More Aftermath

Selling orders from all parts of the U. S. last week continued to converge on the New York Stock Exchange. Old rumors and new were again in circulation. Uneasiness was caused by the insistent story that something was amiss with Caldwell & Co., potent Southern house. A definite, frank statement from the Nashville Clearing House finally showed that this rumor was justified, but the fear exaggerated.

The Nashville Clearing House's report was from a special committee which had been appointed to meet with members of Caldwell & Co. At the conference was Eugene Robert Black, busy governor of the Federal Reserve Bank of Atlanta. "We believe Caldwell & Co. is solvent," said the report, "and with co-operation its affairs will be worked out. . . . [Its affairs] have been placed in our hands as a committee for the purpose of conserving and protecting the interests of that institution. "Said Governor Black later: "I ... am delighted at the outcome. ... It is most pleasing to commend so constructive a policy."

Head of Caldwell & Co. is its founder, Rogers Clark Caldwell, one of the best-known financiers in the South. His father, James Erwin Caldwell, is president of the venerable 4th & ist National Bank of Nashville, and founder of James E. Caldwell & Sons, insurance brokers. Son Caldwell entered the insurance business originally,'left it in 1916 to form Caldwell & Co. The firm expanded quickly, is thought to have distributed about $100,000,000 worth of securities per year in recent years. The firm has branch offices and is affiliated with Rogers Caldwell & Co., Manhattan. From the first Mr. Caldwell's slogan was: "We bank on the South," and Southern enterprises have occupied most of his attention. He is the dominant interest in Missouri State Life Insurance Co. of St. Louis and has potent connections in that city through Frank Overton Watts, chairman of First National Bank, an oldtime Nashville friend. He is also interested in Alligator Co., St. Louis. He has been identified with many a Southern hotel, including the Kentucky in Louisville, the Andrew Jackson in Nashville, and Lookout Mountain Hotel, Chattanooga, where Garnet Carter conceived Tom Thumb Golf (TIME, July 14). Banks, garages and textiles likewise are included in his interests. So great is his faith in Banking-on-the-South that in 1928 he sponsored Shares in the South, Inc., an investment trust to specialize in Southern securities with the provision that at no time could it place more than 10% of its funds in any one company, more than 20% in any one industry.

Banker Caldwell is well liked, and Southerners have great faith that he will lead their region to big prosperity, will wrest Southern financing from New York and Chicago. He is fond of horses, hunting. Southern gentlemen were delighted when he organized Nashville's two hunts, subsidized members who were good riders and sportsmen but too poor for the luxury. His race horses have done well at Louisville and Latonia. He collects early American silver and furniture, also anything pertaining to Andrew Jackson, his hero. With Col. Luke Lee. Tennessee politician, he acquired the Knoxville Journal and Memphis Commercial Appeal (TIME, Jan. 23, 1928) but is not active in politics.

Failure of Caldwell & Co. would have been a blow to all financial circles, a calamity in the South. Bankers were unanimous in commending the Nashville Clearing House members for their prompt work.

J. A. Sisto & Co. Last week the long-awaited figures on the position of J. A. Sisto & Co., insolvent, were disclosed. Assets came to $1,746.099 against liabilities of $1.455,064. Mr. Sisto placed his personal assets at $363.213, including life insurance policies with a cash value of $281,000, three automobiles worth a total of $4.000. Partner Norris Bates Henrotin listed personal assets of $151,190, including three automobiles totaling $600. Among the firm's creditors is its investment trust, Sisto Financial Corp. But the amount owed is only $34,860, a striking contrast to the amount Prince & Whitely owed its investment trust (TIME, Nov. 10).

Prince & Whitely. Eugene L. Garey, counsel for Prince & Whitely, insolvent, last week promised there will soon be "a substantial and satisfactory settlement." He flayed criticism of Prince & Whitely's management, said the firm had used $12,000,000 to support the market and "protect the public from unjustified market losses."

This file is automatically generated by a robot program, so reader's discretion is required.