The Billings gazette. [volume] (Billings, Mont.) 1896-1919, 1901-05-03
all the "boom" literature that could
be issued by any bureau having for
it's object the encouragement of immi-
! Grafton
APPLY II BRAKES.

.. ~
Incident to the era of phenomenal
prosperity which the country is ex-
p%eriencing has grown up a wild and
unreasonable desire to speculate in
almost every conceivable form OF com
modify, and fortunes are made and
lost almost daily on the stock and
other exchanges of the east. This
propensity for gambling has aroused
a feeling of alarm among the students
of economics and the prediction is
freely made that unless something
happens to curb the spirit of financial
recklessness a crash will certainly fol
low and wreck and ruin will overtake
many. Warning has been given by
the secretary Of the treasury n by
many others whose advice should be
needed that the present rate OF indis-
criminate and senseless speculation
presages disaster not only to those d.
rectly engaged in it, but that it is like
" to be followed by widespread disas-
ter to the entire country. Plentiful as
money is at present and easy to get
as it may be, there is a limit and when
| that limit SHAH have been reached the,
expected collapse is bound to occur.
1t is a we'll known fact that many
of the stocks exploited on the boards
of the east have no actual or intrinsic
value and are merely f1oated for the
purpose of enriching the promoters.
The time win come when the. bubble
must explode and it will be found that
the men who f1oated the stocks are
no longer connected with the concerns
by which the valueless shares were
issued and the innocent holders are
the ones upon whom the loss will
fall.
So great has become this evil OF
floating worthless or exaggeratedly
watered stock that it is beginning to
attract the attention of students OF
financial enterprises and they have
come, to the conclusion that there
should be a limit to the purely specu'
lative transfer of stock. With the OBJ
ject Of accomplishing something in
this direction an effort will be made
when congress convene next winter
to secure the enactment of laws thai
will be a curb on the indiscriminate
sales of railroad and Industrial stocks
Congress cannot assume to regulate
purely local business enterprises, bu
it can legislate for the control OF IN
: dustrial and railroad enterprises tina
> come within the meaning of an inter
state commerce. This is what tn
financial reformers in and out Of cor
gress propose shall be done. Repre-
: sentative Babcock of Wisconsin, VIII
has announced that he intends to II
troduce a bill for the enactment Q
laws modifying the tariff SO as to re
: move the protective features OF tn
duties imposed on trust manufacture
articles, announced just before h
sailed for Europe, a few days ag'
that he would also introduce a bi
fixing the liabilities of stakeholder
in interstate corporations. Unde
his proposed law stockholders wi
be liable for the value of their hol
ings for a period of two years aftt
transfer of their stock. In discus
ing the matter Mr.. Babcock said:
Liability of actual stockholders
~ the only possible remedy for the pc
ne nicious work of INSCRIPTIONS promo
Id ers. Corporations are organized {
10 every hand and nobody knows wi
= or what is behind them. When tt
q crash ome the men who put up t,
lob are out of the company entlrel
ry and only the innocent holders OF tt
he watered securities can be reached.
Congress can and I believe wi
st legislate that the actual holders
by stock certificates shall be responsib
le- This will tend to prevent wholesa
ia transfers in blank, and if the origin
stockholders know that they cam
nc escape their liability for "a year
cir two after they sell their stock tn
ed will be more slow about wrecking c.
nv p%orations.
Congress can interfere to reguls
us the stock of corporations which ma
a commodity in one state to sell
nd in another state. l shall introdu
m. a bill in congress somewhat similar
the Illinois law, and my opinion
ap- that the stockholders liability and I
on tariff revision on antitrust lines v
nd both be passed by the house nj
ec- winter.
he END RAD FOR STRIKERS,
The employees of the Amerit