The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-07-24
CORPORATIONS.

Every intelligent person who gives the
subject any serious consideration must
come to the conclusion that no great en-
terprise can be carried to completion with
out some agreement which will insure the
use of the spare capital of several or many
men. The method of securing the aggrega-
ton of capital is by the formation of cor
porations under the laws of the State.
States which have the most wealth are
those in which are the most corporations
But for corporations there would not be
now five hundred miles Of continuous rail-
roads in the country, or a great iron pro-
ducing industry
The demagogue and the visionary are the
only people who Unfortunately denounce
corporations as great wrongs, the first be-
cause he is scoundrel and the second be-
government take the place of the corpora
ton.
There are, however, corporations or
ganized for a laudable purpose and COM
binations that are not made to rob the
people Even corporations partake very
much of the character of the men who con-
troll them. The general railway and manu-
featuring corporations, as they have been
organized for years, are permitted certain
privileges by law upon the assumption that,
for the privileges granted, corresponding
benefits will go to the people. The abuse
of corporate privilege is much the fault
of legislatures as the greed of corporation
managers. The States in which there are
the largest number of corporations have
learned to impose checks upon them In
some States evidence must be given that
the capital stock subscribed has been paid
in before organization is finally completed
and the watering of stock is prohibited.
The laws of most States are very loose
in regard to the capitalization of corpora
tions, so that bogus and fraudulent capt.
talization is a great evil because it opens
to class of constituencies spectators
temptation to make combinations to rob
the people. The extent of this evil can be
realized when the street-raiway companies
of the country are investigated. 1t is said
that there is not bona fide capitalization
in any large city. AS a rule these com
for right of way. Consequently, honest
capitalization should represent the actual
cost of the tracks and equipment These
franchises were granted before the applica-
ton of electricity was dreamed Of The
invention of the trolley has changed the
interest in any business which affords only
fair profits have obtained control of these
franchises given under different conditions
and have entered into a conspiracy to rob
the people of cities by fraudulent capital
ization. Take Indianapolis for an illustra-
ton. It's street railway is capitalized by
the promoters who last purchased the
property at $9,0OO,0OO, of which $4,000 are
bonds. That is by their own figures, which
put the miles of track at 100 and the capt.
talization at $9,OOO,OO0, they have $4,000 of
stock and bonds upon each mile of track
If there were not a mile of track in the
city there can be no doubt that an army
of contractors would contend for the
privilege of building as good tracks as
now exist and furnishing an equipment
equal to the present for $50 900 mile.
This is the class of corporations which
are organized for the purpose OF robbing
the people, and they are the corporations
which should be denounced and fought
When the proper discrimination is made be-
tween legitimate corporations and com
bines' of men who are banded together by
the same impulse as that which leads
others to hold up trains--the getting of
the money of other people-practical prog
ress will be made in dealing with corpora
lions. The first practical step is for the
Legislature TO make the penalty of fictitious
the penalty of which should be forfeiture
of the property.