The times. [volume] (Washington [D.C.]) 1897-1901, 1900-10-07
TRUSTS AND THEIR MEANING.


| tOtdl fdlue OIL ali the real anu ptAoohai
| property in the United States, assessed
| for taxation. amounts to about $36, O00,-
| 100000. This is exclusive of stocks and
bonds, which are virtually mortgage
on property and labor. Much of this
! thirty-six billions is unproductive, and
economists estimate that the income is
| 2Jk per cent on assessed values; this
| would be $500, 000,0 600
| About fourteen million men will be
| entitled to vote in November. Two
Thousand of them are each worth more
than million dollars, and their COM
bined wealth is four thousand millions
| 1t is difficult to express this fact so that
| it will be readily appreciated by un-
| trained minds. -thousandth
| part of the men entitled to vote
| have one-ninth of the wealth of the
| country These are the financial mag
mates who act as directors of railroads
and of the larger financial institutions In
Wall Street
If the rank and file of voters can be
| educated to understand this, Bryan will
be elected by an overwhelming majority.
| Existing conditions would not continue
six months were it not that, with rare
exceptions, the men who have access to
| the public ear are courtiers to the
| money power, and avoid ventilating
what miliionaires wish suppressed. 1t IS
unaristocratic to expose illegitimate
methods which give enormous profit to
the 1000 men having one-ninth of the
wealth in the United States. Every one
of these men regards Bryan just as the
courtiers of Louis XVI regarded Turgot,
but all profound thinkers knew that he
proposed the only method to avert the
French Revolution.
Policies under which the middle class
become relatively less prosperous are IA
! tai to republican institutions. This class
are men, clear of debt, whose property
is assessed above s., 600 and under $4,000,
making an average of $4,000. Such men
feel an independence which enables them
to walk with firm step and head erect to
the place of voting with no thought except
to promote honest government and i'm
partial legislation. Before the days of
combinations ito milk the masses" this
middle class had one-half of the wealth
in the United States; today it has less
than one-1hird. In other words, privi-
legged class has acquired one-sixth of what
the middle class would have except for
class legislation, and, if present policies
continue, this privileged class will I'M
doubtedly become possessed of fully two
thirds of the wealth in the country within
the next few years. 1t may not acquire
technical legal title to the land, but IT.
will have what is equivalent to a mortgage
on two-thirds of the property and labor
and will reap the profits with as much
certainty as II holding the legal title
This statement will be effective with vot-
ers of sufficient intelligence to compre-
bend that man, with stocks and bonds
yielding him an income OF 100000 mas
what is equivalent TO a mortgage on prop
erty and labor producing that muct, profit
Some one with leisure should calculate
what an advance of per cent on articles
controlled by trusts will cost man who
supports a wife and five children, but
does not own any property except little
furniture which will not sell for $500
No one item will look large, but the ag-
gregate for twelve months will astonish
those who have not considered these sub
jects.
Anyone can see that a county debt is
mortgage on all the property in the coun-
ty. and IL the debt is held abroad the an
nual interest is so much money leaving
the community and going TO another COM
munity. When securities are held by a
privileged class the interest money leaves
the masses and goes TO the classes. The
effort should be 10 carry the public mind
along until voters comprehend that the
masses are paying interest on at least
twelve thousand millions Of securities
which represent absolutely nothing except
combination" Voters must be taught the
difference between stocks which represent
property aud stocks which represent
schemes to milk the masses"
Formerly when stock was issued to build
bridge the cost of the bridge limited the
amount of stock on which the public would
be required to pay interest. But with
! present methods the amount to be issued
depends on the amount of toll that can be
extcrted from the line Of travel II the
line of travel is large enough to yield
Sc, 00S year, then 500, 000 of stock Will be
issued. although the bridge costs only 3d.
000 Should the public pay interest on
s100, 900 when only $40 900 is invested?
Deducting county and other public bonds
subscribed to American railroads, the cost
Of them did not exceed s., 600, 900 900, but
they are capitalized at s11, goo, 900, 900.
Here are six billions in excess of the
amount invested. Let us get a concep-
ton Of what six billions means. All the
personal property on the tax books in the
United States in 1890 was only six and a
half billions. In 1890 all the real estate
in the United States was assessed at only
eighteen billions one-third would be six
billions. The interest on six billions is
only forty millions less than the entire
revenue of the United States Government
The effort to pay interest on this ex-
cessive capitalization keeps down the
wages of railroad employees and accustoms
railroad presidents to methods honorable
men abhor. Last year the roads collected
from the public 81 300. 900. 900. About
$3.50. 600 900 of this was paid out for op-
Grating expenses, leaving $3.50, 900, 900 for
holders of railroad securities. Here are
$500, 900 600 to pay per cent on the cost
of the roads aid $3.50 000, 900 for securities
representing capitalization above cost.
The amount, applied to capitalization
above cost, is made larger as population
and production increase. When population
and production are large enough to pay
full interest on this six billions of capt.
talization above investment, then $780,
900, 900 will be annually taken from the
masses and given TO the classes. In ten
years this will equal the present assessed
value of fll the real and personal prop
erty in the United States.
Anthracite coal costs at the mouth of
the mine in Pennsylvania s1.79 per ton;
reasonable freight for the 100 miles to
tidewater would not exceed 80 cents;
the cost at tidewater should be, say,
500. Five Wall Street financial magnates
syndicat ed the nine roads on which the