The Black Hills union. [volume] (Rapid City, Pennington County, Dakota [S.D.]) 1889-1904, 1899-09-29

the trust could exist without the bene.
TIT of any tariff at all, although it could
not eNtort so much as it could with the
tariff and while some relief may come
from notifications Of the tariff, WI
cannot destroy monopoly until we lay
the AK at the root Of the tree and make
monopoly impossible by law.
1t has been suggested that disCrim-
nation, favOritiSm. secured by one
corporation against another producer
l. a rival has been largely inStru-
mental in enabling 4 desired monop-
Oily to become practically IA complete
monopoly. Now that can be remedied
BY laws that will prevent this dis
elimination. and when we prevent the
discrimination Sill monopoly may cN-
iSt. The remedy must be complete
enough to prevent the organization of
a monopoly. Now. what can be done
to prevent this?
w have a state government and 4
federal government, and, while this
dual form Of government has its ad
Vantages yet both state and nation
should have concurrent remedies. In
the first place every state has or should
have the right to create any private
corporation which. in the Judgment
OF the people Of the state, is conduc-
tive to the welfare of the people of
that state. | believe that we can safely
entrust to the people of a state the
settlement OF a question which con
Germs them. If they create a corpo-
ration and it becomes destructive OF
their best interests they can destroy
that corporation, and we can safely
trust them both to create and to ami
hilate if conditions make annihilatiuns
necessary.
I'm the second place the state has
or should have the right to prohibit
any foreign corporation from doing
business in the state and 1t ought to
have or has the right to impose such
restrictions and limitations as the peo-
pie of the state may think necessary
upon any foreign corporation doing
business in the state.
Il believe. in addition to a state
remedy, there must be a federal rene
dy. and l believe that congress has, or
should have, the power to place such
restrictions and limitations. even to
the point OF prohibition. upon any cor
poration Organizeu in one state that
wants to do business outside OF the
state.
Now, I believe that these concur
rent remedies will reach the diflculty
that the people Of every state shall
first decide whether they want to ere
ate a corporation. that they shall, sec
ondly. decide whether they want any
outside corporation to do business in
the state. and. II SO, congress shall ex-
erpctse the right to place upon every
corporation doing business outside OF
the state In which it is organized such
limitations and restrictions as may be
necessary for lie protection of the
public good"
Colonel Bryan at this point rcad the
famous circular letter advertising the
incorporation laws of Delaware. He
commented sarcastically on advan-
tageS set forth in the letter.
A person in the audicncc-"Dela-
ware and New Jersey are both demo-
cratic states are they not?" to which
Mr.. Bryan replied: They were not
in 1896"
He continued: 81 have read this let
ter in order to show you that where
a state can gain an advantage from the
incorporation Of these great uggrega-
lions of wealth. it is not safe to place
the people of her states at the ten
der mercica OF the people of such a
state as may desire to secure its run
ming expenses from the taxation of
corporations organized to prey upon
people outside.
'One method for the humiliation
of trusts has occurred to me. and II
seems a complete method. 1t may not
commend itself to you. 1t is this:
THAT congress should pass a law
providing that no corporation organ
lied in any state should do business
outside of the state in which it ia Or
ganized until 1t receives from some
power created by congress a license
authorizing it to do business outside
OF it's own state. tApplause.) Now,
II the corporation must come to his
body created by congress to secure per-
mission to do business outside the
state. then that license can be granted
upon conditions which will, in the first
place. prevent the watering OF stock:
in the second place prevent monopoly
in n branch OF business; and, third,
provide for publicity as to all Of the
transactions and business Of the cor
poration.
'lf 1t Is unconstitutional and so de-
clared by the supreme court, | am in
favor OF an amendment to the consti-
tuition that will give to congress
power to destroy every trust in the
country. The first condition which |
suggested was that no water should
be allowed in the stock. | do not be-
npyp tElt n Gt,yn C.1,r,ll ,,,->t% tL.
organization Of any corporation with
a single drop Of water in the stock OF
that corporation. Why should the cor
poratlons be permitted to put ouL stock
that represents no real value?
mo man can defend stock hat Ices
not represent money Invested, and
only in the case of a monopoly can you
secure dividends upon stock that Toes
not represent money invested.
w have a case in Nebraska whore
we tried to regulate railroad rates.
and one railroad in Dur state was cap
italized and booked for more than Ave
times what /, would cost to duplicate
the road. and yet the Judge held that
in fixing rates, We had to consider the
watered stock as well as the actual
value Of that road. When the case
went to the supreme court d decision
was rendered which was. in substance,
that In determining what was a rea-
sonable rate. we had TO take into con-
sidcrntlon a number of things
beside the present value of
of that road. measured by the
stock of reproduction, and you
Will find that If watering of stock is
permitted, then the cry Of the limo
cent purchaser is raised and you will
be old that you must protect the man
who bought this stock. My judgment
is that no man can stand in the posi-