The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-11-13
Senator Nelson Indicates the Most
Important Work Now in
Hand.
Probably No Tariff Revision at the
Short Session-A Trust
Cure.
He Would Create a Federal Commits
sion and Prevent 0vercap-
italization.
Special to The Journal.


Alexandria. Mimi. Nov. Ex-senator
Nelson's attention was called to n special
telegram in r h e J ourn a of Nov. 10.
discussing President Roosevelts position
in regard to tariff revision and the trusts.
Mr. Nelson has given a great deal Of time
the past year to study Of the trust ques-
ton and expressed himself In sympathy
with what was indicated as President
Roosevelts position which, while progress
sive and firm Is yet conservative, looking
to the protection of the peoples interests
as against great combinations Of wealth
without endangering the financial prestige
Of the nation or commercial conditions.
The senator said:
Tariff and the Short Session.
1T is doubtful If any general revision Of
the tariff could be accomplished at this,
the coming short session Of congress as
the time will be too short for that. 1t
will. however of necessity be the prom1-
nent question before the next congress.
The important Matter.
LAT the coming session the important
matter to be considered will be to try
to secure as much additional antitrust
legislation as is possible under the con-
stitution as it is. Since the election
have read Attorney General Knox's Pitts
= burg speech in pamphlet form. where he
Gays that further antitrust legislation is
possible, but he fails to indicate as clearly
as would like, the scope OF such leglsla-
ton. I have for a long time been Sc
riously considering the question of the
regulation of trusts and monopolies, and
while think 1t is possible to secure
some additional relief beyond that given
by the Sherman antitrust law, yet I
think that complete relief cannot be Sc
cured without constitutional amendment
giving congress complete power to license,
regulate and control all corporations di-
rectly or indirectly engaged in Interstate
business.
The Evil Of Initiation
IF we look into the genesis OF the
modern industrial combinations we Will
find that they are effected under the in
CORPORATION laws of the several states Of
the union and that the great evil comes
through over Initiation Of the stocks or
overca pitnlization. 1t IS this over CAPT.
talization that is to my mind, the root OF
the evil that comes from so-called trusts
and monopolies and that is now affecting
the American people.
Congress ought to have the power to
license and regulate such corporations.
There should be a national commission or
court, call 1t whichever you wish, to which
all corporations intending to do an inter-
state business should have to apply for
permission to operate. They should be
compelled to submit their articles of in
corporation, show the actual value of their
assets the amount of stock and bonds tC
be issued, and so forth, and should not be
allowed to do business until license OF
permission was given by this nationa
commission. A prime requisite should be
the power to insist that no corporation
materially initiating it's stock over the act
ual value of it's assets should be permitted
to do interstate business until its stock
was reduced to its actual value.
illustrated by the Merger.
Take the merger case as an illustration
Wall street was hot In this case not sc
much because the action of President
Roosevelt and Governor Van SAINT tended
to prevent the consolidation of the two
railway systems, as that 1t tended to pre-
vent the great DISQUALIFICATION involved
in the scheme. If remember correctly
the attorney general In his Pittsburg
speech intimated that the purchase of the
Burlington and the proposed consolidation
of the Great Northern and Northern Pa
cihc involved increased capitalization
Of between 5000. 100000 and $500, 900
OF course, this necessitated a proportion.
ate dividend increase. If mere consolida
tion, or the harmonious working Of the
three systems was the object Of the form
alton Of the Northern Securities company
or, as has been stated, the safe holding O.
the stock. so that it might be wisely con
troled and the general policy Of the oper
alton Of the roads continued, if that wa!
all that was wanted, certainly this vas
increase of capitalization was not neces
sary. Especially Is this true since tn
stock of the two controlling systems die
not change ownership to any large extern
and the Northern Securities is exploited
as simply holding company and in n,
sense promoter
A Remedy.
ut is evident and Is matter of histor,
also that the United States Steel com
pany, called the American steel trust, wa
greatly overcapitalized. Its stock quota
tlons at this time bear ample evidence O
this fact. The same is true Of the Ameri
can Sugar Refining company and Of all tn
great corporate trusts. II this great evi
Of stock imitation overcapitaliza tiol
could be prevented. I am satisfied NOR
relief could be obtained than in any othe
way. Inflated stock could no longer b.
unloaded on the public and could no longe
be made an excuse for increased divi
dends.
AN exhaustive examination into thes
combina lions will show that the grea
bulk Of the reductions in cost of produc
ton or transportation effected by combi
nation Is absorbed in and devoted to tn
payment of increased dividends mad
necessary by this imitation Of stocks, an
that only small fraction goes to labo
or consumers.