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NOTICE TO SUBSCRIBERS

TWELFTH. Each subscriber shall set opposite his subscription hereunder written an address to which notices or other communications may be sent, and any such notice or communication addressed to any subscriber at the address so given, and either left at such address or deposited in a post office, enclosed in a post-paid wrapper addressed to such subscriber at such address, shall be deemed actually given to such subscriber on the date of so leaving or depositing the same, and shall be sufficient for all the purposes of this agreement. If any subscriber shall fail so to furnish his address to the Syndicate Managers he shall not be entitled to any notice or other communication, and he shall be deemed to assent to any action of the Syndicate Managers.

AGREEMENT, HOW MADE UP

THIRTEENTH. An original copy shall be signed by the Syndicate Managers and retained by them, and one or more counterparts may be signed by the subscriber, but all together shall be taken and deemed to be but one original instrument.

OBLIGATION TO BIND LEGAL SUCCESSORS OF SUBSCRIBERS

FOURTEENTH. This agreement shall bind the subscribers respectively, their respective personal representatives, successors and assigns.

IN WITNESS WHEREOF the Syndicate Managers, parties of the first part hereto, have subscribed an original hereof, and the subscribers, parties of the second part hereto, have subscribed said original or a counterpart thereof, as of the day and year first above written.

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THE KANSAS CITY, MEXICO AND ORIENT RAILWAY COMPANY 1

A. E. STILWELL, PRESIDENT

SINGER BUILDING, NEW YORK

February 6, 1912.

To the Secretaries of Boards of Trade and

Members of New York, Boston and Chicago Stock Exchanges. Dear Sirs: I have started out on a campaign to help free American business from the inquisition of the money power.

I understand full well the magnitude of this fight, but after sixteen years of unrelenting persecution while building two important railroads of the United States, I have made up my mind that it would be un-American longer to stand such treatment without protest; that it would be better to fight for clean business methods and go down if need be than to work longer against unbearable conditions.

Sixteen years ago a leading New York banker wanted me to exploit my stockholders to enrich him and myself. I refused, and he forthwith proceeded by every device to make my work most difficult. Eleven years ago a second New York banker of prominence made me a similar proposition. I again refused, and more obstacles were put in my way. I made up my mind then and there to look directly to the business men of the country rather than to the money power for fair and honest backing. This plan I have adhered to, but the persecution keeps up; and I am now in the frame of mind of the people of Boston when they threw the tea overboard.

I am convinced that if other deals are engineered like the two offered to me, it is a merace to our civilization and to the business of the United States; and it is easy to see how unscrupulous men may amass colossal fortunes in a few years' time.

This land is developing fast. All men are entitled to a fair field and no favor. The money of our land, which under existing conditions drifts to the reserve banks in large cities, ought not to be used simply to make billionaires of a few. There is no reason why the people that own it shall realize only 2% and the people that use it realize from 10% to 25%. This is to serve favorites and ruin industry.

Wall Street ought to be a help to enterprise, not a hindrance; 1 Letter of A. E. Stillwell as promoter of Kansas City, Mexico and Orient Railway Co.

but ask the experience of many great industries that have been forced to go there for the last five or six years. They will tell you that they have seen their competitors helped in every way if they happened to have a friend who was on one of the interlocking bank directorates.

There is no way on earth for the egregious fortunes that are made in this district to be made honestly and so quickly. It is only because of the enormous toll that is exacted from American business and industry. The whole nation pays these men tribute. They toil not, neither do they spin, but Solomon in all his glory is not arrayed like one of these.

Mr. Reynolds, president of the second largest bank in the United States, says that the money power is in the hands of twelve menand that he is one of them. Vanity here spoke truly!

So American industry is chained to a Hydra with twelve headstwelve sharp, shrewd heads, thinking, working only for self! It is a monstrous power of which the Chicago banker was led to brag!

The remedy for all this is not so difficult. The members of the New York, Boston and Chicago stock exchanges are as honorable, high-minded men as can be found. Let all contracts for financing be passed on by them. Let all contracts for commissions and purchase of a business be endorsed by them as fair. Let no bond prospectus of any offer of bonds be issued unless it has their O. K.; and then robbery would stop. The money deals would not be handled by a few. Any man could float a company on fair terms, as the "hallmarking" of the Exchange would be for any house of bankers or brokers that did honest business. Let any man who deems himself to have been treated unjustly appear before a committee of the Exchange, state his grievance, and if the committee finds his statement true, let it from that time on refuse to pass any flotation by the house that adopts crooked methods. Give the New York, Boston and Chicago Exchanges the right of "hall-marking" deals and prospectuses and at once American finance will be on a rock foundation, and every enterprise have a fair chance to succeed on its merits.

This would make the Stock Exchanges of New York, Boston and Chicago take the place, in a measure, of Somerset House in England; the terms of underwriting would be stated, also the commission paid and the list of underwriters; and this would end the three levels ("friends, good friends, and very good friends") that now exist. It would bring the sunlight into business deals, and things now done in the dark would not be done. England solved this problem in 1900, after the Baring failure, by requiring the visé of Somerset House on all financial deals of consequence.

My suggestion is merely that the function assumed by Mr. Reynolds and his confrères, who are partial and self-seeking, be transferred to the Stock Exchanges, whose members are impartial men, interested only to have business naturally developed and honestly conducted.

Very truly yours,

A. E. STILWELL,
President.

AMERICAN WOLVES1

Every few years the commerce and prosperity of our country have been forced to pay tribute to the financial raiders.

Pirates of the North African coast, in the fifties, demanded from the United States a tribute so small, as compared to the demands and exactions of these bear leaders, that it makes the African pirates of old seem meek as Sunday-school teachers. In each bear attack we see some leading man mangled on the financial rack. While the victim's fingers are not pulled out, as was the method of the Spanish inquisition, and while the torture chamber is not now in some dark dungeon, but in beautifully equipped and furnished offices, the torture is just as great.

A man may have a fair financial standing. He perhaps thinks he has the confidence and respect of leading interests. He imagines he may escape the cough-up-quick methods of the street. No doubt he is a director of banks or trust companies. He has been requested to carry his account in this or that bank or trust company; he has been given unlimited credit at the broker's; but the day comes when the bears-or, in truth, wolves-"need his money"; these wolves may have been associated with him and he thinks they will play fair. Like Russian wolves, financial raiders do not discriminate while picking their victims.

The time comes for the victim to disgorge a million or two because he believed in his wolfish chums. These wolves have friends in many banks and can find out just where his loans are, nearly all being "on demand." In twenty-four hours they size up what pressure he can stand; they know his assets, almost to a cent.

The play begins. They sell short, three or four thousand shares of his favorite stock. The banks call for more collateral and he complies. Next, three or four thousand shares more are dumped on the market and the man they are after is the principal supporter of these stocks; he is now on the run! Therefore, the market is not protected in these stocks. Gossip is started that Mr. Victim is in a tight place. This stops all buying of his stocks, since a greater slump is feared because he is reported weak. Suddenly more shares are sold at a five point drop. More collateral is demanded, which he cannot now give, and this is known at once at the seat of war. His bank loans are called; cash and collateral gone-excepting a package of "cats and dogs" that the bankers will not accept. One

1Circular of A. E. Stillwell as promoter of Kansas City, Mexico and Orient Railway Co.

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