The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-01-12
MODERN CORPORATIONS.
Diffusion, Not Concentration, of own
ership Is Their Result.
Nebraska State Journal.

Nebraska State Journal
The recent utterances against trusts
and combinations" and great corpora
tons are all in the way of denouncing the
accumulation of property ''in the hands of
the few" and thus the oppression of the
many. They talk and talk in this strain
until they really seem to convert them
selves to their alleged opinions 'inebriated
by their own verbosity," as Beaconsfield
would say.
But the fact is that the great combina-
tons instead of concentrating capital in
the hands of a few owners are really diff
fusing 1t among a greater number of own
ers than ever. Every consolidation tends
in the same direction as does the manage
ment of the United States Steel organiza-
ton, TO the distribution of its stocks and
bonds among an immense number of small
capitalists who, under the old order of
things would not become owners of any
proht-bearing property Of the sort.
The shares of the great steel company
are not only for sale to anybody who de-
sires that sort of investment, bulwarked az
II is by the immense concentration of eX-
perience and intelligence upon the manage
ment of the same. but it is proposed by the
company to take into partnership every
workman In its employ by setting aside
shares in the great corporation for them,
to be paid for at their leisure.
There is not the least doubt that to-day
there are twice as many people in the
United States participating in the profits
were year ago. This is because the great
corporations, controlling such immense
properties and able, therefore, TO guard
against market fluctuations and overprO-
duction, while extending the American
market to every corner of the earth, offers
perhaps the safest possible investment to
the small capitalist who hasn't enough
money to establish a plant of his own and
who would not venture TO invest in stocks
in a company that commanded but a small
market and was in constant jeopardy of
pressure
| competitors.
Considering the immense sums heretofore
deposited in savings banks, that used to be
loaned by the banks on real estate or cor
porate securities, deposited there because
the savers OF the money hadn't skill or
confidence enough to invest ii at first hand
in such securities, the chance that a great
and solid corporation gives small investors
to save the shave of the middleman in
weston OF his money is an exceedingly val
| liable one.
Nothing can be more conducive to eco
nomical peace than the proposition of the
steel company to take into partnership
every employe on its pay roll, whereby the
diligence and faithfulness of the workman
would not merely benefit the officers of the
| company by increased dividends. but bene-
| fit himself in the same proportion. What
people now call trusts or combinations"
are the great diffusers Of profitable invest
! ments to the many, instead of being the
commentators" of capital lin the hands Of
the few"
| They will be means OF abolishing a large
1 NUMBER or mlddlemen VINO handle the
| money of the many not only for the benefit
| of the few" corporate borrowers, but for
| the benefit of themselves whereby they get
their living as brokers. The owners of
| dividend-paying stocks, so far from de-
| creasing in number by the concentration of
| large corporations, are increasing by great
| leaps and bounds. And when the time
| comes in which every workman in a plant
| is a stakeholder and entitled to vote his
| stock at a stockholders meeting, we shall
| have progressed in real practical democ-
| racy.