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Show ' 'F F ' SEENand SEEN and HEARD HEARDaround HEAR HEARaround around theNational the theNational National Capital _ = = Tr By CARTER FIELD FIELDWashington FIELDWashIngton FIELDS FIELD- FIELD - = Washington - A drh drive drhe e a against against"rackets agalns"rackets agalnsrackets ainst ainst"rac1.ets "rac1.ets rac1.ets rac1ets "rackets rackets " . " In so called caHed pro protecth protectlvicommittees teeth e ecommittees ecommittees | committees of stock or bondholderof bondholdersof bondholders In Inrecelvcl Inrecelveiships lirecelvci especially espechIly tliose those of corporations , recelvcl recelveiships ships . , Is about to begin bcIn . ; as asan asan aan an altogether unexpected une"tpected unetpected " develop developmcnt developwent development mcnt went of the securities and e\chanse e chanse eechange eechangecommission echansecommission exchangicommission " \ : : ; commission activities actiIties actiItiesEvery acth activitiesEvery % lUes Every very investor has hns realised re'l.U1ed rel.U1ed relU1ed realired ' . for forsome forsome foeome some time there were grave abuses abusesIn abusesin abuseIn In these committees , , that they ran ranup rannp raiup up np fees and charges e\ e even een esen \ en when Uley they Uleywere theywere the ; were Icgitlnnte legitlm'l.te legitlml.te legitlmlte legitimate ' . . , and that all aU too toooften toooften toioften often their main m'lin mlin ' purpose \ was as to tobe tobe tibe be bought off 011 ' by those really re'1lIy re1lIy ' trying tryingto tr Ing Ingto In ; to revamp the corporation In theInterest the theInterest tinInterest Interest of the stockholders stockholdersSo So far tlicre there Is no Indication that thatthe thatthe thathe the commission Is going any furth- furth further further further - - er , , but Its reports to congress congresswhich , , which \ will III be made In a few fewmonths fewmonths fevmonths months , , \ will iII , according to , very sery ery r re- re reliable reliable - lIable sources , , at least start a movi move moveWIHther movewhether far not- not notat notat not-at not at - - -WIHther WIHther --whether whether - - - whether ? it gets very or at doing something about tlie the high highcost highcost higlcost cost of receivershIpsror recelvershipstor receiverships recelverships receivershipsFor For ror tor the present the commissloiIs commissIonis commissIon is aiming chiefly at men who h'1ve h1ve have havemade h'1vemade hav havmade ' < made practically practlcalh practicnlls a business of get get- getting getting . - tln ting unthinking unthln1.mg unthln1mg . etock stocle stoclc and bond bondholders bondholders bondholders holders , , already faced with the theprospect theprospect thprospect ( prospect of losing part of their In Investments investments Investments vestments to go Into moves \ wblclbcncflttcd which whichbenefitted hlch hlchbenefitted benefitted the operators , but in the thelong thelong tinlong long run only onlv Increased the loss of ofthe ofthe othe the Investors 10estors 10\ 10 investorsThe InvestorsThe \ estors estorsThe The nevt ne\.t ne.t ne .t t net ' \ . logical step , senators senatorsfamlIlar senatorsfamiliar senator"familiar senatorfamiliar " famlIlar familiar \ with Ith the plin phn plan declare , Is Isto Isto lito to go after the perfectly perCectly exorbitant exorbitantI exorbitantlegal exorbitantlegal esorbitanlegal I legal and other fees being charged chargedfor chargedfor chargecfor for administering financially fin'1nclally fin1nclally ' crIp crip- crip crippled crippled - . pled organizations organlz'ltlons organlzltlons organizationsOne ' : One senator sen'ltor senltor ' cited a case where wherea \ whena here herea a hotel property Is being admln admin- admin administered adminIstered . - istered by three lawyers la\\yers la yers layers \ \ , no one oneot oneof onof ( ot of whom ever bad had any experienc experience experiencetn experienceIn experiencIn < In tn the hotel business , but who are arebeing arebeing anbeing being paid vaId $10000 10000 $ a year ye'lr yelr ' each areI for fortheir fortheir foitheir I their sen services Ices In directing this prop prop- property's property's propertys . - ! erty's ertys ' ' operations 1 1Actually i , Actually ActuaI1y , , ot of ofcourse 01course ! course , no one of the three devotesvery devotes devotesvery devotesvery very much time to the actual nctu'11 nctu11 ' op- op operation op oporation . - . eration eratlon of the hotelHits hotel hotelHits Hits Bondholder BondholderThe The point this senator empha- empha emphasIzed emphasized emphasized - - sIzed Is . " what chance does a stocl stock stockor stoclior or bondholder have of getting getUn any any- anything anything . - thIng when a property propel tv , , alre'ldv alreldv already alreadycrippled alre'ldvcrIppled alreadycrippled ' crIppled or It would not be In r re- re receisershlp recelvershlp - ceh ceisershlp ershIp . , has this additional load loadput loadput loacput put upon It if its ifMore ? ) More ) lore to the point Is the case C'lse Clse ' ofan of ofan oan an office building buIldmg \ where here t\\ t two t0 \ 0 1'lw 1lw law- law lawyers ' lawyers . - yers after performing a very mlDor minor mlDorleg'll minorlegal minoilegal leg'll legll legal ' service sersice sen Ice for one of the bond bond- bondholders bondholders . - holders ' protective committees , , sent sentbIIIs sentbills senibills bIIIs bills for $15000 15000 $ eich e'lch elch eachr ' ' ' It so h'lp hlp hap happens h'lppens Inppens ' pens tliat that if this particular particuhr partlcular officebuilding office officebulIdlng officebuilding bulIdlng building bad had posses possessed ed $30000 30000 $ at a the time-just time just time - - just the total of thIs thIslawyers thislawyers thislawyers lawyers ' bill bill-It bill It - it would \ ould not havehad have havehad havehad had to go into receivership at all'And allAnd nIl all ' ? And It so happens that th'lt thlt ' there areseveral are arese areseieral seernI seieral se\ se \ ernI other 'protective protective 'protecth protecth ' e " commit committees comml committees t ttees tees operating oper'ltlng operltlng ' at the moment Inbehalf In Inbehalf inbehalf behalf , allegedly alIegedly , of the bondhold bondhold- bondholders bondholders - . ers of this particular enterprise"The enterprise"The enterprise enterprise"The "The The " trouble about nbout anything an thing per per- permanent permanent . - manent being done , , " " the senator remarked re remarked remarked marked , 'Is Is ' is that there are toomany too toomany toomany many 'l\\ 'l l ' lawyers 'lers iawyers \ ers In congress I hap hapven happen happen ven pen to be one myself , but the factis f'lct flct fact f'lctIsand factIsand ' Is--and Is and Is-and - - and If sou you ou quote me by name n'lme nlme ' Iwill I IwIJI Iwill wIJI will deny I even had such a thoughttbe thoughtthe thought -tbe tbe -the the - the boys do stick stich together Andthe And Andtbe Andthe tbe the Judges who appoint recehers receisers receisersand receiversand recehersand and who pass on the fees of attor attorneys . neys net's nets ' tor for protective committees are areall areall areall all lawyers I do not know justwhat justwhat just justwhat what ought to be done about It , butcertainly but butcertainly butcertainly certainly It has approached the thestage thestage . stage of ot a scandal scnndal And beyond be ond theshadow the theshadow theshadow shadow of ot a doubt the propel property propertyof tyof ty tyat at of Investors who arc are unfortunateenough unfortunate unfortunateenough unfortunateenough enough to have put their money In Inenterprises inenterprises Inenterprises enterprises which get Into receiverships recel\ recel receler reedier reedierships \ er ersblps sblps ships Is actually actuaIly looted by the present pres present preseat ent eat system I hope that what shat \ hat thesecurities the thesecurities thesecurities securities commission starts willbear will willbear willbear bear fruit frUlt . . " New Dealers FussedNew Fussed FussedNew New Dealers are torn betweenpride between betweenprIde betweenpride prIde and alarm over 0er offer 0\ 0 \ er the action ction ' } ofNew or of orNew ofNew New York Yorle state electric companiesIn companies In proposing a substantial reduc reduc- reduce reducetion reduction reduction . - tion In rates They are proud thatPresident that thatPresIdent thatPresident PresIdent Roosevelt's Roosevelts ' policy of do Ing everything possible poe.sible poesible : . to lessen lessentre lessenthe lessentre tre the cost of electricity to consumersla consumersl.a consumersSs consumers l.a la Ss . meeting with is \ Itb ith such success Theyare They Theyare Theyare are a little IIltle alarmed as to whatthese what whatthe whatthese the these e particular cuts In thl this ' ) par par- particular particular particular - ticular territory terfltory may m'1Y m1Y ' do to thefight theflght the thefight fight approaching In the senate overratification 0\ 0 os \ 0er er erratification erratification ratification of ot the St SI : . . Lawrenceseaway Lawrence Lawrencesen Lawrenceseaway seaway sen \ 1y ' treaty trc'l trcl ' t . , Not that the votes of the NewYork New NewYork NewYork York senators are Involved Bothof Both Bothof Bothof of tliem them are strongly against thetreaty the thetreaty thetreaty treaty and und are expected e pected to standfirmly standIrmly st'lnd stlnd stand st'lndfirmly ' firmly ( against agalnt ' ) It 1t regardless reJ'lrdless reJlrdless ' of thepower the thePO theposer PO\\ PO POcr poser \ \ cr question Their concern corKern Iswith Iswith Is Iswith with tlie the port of New York andthe and andthe andthe the railroads leading through NewYork Ixess IxessYork e\\ e eYork \ York state to It , and with islth \ Ith the Crle tree treecanal Cnecanal Crlecanal canal The question of oC cheaper chl.1per chl1per . pow pow- power power . - er Is very mild In Importance hnport'1nce hnport1nce ' Indeed In Indeed indeed deed to tliem them In contrast with wltb thethreat the thethreat thethreat threat to the thc prosperity prosl1crlty of their bigport hi big bigport . ; port and the communication lines linesleading linesleading linesleading . leading to itBut It ItBut But Dut this cut In power po\\er po er \ rates InNew In InNew inNew New York state , presupposing pre.uppusing preuppusing : . fur Cur fur- further further . - ther cuts later on , hits hilts a very gerious serl sera serlous seraous ous blow at tlie the project 11roject as ns a n wholeso whule whole whuleso wholeso so to spcik spe see II ik , . It makes m'lles mlles males ' , far t'lr tlr ' moredifficult mor more moredifficult difficult the problem of com construing construingother convincingother irKing irKingother other parts of tlie the United Statesthat St'ltes Stltes States St'ltesthat Statesthat ' that the tbe whole scheme sdlCme Is economically economl eeonoml economlcaIly eeonomlsally caIly sally sound soundAt soundAt soundAt At present pres.J1t presJ1t ( . tlicre there are \ two \ 0 M sectlons bcctlonsof sectlonsof ? ( tlons tlonsof of the country countr arrayed arr.1)ed arr.1ed arr1ed nrrayed . ) agilns against ng Iln.t Ilnt : . > t e1ch eich eichother eichother e1chother other on this thus treaty treat treaty , for local locnl reasons rea reasons reasons sons All An of the tlue Atlantic and Gulfseaboards Gulfseaboard Gulf GulfiCatoardJ i-CatoardJ i CatoardJ seaboards - ! are against ng.1lnst ng1lnst . It for the same snme reason that New York YQrk Ygrk Is Isa isagainst Isagainst a against alnst II It : . . . Most of the tbe Central Centr'll Centrll ' and andNorth andNorthis anriNorthwestern North\\ North Northis Northestern \ estern states are for tor It on onthe onthe octhe the theory that It would pro\ pro pros proIde providecheaper \ Ide Idecheaper idecheaper cheaper freight frelgbt rates for their export ex- ex - export ex export - port products by letting ocean go goIng going goIng Ing ships come Into the Great GreatVl1.es GreatLakes GreatLakes Vl1.es Vl1es Lakes . . . Illinois IIJInols Is an nn exception Its geo geoglaphlc geographic geogiaphic glaphlc graphic position pOSltlon " would "ould ould naturaUym'1Ie naturallymake naturally naturaUy make m'1Ie m1Ie ' , It for tlie the treaty just jut lust ' ) as Mich- Mich MichIgan Michigan MidiIgan - - Igan , , Wiscon Wisconsin ! > ln and llnd Minnesota are arefor arefor anfor for It . , The canal \ would ould mal make e Chi Chicago Chisago Chlcago cago sago vh vlitually vlttually tuany an ocean port . . But Butthis Butthis Buttills this Is complicated by the fact thnt that thntIlHnoIs thatIllinois thaiIllinois IlHnoIs Illinois and Chicago Chlc'lgo Chlclgo ' want to talce take talcemOlO takemote takemoie mOlO mote mOlOater \ water \\ater ater out of Lake La1.e La1e . MichiganAnd MichIgan MichIganAnd MichiganAnd And President Roosevelt Rooseelt Roose\ Roose \ elt has not notI notthe notthe no'the nothe ' the slightest sJlghtest Intention of giving gling gning gl\ gl \ ing In InI into Irto I I to Illinois IIUnols on thisMight this Might Be LiabilityThis Liability LiabilityTills Tills This leaves lewcs tlie the Southwest andthe and andthe ancthe the Pacific coast not directly interested In- In Ini - I tercsted tcrcsted terested In one way or the other e'C eC ex e'Ccept except except " ' cept as the project may tend toprose to topro tcprove pro\ pro proe prose \ e an additional burden on theIr theIrta theirtaepayeis thelitaxpoycis ta taepayeis p'l.YelS pl.YelS plYelS ' . And there tbere Is where the theposslblHUes theposslbiiftfes thpossibilities ( posslblHUes posslbiiftfes of these rate cuts aI- aI al- al - already aIleady nl-icady nl icady - - leady ready planned , , and those obvlousliIn obviouslyin obvIousl obviously In prospect , come Into the picture . For they mean me'1n me1n ' that the current currentproduced currentproduced curreniproduced produced by the St . . Lawrence sea sea- seaway seaway . - way \ ay project may actually turn from fromw froawhat w \ h'lt hlt ) rat ' has bas been regarded as an asset assetIn , In consideration of the project as asun asan aian I un an economic whole , . Into a Ilabmt llabllity liabilityIt llabllityIt It Is even conceivable concehable conceisable that the President Pres PresIdent President Ident may lose loso some of his keen Ieen , In in- in interest Intercst . - terest In the project , , though he has hass'lid hassaid hassaid s'lid slid said ' nothing to Indicate thisBut this But if the proposed cuts of ot elec- elec electrIc electric electrie - trIc rate are followed foHowed by such sucb n a nprogram aprogram tprogram program of future cuts as has been beensuggested beensuggested beersuggested suggested , actually the chief reason reasonfor reasonfor reasorfor for big bis his being so strong for the thetre'lt thetreaty thtreaty ( tre'lt trelt treaty ' will wIII have disappeared He Hebas Hehas Hhas ( bas has never said s'lJd slJd sold ' so-pubUcly-but so pubUcly but so-publicly-but publicly so - - publicly - but all allhIs allhis al'his alhis ' hIs close friends frleI1ds know hnow that slnc since sincethe sincethe the beginning of his Interest In tbe the tbeproject theproject theproject project his bIs chief chlet concern was not notthe notthe notthe the seaway se'1way se1way ' to make cheaper che'lper chelper ' freight freightrates freightrates freightrates rates to Europe for the Middle and andNortb andNorthis anriNorthwest Nortb\\ Nortb Northis Nortbest \ est est . , , but the po\\ po power poer \ ' . er . . It was wasp'lrt waspart waspart p'lrt plrt part ' and parcel of his plan for fore foreIng forelag foreIng Ing lag down electric rates all aU over thecountry the thecountry thecountry country . . He ne\ ne never neer neser \ er said so for the simple simplereason simplereason simplereason reason that the tbe St St . . Lawrence sen sea senway seaway seaway way has been a very popular popu1'lr popu1lr |