The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1870-03-09


dustrial groups.
I am convinced that there are scientific
reasons for the graduation of dividends to
capital, but as l could not make them ap-
preciated, nor even understood, without q
more extended exposition than Is consis-
tent with my plan, l will not attempt to
state any reasons of that sort at present.
prefer to Justify the graduation by con-
siderations which are both simple and in
telhgible, task which does not appear to
me to be difficult But do not claim that
the graduation Of either of these two Ia
bles is scientific in such sense that it
may not be indefinitely modified, or that
either is the best possible. The Tables
simply present two somewhat widely sep
arated examples of graduation, either of
which may answer the purpose in some
degree, though both may be imperfect II
Is scarcely possible that a gradua-
ton should be so vicious as not to be bet
ter than the stagnant level of equal divi-
dends to all class of stock.
One of the most obvious recoEmenda-
tions of the proposed graduation of -divi-
dends is that it encourages accumulation
by non-proprietors and offers inducements
to them TO produce and to save, that is, to
exercise both industry and frugahty, in
order to become capitalists. BY giving an
opportunity to invest Proftably for linn
tied time, 1t also furnishes facilities for
acquiring wealth at the time when its ac-
QUESTION Is most difficult, that Is, at the
point where the first savings are accumu-
lated. The object OF these special induce
ments Is to stimulate members who have
no capital to acquire, as early as they
can, the means of becoming joint owners
of tho "a v,v.orarfr- n The y,o1Aof IF
which they live, and thus to become inter
ested in its improvement, productiveness,
ornamentation and preservation. Even
under our present system, successful
commencement in accumulation, made by
means of industry and frugality,- affords
O reasonable assurance of persistence In
industrious and frugal habits, and Is an
encouraging step towards acquiring a
competency or a fortune.
By both Tables capital stock is divided
into two classes, one calledPreferred Stock,
the other General Stock. Every variety
of Preferred Stock is allowed a higher
rate of dividend than General Stock, but
only about one third of it a rate very con-
siderably higher as will appear by IN
| spection of Table l. 1t will seldom hap
pen, in practice, that more than one
18th nor often that more than one twenti-
eth, of the entire capital stock will be al
lowed q dividend exceeding double the
minimum rate. There is, presume, no oc-
casion to fear that the advantages accor-
| ded to Preferred Stock, apparently at the
expense of General Stock, will really di-
minish the dividends paid to the latter
On the contrary, it may be reasonably ex-
pected that the stimulating influence oi
these advantages will so much augment
| industrial products as to make even the
lowest class of dividends larger than they
otherwise would be.
By both Tables also Preferred Stock is
distributed into several subdivisions de-
nominated Orders and Genera. Order 1
with its three Genera is called Labor
| Stock, because investments in it will moi
be permitted except from the earnings oi
labor. that is, from earnings which are the
result of personal participation in indus
| trial operations, and of the exercise o.
some kind of industrial capacity, and only
| from the excess of such earnings IN some
one year over and above all personal ex-
penditures. And Of such excess, only 6
limited amount OF one share cay $50, car
be invested in Genus !, only twice as
much, or 800, in Genus 2, and only three
times as much or $50 in Genus 3 thai
is to say, one share may be taken of eacf
sort of Labor Stock and no more. (Fol
when in either Table Genus is said, fol
example. to consist o. 8 shares at certain
rate. as ,, for three years, the meaning is
that there are three sorts of stock in tina
Genus, one * rate. for three years, an
other at same rate for two years, and an
| other at same rate for one year) Thus
suppose a numbers earnings in the vari
Gus industrial pursuits in which he ha
participated TO be for some single yea
$500, after paying out of such earnings hi
years expenses, or deducting their equiv
alent from his total earnings, if his ex pen
ses have been in fact paid, wholly or il
part, in some other way, and the membe
wishes to invest the whole amount as ad
vantageously as possible in stock he ma,
invest his $500 in the six different sort
Of Labor Stock, which are, according T.
Table II, as follows: