Virginian-pilot. (Norfolk, Va.) 1898-1911, 1900-10-14
"A COMBINATION OF LABOR
is A TRADES UNION.
Continued From Page 9.

The real benefits of "capitalistic
& production" as compared with pro-
duction OH small scale. are two-fold.
The first and greatest benefit of indus
trial combinations goes to the whole
body OF the community as consumers
through reduction in prices. The next
benefit, and that next most largely
distributed, goes, as | have shown, to
the workers through increase of wages,
and thus 1T happens that the working
man gains simultaneously in two ways.
He gets more money for his work and
more goods for his money.
So Having reviewed the position of our
e great consolidated corporations as the
results of an economic evolution. | feel
that something should be said with re-
Z gard to their capitalization. In general
there has been much greater conscrva-
.ktism in the capitalization of Indusrr1Tts
than there wac in the original capitali-
cation of railroads. Our railroads were
built principally for the amount of the
bond issues, and the stock represented
the capitalized hopes of the projectors
The issues of Industrial bonds have
Eeen considerably below the actual
value OF the tangible assets and indus
trial stock issues have generally been
Chased on actual earning capacity. Stin
Sit is undoubted that there has been
more than one instance OF marked
I over ca pitalization of industrials, and
no proper legislative measure To rem
edy this wrong or prevent its rccur-
renee should be neglected.
Fortunately, the evil caused by care
less Investing and unwisc Capitalization
tends 10 correct Itself by natural laws.
Investors, naturally timid, confused ~
the few inflated industrials which were
sput out simultaneously with the sound
ones. are afraid to buy, and the organ
izers, unable to sell their securities.
now realize that sound capitalization is
the best policy.
Sd In organizing industrial companies,
nreferred stock which is intended for
Y Al, investment security. should not he
issued in excess of tangible assets. cN-
5cept in special cases. where there is Il
very large earnings capacity pfotectoo
by valuable patents or trade marks
Verified earnings and regular q iNidends
will establish confidence. and the prices
OF the shares in the well-organiZed and
well -managed Industrials will advance
ms did the stocks of railroad companies
which were originally issued for good
will.
While believe in great organlza-
tions; while I know that they are a
necessity in order that this country
should become a great power in the
economic world and thereby continue
the prosperity of the wage ealners Of
THE land do not believe in large az
gregations of wealth in the hands or
individuals untitled to wisely admin
lister such great trusts. One of the un-
favorable features of our industrial
situation is that the men of great con
structive ability. are passing away. and
Instead of there being lack of oppor-
tunity, it will be difficult TO find men
TO assume the arduous responsibilities
of industrial leadership who have The
knowledge, the judgment, the ability
land the integrity of Carnegie and
Huntington, of Rockefeller and Field,
of Armour and Wanderbilt-the think
ers, the doers. the organizers-men
!. whose creations are the great land
marks In Our Industrial history.
4 1t is fortunate thai we have had such
lea ders They did their work with the