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Show Railroad Financing Fin-ancing Profits Onco again testimony has bcou presented to the public Indicative of tho comparatively small profits mado by bankers In connection with rill load financing handled by them. It Is nn ample refutation of tho charge so frequently heard In tho past and still repeated at times that this or that system has been "milked" or "looted" by bankers. James Speyer, at tbo recent Investigation Inves-tigation into Rock Island mtnlrs by the Iu(orstnto Commerco Commission, Commis-sion, stntcd that Speyer & Co., hnd purchased $170,409,500 of bonds nnd notes from tho Rock Is'and between 1901 nnd 1912, nnd that tho total profit to the banking firm in handling this aggregate of securities was $1,-138,750 $1,-138,750 or about .8 of 1 per cent nnd this In n period of eight years. After all tho abuse that lias been heaped upon tho house of Morgan In connection with Now Haven flnnnclul transactions, It will bo remembered that J. P. Morgan camo out with n statement Bhowlng a surprisingly small profit to that firm ns tho result re-sult ot noting as fiscal ngents for the now Haven. In a letter ropylng to Chairman Elliott El-liott of tho Now Haven, who had nsk-cd nsk-cd for a statement covering tho fiscal transactions botkeen tho Morgan firm and tho Npw Haven, J. P. Morgan Mor-gan said thnt In tho 20 years from 1894 to 1914 his firm took part In tho handling of New Haven and subsidiary sub-sidiary company securities of tho par valuo of $333,000,000 from which wns realized a total net profit of approximately approx-imately $350,000 an average of but $17,500 a year. Tho total profit amounted to only 1 of 1 per cent on tho par vnlue ot the securities handled. han-dled. What other business enterprise would consider this nn "excessive" profit? Boston Nows Bureau. |
