The Birmingham age-herald., 1903-01-27
OVERSTREET ON
 TRUST QUESTION Explains Bill Presented by the
 Judiciary Committee PUBLICITY A SOLUTION ? Trusts Were Never Formed to Reduce Price to consumer-overeapitsli- zation Enables Them to Con-
 eeaI Their Profits.
A SOLUTION ?

Washington, January 26.-A report pre- pared by Representative Littlefield to ac- company the antitrust bill reported to the house by the judiciary committee was presented today by Representative Over street of Indiana. The report treats of the trust question at length. Speaking of the bill reported, it says:
 Its purpose is more effectively to reg ulate and control, on conservative hnes' industrial and business combinations which in their operation prove injurious to the public welfare It is believed to be a decided step in the advancement of ex- isting legislation. It involves the idea of publicity and additional legiclation to pre- vent discrimination by rebate or special privileges upon the part of railroad com panies. It seeks to prevent the ofroft to destroy competition In particular locai- ties by discrimination fin prices, and pro hibits railroad companies from transport ing goods in violation of the provisions of law, and contains provisions intended to facilitate the enforcement of this act as well as existing legislation on the same lines.
 Tt is through the medium of consum- CTS, the purchasers of its products, that the over-capitalized combination finds it's most extensive and oppressive contact with the public.
 Trusts Do Not Reduce Prices.
 "The aggregation of large capital, great volume of business on a small margin, giving a fair return to the capital invest ed, with reduction in price to the con- sumer, is what is termed the new phase of modern industrial development and the corporate form of organization, with its evils of over-ca pitalization is the medium through which the development has large ly taken place. Theoretically this reasons well and works well, but the reduction of the price to the consumer is in practice seldom attained.
 Ut is not believed that any of these cor porations yet organized have ever been dominated by. or organized for the pur- pose of reducing the prices to the con- sumer. The controlling purpose of such organization Is believed to be what it naturally would be-the profit of the par ties thereto. If the public receives any benefit, 1t Is incidental.
 'As capital is entitled to a fair return, the public is vitally interested in the amount of capital necessary to carry on a given enterprise Such fair return is proper element of the cost of the article
 
 other element of cost involved, when it buys the article.
 ITO what extent we are now paying exorbitant prices to produce abnormal re- turns no one can tell. as no reports are now made to any authority, state or tional, that give any adequate informa- tion on that point. This Is one of the things that the bill seeks to accomplish. over-capitaIzatlon to Conceal Profits.
 "Over-capitalization furnishes the con venient opportunity for concealing the profitable character of the enterprise. 1t Is said it was first employed for that pur- pose There are instances where corpora tions have increased their capitalization 100 per cent In order that what was really, say, 12 per cent dividend, would appear to be only per cent dividend, and thus avoided the danger of making their em- ployes uneasy and restive because they were not receiving as wages fair pro- portion of the earnings of the business.
 Publicity, by creating an intelligent public sentiment, will go far towards ameliorating oppressive conditions. It Is doubtful if the persons who are responsi- ble for such a reprehensible condition could long stand the well-directed public indignation that would be thus aroused.
 Tt is not claimed that publicity is a cure-all. It Is hoped however, that by this application the operation of natural laws may in an appreciable degree alle- viate existing conditions"