The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1899-09-16
COCHRAN BOLD.
Concluded from First Page,

O. tANlI PiCctIl Idltc. dIiu
MAKE them pay. If you take them at what
II would cost TO reproduce them you are
brought face TO face with the question as
70 Wnether you have any right, after the
state stood by and encouraged the original
holders OF these franchises. to sell the CAPT.
TAI which was issued on them to innocent
noioerS at the value that might be put on
Its earning power and then take IL back
from them on a different valuation.
Outside. of the question of ethics and jus
tice you have questions of constitutional
law to study. and. on the whole. l con-
slider the suggestion of municipal owner
snip as highly ingenious and highly inter
tional convention TO frame a new Consti-
tuition for the United States is somewhat
practicable remedy that this conference can
SUCCESS that can be put in force tomorrow
by any legislature that happens to be in
session? My friends. IL seems to me TO be
would not have the task i'm law to denounce
special rates TO individuals; that is the law
to-day. Tn remedy. then, is simply to de-
fine a practical penalty. a serious one, and
then provide for publicity and provide the
proper statute for publicity. and you need
not enforce the penalty. An officer of a COR
poration granting a special favor TO any
person who has a right to use that pos
session On equal terms with everybody
else ought TO be held guilty of a serious
felony. fApplause.l
NO fines, no judicial rebukes. no denun-
citation from platforms, no legislative en-
actments declaring things are reprehensive
will touch the subject, but a specific enact
ment that a special rate granted 10 any one
not enjoyed by the others Is. a felony. AND
proper means to punish ii will do something
toward checking it. and, my friends, this
is not any inconsiderate statement; 1t Is a
crime of the first magnitude. The PUBIC
official in the control of any great pubic
franchise who gives to one man opportuni-
ties at the expense of others robs that other
party, If not of the property In his posses
sion. the opportunity to acquire property
lApplause.]
PUBLICITY NEEDED.
Now, with a statute authorizing and
making it the right of every shipper. OF
| every person using a public franchise, to
have disclosed to him at any time every
contract and agreement made with any
other person, you will find there will be
little difficulty about avoiding the enforce
ment of the penal statute, for it will not be
transgressed. We want a simple statute
| of publicity, and 1 believe that will check
the special favors.
while I am on the subject, / think 1t
wise to advert to what manv call a phenom.
~enon-that is, the public dislike and distrust
tlemen, i don't share that hatred or dis.
like. but i understand IL. i don't think II
Is wholly justified. yet / think an m
! ton of the history of corporate manage
ment will show some justification.
I'VE have heard much about overcapltali-
cation as one of the evils to be treated
All tllC LII Oht eCiAtS 1893
overcapitalization is a matter of no public
moment. In another / think 1t has a serious
aspect. 1t matters very little how 1 capital.
| ize an enterprise in itself. If l capitalize Ii
at 800 and 1t is earning $4,000 a year the
public would Immediately put the shares
at 100 per cent; premium ana tnat Wouio
ence whether / capitalized at one hundred
| or two hundred thousand. If. on the other
hand, 1 capitalized at four hundred thou
and that would not make very much diff
| ference. .
1.-The gentleman who opened this confer
| ence. Prof. jerks. in the admirable state
ment which placed the issues for our con-
| sideration so clearly before us, meant to
| restrict this question of overcapitalization
to the instance of a newspaper which was
earning a hundred thousand dollars a year.
1 think it was one million dollars and yet
it could be reproduced for q hundred thou
sand dollars-all except the editor laughter
and. he asked. is it fair. how are you going
to capitalize that" The answer Is very SIM.
| pie: Tell the truth to the public about what
you have got and capitalize 1t as you please.
/ lLaughter.1
REMEDY FOR ALL EVILS.
II can imagine a case. for instance, where
an increase of capitalization without any
additional capital might be a very ~salutary
thing. Assume, for a moment, that the
Western Union Telegraph Company should
reduce the rates on kilograms to 3 cents a
hundred and they would double their profits,
would anybody object to their capitaliza-
ton on that? If, on the other hand. they
should undertake to double their profits by
doubling the costs of the kilograms to the
public. then l would believe in invoking
every implement. legislative and executive,
to prevent such an outrage on the public. III
an Industry capitalizes for 5000, 900 know
ing that 1t could not pay DIVIDENDS upon one
and then without any positive faisehood de-
ceive them by what is commonly called IN
L 6nonaa nhi0QnQrV so as 10 ln0uce lnem 10
buy at a fictitious value. L call that a
swindle. and it would be called a swindle
| Rowery. where it Is often called an opera
ton. Laughter and applause.J :,
Now, my friends. the remedy 1or all
edy which 1 suggested-publicity, publicity.
| The hatred of corporations, which. as l say,
is not wholly justified, is not discreditable
I lay it down as a cardinal rule. which l
think any person can follow with perfect
safety. that wherever you IND a genera
l always a pretty good ground for 1t. lap
| plause.1 The distrust of corporations arises
not, in my Judgment, from any Well-co on
friend from Texas, whose eloquent periods
on the first day of our session. moved this
full to- distinguish between corporations
which acted for the public good and those
which acted for the oppression of the pub,
lie. i am not quite sure that l understood
the distinction from his words. but 1 think
he and perfectly sympathized in our
feelings.
I'VE do not object to the principle of CO.
| operation. Corporate existence is the nat
ural evolution of the partnerships; Ii Is q
scheme by which men, strangers to each
other. can cooperate in production: while
partnership was a scheme limited to men
who knew each other and were compelled
to work together. But the management OF
corporations has been the blacklist page In
all our history. [Applause.l And the public
Indignation. unfortunately, which ought &c
be expended upon the corporate manage
ment. which Is responsible for this shame
holders and the corporations themselves
who have been the victims of their infamy
My suggestion as a remedy for all this
wrong-and-and 1t Is a chapter which Ii
perhaps the blacklist, as 1 have said. in oul
history this whole question of corporate
m"anagement-if you read the details of Il
it will fill you with a sense of shame fol
back to the history of the panic of 1873 an6
the history of the panic of 1893 and the cor
porate management that preceded tina
panic and you find corporations wrecked
and looted by those to whose heads they
were intrusted; their treasures empty
worthless property sold to them that were
but small and thin DISCUSSES of truth. The,
prived of property and credit and then SEN
over the precipice of insolvency in a condi
ton so rotten that their fall was noiseless
Applause and laughter.1 Now, all this story
of infamy and wrong and of perfidy and o.
fraud has not brought one hour of shame
or humiliation TO those who have perpe
trated it. They are walking the streets to
finance. To the best informed the story ii
only partially known: to the vast mass o.