Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1896-07-18

than that of the bank Just referred to:
but It's growth was so rapid that in 1874 or
no II had far greater capital 1t did not
get the increase of prosperity by doing
better for its customers than any one
else. i'll lair competition. 1t got il by
freezing out competition 1t made secret
arrangements with the railways To give
it rates that would enable it TO refine and
sell oil ut a pront, while its competitors
forced TO pay the higher rates could only
dwindie out ana die away. 1t borrowed
money to carry on these operations at the
start; but its profits in a few years did
away with the necessity of borrowing for
that purpose. The system of favoritism
and crushing out and buying up Compel
itofs continued so that this corporation
was estimated to be worth $50 $50. 900 in
l lS.S In lSS2 1t was capitalized at yo.ooo.-
900. 1t has paid dividends ranging from
Sscoo.oOo TO S2o'W1ooo annually for many
years. 1t is now estimated by market
quotations at over $4,000 go.
The examples OF the farmers deposit
bank of Pittsburg and of the Standard
on company are typical of the two
classes. Both are leaders in their class
one OF them by affordinG accommodation
and credit to business. by aiding mercan-
tile and manufacturing operations dis
tributes $4,000 to sGoo0o annually in diVi-
dends and Increases a capital of $1,000 To
$l.500,0o0 The other by secret arrange
ments with railroads to crush out its ri
walls distributes Sle 000, 600 10 $50 usF1 90 an
nuaily and on the start OF an original
S600, 001 capital concentrates total of
wealth estimated ut hundreds OF millions
one Is the representative of honest legit-
innate business. benefit to those with
whom it deals. The other is the pattern
and type OF the methods by which the
wealth that ought to have been widely
dinused is concentrated in the hands of "A
few. Here We have the fact that the
question of the standard and the alleged
advantage of the lending class for the
two decades have absolutely nothing to
do with the concentration of great for
tunes. II should not be understood that
in citing these examples The Dispatch is
representing that none of the multi-mil-
lionaireS are holders of interest bearing
Investments. Many OF them are The
Nanderblts have large holdings of the
bonds of their corporations. and the
Goulds of theirs The Standard Oil mill
lionaires have put much of their surplus
wealth in loans. But the point which
this article enforces is that ii was in the
control of corporate management, secur-
ing exclusive favors in transportation
and the ability to manipulate stocks and
securities from the inside. that the source
of the great fortunes created during the
past p years is to be found
In the character of stockholders in the
railway corporations the great manipu-
lators occupy the relation of debtors to
the bondholders of the corporations. 1t
is a measure Of the gross ignorance of
the free silver craze that it promises to
take away. by the reduction of the stand |
ard. the legitimate investments of small |
and large bondhoders alike, and to give
them to the corporate stockholders. |
among whom the great millionaires are
leading examples.