Show WALL STREETS STREET'S STREETS HIGH FINANCE DECRIED BY N j J D. D ROCKEfELLER I Prefers Conservative Methods to Those Which Make MakeI Panics and anti Financial Flurries Possible During Prosperity's Prosperity's Pros Pros- I Reign I BLAMES BUMES OVER CAPITALIZATION OF RAILROADS 1 Victor A Watson After Long Ride With Standard Oil Oi Magnate Mag Mag- nate Tells of Views of Multi Millionaire on Questions Before Public I I n tty By Victor ictor A. A Watson nt on New W York March 19 For Fol For twenty- twenty four Cour h hours U from Augusta Ga to Phil Phil- adelphia I rode rd with John D. D Rockefeller Rocke- Rocke I I feller as a m member of oC his traveling I part party part During that time I learned that ho Is strongly opposed to the overcapitalization over cap of oC railroads 1 anti and other corporations cor con corI I that he e beJe believes In the con- con English corporation methods metho s sas as against Wall all Wal streets street's high finance that he believes CM the railroads have reached renche a point where they cannot borrow horrow any more mone money In this countr country country coun coun- try tr to carr carry on their Improvements and antI that he feels eels certain that the country Is hastening toward the shoals of or hard hardtimes hall times timed because of unsound financial meho methods method Further he believes es belc many or of the time stocks tocks on the tho market are unsound un un- un- un sound or they the would not be allowed to togo togo togo go on omm th the p public market marlat h by p the men amen who control them But further than titan this I hn had probably probably abl ably the best opportunity nn ammy one has ever had to study th the richest man maim in inI inthe inthe I the world at ut close range and amid before time the end of our long bug ride ridE I was forced to the conclusion that back of the re- re set servo which I I. I is known of or this man of or orm m mystery lr I found a human I a spirit o of unctuous humor ou a desire de tie- sire to do 10 the tw greatest amount of or good goolt that he can with wih his millions Rockefeller slept nine out of or the twenty four hours hour during dining the remainder remain remain- I der tier of time we were constantly together We Ye talked almost t constantly constant constant- ly h discussing railroading finance re religion re- re ligion men meu newspapers politics and charity Ho lie le re JOCIS l on St Stock k V Wit Vort tP It Ii po possible to give aU all al tho the tie ilc- tails ot the c conversation nver doil without yb- yb M 1 v rs r's confidence It itI I I would give he the thc public a a Keen t eil Insight Into all ni of ot his thoughts though and reveal him a as he hl really Is 1st I 7 had hl his consent how how- I ever evor c to lo publish a n certain part port of ot ou our Interview This part purt he lie summed up imp si u short thought of or tho the financial finan cial troubles and anc tIme the tw creating a feel feel- feeling ing big of or unrest st throughout tho United States Regarding the tho stocks which seem sem so alluring to the public I have but buta a single le observation to make he said Id Into the tho street and If ir a unarm mar goes leet finds a certain stock that Is declining constantly although U it Is paying a n 6 t per cent dividend It I seems strange that ho doesn't stop slop to consider that If the Iho stock is such a good proposition the men hack back hac of it I it with plenty ot or alone mone money at their command did l not keep kepp it i In their control It I Is reasonable reasonable reasonable reason reason- able to suppose that ir If In a good le legitimate le- le wn way the stock is actual actually earning C G 11 per imet r cent and will wi continue to do so that it would not be he allowed ed to go bO out of tho the hands hand of oC the con- con Inter Interests That Mr Ir Rockefeller believes this is shown n b by tho lie fact that thal he nn and amud the theother theother other Stan Oil 01 men control about 90 SO per pel cent of that tock stock while the public has imas not more than 10 per Ir cent of It Do you think the time railroads and other big biff corporations are e at their proper capitalization I asked e Railroads O cl Over Xo No o they are ast vastly overcapitalIzed over capital o C Ize That runt Is not nol a healthy situation One re result of It I I saw last summer while I 1 was abroad The Time American railroads neEde needed to lo carry Ca'- Ca' CaI car car- lj ry I on fl some SantO of or their ement Improvements The They could not nol get It In this count country anti and the they had to let their notes go abroad at about aboul C G per cent That Thal In Interest interest In- In tele terest t must be paid no matter mater what happens to the dividend ond the American public expects expect Do you OU bel believe eye it I Is a sound financial finan finan- cia cial 1 plan to o el over capitalize I Ir most assuredly do not nol I presume I should not criticize in this respect for Cor some Rome of or those who have done dono it I ar are friends of mine amine I ma may probably be bo called an old for not nol agreeing agree agree- ing ipg with these now no financial methods If I the time methods metho s seem scent unsound to a a. aman n man In your po position wh why al' al are they I. I followed Why Yh 1 I 1 presume O there Is a great deal ot or temptation to make momme money quickly but pen personally and eve even I If itt I ll t ant I think I would O over over-en over pi Hi penalty l I Is too great great geat What hat Is your OUI l Idea ct of the policy of or a big bg railroad commission I nm am not 1 a a railroad man alan so O I cannot can- can riot not sa say but generally speaking I r would like Ikc to 10 set see tCP the Orl class q of citizens Who sho have ha their money In iii their Ing banks holding holding- tl Itt stocks stock Rn and bonds I presume pi an any socialist l would shake hll lands huhti ds with wih me on omu that point r T think that properties should Rhoul h be capitalized el elat at only their legitimate e values amid If IC that were done rone there would be bo such a feeling o of security in them thorn among r the general public that we uve would find fud J J mon man with wih a little mone money holding high high- P I y profitable stocks Instead of allowing It to remain at finall Interest In savings sayings say sav l'- l' ings banks Without public confidence in iii our corporations of or course that situation sit sit- unton can cnn only be a dream In England the shareholders have c something to M say about how their corporations corporations cor cor- tons pO-tons shall be run An Any man mon OwnIng ownIng ownIng own- own Ing n a f few W shares can cn always alwa's get et H v. v hearing He Ic simply Pimply has ha hato to notify th management that he desires to ad address addres- rE 1 v t ll It I and he can caim be sure that he will wU I have an opportunity to say what I Is on hi his mind Sa Sad to relate a n mann man In iii Inthe 11 the same m relative position in this i country would n not l bo be con considered i I count It I would not nol be a good thing for or u us tie j to adopt the l English Ush plan a as n R whole I J j think It 1 goes oes farther arther too far Car nn and prevents prevents pre pre- o j vents men from rising Something after J their method which would woul Rive give broader 3 opportunities for or the bu builders els el's and ond ere ere- l atom s and planners would be more to our American liking for or after al all the time oun- oun J tl try y owes a a t thing to th these J very ver a athen thou then whom prone Irol a to criticise TJ i Americans want s great greal nl o opportunities nm mund J th they should b be limited 1 only b by what whal Is rl night h Just nn and sound 11 Cannot Su Suggest t a Remedy The TIme richest t man On in in tho the tho world spoke eagerly a as if Ie h he had given a great groat deal of M thought to tho subject t of how a radical change might ht be bo ma made made- madeI I asked him hun what could be done about the time great corporations that are arc now existing under r what he hue con considers a false financial basis hasl I 1 am unfortunately unable to suggest a a remedy For future corporatIons corporation howeVer however how how- ever I 1 would woul suggest th the conservative plan Illan If l the property Increases In value aile let Itt It Increase antI and Ind If it this thu tl volume of o business Is hi great let It the original subscribers sub suh- scribers s 's get the large lage dividends Then If money mousy Is needed for or the Improvement of or the plant the stockholders will wl by hue j only too glad giad to advance It rather than ham allow alow too many outsiders to get In ln on ott a a. a high highly profitable Investment 1 Would you suggest that time the railroads anti other 1 corporations reduce their present pies pres ent n Wouldn't that bring about the desired effect No most decidedly no It I would in I my amy Judgment b be next to an un Impossibility to reduce Just think of or the chaotic that would cause We e have ha supreme me court ourt d decisions and f I cant can't think of ot all aU the time laws la 1 and lawyers one of or the big corporations would run rout c counter unter to I If rUI an any such uch effort were lade made I 1 have considered d that a great deal and anti I positively cannot see Hee how It might be done without bringing about a worse ors sit situation than we have now nosy NOW let m mime i- i take the Standard Oil OU company No I guess guei guel I won wont won't t for or I II might ht be too 0 elo do- quent in sounding our our own o n praises ls that th-it I r I might be I |