Potosi journal. (Potosi, Mo.) 1894-1929, 1899-08-02
Who Compose the Trusts.

SINCE much is being said lately
Of the trusts It brings up the qucs-
ton, 10y whom are they composed
and how aIc these combinations
fostcrel. The Democratic papers,
seeing that The question is likely IL
be dragged into politics, Of course.
attribute the conditions which have
made the trusts possible to the
Republican party. The Republic
cans also seeing the political pos
Sibilities in the trust sitjl:.t!0n,
will make party declaration
which will antagonizc them II
boldly As any declaration the Dem
ocratic party may make. Thus
each party is endeavoring to fore
stall the other in making Il pollti-
cal issue of The trust problem.
With what sincerity these party
declarations will be made can only
be determined by the course OF
the party which the people shall
delegate with the power to deal
with the question. 1t is, however.
an error to suppose that the trust
abuse, if abuse it be, can he cor
rected solely by political action,
since The trusts arc grounded upon
social condition, involving the ma
terial interests OF Il large per cent
Of the people.
The presumption is held out tha,
the trusts are composed Of Il class
styled plutocrats, who enter into
combination with Il sinister p,lr-
pose by which the common peo-
pie" arc made to suffer. This pre-
sumption is erroneous, however.
When a trust is organized its pro
motors issue shares that are sup
posed to have a certain value.
These shares do not remain i'll The
hands of the promoters, but arc
placed upon the market and the
people buy them. They are bought
by people with money to invest,
the dividend earning power Of the
shares being the inducement tc
buy them. The shareholders are
largely among those who have
small savings to invest well as ths
the wealthy class. Let Us take the
street railway combine now being
organized in St. Louis as an in
stance. This combine will ISSUE
stock to the amount Of 81, 900, 900,
of this $40, 600, 900 will he preferred
stock and SO, 900, 900 general
stock. The preferred stock viii
remain almost entirely in the hands
of the concerns promoters while
the common stock will seek The
market and the common people
will buy it. The combine having
a monopoly guarantees practically
| that all its stock will be dividend
paying and will thus be {, safe III
vestment for small savings. Th'
people having bought the So, 900,
900 of common stock they, O
course, become the supporters o
| this railway trust along with thoS,
who hold the preferred stock
Therefore, the people themselves;
to great extent, constitute tn
trusts and are responsible for thcl
being.
CTrusts have undoubtedly becl
fostered by the prosperity of tn
people, who, as their wealth in
creased wrought the conditions b,
which their money would find pro
titable emplacement. Now, shoul
these conditions be suddenly dis
turbed after the manner propose
| by those who would wipe out tn
trusts by sweeping law. the re
suit would be financial disturb
ance such as the United States o
world has never seen before. !
would not only bring ruin upon
the few ''plutocrats," hat also rui
and dcstitution to the thousand
upon thousand of the small invest
ors who have their little compe
tcncc secured by trust shares.