Daily Kennebec journal., 1901-03-21

Senator Mcradden discussed at great
length the unconstitutional lily cf the pres
cnt bill.
Mr.. Staples of Knox also spoke in sup
port of the minority report.
On motion by Mr.. Fernald of Andros-
coggin the ma jority report ought not II
pass was accepted by the Senate by Il
vote of Is in favor 10 ! opposed.
on motion by Mr. Buck Of Hancock. the
two bills relative to the tish and game
laws referred TO in this report were taken
from the table, and on his furthef 1notoi,
received their two several reau4ngs ana
were passed to b. cngrossed
ON motion by Mr. Plummer of PeHob-
scot bill an ACT relating 10 the duties
of State supcrintcndent Of schools was
taken from the table and on ms iufthci
motion took its two several readings ana
was passed to be engrosseu. ,,,.,.,..
ON motion by Mr.. Wilson OF NaShihS-
ton, resolve in favor of permanent cita
loguer for the State library was taken
from the table and referred To the next
on motion by Mr.. Weeks of Somerset
bill an act relating to the Issue OF stocks
and bonds by quasi corporations was tak-
en- from the table.
the report oI the committee be accepted.
Mr.. NOBLE of Franklin: Mir. Presi-
dent. In these days when Trust are
being denounced by all political parties
alike. when the universal war-cry
seems TO D''. uSiS Iilts7t W t'-f''A ~
ed" If would seem an act of wisdom 10
investigate for little this awful
enemy which has been so often por-
trayed as an octopus reaching out
It's grasping and loathSomc arms in all
directions. ii is not enough for poilti-
cal parties and legislatures 10 cry
Thief" They should rather proceed
to bolt ana lock the doors through
which the So-called trusts are premit-
ted to enter and rob the people.
! am well aware that the question
of trusts is a profound one. and 1t is
not my purpose 10 discuss IL at length
Study it as we may. from whatever
corrective theories we may. persuade
ourselves that the whole system OF
trusts. or more properly great corpora
tions, is All wrong, in the midst of our
logic ana reasoning someone points
out with no less Of logic and reason
the material benefits derived from wise
and economic combinations OF brain
and capital
Strictly speaking, real trusts are
thing of the past. Their life was short.
They were an aggregation OF various
properties concentrated under on"
management. These properties We're
not bought. sold or transferred. but
merely held IN trust ana managed for
the benefit ~ the several owners
Hence the name Trust" Rut their
methods did not meet the approval of
the courts were clearly rcpugnant to
the principles of the common law, and
they w,re repeatedly adjuGged as con
trary to public policy. So they decided
to change their name il not their ma
ture. They proceeded to legalize their
existence by organizing into corpora
tions. and are today. not trusts but
great corporations.
Now these corporations are to a
great extent essentially necessary 10
our prosperity. We are nation -
producers. We are able - produce
each year twice what We can consume.
We must. therefore. find markets for
this production in order to keep
labor employed ana our people busy
and cOntentcd. In order To compete
with foreign cheap labor every econ
omy of production must be employed
II is beyond question that. by saving
tine wastes of competition, the one
duce more cheaply ana be more Ger
tain OF securing foreign markets than
can 80 individuals with the same ag-
sregate capital.
This is Illustrated by the Standard
oil Co. l speak of this. not that | en-
dorse the methods Of this company Its
methods are severely. ANA | doubt not
justly, criticized But We all know ii
has reduced the price ~ oil. il has i'm
proved the standard Of its product: and
is adding S6G000.000 annually to the
amount Of our exports.
Shall we then Join in the popular
clamor for the destruction of trusts?
The man who. without study and in
vestigation. clamors for the utter an
Inhalation of all the great corporations
is demanding a penalty for oVeT-capi-
talization. mismanagement and mo-
nopoly. that would be more disastrous
to the public than the existence Of all
the trusts with all their present liber-
ties. Better by far to clip their wings
that they may not fly beyond the reach
of the people. Better by far to regu-
late then to destroy.
But how can we regulate? What evil.
ilt4utHl ~ COZ pOIdtiOllS. SIlaIl we lESI
attack?
All honest combinations of capital.
however large. for a legitimate profit
incidentally cheapaning the cost of the
product to the public. are clearly bene-
fetal. No injury can result from such
combinations. The injury comes when
the promoters of such combinations is
sue a large amount of watered stock
to which the public must pay tribute
stock representing no value, being in
effect creation of new capital at the
expense of the public, and calling for
its proportionate share of profits de-
rived from the enterprise.
Not only is this proposition true Of
our great industrial corporations
throughout the country. but is es-
pecially true of the quasi public cor
porations. such as railroads. water and
light companies. In the State of Maine
there are. today, millions of dollars of
such capital-capital created by mere
fiction of law-capital that has become
a mortgage upon the business indus
tries of our State at the expense OF
the public, benefiting the few who have
taken advantage of the laXity of our
State law relating to the issue of
stocks by these corporations. When