The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1902-10-15

to large things and to do them in
large way. We are accustomed to
speak with a justifable pride of our
great institutions and what we have
fairly accomplished through them NO
right-thinking man deserves to impair
the efficiency of the great corporations
as instrumentalities of national com
mercial development. Because they are
great and prosperous is no sutsc.ent
reason for their destruction. If that
greatness and prosperity are not the re-
suit of the defiance of the natural rights
or recorded will of the people. there is
no just cause of complaint.
THAT there are evils and abuses in
trust promotions, purposes, organlza-
tions, methods, management, and effects
none questions except those who have
profited by those evils. That all or any
OF these abuses are to be found in every
large organization called a trust no one
would assert who valued his reputation
for sane judgment.
1.-The conspicuous noxious features of
trusts existent and possible are these:
Overcap apitalization lack of publicity of
operation, discrimination in prices to
destroy competition insufficient person
al responsibility of officers and directors
for corporate mana cement, tendency to
monopoly and lack OF appreciation IN
their mana cement of their relations to
the people, for whose benefit they are
permitted to exist
"Overca Ditalizat ton is the chief OF
these and the source from which the
minor ones flow. 1t is the possibility OF
ercapitalization that furnishes the
temptations and opportunities for most
Of the others. Decentralization does
not mean large capitalization or capital
ization adequate for the greatest under
takings. It is the imposition upon ali
undertaking of a liability without cor
responding asset to represent it. There
fore overca pitalization is a fraud upon
those who contribute the real capital
either originally or by purchase, and
the efforts to realize dividends thereon
from operations is a fraudulent lmpOSl-
ton of d burden upon the public. When
a property worth 81, 600 upon all the
sober tests of value is capitalized at S5,-
600, 900 and scld to the. public, it is ra-
tional to assume that its purchasers will
exert every effort to keep it's earnings
up to the basis of their capitalization.
When the inevitable depression comes,
wages must be reduced, prices enhanced,
or dividends forgone. AS prices are nat
urally not increased but lOweresl in dull
periods it usually resolves itself into a
question of wages or dividends.
while this condition may exist under
any circumstances, it is exaggerated by
ercaDitalizatiOn in the illustrating
case five to one. The overca oital1zed d
securities enter into the general budget
of the country. are bought and sold
rise and fall, and they f1uctuate between
wider ranges, and are more sensitive In
proportion as they are further removed
from intrinsic values, ana, IN SNORT, are
liable to be storm centers of financial
| disturbances of far-rea ching conse-
quence. They also. in the same proper
tiOn increase the temptation to mis-
| management and manipulation by cor
porate administrators.
Corporations and Joint stock or 9TH
er associations, depending upon any
statutory law for their existence OF
privileges trading beyond their owr
states should be required to do bust
ness in every state and localitv upor
precisely the same terms and conditions
There should be no discrimination ir
prices, no preference in service. Sucl
corporations serving the public as car
riers and in similar capacities should b'
compelled to keep the avenues Of com
rnerce free and open. to all upon ths
same terms and to observe the law az
to its injunctions against sitting com
petition. Moreover corporations upoI
which the people deDend for the neces
saries of life should be required to con
duct their business so as regularly and
reasonably to supply the public needs.
"They should be subject to visitoria
supervision and full and accurate in
formation as to their operations should
be made regularly at reasonable inter
walls. Secrecy in the conduct and re
suits of operation is Unfair to the non
managing stockholders, and should, a:
we'll for reasons of state. be prohibited
by law.
''If these serious evils were eradicate(
and higher measure of administrative
responsibility required in corporate of
ficers a long step would be taker
hension that the unchecked aggression
of the trusts will result in Dractica
monopoly of the important business o
the country"