Milford chronicle., 1905-04-21
AN ALARMING TENDENCY.
That Of Ripine Out Independent In
dustrieS.

Revelations To the internal affairs Of on
Ofthe great insurance companies have direc
ted public thought TO the fact that we are ap
parently in the midst Ofa sweep OF event
that, unless turned In a different direction
will transform this country into natioI
. whose &C mmercial interests and active capi
tai win be largely in the hands OF few so
called captains of Industry"
The Sentry has long seen the modern ten
depcy toward Capitalization Of capital II
large masses, the corporation being civiliza
tiOA's instrument for the worlds develop
ment-an instrument that has certainly
come TO stay, but which as certainly needs
watchful and careful regulation.
Il is true that our large corporations have
In many caees numerous small stockholders
but the management and control drifts into
the hands Of large capitalists who by means
OMEN unscrupulOus,seeur bare voting ma.
jority OF the stock. Not only do these man
iDulators control the stock Of the corpora
tlons which they directly manage, but from
their influence with the officials Of banks, In
surance companies trust companies, eic., at
the financial centers, they are able also, In
emergencies, to command the united capital
OF thousands OF other small investors, who
are never consulted IN the least degree as to
how their money shall be used.
The farmers and the Independent artisans
Of the towns a generation ago held the bulk
OF the Nations private property, but now the
combined agricultural interests are over
shadOwed by the corporations. II Isl 0fiici-
ally reported that the corporations OF the
country are now capitalized at so, 100000 600
while the agricultural interests only aggre-
gate sl9,OOO,O0O 900. Then through the banks
there is opportunity for the corporate author
lilies to control that portion OF the country's
wealth which is supposed to belong to the
people OF moderate means,
The result will be that the average Ameri-
can, instead Of depending on his own intelli-
genee for success, will become dependent on
others. Thousands who have means will
come 10 rely solely on the great financial in
stitutiOns, and those who possess only the
capacity for labor Will come to depend on
the 81 eat industrial combinations. This is a
form OF paternalism which must inevitably
sap the selErespect and selireliance OF the |
people.
There can be no doubt that the Investment |
of a mans savings in banks or In bonds |
makes the owner more dependent than If he
the same capt. al ia a small shop or
factory OF his own. II is true that there still
remains in the country great vitality among
certain small industries, and that many
small stores, owned by individuals or part
lerships with moderate capital, still do a
business. But the tendency is
otherwise, and legisation,even IN the line OF
'ural free delivery and other useful and ap-
oarently innocent Innovations. :leads further
n the same d .rectiOn,
In 1880 the deposits in the banks of tie
country amounted to little over two and
Iuarter billions of dollars. In 1904 these de-
, isits had grown to about eleven billions.
'bus while the population increased ABOUT So
'er cent and the general wealth OF the coun-
ry 90 per cent, the money Withdrawn to
extent by small business men 4
nd wage-earneTs from active proprietorship ]
o be left on deposit in banking institutions .
ud lent TO those skilled In the ways OF cor ,
oratiOns, grew over 500 percent. II this is i
Ot an alarming tendency, we do not know z
be meaning Of that term.
The remedy is not far to seek, but may be q
ard to realize What is needed Is a dlffus- 4
lon Of the prOprietOrship Of the country's
ldustries-the capital needs again to be G
laced In the hands ofthe smaller investor, 2
nd under his direct control. How are we to
scure this desirable end? In no way con- (,
eivable except by the national control OF y
operations and the workings OF an econo- II y
lie law that will effect a cure for this ten
sncy toward Capitalization.
Publicity as to the dOings OF the managers; y
Dnesty in every department OF administra- Al
on; safety and security to the smallest as Il
ell as to the lare est owner OF shares IA the 3
lterprise. By these means prOprietorship Y
III be gradually transferred to millions OF P
)lders, each interested In the development
the enterprise and none dependent on the J.
IN OF selfish magEate.
THIS III some measure Involves what Is -
lied cooperation" and cooperation in 4
any cases has. in the past, proved dtsas-
0us finalcial failure. There ought to be u
sdom enough, however, in our financial z
perts, to devise some honest plan by which Z
measure, at least. OF co operation can be Sc
red and successfully worked out. At any
le, there is plainly a need Of OfstimulRting a
mand for truth and honesty in the manage
ent of corporate enterprises, and also Of
the basis OF direct ownership and
ntrOl. The obvious way to do this is to
axe investment in corporate stock safe and
.ractive by suppressing siock-jSbbing and
other forms OF "frenzied finance" This
'Hld not only promote the thrift and pros
risy Of the people, but would assist In the
u ion OF many OF the economic and social
,blems Of the day. THE SENTRY. TO