The state rights democrat. [volume] (Albany, Linn County, Oregon) 1865-1900, 1882-01-20
NANIr.sakLL.

c1sy IL taxes with tne power tnat III CIV
ea to it by the people through the Log
islature. To this fact may be traced all
opposing force to monopolies. The state
can control corporations, aud should
whenever it is necessary to do so. The
state, for its protection, should have
thorough examination made of the
real capital invested by those corpora
tioas that are supported Ly the people
at large, and provide that reasonable
profits be allowed on the capital actual
ly expended. There is practice that
obtains in many enterprises, among
them railroads, to issue stock in double
the amount of the capital invested. The
earnings, however, are made to oever
the entire amount of stock. For instance
if there are four millions of stock, and
but two millions of capital, in fact, the
four millions are the sam en- which divi.
dends are to be made. and freight, pas
sengers &c, are assessed 10 pay divi-
dends on this four millions. ia such
cases the rates are double what they
should be. The state will allow these
monopoliss to earn fair return for mon
ey actually expended, but will not permit
the people 10 be robbed in this apparent
ly legal way. II should be the duty of
the law maker to enact law to prevent
the issue Of this fraudulent stock. We
say fraudulent, because it is a fraud
adopted 20 wiring money from the peo-
ple without consideration being given
for it. This case put before our readers
is by no mean exaggerated. 1t il mare
ly an illustration of the power exercis-
cd IN too many instances. We may
bring il home to our own door and H.
lastrats it In very forcible manner,
because the circumstances are kaowH
to tue public. In these columns ssme
months since there was published q
correspondence between VII. Watkinds
and n. P. Deady from which il appear
ed that Doady had received a sum o!
money for Oregon Improvement stock.
1t was then understood, and never do.
MED, that some ten thousand shares oi
that stock were placedto the credit ol
Deadly by that company. If this were
true then the csmpauy never received q
farthing for the stock. Il was sold fol
Deads > benefit as soon as it would bring
q large sum. That moment came and il
was stated that Deady realized $1,000
for this stock. Deadly got the money
and not the company, but the public
must be assessed to pay for this stock in
, dividends Notwithstanding. How uuci
of this stock has been given away tS
: men of influence and position we kno~
J not, but presume that there are a mil
, lion or two Of it, and while i. is mixet
: IN with other stock, and all Of the sam,
class, yet the assessment levied OF
: freight and passengers to pay dividend
, on il is all the same. it is stock tha
does not represent one farthing Of thl
money actually paid for property, ans
it calls for and receives he same proft
aI.stock that was sold By the rom pany
Ii is believed the Improvement Co
gave Deady $1,000 (the price Of tha
stock as present. This is to be mad.
up by the public in the manner stated
We recommend legislation 81 far a,
these evils exist, and If it be true that
that was a gift to Deady, or il stock
Was given to others, that all such stock
be cancelled; that it shall not enter in
TO the calculation Of interest on capital
invested or to be paid. Legislation or
this point is demanded, and no case
shows the necessity Of this more than
the one mentioned. Mr. Watkinds lefI
the impression in that correspondence
which we refer to, that the Legislature
ought TO take the matter in hand.