The Great Collapse Higher Fares Or Public Ownership

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Over $4, 000, 000 were spent on those items. Such was the case when the Inter- borough was raising money when it entered into the famous contract with the city in 1913. It is an old practice for the banker-director to make terms upon which he, as banker, would advance money to the corporation of which he is an influential director. This dual capacity of the director makes the corporation a source of con- stant sapping for the financier. Louis D. Bran- deis, now Justice of the United States Supr...eme Court, says: "A large part of these underwriting commis- sions is taken by the great banking houses, not for their services in selling the bonds, nor in assuming risks. Thus, when the Interborough Railway — a most prosperous corporation — financed its recent $170, 000, 000 bond issue, J. P. Morgan & Co. Received a 3 per cent, commission, that is, $5, 100, - 000, practically for arranging that others should underwrite and sell the bonds. "* The financiers could not obtain such stupendous * Other People's Money, by Louis D.

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