Kuhn, Loeb & Co.

They came, and all of a sudden they got interested.

And in those days, the big investment banker in New York was Kuhn Loeb.

Mm-hmm.

And so, uh, we went to Kuhn Loeb with our idea.

Uh, they loved the idea.

General Motors, you know, [laughs] not our idea.

Henry Davidson, senior partner at none other than J.P. Morgan and Company.

Frank Vanderlip, president of the National City Bank, then the largest bank in the country, and Paul Warburg, a German-born partner at Kuhn, Loeb, and Company, who had spent years arguing in public and in private that the American banking system was fragmented to the point of danger and needed a European-style reserve institution.

Some later accounts would also place Benjamin Strong there.

This was the same man who ran out of time on the Knickerbocker's books, though Richmond Fed notes there's no solid evidence that he was there.

They were longtime friends, Harry Bird and Louis Lichtenstein Strauss.

Strauss joined Kuhn, Loeb & Company in 1919, and with his financial backing, Bird went into the Martin Organization of Virginia Politics, which later became the Bird Machine, with Rothschild backing.

After many years of total dictatorial rule in Virginia, Bird finally died.

Strauss pushed his son to replace him, and the Bird Machine continued with Harry Jr., and, to those in the know, it was always the Bird-Rothschild Machine.

This confidential relation of the banker to customers and the knowledge of the customer's private affairs acquired incidentally is often a determining factor in the marketing of securities.

With the advent of big business, such goodwill possessed by the older banking houses, prominently J.P. Morgan and Company and their Philadelphia house called Drexel and Company, by Lee Higginson and Company, and Kidder Peabody and Company of Boston, and by Kuhn, Loeb and Company of New York, became of enhanced importance.

The volume of new security issues was greatly increased by huge railroad consolidations, the development of the holding companies, and particularly by the formation of industrial trusts.

The rapidly accumulating savings of our people sought investment.

This huge sum does not include any issues marketed privately, nor any issues, however marketed, of intrastate corporations.

Kuhn Loeb & Company and a few other investment bankers exercise similar control over many other corporations.

Controlling security buyers Such control of railroads, public service and industrial corporations assures to the investment banker an ample supply of securities at attractive prices, and merchandise well bought is half sold, but these bond and stock merchants are not disposed to take even a slight risk as to their ability to market their goods.

They saw that if they could control the security buyers as well as the security makers, investment banking would indeed be a happy hunting ground, and they have made it so.

This huge sum does not include any issues marketed privately, nor any issues, however marketed, of intrastate corporations.

Kuhn Loeb & Company and a few other investment bankers exercise similar control over many other corporations.

Controlling security buyers Such control of railroads, public service and industrial corporations assures to the investment banker an ample supply of securities at attractive prices, and merchandise well bought is half sold, but these bond and stock merchants are not disposed to take even a slight risk as to their ability to market their goods.

They saw that if they could control the security buyers as well as the security makers, investment banking would indeed be a happy hunting ground, and they have made it so.

The U.S. Food Administration, which handled this giant operation, was handsomely profitable for those commercial enterprises that participated.

It was headed by Herbert Hoover and directed by Louis Lichtenstein Strauss, married to Alice Hanauer, daughter of one of the partners of Kuhn Loeb and Company.

Item, U.S., British, and German wolves soon found a bonanza of profit in selling to the new Soviet regime.

Standard Oil and General Electric supplied 37 million worth of machinery from 1921 to 1925, and that was just the beginning.

how was it their arm like what it what did they do

Loeb & Co. I'm not going to act like I know specifics on what they do, actually.

We should look up specifics on what they do.

Yeah, let's do

that while we're here, when in Rome, you know? All right, Loeb & Co.

Yeah, like I said, you got to, you got to, it's Loeb, L-O-E-B.

Oh, I was going to yell

LF Rothschild & Co.

The ethical basis of the rule must be that the interests of the combined bankers are superior to the interests of the rest of the community.

Their attitude reminds one of the spear of influence with ample hinterlands which rapacious nations are adjusting differences important banking concerns too ambitious to be willing to take a subordinate position in the alliance and too powerful to be suppressed are accorded a financial sphere of influence upon the understanding that the rule of banking ethics will be faithfully observed Most prominent among such lesser potentates are Kuhn, Loeb & Company of New York, an international banking house of great wealth with large clientele and connections.

They are accorded an important sphere of influence in American railroading, including, among other systems, the Baltimore and Ohio, the Union Pacific, and the Southern Pacific.

They and the Morgan Group have, with few exceptions, preempted the banking business of the important railroads of the country.

The bankers received commissions paid for floating securities of the controlled companies while they were thus controlled in violation of law, and have, of course, retained them.

Finally, when, after years, a decree is entered to end the illegal combination, these same bankers are on hand to perform the services of Undertaker and receive further commissions for their banker aid in enabling the law-breaking corporation to end its wrongdoing and to comply with the decree of the Supreme Court.

And yet, throughout nearly all this long period, both before and after Mr. Harriman's death, two partners in Kuhn, Loeb & Company were directors or members of the Executive Committee of the Union Pacific, and as such must be deemed responsible with the others for the illegal acts.

Indeed, these bankers have not only received commissions for the underwritings of transactions accomplished, though illegal, They have received commissions also for merely agreeing to underwrite a great transaction, which the authorities would not permit to be accomplished.

This huge sum does not include any issues marketed privately, nor any issues, however marketed, of intrastate corporations.

Kuhn Loeb & Company and a few other investment bankers exercise similar control over many other corporations.

Controlling security buyers Such control of railroads, public service and industrial corporations assures to the investment banker an ample supply of securities at attractive prices, and merchandise well bought is half sold, but these bond and stock merchants are not disposed to take even a slight risk as to their ability to market their goods.

They saw that if they could control the security buyers as well as the security makers, investment banking would indeed be a happy hunting ground, and they have made it so.