New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-10-26
BRYAN SHOWS IGNORANCE.

This view of the subject goes to the bottom
of the question. but when Bryan comes 70 dis
cuss it in detail he shows great Ignorance. both
of the existing law and Of the possibilities Of
remedying the evils of which he speaks. His
remedies are, first that all corporations largely
engaged in business shall receive q license from
the Federal Government before they shall b
permitted 20 engage in interstate commerce.
He does not seem to know that the Federal
Government has no power to grant such
licenses. and under the Constitution. it
stands cannot exercise IT, If he had pro-
posed an amendment of the Constitution Of the
United States. by which the rover % create
corporations should be taken from the states
and conferred upon the Government, the sug-
gestfon would have been statesmanIike, and
many profound thinkers would probably agree
with him. My own inclination is certainly IN
that direction, although / see that Secretary
Root takes an opposite and believe mistaken
view.
His next remedy is to repeal the tariff duties
upon any article which is produced and sold by
corporations called trusts He does not seem
TO know that this remedy would affect hundreds
OF individual producers who are entirely 1ree
from any connection with trusts" or with mo-
ropolies OF any kind In other words. he viii
ruin hundreds of innocent persons for the sake
of furnishing a single offending corporation
His third remedy IS 10 prevent corporations
from doing business If they have a monopoly or
the production of any article OF trade l CONFESS
I know OF no such corporations, except those
which are protected by the patent laws OF inc
United States. Doubtless he had in mind me
Standard Oil Company and the Sugar Trust i.
50, he very unfortunate IN the SelecJlon OF
his object lessons. Neither OF these companies
has any legal monopoly. but they control very
large amounts OF capital and employ many thou
sands of workmen- They have both cheapened
the cost OF primary articles of necessity. anu
their monopoly consists in thei- ability 70 pro-
duce these articles st lower cost than their
competitors know or no greater beneIactloiI
to the community than cheap light, and GER
tainly the Standard Oil Company has accom-
plished the miracle or Illuminating the ehlL7
country at a merely nominal cost. They make
great profits because shey have distanced an
competitors in applying labor saving processes N
q Moreover.
tainly preserved to the United States one OF the
leading lines of EXPORT which has contributed
largely to turning the balance Of trade in our
favor and to the unprecedented prosperity ol
the last two years.
The destruction OF the Standard Oil Company,
so far I can judge. would simply raise the
cost of light and cut down the exports when
are now maintained by reason Of the great capl-
tai of that company and Its use IN the 10rsIs ORES
markets Of the world As TO the Sugar Trust,
there is not even the preteXt that there Is any
monopoly. They have now very powerful com
petitors and the growth of the beet root sugar
industry is going on at a pace which promises
soon to make us entirely Independent or cane
sugar. Nevertheless. If the sugar trust n-S
had monopoly. II has been OF a most beneNvo-
lent nature. Never before in the history OF tIlS
country has sugar been cheap as during the
last five years. The business is now carried on
under very great competition. and there Is hut
the slightest prospect that monopoly or -
kind Bryan speaks Of Will ever be created ~ 'lS
country.
BRYAN'S SQUEEZING" PROCESS
cut of the capital stock OF corporations II ne
should succeed in squeezing all the water OUT OF
the capital stock of these corporations ne Wouid
pIOduce a deUSe which would Overw helm inc
industries of the country and leave a track o.
desoation at which even his optimistic sour
would be appalled, Doubtless with his verSatlle
confidence in his ability 70 work miracles
would attempt to re-enaCt the tabled roe -
Deucalion. but his efforts would fail 70 restore
the ruined industries Of the land
The fact is that the water in the stocks OF L.
dustrial corporations is not only tnnOcuous, ~
from point OF view is positively adVahtaSe
GUS The modern corporation Is usually organ
lied on the basis of preferred stocks, represehtS
the fair money cost of the property, ana OF -.
mon stock representing the good VIII anu -.
possibility OF profit which may be realze~ -
of the business The common stock. theIei"It,
has cost no money. and il sells in the nafAVt -
price which has some relation either 70 -.
actual possible profits after paying IS -
rate Of dividend upon the preferred STOCK "li'0
represents actual investment OF money ~.
In this common stock. TO my mimi, uSS -
chief hope OF the wOrkingman OF this couhtl1 ~
the future. When times are prosperous u W..
undoubtedly bring a high price. Wheh I'M M
are adverse the stock viii fall TO noItIl-
value. 1t does. however. control at both tIi.o
the administration OF the business MY eNpe,,,
tation Is that when II Is cheap the worKIaeh ~.
buy 1t up. and in the course OF the cOInlhs S0N