,-

WJU..
-

#. ,

CODE
Vulwur 207. XuL11
Feb. Y,
1935
'
.
eekly
Benj. Fratklin
5
e.
AGATHA CHR'STIE + JIM COLLINS + GENERAL JOHNSON
c

opposed
24 THE SRTURD.Y EVENING POST February' 9, 1935
C UNDERWOOO . UNOERWOOD
Henry P. Davison Julius Kruttschnltt (Right), .ccompanled by Marvin Hughltt, of the Chlcago.Northwestern
imagination. His
implemen ts were
facts; he was a li v
ing index of all rail
road facts.
Kruttschnitt him
self told me a story
one time that illu
minates his character
somewhat. From a
quite inconsequen
tialbeginning in rail
road work, he had
risen to the post of
division superin
LRPhRPLc
teudent on a rail
road that crossed
Kansas. In due
course the president
of the railroad was
B J.
reported as ready to
make an inspection
trip over the line.
Young Kruttschnitt
determined to be let-
AND BOYDEN SPARKES
B
ECA USE I was a director of many railroads, I
traveled thousands of miles every year on trips
of inspection. Consequently, I came to know
well and to admire many of the men who were oper
ating the properties controlled by snch giants as
Harriman and Hawley. Harriman had been a
broker on the New York Stock Exchange before he
began to concern himself with railroads, and Ha, w
ley-well, Hawley was a mouse-fa.ced, taciturn
bachelor who remained to the end of his life some
thing of a mystery. To me, the biggest mystery of a,ll
was the fact that with a fortune of many millions he
died intestate. These great capitalists had as their
lieutenants practical railroad men. Naturally, be
cause of the City Bank's relations with Harriman, I
was in especia.Jly close touch with his roads.
Out of a host of men important in Harriman's
service who clamor for recognition, I fnd myself fx
ing my mind on Epes Randolph. Mr. Randolph was.
a grand man, one who was particularly lovable. I
am sure you might find a thousand men who would
be as fully aware as I of his endearing qualities; but
there was much more to him. After developing
tu berculosis, he had moved to Arizona, in order to
stay alive. Ou t there, despite his afiction, he wen t
ahead as a forceful person. It was he who built the
Southern Pa.cifc Railway of Mexico against a back
ground and social structure almost medieval. It was
a heroic work.
Another who greatly helped to give substance to
Harriman's visions was Julius Kruttschnitt. Harri
man was rich in vision, in imagination; there was
in him something of the quality which a poet brings
to his work. But Kruttschnitt had absolutely no
ter perfect in his
knowl edge of his
own division. He boned up on every possible sta
tistic until he was prepared to report on each item
of physical property for which he was responsible.
At last, early one frosty moring, the specill, train
arrived at the station where he waited. The presi
dent, from his private ca,r, stepped down to the plat
form and to young KTuttschnitt propounded a dis
maying question; it was the only one he was not
prepared to answer.
"Wha t," asked the presiden t, "is the ter pera
ture? "
Kruttschnitt, when I met Jlim, had become a
ruddy-faced man of great bulk ani slow movements.
He had become the catechist of a host of divisiona.l
superintendents. Kru ttschnitt was the one who kept
Harriman's railroads in tune. He was not a man to
let enthusiasm run away with his judgment, and that
was something that made him tho perfect comple
ment of E. H. Harriman.
Harriman had the philosophy and the methods of
a Mesopotaman monarch. He was not easy on his
subordinates. He did as he pleased, ruthlessly seiz
ing every advantage that he saw, regardless of the
rules that govern ordinary men. I recollect a time
when Robert Scott Lovett was just about heart
broken by a thing that Harriman did. Judge Lovett
had learned about a certain matter in the strictest
confdence. It was important to his honor that that
confdence should not be violated, particularly from
any quarter where violation of it would be harmful.
Judge Lovett, who was general counsel of the Ha, rri
man roads, also felt obliged to tell Mr. Harriman
what he knew. In doing so, he impressed upon him
the confdential character of what he had told him.
Mr. Harriman immediately made use of the in
formation.
" I don't see how you could have done such a thing
to me," Judge Lovett chided Harriman in his be
wilderment.
"I understand these things so mnch better than
you do," retorted Harriman, in a tone such as he
might have used to a small boy.
Well, I was not willing to let Mr. Harriman be
the judge of right and WI'ong for me. There were
times during his life, when I was sitting on the
boards of his roads, where I underwl!iting
fees because I felt they were too high. As a director I
beleved my obligation of trusteeship ran to the
stockholders, and not to Mr. Harriman, nor the City
Bank. I have in mnd recollections of occasions when
it was pointed out to me, in a hurt tone, that the City
Bank was sharing in those underwriting profts that
I thought were too fat. I hope I do not sound mealy
mouthed now, becanse, actually, I am trying to
throw light upon something that was built into my
character. Words that were spoken solemnly to me
through the bea,rded lips of my father, when I was
small, seem to have fl ed little reservoirs of emotion
that have controlled many of my decisions.
When Directors Don't Dirct
`
=it should be said that when a company is run
by a strong, dominant executive, his board of di
rectors usnally is glad to vote for anything he wishes.
Quite often, I suspect, directors have voted without
troubling themselves to inquire as to the purpose
behind some move they authorized. Indeed, I recol
lect an illuminating story Mr. Stillman once told me
concerning the board of the New York Central, under
the autocratic direction of Commodore Vanderbilt.
There had been a leak of some information to the
public, and Mr. Vanderbilt was greatly irked by it.
It was information that never had reached the board.
One director suggested, with something of a stutter,
that the best way to stop further leakage was to elect
the culprt to a place on the board; then he would
not know anything worth leaking. Well, Harriman
did not always take his directors into his confdence,
either.
There came a day when Harriman was departing
for Europe. The executive committee had a regular
meeting scheduled for that day; but as Mr. Hmi
man's ship was to sail at noon, we were asked to
meet at his house and then, in the afternoon, to fnish
the routne matters without his presence. Accord
ingly we gathered at his home, transacted some busi
ness of no great importance, and, after bidding him
bon voyage, went down town. Otto Kahn, of Kuhn,
Loeb & Co., remained behnd so that he could go
with Mr. Harriman to hs ship. Mr. Kahn came
from the ship to our meeting and reported that there
was an important matter requiring our attention,
something tha, t Mr. Harriman had forgotten to
mention.
uI!

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KtYSTONE VIt"
THE SITURD.Y EVENING POST
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uUU lal IBgaIU aIDaL as a man O g!Bal
uI!Ilywho rendered SBIVICB lO lB COHDl!, OVBVB
St\S! BVBUl aOHl Il. JB HI!l H] 1S ]!O]BIlIBS
uDU tXltDUBU lBD, USHa!! WJl VISUOD.\DBD he
fought., B IOUgl aS SlalBSDH Dgl7l a!! lB
OICCS al IS CODDaDU. The DO-l IU]OIlaHl O lOSB
!O\Ct: VuS IO!t]

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UHtlOthe fact tha t I !B]BO]!P VtIBC]lD!gDOIa DCB
O the afhrirs O! l l\US1S. B uUSa!UUIlB!aHG
1 still agree wth Dlal COI]OIal!OD !uVB!S
II]L!U 1 !J1lI-lS O their uIBDlS uOUDSB!I!g
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t! m who h,n'e been On JuD O0IUS WO VOH!U Sa
such report- mieht not I:V`u! DUu. ^ODB O lB
!g men of Wall Str;t ('ol d lO!C!ulB lt lOHgl O
]UI\\` Wbeu there. lB VBIB SHS-
piciolls (f rEprlel. thlY were eqnally -US]uOHS O
JL who would talk WI1D rpporter. iuPJ`, !O'gaJ,
>t man. R\OIUFd Ouuu:--. Il VuS \L
hoDorable hut m1-10KPu part of lPI iitU.
A great t0Ouy on a ]\lt St!VuB
IS HO1 u pI'i"ate lHH it aet. lOO many VCS.
i!OD my tuTHP\ day- ;I: reprter. when Thad !.O
PO7CHmy way into -\uHolUw- m;elin by UI !g
Mr. and Mrl. William Rockefeller
25
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Ba! 1al alBI IBVISIOD (Continued on Page 70)
70
*
15

p
wa

\Ter
1m

THE SJTURDAY EVENING POST February 9,1935

(Continued from Page 25)
PICTURES EXPLAI. N NEW TREATMENT SIMPLE
DOCTORS NOW PRESCRIBE
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1 Crush and .Iir 3 BAYER Aspirin Tablels in
1/3 glass of waler.
3. If you have a cold, lake
2 SAYER Aspirin Tablets.
Drink full glass of water.
Repeal if necessary accord
ing 10 directions in package.
Here's a safe, modem and efective
way to relieve sore throat. A way
that eases the pain, rawness and
irritation in as little as two or three
minutes!
Millions are now following this
way. Doctors are advising it. Try it.
Results are quick and amazing.
Simple To Do
All you do is crush and stir 3 BAYER
Aspirin Tablets in a third of a glass
of water. Gargle with it twice-as
pictured above. (If you have signs of
a cold, take BAYER Aspirin Tablets
and drink plenty of water.)
Get real BAYER Aspirin Tablets
PRICES ON GENUINE BAYER ASPIRIN
BOTLE OF 24 TABLETS NOW 25c.
2 Gargle TharoughlY-Ihrow your head way
bock, allowing a lillie to Irickle down
your throal. Do this twice. Do not rinse mouth.
for this purpose. They disintegrate
completely enough to gargle without
leaving irritating particles.
BAYER Aspirin prices have been
decisively reduced, so there's no
point now in accepting other than
the real Bayer article you want.
NOW REDUCED TO
RADICALLY REDUCED ON ALL SIZES.
BOTTLE OF 100 TABLETS NOW 75c.
!
tbM
JPBDBDl8
I l
72 THE SITURD.Y EVENING POST
P'EASE READ THIS ONE .

Perhaps you prefer to put of think

iUg about caskets and funerals until
you have to. It is a natural feeling
but one that has resulted in painful
and costly mistakes.
Bereavement gives little time to
fnd out about these things. Nor do
you feel very much like investigating
costs and values at such a time. That
, is why we ask you to consider-and
remember-a few simple facts now.
NATIONAL CASKETS are made by
the world's largest manufacturer-a
company with half a century's ex
perience, a concern that "has never
leared how to make a poor casket."
NATIONAL CASKETS are made of
wood or metal, in many beautiful
designs and fnishes, in every grade,
and at every price. They are sold by
leading funeral directors in all parts
of the country. The quality of ma
terials and construction is easily
demons trated-and NATIONAL
CASKETS cost no more.
For your own protection, you
should be certain that the casket
you select carries a trade-mark. And
remember that, on any casket, the
trade-mark of the NATIONAL CASKET
COMPANY is an absolute guarantee
of value and quality.
We urge you to send for our book
let, "Funeral Facts." In it you will
fnd much valuable information about
the conduct and cost of funerals.
Write Dept. P-2, 60 Massachusetts
Avenue, Boston, Mass.
GOOD SERVICE COSTS NO MORE
A modern establishment -a trained, in
telligent and courteous personnel-dis
tinctive motor equipment and ot her
evidences of progress and prosperity are
not an indication that funeral servIce
charges will be high. A successful concern
can be built only by serving honestly and
well, at prices that are fair and reasonable.
NATIONAL /aCOMPANY. INC.
Display Rooms in Thirty Cities
LOOK FOR THIS TRADEMARK WHEN YOU BUY A CASKET
(Continued from Page 70)
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o

e
"'
uu of life have worked chemical
changes in that which is labeled Frank
Vanderlip. Naturally, then, I am dis
posed to admit that I was changed
when I discovered that I had become a
milli0naire.
A million and a half dollars became
mine almost with the swiftness with
which it might have' happened to
Aladdin. I had come from Washington
in 1901, possessing barely $2000. In
nine years I never had spent all my
income, and I had made some beyond
my sala, ry as a bank ofcer. Then I had
scented a rich opportunity in a Texas
land deal. There was a deposit of
sulphur on the property. An ingenious
method had been developed for getting
sulphur out of the ground. The trick
was to send live steam deep into the
earth, and then pump out the water
into which the sulphur had dissolved.
I made a substantial commitment of
one or two hundred. thousand dollars,
as I recall it. I ,'ent into the venture
with E. P. Swenson. He had large land
interests in Texas and also commanded
an active organiza, tion down there
which could be relied on to develop the
property on a sound basis. The specu
lation proved highly proftable for all
who went into it. What we developed is
called the Freeport-Texas Sulphur
Company. A million and a half! I as
sure you that for me it was more than
an entry in my account book., It was a
throbbing emotion.
Upon each of the six occasions when
I was freshly aware that I was the
father of a new personal ity, I grew ex
cited; but I managed to do a day's
work. I was forty-six when I had this
experience of becoming a millionaire,
so my appetites were under control.
I did not indulge in a champagne cele
bration; that was not my wa, y. I felt
a sensation of pride, of well-being, of
confdence in my ability henceforth to
look after those for whose lives I was
especially charged with responsibility.
From boyhood I had been driven, al
ways, by the haunting knowledge that
I had dependents. Security for them
wa,s the thing I had been trying to buy
with all my eforts. Now that I be
lieved I had achieved that goal, I felt,
if the word is permitted, swell.
Balance of Power in Wall Street
I never bought a yacht; I never
bought a stable of race horses; I never,
so to speak, kicked up my own heels.
Let me see; N arcissa was born in 1904,
Charlotte Delight in 1905, Frank
Arthur, Jr., in 1907, Virginia Jocelyn
in 1909. With plenty of money, I could
create a school for them! Actually, be
fore I was fnished the project cost me
about .alf a million and had 300
pupils. Education was what I had
yearned for always, and they should
have it right at their front door.
Kelvin Cox came along in 1912, and
John Mann Vanderlip in 1916, and
none of the six ever had to go of the
premises to get into the Scarborough
School. That, I confess, was Imlry.
vVherever I was-in Europe, on the
ocean, on trains at night-I could feel
comfortable in the knowledge that
they would all be there waiting for me
when I should return to play with
them. But the truth is that by the
time I really could play with them,
most of them had gone right ahead
and grown up.
For a number of years, between the
City Ba, nk, the First National and
J. P. Morgan Co., there was an
agreement that on any issue of securi
t.ies originated by any of the three, the
originating house was to have 50 per
3M OW3O1W3 VWIW1 IO3 1
cent and each of the other two was to
have 25 per cent. There were other
a,rrangements that refected the exist
ing balance in the money power in
Wall Street. Personally, I attached a
great deal of importance to the fact
that the City Bank was the biggest
bank in the country. Mr. Stillman
attached even more, I think, to a state
of good will among the big houses. He
was constantly urg'illg upon me the
importance of keeping on pleasant and
co-operative relations with all the im
portant interests. He would remind
me, over and over, that this meant a
great deal for the nation in the develop
ment he felt was bound to occur in the
succeeding years. I, too, believed in
co-operation, but a, situation began to
develop that theatened our place as
the nation's frst bank. Those respon
sible, I felt, were partners in J. P.
Morga, n Co.
J Bankers' Battle for First Place
The Bank of Commerce was really
the troublesome factor. After the in
surance investiga.tions that brought to
the forefron t of American life the vig
orous, acute and persistent Charles
Evans Hughes, there had been an un
measured shift of banking power.
Harriman, as it happened, had bought
control of the Equitable Life Assur
a, nce Society, which in turn owned con
trol of the Bank of Commerce. All dur
ing 1910, the Bank of Commerce was a
cloud on my horizon. At intervals I
would hear of new plans for dealing
with that rival bank, owned by the in
surance company; each scheme was de
signed to make it more important in
New York. In February, I recall, I had
a conference at the .Morgan offices with
Mr. Morgan, Jr., and Harry Davison.
We talked behind closed doors in a
back room.
They were fearful, they told me, that
t.he Ba,nk of Commerce would become
a derelict in the fancial sea unless the
house of Morgan took command of it.
Their plan was for Mr. J. P. Morgan,
Sr., to retire from the board of the
Bank of Commerce; then a fnance
commi ttee was to be formed, consisting
of Mr. Morgan, .Jr., Davison, Paul
.Morton, Mr. Pea. body, of the Mutual,
Woodbury Langdon, Mr. Snyder, of
the Bank of Commerce, and .Jacob H.
Schif. I snifed at that as suspiciously
as a wild horse inhaling strong odors
on a prai rie wind.
I said that the plan appea. red to me
a very radical step; that I thought it
settled forever any question of con
solidation of the City Bank and the
Commerce; tha,t if there was any reason
for discussing such a consolidation as
that, it ought to be discussed promptly,
before this other action was taken. I
told them the Bank of Commerce was
directly competitive with the City
Bank in every way and that putting
J. P. Morgan Co. behind it could not
but dissipate the value of their con
nections with the City Bank. What I
urged upon them was that Mr. Still
man ought to have time to consider
any deal involving the Bank of Com
merce.
Davison and Jack Morgan told me
plainly that delay was impossible;
action had to be taken at the meeting
of the Bank of Commerce board on the
following day. Then I went uptown
and saw Mr. Morgan, Sr., in his li
,
brary. I told D that I regarded the I
action proposed a of the very greatest
importance to the City Bank.
"Mr. ]Iorgan," I said, "I feel it is
my duty to say in the strongest way I
can that this matter should be held up
How t Torure ur Wi
fU!1
THATS RIGHT USELESS, OLh
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L!O1^ L1TILE LOVE
LIh. '3L E^FF
MUDt/I ||7CL l
[OOl< AGO-AND ALL
| L>cL \PG DRANO.
DO I IN TE
MORNIN6.
vMILc 3U VJolNHPfL v|PG vOFRJM Dt tM TC OHPtr~
/ML cHE l3 l CLEAN P F VHlb LET fc ELL`OL IfYOU'L
USE DRANO cVcNX W!, |~ ALLC DRAINS-WL PLL (tUq|j |fE
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74

'..
,
wa'
-
]tt]
THE SJTURD.Y EVENING POST
He husband fooled her
for her
NERVES AGAIN, MARY! WON'T
YO U TRY DECAFFEI NATED
COFFEE?
own good!
YOU KNOW I DON'T LIKE IT.
Pretty, cheerfl Mary ... always the best of wives! But now, cofee is making her
edgy, ruining her disposition. And still she enjoys it so much she can't give it up.
SWITCH COFFEES, HANNAH. MAKE
IT LI KE I TELL YOU. BUT DON'T SAY
A WORD.
AH WONT TELL,
MISTAH BROOKS.
$ Bill has found the cofee for Mary. Kafee.Hag . . . 100% fne cofee, 97% free
until OH CuH UISCHSS !l VitH Nl'.
ClIllDBD.
`JD]OSSIlB, HB SuIU. "Mr. ClI!!-
DRD WI!l ]]IOVB lHIS BDlIIBl. 1
!OR!l lO lHB \Il RDV IS as IBl S
D!Ou!lOI lBHID O .I. P. OIRD
& \O.
`IS SlB] WIlH lB Bank O \OD-
DBICB is ODB DOl BuSI! IB1IuCBU. Jl IS
DHCH SID]!BI lO Wu!l HDl! Mr ClIJ-
man HRS IVBD HIS R]]IOul!OD.
`OH SOHlU trust De, lO UO VRl IS
iIgl, SRIU Mr. OIjuD. `J VOH!U CHl
OH D IIHl HuDU BOIB J WOH!G in
)HrB \OU OI I . ClI!!DRD. `OH can
COHDl OD lHul uSOlHlBl. H1 lDBrB
RIB BDUlBSS COD]!ICRlIODS lUul DRBIl
QHlB HDVI5B lO VuIl
`J IBIBl, 1 said, "thal J \as DOl
I\BD DOIB DOlICB O lB IDlBD1IOD.HB
RDK O \ODDBICB Sl:t1GS SQUu IBl
RCB lO uCB VIlH us ID COD]B!!lIOD. J
JOIRD & \O. Bl BIDU lP 1uDK O
\ODDBICB, OHI ]IIUB VI!! B S1uKBU
OD DuIDg !HB RDK O \ODHBICB
IgPI uHU IBI.
The Elder Morgan as an Ally
1 IB]BRlBU WHRl HIS SOD HuU SuIU lO
1BlHRl i OHHl DOl lO BB! coneered
about lHBRDKO \OmDerce heeoming
RrBr lD lHB \Il RDK. 1 lUIU ID,
as ]!BRSDl! as 1 COH!U VIl the force
J felt lHB SIlHl!OD CR!!BU Or. lhat !l:
]OSIl!OD as lHB IBSl bank of the
Hl1OSl iD]OIlanCB lO 1B City Bank.
Cu!BSlO.Mr. ClI!!HuDill U$\ hu\B
RlIDBU HID, BCRHSBJ OHDU I neces
SI lO uSSHIB H!D VIlH UIl r cable
DBSSBS 1HRl lHB interview I HuU
HuU. WHI!B ID, were entircly pleaaIlt.
1 1O!U HID, HIlBI, 1Rl Il wa a ]Os
SI!B 1HID OI OIuD & Co. [ put
1HB RDK O \ODDBICB u ad f te
\Il u DK D UB]OS!l S any lIHP they
COSB, lB COH!U UO Il vI\D he UB-
]OSIlS O LIHSl COI1I]aD!i- HC COD-
lIO!!BU uDU WIl ra!lrOaU ,1CC WI ts.
HB DllBI UIuBU uIDDP tDBD,
VIlHOH l sBr!OHS developil nS. HDlI!
lHBIB WBIB OD! forty-eight hours Bl
O lHB OlU BuI, but \\a1 1 leal'Ued
lHPD DuUB DB BBl 1H0l 1. 11 \\OHlU B
from nerve.driving cafeine. He tells the cook: "Perk it twice as long as ordinary cofe." RDtIDg Hl R !R]]] `t\\ Year for
WE FOOLED
YOU, MARY.
TH IS IS
KA FFEE- HAG!
WHY IT ' S GRAN D COFFEE!
AND I FEEL FINE!
DB HD!BSS J VBDl S]eeUily into aetIOD.
HB DBV ]!D WuS R :al by :11'.
JRCK ll OraD and Henry Da\'isOn.
B!I SHPSlIOD wuS tat a pool B
OIDIU tO puchase the jquitnble Life
Assuance SOciety' s OIU!- of th",
Bank O Commerce StOck. Pr ident
Sn\UeI was 1O IBS!D IOD It am
DeICB RDU lHB RDK VuS lO be III rged
VIlH 1DB \HRSB DK IDlO an institu
l!OD 1Hul BODU question WOH!U OVBI-
SHUOV 1B \Il RDV. J BgRD lO
S \B!! Wl SOHBlHID VBI DHCH lIB
!aB. YB VBIB 1O be IHCHUBU ID IB
]Oo!, !ODy VIlH l\IOruD & \O., lUB
First ,t|.1IODuI RD. and Kuhn, Loeb
& \O. ` HHD, Loeb & \O.' HB
v`BIB lOO SlIOD uDU HuGDOl BIBlOOIB
BBH !DCUUBU ID OHI bu llKiDg g!OH],
NIy IDUIDulIO! inCrBuSBG.
o Bill's deception works! Mary can't taste the diference in the cofee ... but oh!
I IBDBDBI now OV v!gOrOll Sly I
tIHSHBU H hal OD D BuU uDU
what a diference in her lIerves . ..and her smile! Give the thanks to Kafee.Hag Cofee.
SlarlBU OI1H. CO UBB] UIU J DIBulB
(Pronounced Kofee-HAIG)
Send 15C for sample can
KELLOGG CO., Battle Creek, Mich. (2) SEl' N 2.9
Send me a can of Kellogg's Kafee.Hag Cofee and booklet.
I enclose 15C in stamps. (Only one sample to a family.)
Mr.
Mrs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Miss
Street ........................ . ... . . . . . . . . . . . . . . ..
OD lHul CO!U Uuas 1 S1IOUB u!OD \R!!
ClIBBl lO lHB OIuD O|1CBS lUul 1 aD
SHIB lDul RD VHO OSBI\BU me DHS1
RVB lHOHHl lHerB was R lOl U S1OB
!BDUBU VIlH IB IOSl\ JIBulHS lRl
SDOIlBU IOD D DOSlri!s. ]]!l, r
RU lHB OOU sense lO COO! O uS J B-
RD lHB Interviews. IVe had recog'llized
le OIIID OHSB as lHB Bui1 O lB
ID\BS1DBDl B!U, RJU 1 RU DBBD SH]-
]OSID 1HlNIT. MOran IBCOD!..PU lB
`R!IODa! LIl as the greatest bunk.
CeCOnU ]aCB OI us? OH CRD be SH!B
Cit... . . . . . .. . . ....... . . .. ... . . . . . .scare..
lHl I WRS DUB IDUIDRDl by lHB
I prepare cofee by Percolating 0 Dripping 0 Boiling 0
]IO]OSR!.
February 9, 1935
|uII Da.vison uDU I. J. P. OI-
uD,JI..sat UOWDWIlHDB. 1 1OlU lHBD
lRl, WIlHOH l IDUIC1ID O lHB DO-
DBDl RH O]IDIOD D regard !O lHB
HDUuDBDlR!]IO]OSIlIOD, Jwas CHIIOHS
lO KDOW VHRl !BU lBD lO iDC!HUe
Kuhn, Loeb in lHB DRllBI. HB
QHOlBU Mr. Baker as believing Il VuS
DBCBSSRI. J said lHB VRDlBU lO
HuVB me 1u!K VIlH I. MOruD, CI.,
RDU VIlH Mr. Baker, DU RS 1 WRDlBG
lO ]!R OI lIDB J CHl lH!S IDlBIVIBV
SHOIl. HB UBSIIBU HIlHBI lR!K ID
an HOHI.
1D lHB meantime I SRW YIllIuH
OCBBllBI RDU Mr. ClBI!ID. OlH
SBBDBU lO BB! lRl lHBIB VRS DO !\SB
RllBD]lID lO CODbRl 1HB ISSHB, lRl
lHB BSl lID OI us lO UO VRS lO
uCQHIBSCB RS CHBBIH!! a S ]OSSI!B.
HB ID]OIlRDl lHID, lHB Bll, Wu5 lO
]!R for R lHIIU O lB ]II'CH:ISB. HB
Wu to Bl R l!IU was lO KBB] HHD,
JOB OHl O lHB lIRDSRClIOD. They had
llO O)BCl!ODS lO iHHD, lOB, Hl lB
U!U VuDl R lIJU O lB ]HICl1SB OI
lB Citv DK. J IBlHIDBU lHBD for
RD IDlB;VIBW WIlH I. OID, CI.,
I. uKBI, I. .J. P. l1OIRD, JI., RDU
N. Davison. JD D OWD DIDU lHBIB
\\uS DO uIBBDBDl WHRlBVB\ WIlH lHB
VIBV O William OCKBB!!BI lHRl lHBIB
was HOl!D It!l lO UO Hl uCQHIBSCB.
The ill lervIeVSlu IlBUOOIlHDulB!.
`J am reaUy lO ]IIl 1 uIDS u OHDU
OH. began 1he elder Mr. `1OIRU.
" fOr the stand \OH uIB 1uID aOHl
Kuhn, iOC. lie c!Bary UIUDOl VRHl
ID 1IS DullPI lO DuKB ]uIlDBIS O
lHBD. I. JuVBI at ODCB COIDCIUBU
\\I1 I. 1OIRDS VIBV, SRID lHul
OD further IBHBClIOD HB HuG CODC!HUBU
lB thing ought lO B UODB VIlHOHl
JHHD, iOB. HB OlHBIS lHBD COID-
CIUBU \BI HBRIlIl u DU lHBIB VRS, S
J VIOlB lO Ir. Stillman, "enthusiastic
She!vIn O lHB JHD, iOB ]RIl O 1B
]IOItD.
But J uU ODI egHD.
`J RD still iD an HDH]] IHB O
DIHU, J SRIU, uUUIBSSID DSBl 1O
1I. .OID, CI. `1 BBl lHl lHB City
uDK BVBI IIgHl is BDl1llBU lO KBB]
IlS DISl ]OSIlIOD. .JJj ]lRD BVOlVBU D
I1SB, OI IlS IIBDUS, lRl WOHlU DuKB
aD IDSlIlHlIOD !RIBI than the City
BaDKVe!!, lHRl WOH!U B HDOI-
tuIHLte."
Victor for the National City
Breathing foIth a blast O !UB CII
smokc. "11'. IoruD SRIU `PSO!HlB!,
1 agree V!! VOH`
NevBr UJU ' voice so grufI sound as
sweet 1O 1B. J KDBV ID 1Hl JODPDl
lHB Hll uVOI O V!ClOI. iir |OItIJ
VuS OD D SIUB` 1 IBV lO !OVB HD
lHBD RDU lHBIB. B VRS R IBul BD\lB-
Du). \ul B lHOHHl VuS R!I uS be
lVBBD I!BDUS \\uS 1B COUISB OH COHIU
DOV B VOH!U O!!OV. `BVBIlHB!BSS,
HB VRS ID IS OVD SOH!, ID HIS BO, a
ID IOuIl. BIB WBIB IOu ]IB-
IOul!VBS, uDU HB KDBW HOW lO BXBICISL
lhBJ. 1 UO UOl DBRD lO SHBSl lHRl
HB SHIIBDUBIBU, Il S!D]!] a]]BDeU
lu! VHBD HB OHDU that SODBlID in
which HBHRU RCQHIBSCBU VuS UIS]!BuS-
ID1OIIBDUS, HBchanged his DIDU, RDU
UIU Il HBuIlI!.
Jl VuS !Bl lO Davison, Ja. ck OIRD
and DSB!I lO WOIK out lHB UB1 Il5. JD
D !BllB! IB]O!lID lBSB HR]]BDIDS
lO Mr. ClI!IDuD 1 SuU, WIlH COD]BlB
uCCI!I:IC` `ODUIlIOD8 VBIB DBVBI
more u11ODIOHS lHD lB IB Rl lS
HODBDl between lHIS JH\tUlIOn DU
`OIuDS RDU lHB !ISl `Rl)ODR 1D
1'B BDU lB merger UIUDOlOCCill' l al .
and I becaDB a 1BDBI O the direc
lOIlB of 1HB RD of \ODDBICB, RDU
O I1S BXBCHlJVB CODDIllBB.
D
mmmmmm=mmmmmm
l'ame mmmmmmmmmmmmmmmmmmm=mmmmm=m
mmmmm
On hot days, after a train ride from
the city, from the Scarborough sta, tion
I would walk, invariably, up the steep
hil-not a short climb-to the lower
fringe of the wide lawn. After further
hil climbing, when I was in front of
the house, beneath a tree as big as
Charter Oak, I would be met by a
man who used to be a London omnibus
driver. For sixteen years after 1910
Saunders was our butler, and some
thing more; to the children he was'
"Saundie," the to-be-wheedled keeper
of the la, tchkeys. When he met me on
those days he would have for me, in a
tall and frosty glass, a fuid white and
crinkly as lamb's wool. He called it a
"Ramos Fizz," and he would assure me
that for taking the curse of a stufy
day it was the finest drink that could
be concocted. The juice of half a lime,
I believe, was put in a glass with two
teaspoons of powdered sugar and two
ounces of cream. The glass was loaded
with ice and squirted full of vichy. If
there was conceaJed in it a jigger of
gin, that was entirely the fault of
Saunders; I swear I never said the word
"gin" to him in all the yea, rs of our
associatioll.
Whenever Mr. Stillman was in the
country for a visit, Beechwood was a
likely place to look for h. He had
kindly acted as my agent in the pur
chase of some old paintings, and he
could enjoy the beauty of my Vandyke
as he could not relish hs own. He told
me one time that when he looked at
his own paintings, in spite of anything
he might do, he would discover him
self in the uncomfortable process of
calculating their con tinuing cost to him;
he could see in plain fgures on the
back of each canvas the a, nnual inter
est figured up on the cost of the pic
ture. Of course he smiled when he said
that, but I am quite sure it was not en
tirely a, whimsical invention.
Earthquake in Eldorado
We had in Mr. Stillman a most sen
sitive guest. Our car and chaufeur
were at the disposal of Mr. Stillman.
For a month one time our chaufeur
knew what it feels like to grow rich;
Mr. Stilman was tipping him with a
lavish hand until he could not contain
in his lungs all the air he wished to
breathe. Then, probably through some
household slip, the chaufeur received
instructions to make an all-day trip
somewhere to pick up some visiting
member of the family. When he re
turned he discovered, to his intense
chagrin, that because he had been
deprived of the car Mr. Stillma, n's
feelings had been hurt. Thereafter,
when Mr. Stillma, n wished to go any
where, even for a journey of less than a
mile, he would telephone to the home
of his daughter, Mrs. Percy Rocke
feller, a, nd ask for a ca,r to be sent to
him. For our chaufeur it was an earth
quake in Eldorado.
Perhaps that is why, in later years,
he enjoyed telling on the Rockefeller
chaufeur. It seems that one da,y
as Mr. Stillman stepped from his
daughter's car at the station, he chided
the chaufeur, saying:
" You did not brush the car cushions
last night."
"Oh, yes, sir; I did, sir."
"No, you didn't," contradicted Mr.
Stillman: "See here!" From the s6ft
crevice between the seat and the side
of the car he drew out a green bill.
"I had put a present in there for you,"
he explained. But what shocked the
servants.for miles around, as the gossip
traveled in our part of the world, was
the fact that Ml". Stillman then tucked
THE SATURDAY EVENING POST 75
the recovered bill back into the Still
ma, n trousers.
Once I had Nr. Stillman and William
Rockefeller come to Beech,"ood for
luncheon on a Sunday, so that they
could meet my highly entertaining
house guest, Dr. Woodrow Wilson, of
Princeton. The con versation was guided
by me into a discussion of national
u,fuirs, because I was proud of my
friend Wilson. I did not get a reaction
from Wiliam Rockefeller, but lIr.
Stillman, by what he heard, wa pro
foundly disturbed. He held me by the
sleeve as he said, close to my ear, "He
is not a great man."
Woodrow Wilson as I Knew Him
During the long acquainta, nce that
began ill 1903, Wilson and I had many
fne, stimulating talks. In our con
versations he never cha. !lenged my
viewpoint on the ground that I was a
banker; on the contrary, I hu, d the
feeling he was quite willing to learn
from me abou t the banking and cur
rency problems. There were practical
matters involved which could be
solved only by banking minds. How
ever, l. Wilson ceased to be a trustee
of the Carnegie Foundation when he
left Princeton to become governor of
New Jersey, and so we saw less of each
other; as he moved to the front in
politics we had no contacts that I
recall.
Once a, fter he had been nominated
for the presidency, he was on the same
train as I was coming north from Flor
ida. George Harvey came back to my
private cao, which was at the rea, r end
of the tra, in. "I want to bring Wison
ba.ck here, so you can talk over bank
ing legislation," said Harvey, vibrant
with enthusiasm.
"All right," I said, "I'll be glad to."
Harvey left my car and went for
ward; he never came back.
During the 1912 campaign, William
Gibbs lIcAdoo came to me a number
of times to discuss one thing or another
on behaH of Mr. Wilson. Chiefy, as I
recall it, what wa, s wanted was advice
on banking a, nd currency statements
to be ma,de by Mr. Wilson from the
pla,tform. These conversations had a
sub rosa quality that, in view of my
prevous relations with Mr. Wilson,
annoyed me. I told Mr. McAdoo I was
unwilling to talk to Mr. Wilson through
the kitchen door.
Very soon afterward I got a warm
invitation from Mr. Wilson to meet
him at McAdoo's house in Hastings
on-Hudson, not far from Scarborough.
We had a long talk together, alone and
quite in the warm tone of our old
friendship. He gave me renewed as
surances of his splendid feeling for me
and of his belief in my understanding
of the currency problem and kindred
matters.
"But you don't understand poli
tics," he said. "It does not make any
diference what I think ought t be done;
I've frst got to be elected in order to
do these things."
He repeatedly assured me of the con
fdence he had in me, but I ha,ve be
lieved since" that he was just smoothing
my hair with one hand and keeping me
at arm's length with the other. Now,
I myself did not feel tha, t it was a mime
to be the president of the National
City Bank, but Mr. Wilson seemed to
feel that it would be a political crime
i he were caught talking with me,
I don't like that; it seems to me to
refect a signifcant weakness in our
type of civilization that the specialist
whether biologist or banker-is so
often, because of mass prejudice, shut
*
Get one of Ibese ..eal
old-fashioned bell1l
pOIS,/amil) size/for
bea/ing audsert!illg
B & M BemIS
Nw)Etlglatld ,1)le.
See coupon.
*
cANY ordinary
canned beans call themselves
"baked" when they are really
not baked at all. How diferent
from the real thing-B & M Brick
Oven Baked Beans. They're baked
al day /011g iri open bean pots and
genuine brick ovens. Baked with
rich, juicy pork. Baked and baked
-until they're mealy, brown, and
wholesome! '
No wonder people who crave
real favor insist on B & M Beans.
Order them yourself-and get all
the favor and fxings that made
Boston beans famous . . . Try
them tonight, with B & M Brown
Bread, and get a new taste treat
that will make you revise your
conception of baked-bean favor.
RfALLY BAK-D
IN
B-AN POTS
BURNHAM B MORRILL COMPANY, Portland, Maine
tU
BAKED BEANS
BURNHAM & MORRILL COMPANY. 107 Warer Seceet, Portland. Maine
I enclose 25; to cover COSt of packing and mailing -for which pJease send your new bean pot
Jarge enough to warm and serve contents of the family size B & M bean tin (four or five servings).
Send me. FREE, your handy new indexed recipe packet
SI,.eel Cil) Slalr

busine.'.
D
76
muscular
rheumatic
PAIN
.Those paining, throbbing muscles
in legs, arms, neck, back and joints
-here's how to obtainease prompt
ly. Rub on good old Musterole,
the remedy so many doctors and
nurses recommend for chest colds
and minor throat irritations as
well as muscular aches and pains.
Better than a mustard plaster-its
soothing, warming, penetrating
action seems simply to melt the
congestion and pain away. You can
go to bed, sleep without discom
fort, and in the morning the trouble
most likely will have vanished.
Musterole is NOT just a salve.
It'sa "counter-irritant"-it pene
trates and stimulates blood circu
lation, helps to draw out congestion
and pain. Clean, pure, easy to use,
not messy. Used by millions for
more than 2S years. Sold by drug
gists everywhere.
M usterole now made in three
strengths:
Regular Strength 40 and 75 (Jars only)
'Children's (Mild) 40 (Jars only)
Extra Strong 40 (Tubes only)
"VOICE OF EXPERIENCE!"
Tune in this great humanitarian-counselor
to millions-WABC and a Columbia Net
work. Daily Monday through Friday and
every Sunday evening. See radio page your
local newspaper for time.
CODE
THE S.TURDAY EVENING POST
out of those confel'ences in which W8
IB made dealing with his specialty.
Mr. Wilson, of course, was DD 8HD-
jecl to violen\ prejudics and swift
suspicions. When these were aroused,
what happened W08 akn to that which
occurs in the revolution-torn countries
to the south of us WDen caval ry raIders
ride into town. Then there is a great
banging as mBrcDnts pull UOWD stee
curtains to cover the fronts of their
shop windows. In tDe case of Mr.
'U8on,the steel curtains were in his
mind.
While Congress was shaping up WDBl
became the Federal Reserve Act,
Harry Davison, Ben Strong <Lnd I were
called to vVa,shington to ofer testimony
to 1!OUHCB. The authors, in lheir con
cluding chapter, ask themselves: "Did
the D0I!D of uHu\IlizeU |H\ C-
paci\y in the severl branches of in
dustry expa,nd during the period 1900
to 1930?" And they answer: "To tIils
question the answer from t, he felds
of agricultue, mining (except for dis
locations caused by the war), manufac
turing, and electric power utilities is:
No. , , . I t seems lHl there was no gen
eral tendency to pile up capital equip
men t in con tillually growing excess
above WD1 COU!U be 0ODUB\0!j
BH|!OjBU.
!ODBI\ R. Done, a sl\i8\iciaD of
ID relIaDii\y, published ID \DB `BW
Outook part of his fndings as mem
ber of a OO!U OI nt!oHa survey. He
found that, taking the yearly food re
quirements per capita as set forth by
the Department of Agriculture, the
nation in 1929 Dad 11 suplus in only
four and cereals, potatos, beans, peas,
fats, bacon Iwd lard, "hile in u1 the
other staples there \\'ere great defcien
cies in our productive abjlity 08 tDen
UBVB!O|BU. B IIII!DBY IOHHU lD\ \D
HatioH's plant capacity in 1929 "was
barely able to supply fraclion less
than a 8ingle new snit of clothes for
each DB.
The Department of Commerce, ill
its survey of rea,) property, found
tha,t 2 per cent, or more than half ,1
million, of our homes were unfit for
h.|1ita,tion, Il HIIOD8 more were
in urgent need of repairs and that the
cOlintry, In8teaU of being overbuilt,
was underbuilt.
Building on a False Premise
The Ad m inistra\ioH based its Uecla
ration of the ne.ed for national planuing
upon the fatc premise th"t production
had been allol\'ed to !n wild. Since
the facts clo not sustain this premise,
the whole argument for national plan
ning to adjust production to consump
tion falls. Rut the dogma that !CS1IIC!-
ID production Wu- 0 \\u \O salva,.
tion-whi'h is OU!' uUO1DI wav of
syIHg that tDe less '\\'e Duye. the rrcher
we shall Oe-Iound its "av into the
panning of farm [ll'oductio; under the
AAA Iwd iUto the KHA codes, limiting
production. The prohi bItions ID so
many of the NRA codes against new
equipment have been among several
causes-all of whicD head back to the
pHning dogma-for the plstra. tion
of the industries making durable goods
and the consequent unemployment of
between fve and six million men. Such
has been the result OI acceptiHg, with
OHl aHy supporting facts, the premise
regarding the proposed legislation.
Vi'hen we arrived in 'Vashington my
II!BHU \\OD 1IB8 \OU H8 \DB DO\B8
were IH DU DB had secured rooms
for us 0\ the Army and Navy Club.
D\ seems unimportant, but !\ turned
out to DVB some signifca;lce. On \DB
8talionery of the club I wrole a note lO
Mr. Wilson and sent it, by my 8ecre
\Ij, Ned Currier, lOlDB `DI!B OH8B.
1IB8IUBD\ U8OD IBIH8BU to see us. I
DU a nOte from him in which he said,
"A conference such as you 8HB8l
WOHU DBof no advantage to any of us,
or to \De BDU8 \D\ Congress is HOW
seeking to serve."
Just why Mr. `I8OD felt this way
was long a puzzle IO me, but lBI I
(Continued from Page 23)
tha t the rugged individualists con
trolling production had never known
what they were doing and needed at
ten tion from tDe pl0nners.
Reversing its policy in part. the Ad
minIstratIon, through the ia tional
Housing Act, is trying to promote the
repa,ir of existing homes and the builcl
ing of more. Il I8 also trying lO for('e
out credit to expand If the
theory that we have \OOmueh f \-err
thing is sound, then each hom and
each business Ulilt demolished ught to
be as fne step to recovery and re
form 8 each pig killed or acr p!o\I'ed
under,
4. Is it true that tDe job i, get
men back to work?
On this apparently sound pr mi;e.
coupled with the dogma of a loogreat
produC\ive macDine, were I a e the
Blue Eagle campaign, the labor-union
movement for shorter hour;. h p hlic
works spending and part of the relief
spending.
But is the premise more thCln alf
true? Is lDB !Bu POillt t ]Ht HeU
lO work 01' \o put men 0 Hnt HrIHg ?
Each of us gets his work onl' uS an
other man ventures. Then we. in tUl'n,
VB1IUIB, HU t, hat creat . mOre work.
And so on. The venture lllax b onh- a
pa,ir of shoes, or again it Du* b a grat
neW i ndustr.
If we sprea- a given ao nt of
work among too many men. h work
wil not yield enough to support tbem.
while if we raise the price r ti f
ished prodUct !O point wh . the
W0B8 COU!U 8U||O!\ the men, tllen
\he price of \DB fnished product will
be so high thl DODB will buy, and
there wil DB no work. Illdustry e-an
DO\ exist to support men; it can Onl
exist to produce goods and thmugh
their production support men. That is
a truism.
The LOl\OU Texli!e Code gives
concrete example of the fahe premise
thl arbitrarily increasing the number
of jobs and raising the wage; in an in
dustry benefts either t, he public OI tDe
workers in \DB iHdustr\. 3DB code
sought to remedy the many bad COHUl-
lIOH8 th\ had grown up in |D OU HU
tradition-hampered industry. It BIDI-
nated CDIU htbor, shortened hours,
mised hourly wages, forbade plant in
creases except on licenses, and, as Code
O., W8 presented as the ultimate in
the neW CO~O|BIulIOD and social plan
ning.
3DBresults: Contrasting .June, 1934,
wilD June, 1933, before the code went
into efect, gives these fgures: Em
ployment rose 4.6 per cent, a.verage
hours worked pet week decresed 40.9
February 9. 1935
leared that it WlS aH IUS\!0\IUD OI his
suspicious turn of mind. He had been
hving great row 'with SeHtor
O'Gorman. None of us were aware of
that IHI1DB! than VD\ lye ad possi
bly gleaned from newspa.per headlines.
We had DO interest JD il. Senator
O'Gorman, however, was living at, the
Army and Na,vy Club, and when 11'.
'NUson received a note from me written
on Army and Navy LHD stationery he
jumped to the conclusion that we were
ID cDoots with Senator O'Gorman. At
B8\, \hat is wha\ I was later told O
one OI his CO8B8\ dvi8ers.
Editor's Note-This is the seventh of a series of
articles by Mr. Vanderlip and Mr. Sparkes. The
next will appeal' in an early issue.
pet' cent, average weekly earnings in
creased 2.2 per cent, and average
hourly earnings increased 69.3 per
cent.
I is evident that further CHl ID
hours and a further rise in py WI ODj
futher reduce consumption and fur
ther promote unempoyment. Taking
the profits away from the owners VI
10t help : they have already been
taken away. In 1933 \DB industry as a
whoe made 3.4 per cent OD its invest
ment; for the frst halI of 1934 it made
5.8 per cent ; the tentative fgures OI
\De SHO8Bq\BH1 UOH\D8 of the year
SDOW 0 O88 OI DOH\ \WO 0HU DI
tBD!8 OD every |OUUU of cotton made
into coth.
The Prodigal Way to Prosperity
What is true of the CO\\OU InduslIy
i true of the nation's iDdu8lry. BIBj
drafting men into jobs may IOI a lilte
while decrease llllemploymenl, but
then hegins the cycle OI DID prices,
OV consumption and OWB! IB WB8
ID\ BHU8 IH uHemp!oymeH\.
5. Is it true that we CD spend OHI
way to prosperity?
The premise here I8 \D\ \DB IDUH8-
trial ma. clline is somewhat like a pump
tlmt will not U!u' Vu\BI HDlI it is
primed and that a large amount of
Jlending by the Goyernent-even
the money to spend must be
rai" d I y lOIToll-ing-wili distribute
the nec ;:sar plll'Chasillg power to
prme !DP induilrial mlLchine. Other
'ou 'ies ha\'e IIlBUsnch spending dlU"
ig this depression. There is no IB-
orded IHst,ance of any nation having
_pent its way out OI depression.
,"hile the public work is I1 progre8s,
the consumption of IOOU and goods
increases in the 10ca. Iities where the
wages are being paid. When the spend
ing in a locality stops, things are dellder
than they were before.
The reason for this is lha\there is no
pump to prime. A boom is caused Oj
thngs getting out of balance, and a
deprBssion !8 HOlDBJ KIHU OI UDD-
0HCBU coHdi\ion i which IB\ groups
of producers canllot exchHge \DBI
goods ancl services. A public-works
program which is put \DIOHD, DOl DB-
cause the works al:e needed, but in
order to employ men, I8 inefective for
the 8UB IBuSOD that putting men to
work as an end in itself is inefective.
But,in addition, lDBIB I8 no instance
where great public spBnding ID a UB-
pression does not accentuate \DB UI8-
parity between grollps HU \DH8 0c
tually postpone the Itchieving of
(Continued on Page 78)