The times. [volume] (Richmond, Va.) 1890-1903, 1900-05-25
MIR. BRYaN-S METHOD CT SUP
PRESSING TRUSTS.

generous
MIR. BRYAN-s METHOD CT SUP
PRESSING TRUSTS.
Last Sundays New York World con-
tains what the World states is Mr.. w. j.
Bryan,s very latest utterance upon the
subject of trusts, which the World claims
Mr.. Bryan has just dictated stenosraphi-
caliy for it. It is as follows:
Why is this the greatest nation in the
world? Why do our people produce and
consume three times as much as any
similar population in the world? 1t is
because there is hope In the young mans
heart IN this country Il is because here
it has been our proud boast that the son
of the humb!est citizen can aspire to the
highest rewards In industry and business
and politics.
But new conditions are taking the hope
out OF the young mans heart and plant
ing despair in the place Of hope L be-
lieve that there is a simple remedy.
1 believe that with 1t you can destroy
monopoly in private hands. The State can
do it. 1t can do everything and without
taking from the State a single right that
it now has. I would have Congress de-
clare that before any corporation organ
lied in any State shall do business out
side of the State it shall take out Ii.
cense from the Federal government that
will enable it to do business in other
States upon the conditions imposed by
those States But it cannot do business
outside of the State Of its origin until 1t
complies with certain conditions necessary
for the public welfare, end before that
license is granted let the water be
squeezed out of the stock of the corpora
ton.
There will be flood for a while, but 1T
will half destroy every private monopoly.
Squeeze the water out of the stock ana
make it an honest corporation organized
for an honest business. and every honest
corporation ought 10 help squeeze the wa
ter out of the dishonest ones.
Then provide a second condition that
before the license is granted the corpora
ton must show that it is not attempting
to monopoliZe any branch Of business or
the production of any article of merchan-
disc. and then provide that the license
shall be forfeited If the conditions are
violated. Apply that law and l believe
YOU can destroy every private monopoly
and prevent the creation of a new one.
Suppose the Sugar Trust wanted IL
cense The evidence would show that 1t
produces 9S per cent. of the sugar. 1t
could not get a license and could not 90
business outside of the State of its ORR
gin You would cut them out OF forty
four States and leave it but one. It would
have to dissolve and then You would have
competition between rival factories.
The statesman is the man who can deal
practically with the questions of the day.
Let US see how these utterances OF Mr..
Bryan bring him up TO this standard OF
the statesman. He suggests three rene
dies which he says will cover the case.
They are:
lst- That each State shall squeeze out
of every corporation it has chartered all
the water in its stock.
I'd. That it shall make the corporation
lie any business.
SO. Before a corpora ton chartered in
one State can do business in another it
must obtain license upon the terms which
Congress shall require of it.
What of the practical is there in these
suggestions? We do not think requiring
a corporation to have a small capital
stock will tend in the slightest degree to
coerce It into making smaller dividends
than it would make if its capital stock
were larger. The capital stock of the
Chemical Bank, of New York, is compara-
lively small divided into shares of S10O
each, but these shares sell now for some
thing like 5000 each, which shows that
the Chemical Bank makes an enormous
dividend upon its shares of capital stock.
What is the difference between this COM
pany's making per cent. on 5000 and
making 200 per cent. upon 500? In point
of fact it makes just as large revenues as
it would make if its stock We're spread
out so that its earnings were only per
cent. upon its capital stock. This ought
to dispose of Mr.. Bryan's first nostrum.
The State would find it difficult to make
a corporation comply with his second re-
ouirement, and if it succeeded in doing
it, IT would take away all incentive TO
business. There never yet was a person,
partnership Or corporation, that did not
have in view the hope of getting entire
mastery of its line of business if it could
do SO. and if they Were denied all oppor-
tunity to do that an einparSo WoAiu DC
nut upon business that would be most
damaging to it. Mr.. Organs third nos
trum is the one we believe to which he
attaches the greatest Importance. We pass
by all the many objections TO it to deal
with it entirely as practical matter
Why could not the American Tobacco
Company confine its entire business to the
State of Virginia. and still be just as
much of a monopoly as it is now? The
difference would be that the California
iobber would have to come to Richmond to
buy cigarettes. instead of the tobacco COM
pany sending drummer to California to
sell them to him: and so of all its pur-
chases of tobacco The planter of North
Carolina would send his tobacco TO the
Richmond warehouses, where the tobac-
co company would buy It. instead or the
tobacco company, as now, sending its
agents to North Carolina TO buy tobacco
from the farmer at his home. Mr.. Bryan
could undoubtedly emharrass the large
scornor. tionS good deal in the transact