'Cbc Conservative *
PRESIDENT HADI-EY ON TRUSTS.
It is with no uncertain voice tlmt Presi
dent Hndloy of Yale speaks in the No
vember number of Scribner's on the
"Formation and Control of Trusts. "
And there is no one at present that could
speak with more authority. Of all the
American writers 011 subjects of an eco
nomic character , there is none who has
a cooler judgment or wider information
or a greater power of clear and compre
hensive generalization. He combines
actual experience in dealing with cor
porations with close direct observation
and careful study.
Two points at the start President Had-
ley urges on the attention of his readers.
One is that , enormous as are the figures
of the issues of trust securities in the
last year , much the larger pnrt of them
represent not their investment of new
capital , but the conversion of old'cap
ital. This fact lessens the importance of
the portentous volume of these securi
ties , but of course , it does not by any
means destroy it. The other point is
that the increase of these securities is
largely due to the opportunity afforded
for manipulation by inside rings. There
is a legitimate increase caused by in
creased earning power and by the possi
bility of corresponding economies , but
the securities really based on this solid
ground may fairly be assumed to remain
for the most part in the hands of the
owners and managers of the consolida
ted concerns , or in those of investors.
Outside of these exist the securities that
are either created for speculation , or ,
having been created , are devoted to
speculation. These may be called in
some degree a danger to the public.
They are a danger in the sense that they
give rise to an expansion that is bound
to be followed by reaction in which
many interests will be involved. But
that is one of the risks to which all
business is always exposed , and of which
the prudent take constant account. The
real danger lies deeper , as President
Hadloy points out.
A successful consolidation , which less
ens cost of doing business and increases
the net earning power , necessarily for
the time being reduces competition and
gives its managers the power to advance
prices. That is not to the permanent
interest of the shareholders , but it may
be very greatly to the interest of those
in immediate control , and especially it
may give them a most dangerous oppor
tunity to work the stock market. Both
the real owners of the property and the
consumers may suffer very seriously
therefrom. The problem , then , is how
to secure greater responsibility on the
part of directors and managers. It is
not easy of solution , and is in fact a
matter of the education of public senti
ment rather than one for specific lega
action. President Hadley suggests
"greater strictness with regard to the
formation of new companies , increased
mblicity of accounts and clear recog-
lition , legal and moral , of the responsi
bility of directors who have made false
reports to the stockholders. " These are
ogical suggestions , but it is plain that
neither will the legislation required bo
secured , nor , if secured , will it be effec
tively enforced , unless there is an active
force of public sentiment demanding it ,
and it is not likely to be created except
) y costly experience. One other sug
gestion is made , which is in the line of
recent changes in public opinion. It is
that the barriers to competition , created
by import duties , shall be removed , and
; hat duties in the case of business that
las undergone considerable consolidation
shall be reduced to a revenue basis. Of
the justice and expediency of this policy
there can be no question.
We have alluded only to a few points
raised by the most interesting and valu
able article of President Hadley , which
ought to be read carefully by all who
wish to form a fairly safe opinion as to
; ho question he discusses. One general
impression it produces , that trusts can
not be repressed by legislation so far as
they are the fruit of the evolution of
natural , industrial and commercial
forces , but that they can be regulated in
some degree to prevent the abuse of the
great powers that they offer. Our own
opinion is that this regulation may best
be in the direction of systematic pub
licity. That more than anything else
will tend to check illegitimate use of
power , while the errors that are inevi
table will be corrected by the stern hand
of experience.
TIIK STUDY OF SIIAKESPEARE.
Sir Henry Irving Earnestly Commends the
Practice of Heading Aloud.
"The practice of reading aloud in
small or moderate-sized gatherings is in
every way to be commended , " writes
Sir Henry Irving , of "The Study of
Shakespeare in Small Communities , " in
the November Ladies' Home Journal.
"It is good for the individual , good for
the members of the group , good for the
locality , good for the nation . No com
munity can be too small for the practice
of reading in public. If there be only
two persons , each may , in turn , learn
something from the successes or failures
of the other. No one need bo diffident
at the beginning ; there is nothing really
difficult. There is no arduous labor ;
there is no possibility of absolute failure
whore there is honest , careful effort.
Any form or subject of reading , worthy
in itself , can bo of use for the study of
elocution. It is , however , possible to
got together groups of persons interested
in some common theme , when the mere
getting them together without such an
agglomerative cause is lacking ; and
Shakespeare has been , is , and ever will
be , a name to conjure with. A play
read weekly or monthly , with the
various characters allotted beforehand ,
las been a source of much and con-
inuous pleasure , productive of thought
and study , ameliorative of defective
) ewer of utterance , a winnower of the
chaff of harsh accent or ultra-colloquial
mannerism. "
THIS SENATE ANTI-IMPERIALISTS.
Senator CafTery's Views as to Their Proper
Course Uryanism Deemed Worse
Than Imperialism.
Senator Caffery ( dem. ) of Louisiana ,
one of the meagre handful of Southern
democrats of prominence who have
stood by the honorable traditions of
their party , was asked by your correspondent
pendent today what the programme of
; he anti-imperialists in the senate would
be at the coming session of congress.
"That is hard to tell , " he answered.
'There has been no conference on the
subject yet. I suppose every one is
waiting to see what the president will
say in his message. With that before
us , the aggressive tactics of the oppo
sition are likely to take the form of
resolutions of inquiry. What satis
faction we shall get is another matter.
The administration may exercise its
privilege of not answering our questions ;
the president has certainly told us very
little thus far. "
"Have you any special points you are
personally anxious to clear up ? "
"Yes. I was just turning over in my
mind , for instance , the question of the
right of the government to interfere
with the freedom of the mails by throw
ing out Mr. Atkinson's pamphlets. I
should like to know under what author
ity of law that sort of thing can be
done.
"In one particular , by the way , I
differ from a good many other oppon
ents of imperialism. They think that
as between imperialism and Bryanism ,
Bryauism is the lesser evil , and there
fore to be chosen in preference. I dis
agree with that view entirely. What
we shall do with the Philippines is a
question which rests wholly with con
gress ; and the mistakes which one con
gress makes in legislation can be re
versed by a later congress. When the
people find that the acquisition of these
distant colonies was a blunder , they can
make that an issue , and on it elect a
congress which will undo the blunder ,
at least as far as any blunder once com
mitted can ever bo undone. But Bryau
ism is , in a certain sense , a disease.
When it has once wormed its way into
the political system , no legislative or
otherx external appliance will drive it
out. You may suppress its surface
manifestations for a little while at a
time , but the corruption lurks within
and continues its deadly work. In the
South its effects show themselves as
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