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The Commoner.
JUNE 6, 1903.
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WATEi? AND DIVIDENDS
The New York Journal of Commerco
has made a study of the dividend rec
ord of the big industrial capitaliza
tions, or so-called "trusts," of the las:;
live years, with the result of showing
that the hopes of stockholders hav
not been realized. The figur.es include
90 per cent of the capitalization from
consolidation in the period mentioned.
There are three classes of "securities '
involvedbonds, preferred stock and
common stock. Of the bonds of the
big concerns in question 92 per cent
have constantly paid interest. Of the
preferred stock 78 per cent and of
common stock 47 per cent have con
tinued to pay dividends. Thus it ap
pears that 60 per cent of the entira
capitalization for the five years, or
such part of the period as the securi
ties have been outstanding, has been
regularly producing returns. On the
face this result looks tolerably favor
able, "industrials" comparing well
with railroad securities. But it is to
be borne In mind that till recent years
railroads were built mostly with the
proceeds of the sale of bonds, and
stock was thrown in. Even now about
half of the capitalization of our rail
roads consists of bonds, while in in
dustrial capitalizations bonds figure
for little over ona-sixth. Preferred
stock has been relied upon chiefly iu
raising capital for industrial concerns
The exceptional prosperity of the
country in the last few years accounts
for the showing so far. When condi
tions' become normal and when hard
times set In the true test will be ap
plied. If at present, when there is
active demand for all sorts of prod
ucts, less than half of the common
stock of Industrials pay divldonds, It
is not difficult to conjecture that when
trade becomes dull dividends on both
common and preferred will greatly de
crease. This inference is strengthened
by scrutiny of the figures. The United
States Steel corporation, now but two
years old, accounts largely for th3
fact that the showing is as favorabls
as it is. Thirty-one big corporations
pay dividends on both preferred and
common stock. But of the $785,6G5,
138 of preferred $510,310,100 is of the
steel corporation and of $843,282,421 of
common stock and paying dividends
$508,495,200 Is of the same corporation.
Apart from the United States Steel
corporation, which has had the ben
efit of an exceptional demand for its
products, the proportion paying divi
dends is comparatively small. There
are 39 companies that have paid on
$380,770,015 of preferred, but nothing
on their common stock, which
amounts to $480,892,183. There are 43
companies which have paid neither on
their $229,315,035 of preferred stock
r.or on their $5G4,510,000 of common.
As the timc3 are prosperous, this is a
bad showing for common stock. The
situation amounts to this, it appears,
that less than half of the outstanding
$2,414,282,158 of -common stock is
paying a dividend and one corporation
pays over half of what is paid. The
moral seems to bo that overcapitaliza
tion has already been largely dis
counted and that the "water" still in
many securities will ultimately be
squeezed out "The evidence," says
the Journal, "is not one of general
solidity, but of an inflation that need3
to be remedied." Baltimore Sun.
SIGNIFICANT SITUATION
There is a peculiar political situa
tion in this country just now, and
even a superficial analysis of it will
reveal a significance in It deep enougn
to demand comment For reasons that
are not difficult to fathom there is an
apparent desire on the part of alleged
opponents of the democratic party to
see it "reorganized" or "harmonized"
to the- end that it may be stronge:,
from Its opponent's standpoint, and
thus more likely to succeed in the next
presidential election. This would be
a passing strange position for oppo
nents to take were it not that their
desire manifests itself in an apparent
determination to make the democratic
party just like their own party. There
seems to be no disposition to conceal
this determination. All republican and
many alleged democratic papers are
eager for democratic "harmony," but
it must be of a certain brand, and In
dorsed by a certain sort of democrats.
All the papers referred to censur
Mr. Bryan severely because he refuse3
to "harmonize" with political elements
and aims that the papers and the in
terests they represent want to see in
control of the "reorganized" demo
cratic party. To an unprejudiced ob
served the head and front of Mr. Bry
an's offending seems to be his desire
to have the democratic party some
thing unlike the republican party. H
doubtless believes in the old theory
that political parties are essential to
the well being of a republic. But ho
seems to be unable to see any neces
sity for two great political parties de
voted to substantially if not absolute
ly the same governmental policy. And
for these views and his loyalty to
them he is condemned by his foes in
both of the great pafties.
It is well known that from 1872 to
1S9G there was no essential difference
In the two parties. They contended
about certain things, hut the conten
tion was to create smoke or mist he.
hind which was fought, unobserved I
by the masses, battles for official pa
tronage and spoils. After a four year'
trial of Grover Cleveland as president,
and when again a candidate for the
same office, in 1892, Henry Clews, the
well known mouthpiece of "Wall stree:
wrote that he congratulated Wail
street "on being free from the distrac
tions usual to a presidential cam
paign." Whidh was a terse way of
saying that republican Harrison or
democrat Cleveland was equally ac
ceptable to Wall street. And Mr.
Cleveland justified the Indifference of
Wall street by making himself tho
same kind of a president, in all es
sential respects, that his predecespor,
Harrison, was. In 189G and since, WaU
street has not been free from presi
dential campaign distractions, and is
it not natural that it should covet re
newed enjoyment of freedom from
such distractions?
And right here the deep significance
of the present situation sticks up like
a bump on a log. Wall street wants
to feel safe, serene; and it wants to
be in a position to throw down a par
ty that for any reason it may distrust,
or to make a party in power more sub
servient to Wall street interests by
making it realize that another party
can be crowned without fear of jeo
pardizing: those interests. Hera is
found abundant cause for the widely
and loudly voiced press demand for
a reorganization of the democratic
party in harmony with Clovelandism,
and of press censure of Bryan for not
acquiescing in that kind of reorganiza
tion. It is not easy to see any caus-
for it, but there may be distrust of
the republican party in Wall street,
and if that is true the street, and all
it stands for, wants to be in position
to cry in one breath "the king Is
dead, long live the king!" And Bryan
is hated by the street and by all It
stands for because he is such a con
spicuous and industrious barrier to thj
condition that Wall street covets.
Farm, Stock and Home.
Whit'i The Use?
Secretary Hay "finds a difficulty" in
tho pursuit of the administration poli
cy towards Russia, and her encroach
ments in tho Orient and especially hor
grab of Manchuria and her reoccupa
Uon of Nu Chwaug. Tho dihieuity
which is agitating tho tender suscep
tibilities of tho author of "Littlo
Jtireecnea," is how to unite with Japan
and England against tlio ag&reaalous
without "breaiviiiK awav from our tra
dltlona" of avoiding foreign eutaugic
mencs and mingling in tno affairs of
uio old world. Only a little thing
llhe unto that? Seriously It is funny
this sudden susceptibility on the
part of tho poet-secretary of state.
And it Is particularly so at this some
what lato date for him and for tho
imperialists to halt at what he con
siders a breathing away. Tho imper
ialistic elements In his party broke
away long since when they insisted
on retaining the costly Philippine
archipelago costly in blood as well
as in treasure and ostensibly paid
opain $2U,000,000 for tho islands, not
one penny of which went farther than
tho office of J. P. Morgan & Co.,
where just that amount of Cuban
bonds wore held.
What was it Washington said on
the subject of foreign entanglements?
But what's tho' use- of quoting it?
None, so far as the imperialists now
in possession of the republic and
gripping it in a death grip, but It is
wholesome and refreshing reading for
the American citizens who believe In
tho republic and in its traditions
from which Secretary Hay with
shameless Impudence says he does not
desire to break away. And this la
what Washington said in his farewell
address:
"Why forego the advantages of so
peculiar a situation? Why quit our
own to stand upon foreign ground?
Why be intorweavins our destinv with
that of any part of Europe, entanglo
our peaoe and prosperity In the toils
of European ambition, rivalry, inter
est, humor or caprice?"
Why, indeed? Why but for the de
termination of tho miscalled repub
lican party, the party of imperialism,
to-wrest tho republic from its founda
tions, enforce a centralized system
of government to the end that class
domination may bo brought about, and
tho mass of the people held in eco
nomic and financial slavery. It is
the veriest hypocrisy on the part of
Secretary Hay and none knows it
better than himself, and the accidental
president now swinging around the
circle. Paducah (Ky.) News-Democrat
Common-Senae la Finance.
The cruel and needless wars In
China and South Africa cost Great
Britain nearly $1,000,000,000. Now
that they are over expenses are de
creasing. The chancellor of the ex
chequer accordingly announces an im
mediate reduction in the income tax
of fourpence, where a cut of only
threepence was expected. The "bread
tax" also is cwept away, having served
its purpose. The object of British
high finance Is to balance anticipated
income and expenditure. How differ
ent our system and how inferior'
"Infant industries" grown to giant
size still fatten on war taxes imposed
a generation ago. The Spanish war
taxes outlasted their necessity two
years. Confronted with an enormous
surplus we strive to spend as much of
it as possible instead of reducing
taxation to fit our needs. New, Ynrlr
World.
It Won't Do.
But it won't do, gentlemen! The
largeness of Mr. Cleveland in the pub
lic eye is a largeness in the minds of
that portion of tho public willing to
have him so appear, and it is a will
ingness not found in tho ranks of the
democratic party, among democrats
who aro democrats, and not mere as
sistants and adjuncts to tho republi
can party. Grover Cleveland caa
not bo nominated by a democratic
presidential convention. Apart from
his political views and leanings, the
fact of his renomlnatlon Involving a
third torra to tho presidency would be
sufficient to damn him at the polls.
Tho people of the United States aro
against third termers, whether tho
terms bo consecutive or otherwise,
and tho democratic party Is against
Grover Cleveland and the political
views he holdB, and held oven while
acting as president by tho grace, and
the votes, of tho democratic party. It
will not do, gentlemeu! Tho days of
miracles may not bo past, but the
democratic days of Grover arc past
Paducah (Ky.) News-Democrat
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Nearly 500 homophonic words aro
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What It Took.
The enemies of Tom Johnson claim
that he didn't keep his promises.
They neglect to add that it took thir
teen injunctions to prevent him from
keeping them. Johnstown Democrat
On May 27 tho Pennsylvania repub
lican state convention indorsed Presi
dent Roosevelt for the nomination in
1904 and also declared against any
change In the present tariff schedules.
Senator Quay declined to accept re
election as citeirman of the state com
mittee and Senator Penrose was chos
en his successor.
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