Evening star. [volume] (Washington, D.C.) 1854-1972, 1902-07-10
Trust Legislation Desired by
the Conservative.
EFFECT OF PUBLICITY
OvERCAPITALIZAT ONE OF
THE ABUSES TO BE REMEDIED.
Many Republican Congressman Believe
That the Party Will Have to Come
Out for Combinations.

during the recent session the opinion was
often expressed that when legislation Is
perfected upon that subject 1t will be Of
character favorable to the great business
combinations. That Is to say. the republic
can party will recognize combinations of
capital and industry as factors conducive
to prosperity and will not destroy them,
but seek to safeguard the interests of the
public in the operation Of the trusts.
The remark frequently was made by men
in position to know whereof they spoke,
that the trusts themselves are not averse
to conservative legislation. They said that
some of the most thoughtful and far-seeing
captains of industry realized that it would
be best for all concerned to have legisla-
ton which would curb unwise attempts to
combine industries and capital.
Evils of overcapitalization
The whole financial world is fearful Of
the result of overriding the trust business.
They look for a terrific crash some day, if
the thing keeps on which will unsettle
business and set back the prosperity of the
country. When the water in some Of the
big trusts is squeezed out a condition of
affairs is expected to ensue which to them
is horrible to contemplate. The business
world, it is safe to say. would welcome leg
islation which might prevent over captali-
Zation and restrain the formation of I'M
sound combinations.
1t is recognized by conservative congress-
men that there is more or less demagogery
in the outcry against the trusts.
The popular idea of the trust Is of
hydra headed monster, which seeks to de-
stroy everything in sight. The Well-post-
ed congressman knows that the average
American trust is a combination of In
dustrial plants and capital which regulates
production to the needs of the market, sus-
tains prices, keeps labor regularly employ
ed and prevents ovtrstocktng the market
and consequent depression. Some of the
trusts having a monopoly place fictitious
value upon their output and consequently
incur the public wrath. If means could be
found to prevent the latter, 1t is probable
that the trust would be hailed as a good
thing.
1t is not in the enhancement of prices.
however, that the thoughtful men In Con-
gress recognize the danger of trusts. They
placed far more Importance upon over
capitalization.
Effect of Publicity.
President Roosevelt probably had the
same idea in mind when he recommended
publicity. The trusts should make public
their earning power. their capitalization,
statistics CT prices. etc, so that the public
could judge whether the combination was
a sound safe business proposition or
combine of robbers
The greatest trust in the world, the bill
lion dollar steel trust, has voluntarily set
an example In this respect. Every quarter,
when the dividend on the preferred stock
and the common stock is declared, the
trust publishes a statement of its receipts
and expenditures, it's capitalization and
prospects. The managers thought it was
good business to do this. The railroads co
the same, and the time probably will come
when all trusts that are ION the square"
will follow suit. The republican party WILL
it is predicted, make the others do it, too.
~ D,fa
The opinion prevailed among many re-
publican congressman that the time Is not
far off when the party will have to possess
the courage to take a stand in behalf of
combinations of industry, that is with
proper regulation. Hints of such a policy
are found in the platform Of the national
convention and In the messages of the
Presidents. Combinations are recognized as
part of the industrial game of the CEN
fury. Some congressman think that the
party will have to be brave enough to come
out boldly and say, Yes. we stand for
trusts when regulated SO that they will
serve good end and not rob the public
President Roosevelt's plea for publicity
| Is based upon the experience which Euro
pean nations have had with trusts. Eu-
| rope is the birthplace of trusts. and in
most countries they are stringently regu-
lated by law. Mr.. Frank H. Mason, con-
sui general at Berlin. made a very inter-
esting report recently to the State De-
partment upon that subject.
THE important facts in this connection"
he wrote, "are that trusts exist in Ger
many in such numbers and with such ex-
tended influence as to control practically
all the important industries of this coun-
try; that they have been mainly organized
during the years which have changed this
empire from an agricultural to a leading
industrial and exporting nation and that
there exists here comparatively little of the
distrust and popular hatred of such COM
binations that prevail in certain other
countries. This absence of hostility to
trusts. on part Of both government and
people, is apparently due to three facts:
Conservative syndicates.
"First-The principal German syndicates
have, with rare exceptions, exercised their
authority conservatively; have sought to
prevent specula ton, overproduction and
consequent ruinous fluctuations In prices.
They have. through long contracts at fixed
prices, steadied values and given regular
employment to labor. They have not been
used for stock jObbing.
Under the Public Eye.
"Second-The element Of publicity has
operated to disarm suspicion and criticism
Every incorporated company which oper-
2tes independently or as q member of a
syndicate is. from the moment Of its or
ganization, under control Of the law Of cor
porations. statute that reaches to every
detail Of corporate organization and man
agement: compels the periodical publica-
ton Of statements showing the exact con-
dition Of the companys affairs; makes its
books and assets subject to official inspec-
ton at all times: and holds directors and
Of1cers rigidly responsible for every brea Oh
of trust.
mo influence or wealth can save from
prison a faithless or dishonest director of a
| stock company under such a system, and
| when corporations combine In a syndicate
| their earnings, capital. profits, dividends or
| losses remain subject to official examlna-
| ton and periodic publication.
A Necessary Development.
Third The people Of Germany appear to
| have reached the conclusion years ago that
| the foundation Of syndicates and trade
| combinations was a part and necessary in
| cident of a general process Of development;
| that, in order to neutralize their disadvan-
| tages in respect to natural resources and
| make a winning fight for a large foreign
| trade, they must have every advantage that
| could be derived from concentrated capital.
| and able, economic, harmonious manage
ment.