The sun. [volume] (New York [N.Y.]) 1833-1916, 1902-12-31

ulytdends and ray dlv advancing shares
But the fraud consists IN ialss representa-
tons of property and deceItful rssirances
of gam. not m the mere circumstance tha,
assets OF little or 40 value are capitalized III
millions instead OF dollars.
Leaving out the srecolator and taking into
account only those seeking honest invest
ments. mn tunes more money to say the least.
has been sunk IN farm mortga yes, suburban
lots. patent rights. buying and selling gram
cotton and Other commodities, where no toI-
porate shares were dat IN or even Isted.
than was ever lost on account of the hctitious
9T excessive issue OF cofrorhte secuttts'
III the state i To assume the function OF Keep
ing folly and cupIdty from paying twice or
ten times what a thing Is WORTH. surely
should ASSUME the guardianship tof the larg-
est members and the heaviest os RS.
10 say that "a p'taliEdtiol snail not D'
greater than the amount OF cash actul,N
paid In may. in rare n tn noes. save the iteble-
minded from losing their money, but IL
public by hampcring the amhitions ana
placing handicap upon legitimate enter
To say that shares may be issued only for
cash, or for property at is fair value, m
PRODUCES an alternative which throws the
scheme into con fusion ard leaves II unde-
tended M It's weakest point
VI IA" nroner'y To b. capitalized IL an wv
Developed NINE. for instance, or an Invention
by what process VIII you determine iis actual
value. or who shall, decide On the amount
Even II the EVIL Of waterod stoof is much
creator than il appears 20 me. and however
dss'saei It may he to pT. ,,in so n o
as a remedy for capitalization
no., to ihr p9Sn o, n
tive reasons suggested. for there are indie
pend nj and affirmative grounds which APP
Underneath ali surface dscu,si the
real purpose which animatcs the proposal
IL. | suppoS'. fhe desire BY tine and other
means to check the growth OF combination
and preserve to the public the Dement'S OF
our economic philosophy s;lll regards
in one form or another, ns after
all, the principal rclianc" To secure iilr ana
reasonable PRICES for corsuma III" products.
" may be Obliged in tho future 10 substitute
9, 3 ,eration "a the working III" OF associated
liz, but for the present. IN common WITH
those who ,.tand for corporal" publicity.
We must - < 20 realize a. far a. poS' b the
advantages Of comp tlton.
Assuming Il is. | ask YOU to consider tie
probable effect Of publ ny unon oomp"tiiiye
actio Put in another form the quest ion:
an competition by and between coriYra-
lions be preserved II tey are compelled to
make publ disclosure OF tor genCsi. and
very Il ing proposed as an al 20 competition
will contribute 10 It's downfall, or at least
greatly impair its cfio.eroy'
OF what We call ComrFt ion results largely,
as practical matter. from tie ignorano
q each Ton'estsrt as TO IT," IfTfnr OF
sec ms TO me n series OF experiments by wi ich
zach champion ats e energy and endurance
Of lose wro siIiva as oh I'M 10 o.d ,o,,,
fed with belief in i superior powers. or
'opeful that TIE condition OF il adversary
may I've more desperate q an lis own. The
contest continues because each j. in doubt,
10 a greater or less degree, a. TO the resources
and foritude OF Is antagonist.
Out of Il l. very uncertainty springs the
DISPOSITION OF each TO measure arms with lis
fellows q l. IL i that Gives courage for the
encounter. whether cor fidenC anticipates
,pn Quest or luck Is relied upon to escape
II each rival knew tho Others strength as
we'll rs he knows i: own. II there were dis
,losed to i'm In advance the precise con-
IL ion OF Is adversaries In all material re-
'peds. and he was conscious that they bad
,oual KNOWLEDGE I"spcCinr Nimscif' would
Where now there Is fight there would then
De surrender. Why should either k,sp, up
an see from the outset that his rivals are
sure to win in the long rum Rither would
ne lay down his weapons without striking
, blow. and join the forces he could not de-
eat,
On the other hand II he were provided with
'ull information concerning his rivals. and
o fatal attack, and they we're aware, OF his
he would surely expect them 10
make overtures OF peace and not risk an
II. then. it + for the public interest TO keep
~ competition: If the general welfare will
)e conserved by its active operation. query
.nfeeble the very .nrinciple to which it is
iesired to give new life and vieor
| cannot, but regard corporate publicity
II the kind and to the extent advocated by
many as a certain and serious hnderance
o effective competition. SO far from ac-
'ompli ,hinD the purpose expected in This re-
would be in the contrary direction. just a.
he sherman Antitrust law, which i based
ipon, an economic fallacy. has indirectly
vent. 10 the compulsory disclosure Of all
transactions would. as ! beievo,
undermine the competition il was intended
o support. Bearing In mind how rapidly all
finds OF business are aSsuming the corporate
orm. that the comp ii ion of individuals is
asst disanresrps ard MA, eomretlton in
ions. II seems pl in 60 me that the enforce
nent OF corporate publicity would be an
'dfsd ,nccntiyG to dnstr1a, continuation nn
n question will be- worthless to the great
mass Of people. the consumers for their
md viii not be alleviated by publicity. II
will not benefit the actual stock hoider. for
,owever much he may need iniormation
noted by bringing that information 10 public
Against i,s doubtful and very limited use
,orate shares is the danger not to be lightly
OF giving sanction to principle Of
'xtreme paternalism and furnishing q fresh
impulse not to compete. but to consolidate.
Allen Ripley Foote Of Chicago also o,,-
,osed the idea Of publicity as a cure-all for
he alleged evils Of trusts and the attendant
vii, disqualification.
Mr.. FOote asserted that competitive and
combinations could not be
properly regulated by the same law. He
aid.
laws regulating industries, TO be service
bic. must recognize the organic difference
between competitive and monopOlistic COM
Dlnations. One class operates in the domain
II competition, the other in tho domain
II monopoly An economic selling price
n competitive industries Is safe guarded
oy secrecy in management and free com
petition.
Economic selling price in monopolstc
mana g"mert and no competition For these
reasons business corporations should be
'Xcl, d from the Operation OF the Interstate
Commerce law, and all regulati ons appli cable
n them should be included IN law properly
irayn 20 take the place Of the Sherman
on the other hnnd, public service corpora
VI the Sherman A ti-Irust law. and an regu-
atoms applicable. to them should be included
n properly draw interstate commerce
aw. The Sherman 't,-Trnst law and the
because they do not d n rentiate corpora
ions that are by nature OrganiCally d Tcrcnt
o kind, and by reason OF this IA to recognize
he Fundamental economic law OF competition
md OF monopoly.
David MacIean Parry Of Chicago, presi-
cent of the National Association of Manu-
acturers was unal To Ike present, but his
paper on the necessity Of organization
among employers was read by Secretary
u Hitchcock Of tia economic section.
In part Il was n follows.