Richmond planet. [volume] (Richmond, Va.) 1883-1938, 1905-12-30

ChIcagO JurfSt FSvOrs Actual Con-
troll by Stockholders Under Nation
nj superintendent ds Two CIas ses
OF Securities as Sufficient - Would
Interest Labor.
Judge Peter 5. Grosscup Of the Unit
ell States circuit court OF appeals Of
Chicago believes he has found the So
luton for the control of great corpora
lions He proposes a plan for their
''peopleisation"-th is. their actual
control by stockholders-und the SUI
pervislon OF the government In an
deliberately developed argument in the
lustrated Magazine. from which this
summary OF the article Is compiled by
the Chicago News, he shows that cor
pOrations are gradually not only adding
to their great holdings OF property, but
are practically owners Of the immense
wealth OF the country.
The butcher OF today" he says, els
a corporation. The loaf OF bread as It
comes 10 us on the table is almost ex-
clusively a corporation product. From
whatever point Of view, visual to the
mind and eye. we may look at 1t. the
domain OF property. covered by the
CORPORATIONS. stands out as the great
central fact in the industrial life Of the
century that is just opened"
Judge Grosscup does not hesitate TO
say frankly that the corporation Of to-
day is not a safe field for the small in
vestOr. 1t is its tremendously complex
organization that makes Il particular
ly unsafe. for. he says. there never was
any need for the labyrinthlan construc-
tons that seem to be the order OF the
day-securities so everything each other
and often SO involved that no one not
an expert IN buying a security can 10
cate his claim. II is this state Of af-
fairS-this fear OF being bunkoed-that
leads the small investor to put his mon
ey in savings bank.
Judge Grosscup points out the way
whereby the corporations can be made
not only safe. but so simple that the
average investor can understand their
organization and see clearly what he IS
getting FOR his money when he invests.
He also places corporations in their
proper light He shows how they are
the creatures OF the lava line or two
I'm the statute books-and then puts
forward his ''peopleization" plan.
The conclusions arrived at by the
jurlst are as follows:
First.-The beginning OF the way out f.
national Incorporation.
constructed on simple lines. Two classcs
or securities ought I'm every case TO be
sumcient-the security that represents nc-
tual cash paid in or its equivalent IN prop-
cry ana the security that may De issued
from time 70 time as tho value OF the
property actually Increases and TO cover
such Increased value. Tho corporation
that cannot he financially launched upon
lines thus plainly put before tho eve ought
not 10 De launched az all. for here as else
where. mystery means not something es-
sentad 70 success. but something open To
uses other than the corporations success
Ihird--ProviSion should be made 20 in
terest labor In ownership. The securities
ISSUED on account OF increased value
should be issued only as the Increase "a
shown. not by prediction or expectation.
Z but by such experience as proves the fact
I and provision should be made that such
securities may be divided equitabiv he
tween the capital invested and tho labor
ADOPTED ID n
courage corporations formed on that ba-
sis.
Fourth.-The corporation being trustee
Tor It's owners. tho governments must be
given opportunity TO exercise a constant
watch that the trust e. executed Hinder
supervision. something Ike the watch the
government holds over tho national hanks
PERSONAL schemes would be reduced TO a
minimum. And. what Is more. corporate
ACTIVITY would be lifted to a higher plane
or personal and moral responsibility.
Fifth.-ProviSion should be made for n
government exchange. or n private ex-
change under government supervision.
through which the sccul !tit. OF national
corporations could be bought ard sold
IN this way would be drawn distinctly
visible line between the securities OF ma
tional corporations and securities In cor
poratons that refuse 70 nationalist - a
Inc that would soon be understood as the
boundary between corporations that were
wiling 10 be faithful trustees OF the
owners. faithful al the same time 10 their
duties 70 the people and corporations that
had Inner and Interior deslsus Nv own
opinion IS that this distinct Differentiation
or the national from the hybrid corpora
tion would In time lead every corporation
engaged In interstate commerce vofun-
tarily 70 Incorporate under the national
law. A Just plan Of organization and SUI
pervision being offered the people would
not long permit the bank and insurance
accommodations 10 be absorbed in CORPORA
tons that refused the plan.
Throughout the article Judge Cross
cup stands for individualism. He
shows the benefit which the country re-
ceived from the method OF distributing
lands In the west.
Fast Walking of Kansas Girls.
On wager laid by W. w. Watson,