Butler citizen. [volume] (Butler, Pa.) 1877-1922, 1903-10-29
The Ethics of Gambling.

A good deal of noise is being made
over the purchase of sl0.Oo0,OoO plant
and selling it for something like s5o'-
OO0. 900. The transaction looks fishy,
probably seems unprecedented, but In
reality does not essentially differ from
most speculative actions. The stock
market, tie wheat, corn and cotton cor
ners, are of the same nature, but not
much is said about these. The other
day a man cornered the cotton market
and retired with seven millions more
than he took into the corner with him.
The general course of comment was
that he was a pretty smart fellow.
John w. Gates, who made all his mil
lions in the same way, denounces the
Schwab transaction as something very
reprehensible Some other multi mil
lionaires think it naughty trick
Though not a millionaire we are incEn-
ed to regard il unfavorably, also. But
SO. also. the millionaires of the cotton
and provision markets seem to US not
very competent critics OF speculative
transactions in which they are not ben
efciaries. Every man of the brood is
a gambler. Every man who bulls and
bears stocks is gambler. The man
who plays poker for money is gam
bier. So, if Mr.. Schwab watered the
stocks of the shipbuilding trust from
ten to fifty millions, he gambled.
The amount gambler wins does not
affect the transaction. The principle is
the same whether the gain is a hundred
dollars or forty millions For what one
man gains somebody loses The object
of the gambler is to possess something
| belonging TO another or to others. with
out a quid pro quo. Such are the eth
les Of gambling. If a property fairly
worth ten millions il sold fer fifty mil
lions. only persons or coporations hav-
ing credit to the extent of fifty millions
could have been purchasers. The own
ers of SO many millions, cash or credit,
| will not go to the almshouse therefor.
The public is not to assume that the
fifty millions represents cash Itrepre-
sents stock in part. probably. Small
investors ale not likely to be much In
terested in the huge transaction. The
chief property involved is said to be
fairly valned at ten millions. If we
suppose that ten millions in actual cash
/ L. in how
anybody can lose For if the plant il
worth ten millions it is worth it because
the plant has that earning capacity
that is, if properly operated, the net
earnings will afford at least five pei
cent per annum on the capital invested
All beyond the ten millions may be
| water, which can earn nothing, because
something cannot be derived from
nothing.
| The queer thing about the trans
action is that Mr. Schwab is wortl
many millions more than he knows
what to do with. Why should he in
vest in forty millions Of water? Had
he bought Lake Erie and capitalized j
we could understand it, But there i
no waterway in watered stocks. The.
are not navigable. 1t may be said tina
such stocks may be manipulated. bu
that is done every day. 1t is not e
, new as to excite our special wonder
After Consolidated Lake Superior VI
cannot affect much eurprise at the fiasc'
of Mr.. Schwab's last adventure. Mr.
Schwab is in that frame of mind tha
admits of almost anything. What i
most surprising is that any clear heade'
person takes part in his schemes. w,
doubt if any sensible person has invest
ed much money in the Shipbuildint
Company, nor do we see why mar
| who has shares which be never ir+orra
ed to pay for can lose anything wber
| the bottom falls out.--Agitator.