Ottumwa semi-weekly courier. [volume] (Ottumwa, Iowa) 1899-1903, 1900-01-18

i
done cheaper on vast than on a
small scale. The growth of large capt.
| talized industries is therefore antici-
.pated, but it is not necessary that the
monopolizing trust should control such
industries.
! Trust Growth.
! The most recent estimates show
that there are at least 500 Incorporate
ed trusts in the United States, capital
lied at from $6,OOO,0O0,O0O to $s,0O0,-
100000. The actual capital after the
water is poured out is about $3,000,-
1 100000. The trusts organized since
March, 1899, are capitalized at about
/ 81, 200,000,000 common and $S70,575,-
200 preferred stock, in addition to a
bonded indebtedness. of $714, 1888, 661,
making total of SIS, Ts4 ,963,S61. This
does not include the freight and traffic
association or municipal monopolies
such as street railway, gas, electric
light and power and telephone compa-
MES. There are about 1855 incorporat-
ed trusts which have each not less than
10,000,000 capitalization and bonded
! indebtedness, and a few of them have
each capitalization as high as $780,
100000.
Trust Promoters.
Hundreds of shrewd, capable men
have sprung up as trust promoters
| within the last year. OF course only
a few have succeeded, one of whom
received from $30,OOO,0O0 to SAC, 200, 900
in stocks, which, after paying all ex-
1 penses netted him ten and possibly
fifteen million dollars.
Son the 10th day of October, 1899,
a number of Chicago men were put
on the stand before the industrial
commission, which has been taking tes>
timony on these questions, for several
months, in various parts of the coun-
try. The witnesses were w. FL. Moore,
one of the promoters; d. G. Reed, pres
ident of the American Tin Plate Co.,
WIN. z. Refs, president of the National
Steel Co., and c.: Guthrie, president
of the American Steel Hoop Co. They
testified reluctantly about the affairs
of three big concerns with which they
are connected. The commission in
quired particularly what they had done
with the millions of dollars of COM
mon stock ofthose corporations, which
is generally believed to have been used
by the promoters to smooth the way
and TO pay themselves enormous sums.
| w. Ell. Moore was the chief promoter
! for all three companies. He showed
that he was the chief organizer of
these plants, and that his plan was to
buy out the small concerns, and thus
become owner in his own name, before
turning them in to the trust he was
organizing, d. G. Reed said that Moore
had organized the corporation s.ot
which he was president, and had re-
ceived for his services $40, 100000 worth
of the common stock. He testified
further that in addition to these three
concerns. he had organized the Dia-
mond Match Co., the National Biscuit
Co., and the Union Bag and Paper Co.
Reed testified also that just before the
combination of the tin plate trust was
effected the product sold ait $3.50 a
box, and that now it was selling at
l$4.65 a box, and they expected to put
4 it up to $5.15 a box. 9 80
Capt. Huchison gave as his opinion
that the trust business is overdone and
that it is waning. The trust" he
said, s'is finding thousands of indie
| pendent firms which cannot be Tempt
ed bv the trust promoter. Theirprom-
Uses and threats are of no avail. Many
believe that the doctrine of supply and
demand and competition will solve the
problem. If it does not it lis, the duty
Of the American stat esnnan to find One.
If not the United States will soon have
on it's hands "a most in hriou monster
threatening. the American people
American manhood As IS bout to demand
restrictive legislati6n.
Aided by Million Dollar Hanks.
Trust promoters are too frequent
ly aided by the large banks who make
it business of carrying their bonds
in large quantities supplementing in
their supposed security by as much
more common and preferred stock
4 Some of the great trusts are borrowing
millions of money from large banks
more than the intrinsic value of Their
plants, the borrowing capacity being
i measured by their enormous earnings
il and subsequent enormous profit nee
essary, of course, to make their wa.
tered stock pay dividends. This class
il of banks are necessary for the trus,
promoters success. A continuation
!. about hard times.
while we believe and realize that
good times are with us, as a nation
anu illuSu ~ LILY
fact that money is circulated among
the masses because they are general.
employed, and there is general con
sumption going on and good prices arr
. prevailing, yet is it not true that much
of this enhancement of all values i!
brought about by the arbitrary ad
/ vancing of prices by these 500 incorpo
/ rated trusts, which have been pointed
out above?"
Capt. Hutchinson denied the fact tina
trusts make goods cheaper, giving a
an example the Standard Oil company
, and the American Sugar Retiner.
company, saying that statistics will
prove it. "1rhe trusts have come tt
stay" he said, "but we must not maxi
the mistake of confounding the opera
. ton of a great corporate influence like
railway companies, etc., with the SO
called monopolizing trusts. The for
mer is subjected effectively to the law.
of state and nation, and by them i
: regulated it in every important priv
: lege. Railways and many other organ
! izations, can be managed and directed
7 by private enterprise under prope
government control with greater salts