Arizona republican., 1899-05-17
PHRNIx. MAY IT. 1893.
MANY MILLIONS OF CAPITAL,


 There was a time not SC very many wears ago when a company that was fncorporated with capital of one nll- giorr of dollars would attract no end of attention throughout the country But in these days Of extravaganit no +ions and combinations we are told every day Of business combinatlon5- stock cmpanies-with capitals rang ing, on paper, from one to over Swo hundred mfT.io1s Of dollars being CT Ie,srlized under the laws of New JeT- sew Delaware. West Virginia ana othef states with liberal incorrora- tion statutes. There is scarcely a class of business that IS not interested in these giant corpora tions, and the wander of it all is where the money is to come from. In many instances many minor concerns arc united and their property and busl- ness interests are inventoried at certain figure which, in the aggregate, is named as the capital stock. In considerable number of instances these inventories are largely fictitious and represent practically nothing.
 As business goes in these days the good will" of a concern has no real valuation. Many of the new compa- mics with extravagant capitals are formed with the expectation of selling EtGck to the general pub.ic. But there are certain Limitations beyond which these million-dolfar corporations can net go. There is 9 limit to available capital to be invested in these new concerns or the union of savera. small CT concerns. The aggregate cf capital represented in the hundreds cf new corporations is sonething astcnrdEng and beyond comprehension by the ordinary mortal to whom thousand dollars is a fortune.
 When these great concerns start to engage in active business the first problem to be met will be the matter of returns fer, Jhe investors, mainly the outside investors. If all these companies are to net fair interest re- turns for their alleged capital invested it will sooner or later be found that the profits will not be sufficient to wa rant any dividends. Of course those who have the direction Of these great concerns vii. first secure their lihsral salaries and their employes may be eX- Pected to receive their wages, but after those expenses are taken out the small outside inEeStcTs may discover that they are not included in the deal. the
 
 the business has not warranted any dividends
 With such condition On a colossal plan there is certain to follow many questions and numerous acti-ns to discover where the stockholders ''are at." Of course this is not expected to follow in the matter Of all the trusts real or so-called, but there are so many hundreds of millions now gath cred together in a comparatively few hands that when the pinch does come it will be felt. The combination buSt- ness is. according to cur view, being overd done. England is still talking of the collapse of the Hcoley bubble and what came to pass over there as the result of the systematic floating of trusts can be expected to come tc, pass over here. We are just now going through a Hooley era of incorporation and no doubt a period of paper infla- tiCn that is not healthy. The matter is certain to become a serious problem unless those conservative men of busi- ness who ought to know are not good prophets.