Other People's Money, and How the Bankers Use ItBrandeis, Louis Dembitz
History
Other People's Money, and How the Bankers Use It
Brandeis, Louis Dembitz
Banks and banking -- United States; Finance -- United States
About five years before the Metropolitan Traction Company of New
York went into the hands of a receiver, Mr. Brandeis came down
from Boston, and in a speech at Cooper Union prophesied that that
company must fail. Leading bankers in New York and Boston were
heartily recommending the stock to their customers. Mr. Brandeis
made his prophecy merely by analyzing the published figures. How
did he win in the Pinchot-Glavis-Ballinger controversy? In various
ways, no doubt; but perhaps the most critical step was when he
calculated just how long it would take a fast worker to go through
the Glavis-Ballinger record and make a judgment of it; whereupon he
decided that Mr. Wickersham could not have made his report at the
time it was stated to have been made, and therefore it must have
been predated.
Most of Mr. Brandeis’s other contributions to current history
have involved arithmetic. When he succeeded in preventing a raise
in freight rates, it was through an exact analysis of cost. When
he got Savings Bank Insurance started in Massachusetts, it was
by being able to figure what insurance ought to cost. When he
made the best contract between a city and a public utility that
exists in this country, a definite grasp of the gas business was
necessary--combined, of course, with the wisdom and originality
that make a statesman. He could not have invented the preferential
shop if that new idea had not been founded on a precise knowledge
of the conditions in the garment trades. When he established
before the United States Supreme Court the constitutionality of
legislation affecting women only, he relied much less upon reason
than upon the amount of knowledge displayed of what actually
happens to women when they are overworked--which, while not
arithmetic, is built on the same intellectual quality. Nearly two
years before Mr. Mellen resigned from the New Haven Railroad, Mr.
Brandeis wrote to the present editor of this paper a private letter
in which he said:
“When the New Haven reduces its dividends and Mellen resigns, the
‘Decline of New Haven and Fall of Mellen’ will make a dramatic
story of human interest with a moral--or two--including the evils
of private monopoly. Events cannot be long deferred, and possibly
you may want to prepare for their coming.
“Anticipating the future a little, I suggest the following as an
epitaph or obituary notice:
“Mellen was a masterful man, resourceful, courageous, broad
of view. He fired the imagination of New England; but, being
oblique of vision, merely distorted its judgment and silenced its
conscience. For a while he trampled with impunity on laws human and
divine; but, as he was obsessed with the delusion that two and two
make five, he fell, at last, a victim to the relentless rules of
humble arithmetic.
“‘Remember, O Stranger, Arithmetic is the first of the sciences and
the mother of safety.’”
Public-domain text, read in full here on John Shaqi.
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