the period OF
high quotations. Such slowing up OF
business as may have taken place IN
some lines in recent weeks has freed
additional credit for the securities
market.
Efficiency is the keynote Of the cur
rent business situation, but business
executives must learn to distinguish
between genuine and fake efnciency.
cutting down expenses is not neces'
sarily efficiency. 1t may ana ire
quently is quite the reverse.
A Wall street bond house recently
brought in an efficiency man from the
outside. He knew little about the
technique of the business.
He Immediately began wedding out
men. Some of the men whom he dis
charged were invaluable cogs In the
machinery, and, as soon as the re-
sponsible partners sensed what was
happening. they began to bid back Tor
the services of discharged employees
One trader who was fred one week
No ~ fY1nT