Manchester Democrat. [volume] (Manchester, Iowa) 1875-1930, 1899-11-29
REAL EVIL OF TRUSTS.

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REAL EVIL OF TRUSTS.
A citizen of sufficient consideration to
be consulted and quoted ON the subject
of trusts lately said that he considered
them very Objectionable and hurtful to
the interests of the people, because
they had to pay dividends on a capital
ization more than twice as great as the
value of their plants-that is, because
they had to pay dividends on stock
which was more than half water.
If this was the worst that could be
said OF the combines commonly called
trusts, they would not be deserving OF
the popular condemnation under which
they abide. The truth is that they dc
not have to pay dividends ON their
stock, however much 1t may be diluted
Ii they did have to the holders of much
OF their common stock would have
cause to rejoice. A corporation cannot
make dividends for any great length OF
time except out of its earnings. If II
earns nothing it has nothing to divide
II 1t earns much 1t can make large divi
dends. Its earning power does not de-
pend at all upon the amount of hts cap.
ltalization. If 1t issues stock nine parts
In ten water it cannot earn dollar
more than if its capitalization is only
half the value of its plant.
2 But its power to declare dividends
to make earnings-depends very greatly
on Its power to fix prices arbitrarily. II
1t has that power it may declare large
dividends on a very excessive capital.
cation. 1t is this power to control
prices that is the Objectionable thing
about trusts. Divest them of this pow.
err and the public will not care fig how
much they water their stock.-Chicago
Chronicle.
Next Year.
The issue of imperialism or anti-im.
perialism. of the Declaration of indie
pendence against national freebooting
OF American traditions as opposed tc
British policies, will be the supreme
question of the hour next year. The
Ii,
would-be destroyers of the Declaration
are welcome to whatever they can &c,
out of their so-called victories in Ohio
and elsewhere.
In Ohio they have elected minority
Governor, and whether Jones drew
most heavily from the Democrats, as
Mark Hanna confesses he did. or from
the Republicans the fact stands out
conspicuously that Jones himself is ar
anti-expansionist.
In Maryland the most popular Repub
lican of the State was up for reelection
as Governor. He had given a very
creditable administration, and all til,
power of the National Government wa.
used to promote his interests. But hi!
party made the fatal mistake of in
dorsing expansion and unfolding Nc
Kinley's jungle war. This cooked hi.
goose.
In Massachusetts the Republican
platform was n riddle. Even the Spring
field Republican Endorsed 1t on the
ground that it was n good anti-expan
sion document. So did Senator Hoar
whose Views are too we'll known fol
comment. And yet merely because the
declaration was not positive, because 1,
was susceptible of two meanings, %,
900 Republicans voted against 1t. Ii
Nebraska, where the issue was distinct
ly one of whether the Philippine bar
gain should have been ratified or not
and where the forces of nature really
seemed to work in favor of the Repub
leans. there was n fusion landslide.
In Kentucky the Democrats would
certainly have carried the State, per
haps they have carried it. but for the
bolt led by former Gov. Brown. Gov
Bradley, the Republican leader of Ken
lucky, is an anti-expansionist, therefor.
the issues were principally local to tina
State.
AS mater of fact Nebraska alone Of
all the States passed judgment absolut,
upon the Presidents policy. 1t was for
merly Republican stronghold, nj
Democrat ever carried it as such FOL
any State office, and Mckinley wa.
showed under
The next President will not only be {
Democrat, but he will be elected be
cause he believes in the Fundamental
principles of Democracy. in the Declar
alton of Independence, the Constitution
and Thomas Jefferson.-New Yorl
News.