Show TilE DAILY NEW YORK Fi Financial in Whirligig ir Written for o n The Telegram By y JAMES McMULLIN NEW V YORK YORK-A Wall Vall street miracle has happened Rockefeller and Morgan interests have buried the hatchet The evidence The role played by Winthrop head Aldrich or of the Rockefeller controlled Chase bank in connection with the Fletcher proposal to defer for a year dissolution of Security security se- se affiliates and the compulsory choice by pr private ate banks between deposit and investment business Mr Aldrich attended a White House confer confer- along ence-along with Chairman Perkins of National City City-a d day y or so before Fletcher made his an- an The suggestion was Aldrich's and he pressed it vigorously as the most effective way to cope with the damaging stagnation of the private capital market Neither the Morgan firm nor the Guaranty Trust chief lifted beneficiaries I a finger to bring it about They thought it n a worse than useless move and had resigned themselves to the inevitable To get the full significance ot of this bear in mind it was the same Mr Aldrich who hurled hurleda a Wall street bombshell last year by publicly advocating the precise measures which he now urges be thereby suspended incurring what promised to be undying enmity from the Mor- Mor Guaranty gan-Guaranty crowd crow The effect Same as if two husky horses working against each other for years ears at last pulled together Dominate New York Bank World Between them the Rockefellers and the Morgans Morgans' Morgans Mor- Mor gans gans' gans exert a dominating influence in the New NewYork NewYork York banking world One reason bank policy has been so futile a help to recovery is the lack of leadership arising from the mutual hostility of these two groups Each has been afraid to step out for fear of exposing itself to reprisals from the other Their private feud has done a alot alot lot more to stall the credit machinery than the world knows Both groups have accepted Roosevelt leadership leadership lead lead- but at different times and in different veins Tile The Chase bank cottoned to the new banking deal and said so openly The Morgan interests foIl followed owed much later and because they thought it wiser to bow to a force they reco recognized at atI last as stronger than themselves rather than I court trouble But at no time have they disI displayed dis- dis I played what you could call wholehearted en- en cracking Whip from Washington failed to move the banking steeds out of a walk The horse was held back by suspicion of his Finally conditions reached a point I where the president had to choose between a retiring the potentially useful nags that knew their oats in favor of untrained credit horsepower horsepower horse horse- power fed with government funds and b easing easing ing the checkrein on the veterans in the hope they'd respond He chose the latter and they will respond respond- both to the driver and to e each ch other The new team ought to record some pleasing history Both long and short term credit are due for a climb as soon as the mechanics of modification are arranged in Washington A Hint Fun Full of Meal Word Vord has been quietly passed that the postponed postponed post post- provisions of the law with regard legard to private ate vate banks and security affiliates are I likely kely to tobe tobe be for forgotten otten permanently if the bankers satisfactorily satisfactorily satis- satis shoulder their part of the recovery load between now and June of 1935 That's the sort of hint the boys appreciate ate Expert es estimates esti- esti i- i mates of the corporate financing to be handled by the end or of this year run as high as a billion dollars and nearly all of it will be strictly grade A stuff The Th-e House of Morgan will be conspicuously conspicuously among g those present The first fruits of the new cooperation be- be between tween the government and New York banks are already visible in the manner in which New NewYork NewYork York Centrals Central's refinancing problems have been managed The Guaranty Trust and Bankers Bankers' Trust known as Morgan banks will willbe be active leaders along the Chase in assuring a s sue sue- e. e market for lor the railroads railroad's securities Prodding the stockholders Insiders say that the latest dividend cut by Consolidated Gas from a 3 to a 2 rate was preceded by a lively argument among the di- di rectors Net income for the quarter was about 12 per percent cent t below a year ago but the corporation has such excellent reserves that the old rate could have been maintained without strain Some directors di- di reCtors favored that course as a contribution to recovery But the majority felt that would fail to dramatize dramatize dram dram- the well advertised woes of the public utilities Con Gas along with other utilities utilities- ties ties- hopes that its security holders wm will get sufficiently i- i excited about these woes t to do something something some some- thing about them politically And what simpler sim- sim pier method could b found of getting the security security se- se holders e than to reduce their income income in- in come by third one Q E. E D. D 1 1134 McClure J c F |