The Washington times., 1902-02-10
ENORMOUS INCREASE IN MANUFACTURES.
Confined from Second Page.)

or by making misleading statements. your
Commission recommend:
(aD That the promoters and organizers
OF corporations or industrial combinations
which look to the public to purchase or
deal in their stocks or securities should
be required to furnish full details regard
iEg the organization, the property. or
services for which stocks or securities
are to be issued amount and kind of
same. and all other material information
necessary for safe and intelligca; invest
ment
I'd That any prospectus or announce
ment OF any kind soliciting subscriptions,
which fails to make full disclosures as
| aforesaid, or which is false, should be
deemed fraudulent. and the promoters.
| with their associates, neld legally respon-
sible.
/ tc) That the nature OF the business of
| the corporation or Industrial combina-
/ tion. all powers granted to directors and
cticers thereof. and all limitations upon
them or upon the rights or powers of
! the members, should be required to be ex-
| pressed in the certificate of incorpora-
ticn. which instrument should be open %
inspection by any investor.
The affairs of corporation or indus
trial combination should be carried on
without detriment to the public, in the
interest of its members and under their
lawful control. To this end the directors
or trustees should be required:
(a) To report to the members thereof
its financial condition in reasonable de-
tail. verified by competent auditor at
least once each year.
I'D To inform members regarding the
method and conduct of business by grant
ing them, under proper restrictions. ac-
cess to records of directors meetings or
otherwise.
(c) To provide for the use of members
before the annual meetings, lists of mem
bers. with their addresses and their sew
eral holdings.
td) To provide. in whatever other ways
may be named in the certificate of incor-
poration, means whereby the members
may prevent the misuse of their property
by directors or trustees.
The larger corporations-the so-called
trusts-should be required TO publish an
nuaily properly audited report, showing
in reasonable dstail their assets and iia-
bilities, with profit or loss; such report
and audit under oath to be subject to
Government inspection. The purpose of
such publicity is to encourage compe
tition when profits become excessive, thus
protecting consumers against too high
prices, and to guard the interests of en-
ployes by knowledge OF the financial
condition of the business in which they
are employed.
Conclusion of Report.
American railroads, whose monopoly
character is daily becoming more apparent,
are stocked and bonded for about S11500,-
600 coo. and had net earnings from oper-.
tion after paying taxes, 190O-t901, of s507.-
500 no. This means that these securities
are today worth in the market over s10,-
0U0 600 900. If We add to this the S4.000.-
GO0.000 of water, gas. electric light, street
and telephone securities. prob
ably worth that much in the market.
and the 81, coo 900. 600 of securities of our
largest so-called trusts. to say nothing
Of the telegraph. there looms up valua
ton of Industries more or less nonopo-
listic in character Of s11 900. COO 900 or
probably one-fifth of what the present
census will find to be the estimated true
value of all property in this country.
When this is eontrasted with the insig-
nifcant factor played by monopoly values
in the census reports prior to 1860. the
problem before the country can be partly
realized.
AS preparation for meeting the issues
>.'"ived a forward movement should be
at once maoe >suer6 better control end
as fast az practicar,, ntlbIic ov-sl.sn1p
and operation Of these .-..y~ Inonopolies
should 3htair L sucn a increment. the
Importance of the merit system for-arr
employees and of larger interest in civic
problems by all citizens cannot be too.
strongly emphasized.