I,:
"
aocond of theao alternatives may bo attained,
but anything more impractical than the first can
not bo imagined. It is true that if the agitation
wore a mere party expedient tho dceircd result
might bo brought about ultimately by repeated
dofeats of tho offending party. Talking and writ
ing would ceaso then simply because experience
had shown that thoy were not good politics. But
this agitation Is carried on by men of intenso
convictions quite regardless of their party affilia
tions, and it is difficult to conceive of a time
when many Americans will not be moved to the
same course. For these men of strong, vigorous
Intellects have been forced to conclude that the
fundamental principles of our government were
being violated by such political relations as exist
botwecn the United States and tho islands, and
tho situation must appeal to others as it does to
them. Moreover, .where a principle is thus in
volved tho persistence of its professed devotees
is certain, and, of course, their'right to talk can
not bo questioned. If it were, that of itself would
furnish sufficient ovidence that certain American
principles must receive a new emphasis."
JJJ
Consumer and Investor
'Jrtio Wall Street Journal, unquestionably tho
fairest and most independent of financial publi
cations, prints an interesting editorial about
"stock watering." One of tho Journal's readers
asked whether "stock watering" did not impose a-,
burden not only upon the investors but also upon
the public at largo, requiring tho masses to earn
enormous dividends upon the increased stock. The
Journal frankly admits that over-capitalization is
an evil working injury to both investors and the
public. It asserts, however, that "this evil could
bo removed if there "was a proper system of pub
licity." The Journal says:
Under such a system the actual value
might be $1,000,000 and the capitalization $10,
000,000, but tho investor being in possession of
all tho facts, would know that while tho par
value was 100, the real value was 10, and if ho
choso to pay more than that for tho stock he
would do so with his eyes open to tho risk,
in tho hope that future developments would
increase tho value.
The Journal admits that when it comes to
protecting tho consuming public a more difficult
question is presented. It contends, however, that
publicity would remove the evil effects of tho
"watered stodk" even in this direction. The Jour
nal says:
This evil consists in the attempt that may
bo made to earn dividends on watered stock
by unduly increasing prices or reducing, the
quality of service or goods. Theoretically, cap
italization makes no difference to earning pow
er. A company earning $100,000 a year will
' S?r,!LE00'000 a year whether capitalized at
$1,000,000 or $10,000,000, and, the consumer will
bo unaffected by tho amount of tho capitaliza
tion. But if the company enjoys a monopoly
m like a public servico corporation, or the bolder
5? valPab,le PaJfnt, or if, by consolidation,
it has obtained the virtual control of an in
dustry, it may inflict widespread injury by at
tempting to earn dividends on watered stock.
There can be no doubt that the public suffers
in this way by reason of the public servico cor
porations in this city. But if there should be
a system of publicity that would reveal the re-
, sources of a company's income, the corpora-
thTpublld fr l0Dg' to overcnarS
: ' ' . i '
.. A thorough system of publicity wouia go far
by way of protecting investors; .but while tho
consuming public is Injured by over-capitalization
consumers are more directly and more vitally con
cerned in tho monopoly feature than in over-capitalization.
Some of tho most oppressive of trusts
arp not over-capitalized. Some of them are con
ducted by honest methods, so far as concerns the
relations between stockholders. But so long as
the power of monopoly exists in one of these con
cerns, it is not fair to .say that "if there should
The Commoner.
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be a system of publicity that would reveal tho
resources of the company's income, the corporation
would not dare, for long, to overcharge the pub
lic." Tho American people have a fair idea of
tho income, of the Standard Oil trust, tho income
of the steel trust and tho income of many other
trusts; and yet, these concerns not only "daro"
overcharge the public, but the trust magnates
laugh in the very, faces of tho public. It will bo
remembered that Mr. Schwab said: "We can
' make steel rails at $12 per ton, leaving a nico
margin for foreign business." The steel trust
charges tho American consumer $28 per ton for
rails. Foreigners can purchase steel rails from
the American trust for $20.
Corporations created by law should be sub
jected to a- thorough system of publicity, but as
"private monopolies are indefensible and intol
erable," trusts should not be permitted to exist, the
monopoly should, be destroyed and conspiracies in
restraint of trade should be prevented.
The highwayman does not fear the gaze of
tho public if he knows that under that gaze he
can escape with his plunder. What he fears 'is
arrest and proseeutlon.
' The trust magnate need not be greatly" con.?
corned as to publicity, so far as the interests of
tho consumers go, if the authorities are not to.
interfere with his plan of piling burden ' af ter
burden upon the public; and so long as human sel
fishness exists men' will take advantage of their
monopoly privileges and the people will sufeir just
so long as the people's officials will permit them
to suffer.
Let -us have a thorough system of publicity
concerning corporations for the protection of the
investors. For the protection of the consumers
let us have an honest enforcement of the Sherman
anti-trust law; let trust-made articles be placed
on the free list; let men who conspire in restraint
of trade be denied the privileges of interstate
transportation and the -use of the mails; let the
statute providing for the criminal prosecution and
the Imprisonment of men who through monopolies
prey upon the people, be enforced against the most
powerful of tho monopolists.
SJJ
A Cry From Boston
A Dayville, Conn, reader of The Commoner
directs attention to an interesting editorial "that
appeared, in the Boston Herald of, September 22.
That editorial is entitled "Fostering Socialism."
The. Herald declares that the delegates to the
democratic national convention were given "the
assurance that the Now York corporation and pro
motion syndicates, angry with President Roosevelt,
would throw their influence for Judge Parker.''
The Herald points out that already many of these
democrats, are protesting that they were deceived
and that these corporate influences are almost
solid for Roosevelt The Herald soys that it is
just as well to recognize frankly that the triumph
of jJie so-called conservatives at St. Louis "has
no 'elements of permanency if the reorganized
democratic party fails of success In this election."
The Herald then, reads the corporation managers
a stern lecture in these, words:
The conservative and capitalist classes do
not appear to be acting with the best discre
tion to preserve their ascendency of influence
in the country. Tho rally of the moneyed in- '
terests around the republican standard and
their ownership of it, through their control of
the. senate, may servo their cause for a while
but the end of this course will bo a desperate
reaction The politicians and tho special in
terests that flourish by political favor mav
prosper temporarily, but they need to have a
care. The men who are not rich and do not
expect to be rfch, who pay extravagant taxes
and customs duties and bounties and substf ies
by which an artificial prosperity is maiSn J
and stimulated, will some "day discover what
hurlB.them and their revolt will be powerful
. and sweeping in its character Pweriiu
In that day' special and unequal privileges
..- VLUM13 4. NUMBER 33
will pay the- price of their nrpn , ,
authority in the land, and hero SS riotous
organization of industrial and ll 1 c a
tions. In that day tho money cont X In
corporations will not carrV LXii ted,by
"will not be difficult to arouse tlnn' a?d il
take an interest in politics ThPirfPe1),e to
be as spontaneous as strenuous ' vnr"?.,"111
it will, do abundant misSwhileT h '
ing its way to the correction nf ii V feel"
it will also prevenTsom isch f tk?t
going on, a mischief of greed crirnmH lfi
betrayal of the real intefesL'of he'manv t
, promote tho extravagance of the few
It is difficult to .avoid the temptation to won
dor why the Herald did not think of these thTngs
. during ho campaigns of 180G and 1000. Then
distrust influences- and-the corporation interests
wore solidly aligned .with the 'republican part
and we found even tho.great Boston Herald work,
ing enthusiastically. with these influences
Does the editor of tho Boston Herald roally
imagine that he can frighten, these trust magnates
with any such warnings as these? For years
the men who are not rich and who do not expect
to be rich have paid the extravagant taxes and
customs duties and bounties and .subsidies with
hardly a murmur of protest. Special and unequal
privileges have thrived and the victims of these
special privileges have marched to the polls
shoulder to shoulder with the beneficiaries and
cast their votes accordingly. These beneficiaries
really believe. that the people will tamely submit
to continued impositions. At least they are not
to bo alarmed by any warnings given by thoso
newspaper editors" who themselves so tamely sub
mitted to corporation ;government in 1896 and in
1D00.- .-... ,
J J J
Working For Peace
The delegates to the interparliamentary union
called, at the white house a few days ago and
presented to -the president a copy of the resolu
tions adopted at the meeting of the union re
cently held in St. Louis; tho resolutions read:
Whereas, Enlightened public opinion and
the spirit of modern civilization alike demand
that controversies between nations be settled
in the same manner as disputes between in
. dividuals are settled, that is, by the judgment
of courts in accordance with recognized prin
ciples of law;
This conference requests that the several
governments send delegates to an interna
tional conference to be convened at a time and
place to be agreed on by them, for the con
sideration of the following questions:
First Questions for the consideration of
which the conference at The Hague expressed
the wish that a future conference be called.
SecondThe negotiations of arbitration
treaties between the nations represented at the
conference to be convened.
Third The advisability of creating a con
gress of nations to convene periodically for
the discussion of international questions.
And respectfully and cordially requests the
president of the United States to invite all the
nations to send representatives to such a con
ference. The president promised to ask the nations to
joia in a second congress at The Hague. The
first Hague congress did-much goad. While our
country, England, Russia and Japan have all been
engaged in war since the meeting at The Hague,
the sentiment in favor of peace will grow until
reason Is substituted for force in tho settlement of
International controversies; SuccOss to The Hague
congress and more, influence to lovers of peace
throughout the world.
rrr
The Bradley-Martin Wedding
On another page $111 be found a Denver News
editorial on the Bradley-Martin wedding. It Is
reproduced to Show the' extreme to which the lovo
of display can be tarried. Nothing does more to
breed enmity between the rich and the poor than
the irulgar ghow that. gome of the wealthy make
of their money. ' It ihowg vanity, selfishness and
Indifference to thosfe who are less fortunate.
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