The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1902-01-17
CUMMINS' VIEWS
OF THE TRUSTS
Iowa S Governor Suggests NeCes-
sity of Amendment.
HIS INAUGURATION SPEECH
DEVOTED CHIEFLY TO CoMBINA-
TIoNS AND COMPETITION.

Des Moines. Ia. Jan. 1e.-The in
dusurdtion Of Governor A B. Cum
INNS took place at 2:30 p. m. today
Win imposing ceremonies at the Au-
ditorlum in the presence of 5000 peo-
pie The procession, which moved from
the stale house through the principal
streets 10 the Auditorium, was escort
ca oy nVe companies Of the state
militia and consisted of the full men,
oership Of the legislature. state off,
clals, ex-governors and United States
Senators Allison and Deliver in car
riages.
IN his address Governor Cummins,
speaking of Commercial Combinations
and Industrial Trusts" conceded
The right Of association under estab-
hshed forms" and did not believe that
/ industrial organizations, however
large their capital or extended their
operations, if competition remains,
constitute a menace to the prosperity
and welfare Of the pepole."
He insisted, however, that il cannot
be successfully denied that every con-
solidation, even though it does not
draw in all the products in which il
deals, narrows the field of competition.
There may be sharp and effective COM
petition with two competitors; it is,
however. not so likely as with a great
er number.
Remedy Not Perfect.
II have mentioned these things, not
to indicate that 1 think there is a
perfect remedy within our reach for
much must be RENTED to the natural
laws of individual enterprise; but rath-
er to point out the lines along which
interference is not only permissible, but
demanded
The first motive to organize such
corporations should be limited to the
material desire TO make profit from
the business from which the corpora
ton Is engaged. My observation leads
me 10 believe that many of the in
dustrial combinations would have not
been proposed had it not been for the
knowledge that the promoters or Or
ganizers could make stupendous for
tunes in the mere operation of consol-
idation."
He maintained that a corporation
should be required to have its capital
stock paid for at par in money, before
it is authorized to transact business.
The evil of Over-capitalizatiOn fur
nishes an illegitimate motive for ex-
cessive prices"
Says Amendment Is Needed.
Speaking of a remedy, he said: Il
believe the question is : national one
and that the time has come to ma
tionaliZe it | recognize the difficulty
of amending the constitution of the
United States. but l know that when
ever the people are sufficiently in earn
est it can and will be done. Before
corporations which are to do business
throughout the country, and in which
the people of one state are quite as
much interested as the people in anOth-
er, are permitted to organize, they
should be compelled TO show that their
capital stock has been paid for in
money and that the real value of the
property they acquire is as great as
the stock whica represents it,
He also spoke briefly on the tariff
and reciprocity. discussed the relations
of labor and capital which he thought
must ultimately be treated by the ma
tional congress. under powers con-
ferred by a new constitutional amend
ment.
In conclusion. he favored stricter
laws governing corporations, a revision
of the tax laws. especially those relat-
ing TO railroads, favored a large share
by Iowa in the st. Louis Louisiana
Purchase exposition. and devoted con-
siderable time to state affairs.