The evening times., 1900-10-17

maximum which can be applied to inter
est. This IS S175, ,G00O 600 less than the in
terest charge.
The author remarks that financial in
stitutions now realize that they cannot
unload securities representing fictitious
capitalization unless investors are con
vinced that methods will be enforced 10
apply larger amount to interest, but the
startling fact has escaped observation that
the interest charge is already larger than
can be collected without a government OF
force. Men, it is said, will work With
scant food to secure shelter for old age
but unless coerced. will not endure pri-
vation 10 pay interest to a small and dan
gerously rich class holding securities rep
resenting fictitious capitalization. 1t is
pointed out that wages will certainly be
reduced unless effort is restrained to pay
interest on fictitious capitalization. The
statement is made that 25,3 900 men al
ready own one-tenth of all the property
on the tax books and also hold securities
for 81 500, 600 600 which being virtually a
mortgage on the country gives them the
profits of industry as surely as if they
held a legal title TO the land The sta
tistics in this publication are on some-
what new lines and will surprise those
VINO have not Investigated the concentra-
tion of wealth
It is pointed out that when stock is
issued to build bridge, the amount
should be limited to the cost of the
bridge. But. if the travel will yield Sc
600 year, 100000 of stock viii be issued,
although the bridge cost only 10,0G0.
Should the public be toIled to pay inter-
est on S10G.0 600 when the bridge cost only
$10.0 Congress fixes the tariff TO pre-
vent foreign competition with American
steel makers. These steel makers form
a trust. and thereby prevent domestic
competition The Carnegie steel works
cost only So 900, co., and are capitalized
for $500, ,000, 600. Whoever uses steel con-
tributes to pay interest on the securities
representing this trust. 1t is estimated
that. If a laboring man has five in family,
an advance per cent on the price of ar
ticles controlled by trusts, costs him three
days work. No one has attempted to ap-
proximate the amount of securities now
outstanding which represent fictitious
capitalization. but it is known with GER
tainty that largely more than fifteen bill
lions have been issued within the past few
years.
'sThe middle class is composed of men
who are neither rich nor poor; they are
men clear of debt whose property is as
sessed for taxation at more than 81 500,
and less than $4,000. This class num-
bers 1.S0O. 600. and own one-half of the
property on the tax books. which is IS
sessed against the fifteen million voters.
Stocks and bonds SO seldom appear on
the tax books. that the amount is too
small to consider.
THE danger to the country does not
lie in the fact that 800 men in one class,
have as much property assessed for taxa
tion as 100 goo men in another class. The
danger lies in the fact that a very few
men have acquired a mortgage for bill
lions of dollars which represent fictitious
capitalization. The danger lies in the
fact that %. 300 meu In financial centres,
of enormous income, viii, unless halted,
be able TO control elections
This mortgage transfers the profits Of
industry TO them, with as much certainty
as If they held the technical legal right
TO the land. The amount collected from
the public during the past year was onl .
sufficient TO pay per cent on tbs fcti-
tious capitalization, but unless the No
venber election calls a halt, the amount
will be increased as a government b. in
junction becomes better establ shad and
as population and production increase.
1T is not possible fer railroads and
trust officials to collect enough from the
public to pay per cent on fictitious cap
ita1ization unless the masses learn. to
live on less than trey now cons-de nee
essary II articles of necessity advance
90 per cent and wages only 10 per cent
labor must work on scaDt food. Hence
government by injunction is necessary to
keep labor quiet The dangerously ri h