The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1899-09-16

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to be treated in this conference. In one
sense L think decentralization is a
matter of no public moment. In an.
other L think 1t has serious aspect. It
enterprise in itself. If 1 capitalize It
at 100000, and 1t Is earning $4,000 a year
the public ,o would Immediately put the
shares i,S at 100 per cent premium and that
no difference whether I capitalized it at
500, 200, or 5000, 600 If, on the other hand,
| capitalized at 100000 shares would sell
at o0 ana that would not make very
much difference.
1.-THE gentleman who opened this con-
ference. Dr.. jerks. in the admira Bile
consideration so clearly before us all.
meant to restrict this question of ever,
Capitalization to the instance of a news
paper which was o earning mi 100000 a year.
be reproduced for 500, 0O0-all except the
editor QaughteD, and he asked. "Is it
fair. How are you going to capitalize
the truth to the public about what you
have got and capitalize 1t as you please.
Oaughter.9
II can imagine affairs for instance,
where an increase of capitalization with
| out any additional capital might be a
very salutary thing. Assume for mo-
ment, that the Western Union telegraph
five cents hundred words and and they ~
would double their profits. would any
one object to the capitalization on that.
If. on the other hand. they should under
take to double their profits by doubling
cost of kilograms to the public. then
would believe in bringing every nipple
| ment, legislative and judicial, to bear to
prevent such an outrage upon the public.
If an industry capitalizes for $1,000 00O
knowing that it cannot pay dividends
upon $1.000.000. and then. without any
positive falsehood. deceive them by what
IS commonly called in finance chicanery
so as to induce them to buy at a fictit-
ious value. ! call that swindle. and 1t
would be called swindle If 1t is perpe-
trated against shoe dealer on the Bow
cry. where 1t is often called an operation.
daughter and applause)
REMEDY IS PUBLIC.
Now, my. friends, the remedy for al
evils in my judgment is the original rem
edy WHICH 1; l suggested: Publicity, pub
lie licity. The hatred Of eorporotions. which.
discreditable to the public opinion of
America. In fact, I lay it down as a
can follow with perfect safety, that wher-
ever you find a general opinion on anysub-
ject in America, there is always a pretty
good ground for 1t. {Applause.) The dis
Judgment, from any well-considered DIS
like to corporate entities. The gentleman
from Texas, whose eloquent periods on
the first day of our session moved this
body as 1 have not seen it moved, was
careful to distinguish between corpora
lions which acted for the public good,
and those which acted for the oppression
of the public. ! am not quite sure that
/ understood the distinction from his
words, but I think he perfectly sympa-
thized in your feelings. We do not OBJ
porate existence is the natural evolution
Of partnership. 1t is scheme by which
men, strangers to each other, can Co.
operate in production, while partnership
c,ol1n Tod
each other, and were compelled to work
together
But the management of corporations
has been the blacklist page in all our
dignation, unfortunately. which ought to
be expended upon the corporate manage
ment which is responsible for this shame,
has too often been visited upon the stock
holders and the corporations themselves,
VINO have been the victims of that in
fanny. My suggestions as remedy for
which is perhaps the blacklist as 1 have
said, in your history, this whole ques-
ton of corporate 'nanasement-if you
read the details of it, it will fill you with
a sense of shame for your country
LESSON OF A PANIC.
You have only got to look back to the
history of the panic of 1858 and the cor
pOrarte management that preceded that
panic, and you find corporations wrecked
and looted by those to whose hands they
IL, ,
property sold to them that We're but 81
and thin DISCUSSES for truth. They were
injured, robbed and outraged until de-
prived of property and credit, and then
in a condition so rotten that their fall
was noiseless. (Applause:) Now all the
history Of infamy and of wrong and OF
perfidy and of fraud has not brought, one
hour of shame or humiliation to those
who have perpetrated it. They are walk
ing the streets today, their heads high in
ed the story is only partially known, to
the vast mass people it is a sealed book.
"Why do we talk about the corruption
of municipal corporations? Wen, they
probably are cOrrupt-certalnly not more
so than they are believed to be daughter,
but the government of corporations not
wfthstanding that year after year we see
evidences of the rottenness with which 1t
has been conducted, and fraud which has
characterized its management. L do not
believe that in the whole history of juris-
prudence there has been case in which
a director has been compelled to answer
for it, These frauds are perpetrated in
insidious methods. The public are fooled
as to the value of the stock with Speclnc
statements; interest is paid upon bonds
which has never been earned, and the
public believe them solvent. 1t pays its
fixed charges, and the public buys the
stock, even though no dividends have
been paid believing that dividends are
soon to be paid, because the fixed charges
are met, interest is paid on the fixed
charges which has never been earned, in
order that the common stock may be
ioated. Then comes the collapse, When
ruin is completed, in nine cases out of ten
the men responsible for this ruin are APP
pointed receivers by the court IN order
to perfect the plan of reorganization
''Mr. Gompers spoke today about COM
plants which the labor organizations
have made against the courts for inter-
fering with the operations adlutatlons or
these unions by injunction. Well. don
c.fn hnr fn 70
government by injunction. That is po-
litical phrase. So we must exclude 1t from
discussion. But, ladies and gentlemen, L
will say this: 1t has always been to me
a source of profound regret that the
courts should show 80 much ingenuity in
devising injunctions to prevent corpora
lions from being disturbed by their en-
ployes, while they have not shown one
half that ingenuity in devising methods
to prevent their being robbed by their
directors.
''Why, my friends, 7 heard one gentle
man here declare that this method of COM
bination must be stopped, because he said
81, 900 commercial travellers had been
thrown out of employment-35,O 600 men ad-
vancing their views through one he
gives no particular evidence that there
was 35 600. They were not all here. Sup
pose it be true. although [ am always
doubtful Of statistics they come in so
plause); suppose it to be true; suppose
that a few industrial organizations pro-
duce results Of great Importance to ~
000.0 900 people, cheaper some article of ne
cessitv, and suppose it did throw $4,000
out of employment, would you hold back
the general welfare of the community to
suit that particular 5000? If we do-it for
IS 600 we ought to do it for $4,000; if we
do it for 5000, why should not we for
LOCO? If we do it for 1000, why should we
not do it for one?
s'Why should we now hold back the en-
tire car of the human race until every
human being could get aboard, although
In doing so we may have to reduce its
speed from that of a lightning express
to that of the numbering OK wagon. How
are you going to retain this equality be-
tween men? 1t would be better to pension