The Lexington intelligencer. [volume] (Lexington, Mo.) 1901-1949, 1902-12-13
HEPRURN,S BILL.

HEPBURN'S BILL.
Congressman Hepburn, Of Iowa, has
introduced a bill in congress provid-
ing for a %prohibitive tax upon watered
stock issues. The bill is not only a
step in the right direction but it is
fortified by a precedent. The tax,
special tax, designed TO be prohibitive,
upon bank issues other than national
bank issues has been perfectly effect
i've and its constitutionality has never
been successfully ~impeached. The
object designed to be accomplished by
the Hepburn bill is even a mo:e i'm
portant one, and recommends itself
to everyone who has the public good
at heart. The only objection is the
~lateness In applying the remedy.
The opportunity for stock watering
is one Of the prime incentives to in
dustrlal combinations The figures
10 the case Of the proposed packing
house merger are a. follows:
Value Of the plants on
the basis Of cast of con-
~struction aud establish
ing Of business. ). 500, 900, 900
Value of plants on the Z
basis Of earning capacity
according to experience
hitherto. 200, 600, 900
Proposed capitalization. 500, 900, 900
or this 500, 900, 600 is to represent
a bond issue to furnish an operating
capital.
The result Of operations OF this
kind is that the original owners sell
enough stock to get back two or
three times their original investment
without losing their property, for
they still retain the preferred stock.
II this yer all, these operations
would be no worse than counterfeit
ing or selling gold bricks, but it is
not all. The owners Of the watered
stock Immediately become interested
10 such legislative policies as will
make it possible for the concern to
declare dividends. If it is necessary
to put a prohlbitive tariff upon tine
importation of cattle or dressed
meats 10 order to make dividends, the
owners Of this stock may be depended
upon to vote for such tariff. Thus
stock watering is a form Of bribery
which costs the beneficiary nothing.
Democrats should never forget, never,
that their own chairman OF the ways
and means committee of congress-,
Springer, once upon a time could not
vote for the Wilson bill because he
owned some such watered stock in a
barbed wire concern
The entent Of this robbery and this
bribery may be partly inferred from
the following figures which can be re-
lied upon, being testified to by Prick
and Schwab before a congressional
committee and published 10 the
government reports The steel trust
represent properties which 10 the az
gregate were valued, before going into.
the trust, at $40, 600, 600. The
capitalization Of the trust Is 81, AGO.
900, 900. The water, then. in this
one trusts stock amounts to 81, $780,
600, 600, OF about sl4l per capita for
every man, woman and child in the
United States-a sum equal to half
the entire circulation Of gold, silver,
and paper money in the country. And
these are the figures for only one Of
the trusts. 10 other words, this one
concern has a vast army Of stock
holders interested to the amount Of
81, 1850 QUO In perpetnating tariff rob.
berry OF the rest Of the people 10 order
that dividends may be paid upon
fictitious property mere paper Ger
.tifcates, for which they have paid
their money into the pockets Of the
sharks who perpetrated the merger