The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1904-01-12
WHO OWNS THIS COUNTRY?

ship of anything brings with it an inter-
est. and it is this interest which tends
to its betterment.
The people of this country feel pride
il: the United States because they con-
Give it to be their country. Once let
it pass from them and the same deep in
terest is not felt, or let the number of
poople who own it decrease and the
be- decreases.
The question of the ownership of the
United States is discussed by Mr.. Serene
S Pratt in the current number of Worlds
Work and in his discussion he gives some
facts that are startling. Mr.. Pratt is
a man whose judgment on a question is
worthy of serious consideration. He Is
the editor of the Wall Street Journal,
one of the leading and most conservative
OF the financial papers of this country.
The conclusions that he draws can not
be put down as the idle vaporirgs of
dcmagogue or as conclusions drawn from
socialistic basis.
In his paper Mr.. Pratt states that one
twelfth of the wealth of this country has
its representatives present when the
Beard of Directors of the United States
Steel Company gather in consultation.
and this board is composed of twenty-tGur
men. who represent two hundred other
companies, the capital of which amounts
to the huge sum of nine billions OF dol
lars, concerns that among other things
control half the mileage Of the railroads
OF the United States. The steel trust,
so Mr. Pratt says, has 1886 stockholders,
vet it is controlled by its twenty-four
directors and these in turn by the presi-
dent of that vast corportion. In his ar
ticle he says that ten railroad systems,
with a capital close to two and one-half
billion dollars, with $4,000 stockholders
are in reality in the control Of some
| twenty men.
Speaking of the railroad systems as be-
ing controlled by so small number and
of the great aggregations OF wealth be-
| ing in the hands of very few Mr.. Pratt
takes the position that those who cwn
the United States must virtually control
| it. and from this the deduction is easily
drawn that this country is controlled by
mere handful AS to the railroads. he
says:
"There are 204, 900 miles of railroad
| in the United States owned by COM
panies having total capitalization OK
mere than $12, 100000, par value, at
fording livelihood to 100000 persons
| (cmployees and their familes) and dis
trbuting $15, $685. $50 in dividends to own
ers and 1910, ,701 in wages. These
railroads are nominally controlled by 2.eGG
CORPORATIONS, of which about LOIS are
operating companies"
| The Augusta Chronicle thoroughly re
views the able article of Mr.. Pratt and
| in speaking of the state of affairs known
as existing has the following to say:
ut is pointed out that nineteen great
systems control 81 per cent. of the whole
mileage. and these nineteen systems are
practically controlled by nine mem. P.
Morgan, j. D. Rockefeller, E. II. Harri-
man, George j. Gould, w. X. Vanderbilt,
James ]. Hill, a. J. Cassatt, William
Rockefeller and w. H. Moore.
''The following table shows the influ
ence of J. P. Morgan:
Insurance companies, assets 81 ,C63, 600, 600
Banks and trust CO.'S dep $50, 100000
Railroad capitalization :. -. 2,4E.171 500
| L S. Steel Corporation :. :. 1928, 100000
Inter. Mercantile Marine -. 5000. 900
General Electric 100000
International Harvester :. =. 1909 600
Other industries :. :. :. -. 240 600, 800
'The concentration of banking power,
the control of the farm products by the
control of transportation facilities, the
concentration of mining interests, and
of great industrial organizations, anc,
of the fuel supply goes to show that
while ownership is widely diffused, con-
troll is centered in very small group.
"The diffusion of wealth has been at
tended by remarkable concentration
of capital, and while as a people we are
rlcn, we nave put our wealth. INTO
comparatively few hands to maange ior
u.s."
The state OF affairs Of which he writes
is regarded by Mr. Pratt as ''the grayest
question of modern civilization" and one
that is worthy of the most serious study
of the age. In speaking OF this the
Augusta Chronicle says:
How to preserve the advantages OF
concentration and at the same time 20
get rid of it's evils how to prevent the
waste of competition without destroying
it; how to secure stability and strength
without loss of individual liberty; how
to permit the railroads to combine and
at the same time to provide the govern
ment regulations of rates; how to make
possible the achievement OF great enter
prises without resort to methods involv-
ing the violation of law and the corrup-
ton OF legislatures; how to encourage
promotion without the evils OF overcapl-
talization and overspeculation; how to
secure comprehensive publicity without
disclosure of proper trade secrets-these
form, tho ono large problem before us