Show ENGINEERS ARE GETTING TOO BRIGHT The Brotherhood of Locomotive Engineers was Ignored by b Wall Wallstreet Wallstreet street until the brotherhood started out to do a little little financing of its o own n Then the Wall Street Jour Jour- Journal JournaL nal naL the mouthpiece o of the big In- In Interests Interests became disturbed On last ast t Tuesday Y the Journal devoted halt half a column of space to a criticism of othe the Brotherhood Investment com com- company pany of o Cleveland Ohio of o which Warren S Stone the head of o the th Brotherhood of ot Locomotive Engi peers cers Is the president The Wall Street Journal sa says 1 For more or less public sub sub- subscription this Investment com com- company company company pany offers 7 1 percent per percent percent cent cumulative preferred stock at par with a bonus or of orone otone one share of ot no par common stock for each two shares of preferred stock subscribed subscribed for Observe that the preferred stock has no vole The control of the company Is vested in the Brotherhood of Locomotive En En- Engineers Engineers by the holding of 51 per percent percent percent cent of a common stock which in the ms IS as flagrantly water most extreme sense of ot that much abused abased term term as anything the Rock Island financiers finanders ever put out out ut It is said la in the prospect prospectus prospectus t 5 that the proceeds of the present are re to bused be for the purchase of or various vanous types of income producing m in- in m securities such as government municipal public utility real State estate and corpora corpora- corporation corporation tion Uon bonds and the like and for investment in ill stock ot of ban banks or trust companies r What Is the margin above 7 per cent obtainable from such uch investments as these for dIstribution among the com com- common common common mon stockholders 1 Is it it as the prospectus says to estimate that the common stock will quickly be put on a dividend basis 1 Is fa it reason reason- reasonable reasonable reasonable able to that the pre pro preferred preferred stock will be able to the 7 1 per cent over any Iny representative period of ot years ears that its ita Investments will III all II be good ones that it will never Dever have to foreclose a mort- mort mortgage mort mortgage gage e or write off or off 7 The Insurance companies can can- cannot cannot not nol work this standing miracle and nd they have the very best fi- fi financial fi- fi financial fi financial advice and experience available Wall street bankers will tell you ou that thai making money is up up- upon upon upon on the whole not S as using it to sound and perma perma- permanent permanent permanent nent advantage 1710 T e whole country knows that simpleminded simple simple- simpleminded simple minded minded people can save but they the fall innocent victims or at least partly innocent to the wiles of or get rich quick company compau promoters promoters There Thero is nothing of the ilie get rich quick quality about this proposal of the Brother Brother- Brotherhood Brotherhood hood of Locomotive EngIneers It is simply an unsound busi bust business bustness business ness proposition based upon a fallacious assumption Apart from the indefensible character of the watered voting oUng stock there is no way in which the 1 no per cent preferred can be bo assured with safety There is no such money lying about or even obtainable by financiers with far lar moro experience experience and broader credit than 1 an anthe the proposed Brotherhood investment In- In Investment In Investment vestment company The Journal so as not not to io be open to the tho charge charse of prejudice prejudice makes this thia statement There is iio no i o broad minded broad reader of ot this column who does not feel sympathy for the just alms aims and claims of labor So long as the ilie and brother brother- brotherhoods brotherhoods brotherhoods hoods conduct their business within the law and pay their way their financing la Ls their own business When they thuy SO go Into banking their credit becomes a matter of public pub pub- public public lic interest an stia still more must they expect criticism when they embark emback upon the business ot of company flotation and aad finan- finan Onan-ing Onan Ing C CIn In his investment of ot the funds of a athe othe the he locomotive engineers Warren WarrenS S Stone has shown ability and careful financing The railroad men m hale hJ e a bank and other interests which have made them money their dealings dealings with the public have haTe been on as high a plane piano s as as any n bank In Wall street As to the poS possibility of or the the- the wA the w w stock perhaps the engineers have learned the art of high finances fi- fi finances nances and are arc attempting to get In a II class with the manipulators manipulator who starting with small Interests Interest have seen their wealth expand as have havo the Rockefellers the Morgans and the tho Garys Garya In answering his crItics we hope e Warren S Stone will let ua us all alt to in toon n on the secret of o success |