Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1902-12-31
PUBLICITY NOT 4 CURE
Martin A. Knapp Attacks Pub
Lefty Theory as a Cure
for the Trusts
WOULD NOT PREVENT EVILS
Reads Paper Before American Associa-
ton for Advancement of Science on
capitalization and Publicity
Thinks Publioity Would Undermine
Competition Instead of Promoting It..

Washington, Dec. 31.-In a paper
read before the American Association
for the Advancement of Science in this
city yesterday, Martin A. Knapp, chair
man of the interstate commerce cora
mission, declared that the argument
that publicity in regard to the forma-
ton and operation of corporations
would remedy the trust evil was un-
sound. Mr.. Knapp said he yentured to
doubt the soundness of the argument
that publicity would prevent stock
watering. He held ii improved that
the excessive issue of corporate securl-
ties was q source of such danger as to
excite public alarm, and said he was
yet to be convinced that enforced pub
LEFTY would not be a harmful exercise
of public authority.
Mr. Knapps paper was on 'Capitali-
cation and Publicity" He said in part:
Il maintain that the stakeholder. as
such, is not benefited by corporate
publicity, and would be harmed rather
than helped by its enforcement. 1t 10
one thing for the stockholder to have
knowledge of the concern whose shares
he holds; it is quite another thing to
furnish the public the same informa-
ton. I fail to see that publicity can be
desirable or useful to the stakeholder.
"The justification for this proposal,
therefore, must be found. II found at
all, in the theory that the state is
charged with the duty of safeguarding
the investment of capital In corporate
securities. To my mind this is most
serious proposition, and / think we
should long hesitate before embarking
upon such a paternal venture. Leay
ing out the Speculation, and taking into
account only those seeking honest in
yestment, ten times more money, to say
the least, has been sunk in farm mort
cages, suburban lots. patent rights
buying and selling grain, cotton and
other commodities, where no corporate
shares were dealt in or even existed.
than was ever lost on account of the
fictitius or excessive issue Of corporate
securities
Il can not but regard corrarate pub
licity of the kind and to the extent adj
voeated by many, as a certain and seri-
Gus hinderance to effective competition.
Just as the Sherman ANTITRUST law,
which is based upon an economic fall
lacy, has indirectly aided the very re-
suits it was designed to prevent, so the
disclosure of all corporate
would undermine the CONF
petition it was intended to support.
Bearing in mind how rapidly all
kinds of business are assuming the COR
porate FORM that the competition of in
iividuals is fast disappearing, and that
competition in the future will be main
" between corporations, it seems plain
to me that the enforcement of corpor-
ate publicity would be an added incen-
tive to industrial combination.
Therefore, as I view the matter, the |
remedy in question will be worthless to
the great mass of people, the consum-
ars, for their troubles are not caused |
by watered stock, and will not be allie !
Waited by publicity. 1t will not benefit |
the actual stakeholder, for, however
much he may need information for
himself, his interests would not be |
promoted by bringing that information |
20 public knowledge. Against its
doubtful and very limited usefulness to |
he intending purchaser of corporate
shares is the danger. not to be lightly |
estimated, of giving sanction to prin- /
eiple of extreme paternalism and fur
lishing fresh impulse not to compete I
out to consolidate"
Among the other papers read We're
he following: THE Economic Law of |
Competition and Monopoly" by Allen
R. Foote; "The Necessity of Organiza- |
ion Among Employers" by David NJ.
Parry, president of the National Asso-
.iation of Manufacturers: .'The Right |
If the Laboren to His Job" by Walter I
5 Logan, New York. and Recent As
oects of the immigration Problem" by |
Roland P. Falkner of the library OF