The representative. [volume] (St. Paul, Minn.) 1893-1901, 1899-01-25
IMPORTANT ADMISSIONS.

The following language from recent
report of Henry Clews ought to awaken
a few of those dreaming individuals in
this country who think the Republican
party can do no wrong, and who are
perfectly satisfied with present politi-
cal and industrial conditions.
This comes as an admission from a
Republican authority, an oracle of the
Republican party upon such subjects.
1t should be convincing evidence of
the rapidly widening gulf between capt.
tai and labor, the concentration Of
wealth in the hands of the few and the
establishment of Industrial conditions
that lead toward industrial slavery and
the overthrow of the republic.
The only important element of weakness
In the stock market centers in the indus
trials" Outside of a very limited line Of
exceptions those stocks have long had to
encounter certain amount Of distrust; but
as their wide and frequent fluctuations have
offered special temptations to sanguine op-
orators they have ranked among the most
active properties the list AS showing
the great activity of this class Of stocks,
the sales of American Sugar, Tobacco and
Peoples Gas for 1898 aggregated %, 5OO, 600
shares; while the transactions in the three
most active railroads est. Paul. Burlington
& Q. and Union Pacific) amor nted to only
100000 shares. These figures show the in
fiuence that few Of the lea ling industrals
must have upon the value Of an enormously
larger total Of railroad stocks. That in
fuence is unfortunately mainly prejudicial.
1t is welded almost wholly in the interest
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venturous class of operators; it is not regu-
lated by the influences that control the
value of railroad securities; it is factor in
speculation so fictional and tickle that there
is no calculating upon 1t either one way or
another; and yet it very frequently arti-
ticially dominates the value Of all other
This feeling is just now accentuat-
ed by the fact that the banks are showing
their estimate Of the ''inductrals' oy
throwing them out freely as collateral
against loans. Without speaking explicitly
as to the motives of the banks IN taking
this course, it is easy to see that they must
take cogniZance of the surprising extent
to which new combines are now being
created in all parts Of the country. Unless
some check is interposed to that movement
very large majority of our Industries
must soon be operating under one or other
modification of the trust principle; and; in
deed careful estimators calculate that
already fully 60 per cent of our manufacture
ing corporations nave placed themselves
under these amalgamatlons. 1t is hardly
sur ,rising that the banks, especially those
doing a stock exchange business, should
pay some attention to the flooding of Wall
street with issues the true status or value
Of which 1t is generally difficult to ascer-
tam.
The case would be different were these
largely experimental amalgamations capital
lied upon sound principles and on conserva-
tive valuations Of their assets, and did they
possess bona fide elements of permanency.
In most cases, however, they are greatly
over -capitalized properties are taken in at
exaggerated valuations; factories are abb
sorbed with the expectation that they will
be kept idle; good will'' is capitalized at
fctional figures; and profits are promised
which are incompatible with the mainten-
ance of prices for products low enough to
either protect the combine from competition
or to stave off public dssatisfa cton and leg
isative or legal Intervention. 1t Is very ap-
parent also that many Of those committed
to these amalgama tons are Influenced by
desire either to realize upon the stocks dis
tributed to them or to make them a basis
of speculation, or both. 1t is a serious ques-
ton for Wall Street as to how far it is con-
s1stent with the safety OF its large interests
and with its reputation a great financial
market to become instrumental in the dis
tributiOn of thousands Of millions Of securi-
dustrials' for the most part possesses. 1t
would seem inevitable that these corpora
tions, must at no very distant day, become
a burning question in politics; and, in that
event, what would be the situation of in
vestment interests, if Wall Street wero
found flooded with these issues? Is it not
better to face this question now while pro-
lection is possible. than to ignore it until
the movement has passed beyond control?
The decentralization to which the stock
market is already constantly exposed from
these influences is sufficient, without in
viting further exposure to this demoralizing
tendency.
There can be no roubt that the rapid In
crease now IN process in hese industrial
ANAL carnations is having its effect upon the
otherwise hopeful influences that are en-
HANGING the value Of legitimate invest
m hts, The surprising magnitude of these
new creations causes conservative men to
halt and ask-what is to be the outcome Of
the wave of speculative organizat ton that Is
spreading over our inductrial system? Their
eye Is upon this cloud in the horizon, and
not few cautions men disposed to
stand still until they are m ore satisfied with
this Industrial outlook. The moral is--con-
fine your purchases to railroad investments
Of reasonable soundness.
When the reader has thoroughly di-
gested the foregoing report he will be