Omaha daily bee., 1903-03-23
wATERED STOCK OF TRUSTS.
Enormous Amounts of Fictitloui
values Unloaded on the Public.
Springfield Republican.

Sprtngneld Repubncan
There has been printed in the Congress.
sional Record. in connection with tn,
speech OF Mr.. LAttleHeld OF Maine on hh
antitrust bill, a list OF industrial trusts
existing in the United States on Januar,
last The list is prepared by the ICON.
gressonal information bureau" whatever
that may be. and is regarded by Mr.. Little.
field as the most oomplete and accurat,
catalogue Of trusts so far published BY
an Industrial trust is mean a corporation
combining any number of pre-existing cor.
porations. The totals follow:
Number Of trusts. s................... 4E
Common stock k...................... So
Preferred stock.........'........... 2,09l SN
Total capitalization. 50, ,2S1. 81,
There is given in addition a list OF the
largest companies engaged in monopolistic
businesses OF a public-service character
such as street railways, electric and gas
lighting companies and telephone and tele-
graph companies. only the more important
concerns are included here yet total Of
$4,519, ,597, ,s1s in capitalization is figured out.
The so-called industrial trusts making up
a total capitalization OF over 50 900 900 900
are practically all engaged in manufactur-
ing. But, OF course. nothing like all OF the
manufacturing concerns in the country
have as yet been united in combinations.
Far more conoerSs of some age must re-
main uncombined than have been COM
blned; while In the wake of each combina-
tion have appeared many similar independ-
ent corporations organized to compete with
the trust in its particular field. either in
good faith or for the purpose OF being
bought up by the trusts, at q large profit
to promoters.
The entire actual capital-land. buildings.
machinery, material and cash-engaged in
manufacturing In the United States in 1900.
in real values, according to the census Of
that year. amounted to s9,s74, ,664, ,0S7, and
could not probably by January 1. 1908. have
greatly exceeded S1O,500, ,oOO, 900.
1t would probably be a stretching OF the
truth to say that one-half OF this actual
manufacturing capital was represented in
the Industrial trusts now existing. but OF
this there can be no certainty. What is
certain, however, is that an enormous issue
OF merely paper values has attended the
organization OF these trusts, and that this
paper has to a large extent gone into the
hands OF the investing public. 1t is gem
orally admitted that the common stock of
the trusts represents chiefly the capitalized
expectations respecting the power Of trust
monopoly In gathering profts from the pub
lie, and in that case nearly two-thirds of
the capital Of the trusts, according to the
above table, is water.
The actual capital invested in manufac-
turing in 1890, as shown by the United
States census, was $685., ,156, 1856. It thus
appears that the trusts, comprehending
only a part of the manufacturing plant of
the country, have issued within the past
dozen years OF so almost as much paper
representing no actual value whatever as
there was property invested in manufactur-
ing no more than twelve years ago. 1t is
an astonishing exhibit. We may question
whether before in the history Of the coun-
try there has ever been a greater relative
imitation Of capital than is here shown.
The expectations Of monopoly are set forth
as Of the most extravagant description
But whether those expectation arc to be
realized is another matter.