The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1899-03-13


THIRD AVENUE THEATER Miss
blanche Stoddard IN -fngomar.
THE sECURlTY AGAINST TRUSTS.
When J. Pierpont Morgan last week
concluded negotiations In Europe out OF
which a gigantic combination OF coal
deaiers, with joint capital If $3.50, :
oD0.0oo Ii expected to evolve. the gross
amount OF money represented In the
Stocks and paid-in subscriptions VI the
trusts formed In this cauntry since jan
nary I. 1895. was brought very close to
G.s0O.o0o. 800. Economists look upon this
- the climax. II not the finai culnsna-
tfonf = the trust naosement,
Excess brings ruin to capitalization,
- II does 10 anything else. Ample evi-
1ense of this was afforded six years ago,
Nhen the approach OF the panic put
hole Ia the watered stocks Of the Amer
tcan railroads and threw more than
hundred OF the railroad corporations
INTO bankruptcy. business can earn
large money for time upon artificial
Valuation, and IL can always earn small
uainey upon artificial valuation. but II
may be set down ms a law that busi-
ness cannot permanently earn upon It's
capital an interest which exceeds the
marsin OF profit upun its output. The
Wrs.4 A..
Nkif extensive failures were the result
American Industries are now wher.
American railroads were In the eighties,
whu speculation in them spread TO
s@hli investors, The cancellations
thin fofnesf were promoted through the
plShera Of money which existed ~ the
time. AZ Il exists today. and ,Ae capsialixa-
tf1us then announced wcre compare
lively "a great az these Of the present
tslSsts. People went into them indis-
critnsnatels. II was easy sor promoters
or companies 20 iioai stocss. Il was .ns-
possible. however. that the SUMS repse
sented in the financial rating should
ILLUSTRATE the earning power or the
actual material value os the proper
d.
1T Is the same tasIay. The trusts are
net formed FOR the legitimate business
purposes eg regulating The market saor
sy1n for the questionable puipase of
monopoly. originally thai WAS their
ain. Eut with the advent of the Eel
~ Steel Company last year. with the
enormous capitalization Of s@oa ea1. aeo.
EAsera Of speculation IN trust stocks set
In upon tas Cleveland exchanges such
as 10 dtsnrosc any idea that The actual
resources ar value It the Plants imeoiv
ed IN the eosnh.ae we're the basis Il ,h,
capitalization, The course ~ nume.ou
other sreat comsh;ae-. getaniy the Ataer.
iran rs,oasea Cnesny has heea the
sDns az that 81 Ne T.eslgra. ssee.
Ne earn 90 interest ~ per ceat. I~s
afsaum afNaa she t9tsl Gtusg caplia't-a.
t.ea ~ IS scr goo coz IL voula ea nsees.
s~ry fer the rlaass concerned to earn 10
per cent pr,siil an grass anueal ssats-
nesa 81 81. 40, tssA ,asa T IS s.lssa II s.esrly
tlsree-s1aaftesa ~ tAe satlce vaaae II ae
experts ard imports Sc the United
states - the last fissa, year Tee pxse.
teal llanessthi.ssy y: earning any $arh
sum - made Obvious ia chs instance n
the Morgan eesl c@inhine i.non che
sRtasai al that consolidation. ,hc anuaa
Interest charge ef ! pes cent wuult he
over So. os.e sssa SIM yae total ea2l ssat
pGs II the United STATES II valnsyi a
caly seee ESQ Gee twhseA s. Equivalent -
an annual Interest % & ~. ss9. every
tan Of ssat mined II AEneyicS wens1
have 10 siels . profit above a0 ex-
rvnses II upwards - IL i"eT ceut 10 81
der ~ s,sees shs nxesa ehasges 81 tire can-
seigansien.
t. arrive at sucs earnsass, !; wa b.
come necessary fer TIRE srpass = eaasT'as
ryires aaa exesssse saeh a 'sa' noToss IS
VIII aegea, lie ews ends by ssssaelas