Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1902-09-11
ROBERTS ON NE TRUST
Says Supervision Similar to
That Of Banks Would Be
Proper Policy.
Takes Issue With Another Wash.
ineton Official Who Says It
Is Socialistic.
Roberts Would Adopt Control
S,stem to Meet the Concen.
tration System.

Il
ington correspondent Of the Boston
| Transcript sends to that newspaper an
1 interview which he took some days ago
with the director Of the mint, Mr..
George Z. Roberts, regarding the duty
of the government toward trust super
vision. Mr.. Roberts takes issue with
the interview of another Washington
official, who holds that it would be a
step toward socialism for the govern
ment to exercise a similar supervision
| in behalf of the stockholders OF an IN
dustrial concern that it now exercises
| in behalf of the depositors OF bank.
That distinction, which was emphas-
lied in the earlier interview. Mr. Rob-
erts regards as suggestive, and SO as
worthy of consideration by all students
of the question; but he does not accept
it's conclusions.
.,rhe point has been raised" said Mr..
Roberts, that the government super
vises banks because they are custodi-
ans Of money of other people and not 70
protect the interests of the stockhold-
ers, and that it would be another and
distinct step toward socialism to un-
dertake to protect the citizen in his
own investments.
"True, it may be a step from the SUI
pervision of banks to the supervision of
other business corporations, but does it
involve any new principle? The deposit
of money in a bank is an investment,
clearly SO where it is made for the ac-
;v,fa nd
justified on the ground that it is i'm
practicable for each individual depos-
itor to keep himself informed as to the
management of the bank, and that 1T is
wise public policy to encourage thrift
and the conservatism of capital by the
use of banks. Does this reasoning APP
ply to other corporations? Perhaps not
forcibly so long as there is ample OPP
portunity for investment where the
owner may give it his own supervision.
But If the business field Is to be occu-
pied by the great corporations. II 1t IS
true that the small independent pros
Queer and dealer must give way to
them, how are the savings Of the people
to be invested? Does it not follow that
the people who have been small deal
ers, and the wage-earners who have
savings, must become shareholders IN
the corporations? 1t is already grave
problem how to invest the savings of
the people. The reduction OF interest
rates by savings banks tells the story.
Millions are wasted annually because
safe investments are not readily found.
1t is important to the country that this
capital, vast in the aggregate, be util-
lied. and with the field for Independent
business by the individual constantly
pt?a irtonannaninhGd HIM Inn DIV rfhb
narrowing, investment in Industrial
corporations would seem to be a nat
ural development and the one to be en-
couraged. The large corporations as
sumo in that way an evolutionary func-
ton as cooperative institutions. If
they are successfully managed and the
rights of small stockholders are prop
erly protected, they will do more to
demonstrate the feasibility Of co-opera-
ton, and to inaugurate it as practical
solution Of the labor question, than has
ever been done heretofore.
but if this is to follow, these cor
porations must be conducted with some
regard for the rights of the small
stakeholder. There must be some re-
striction of those in control of the prop
critics. Stock jobbery must be suppress
sed and minorities protected. The in
dividual stakeholder is as helpless as a
single depositor in bank, and why do
not the same considerations of public
policy that suggest supervision of
banks suggest similar oversight Of all
these great corporations whose stock Is
offered for general Investment? The
government does not undertake to run
the banks, but 1T does attempt to see
that they are honestly conducted and
that certain definite regulations are en-
forced.
Instead of blindly opposing the ten
dency to industrial concentration which
is certainly irresistible, this policy would
control it, adapt our industrial system
to it, save the benefits of concentration
and distribute them broadcast and at
the same time establish Industrial
peace. Call it socialism if you will.
Modern industrial life is essentially CO.
operative and tends to industrial unity.
That is today the modern Industrial
system is great machine tending to
be simplified. We should direct it along
lines that are both practical and social
ly wholesome.
II I1eIe is 10 De governmental reEu.
lation, 1t is likely that over-capitaliza-
ton will be forbidden. While high
capitalization does not directly give the
power to increase wages, it has an eff
1ect to confuse, obscure and cover up
the value of the stock as we'll as tn,
cost OF production. The stock is dis
tributed to the public on an unsafe
basis. a false price level is esta blished,
and our whole industrial fabric is made
insecure. There is force in the argu-
ment that we should not lay burdens
upon corporations that will give
wealthy individuals an advantage, but
there ga distinction to be made be-
tween regulations that would make 1t
more costly to do business and regu-
lations that simply enforce straightfor-
Ii is pretty safe to say that eventually
these mammoth corporations will have
10 do business in the open. The object
to publicity on the ground that it re-
4ealS methods and details, decrease as.
business becomes great and we'll estab-
lished, and earnings approximate ordi-
nary interest rates. notice you say
In one of your letters about the realI
estate boom in Washington that people
insist upon houses that have open
plumbing; there is SUSPICION about the
plumbing unless they can see all around
it: and the people want to see all
around and thru the big concerns that