Elk City mining news. (Elk City, Idaho) 1903-1913, 1905-12-23
CROSSCUp'S NOVEL PLAN.


federal judges of today. He decided
against the beef trust when the govern
ment began its prosecution, and is also
noted for numerous other important de-
csions. He is So years old.
The accompanying is from advance
sheet proofs of an extended article to
be published in the December number
of the American Illustrated Magazine.
In an introduction, Judge Crosscup
argues against state socialism-govern-
ment ownership and its developments
against state control of corporations or
federal license:
The beginning of the way is ma
tional Incorporation, l am for national
incorporation as the foundation upon
which to build.
MIR Bryan, Commissioner Garfield
and possibly Mr.. Roosevelt favor what
is called federal license. The object
OF federal license is to bit and curb the
present corporations in the matter of
prices. | am for national incorporation
as against federal license, because
national incorporation is the only
method that will directly and effectively
go to the root of the disease, the peo-
pleization of the ownership of the new
domain. | would have the corporation
OF the future deal fairly with the people
in the matter of prices. But set
above that, as the supreme object to be
attained, this other thing:
THAT the people of the country be
brought back into the ownership of the
property of the country. And to at
tain this, the nation must have its
hand, not simply in the guidance Of ex-
listing corporations, but in the construc-
ton OF the new corporation.
'There never has been need, from
any sound financial or economic point
of view, for the labyrinthian construc-
lions that seem the order Of the day
securities SO everything each other and
often so involved that no one not an eX-
pert buying a security can locate his
claim. Two classes of securities ought
in every case to be sufficient the
security that represents actual cash
paid in, or its equivalent in property,
and the security that may be issued
from time TO time as the value of the
property actually increases, and to
cover such increased value.
"Such simplicity in the issue Ct
securities would not interfere with any
legitimate financial need of the corpora
ton could still borrow money at stated
= rates of interest, issuing bonds secured
: by mortgage upon the properties. But
! such bonds would be part of the Sc
= curity that represented actual cash
l paid in, or its equivalent in property,
= and for all time, ard through all change
: and consolidation, such bonds together
5 with the stock securities original repre-
scented by cash or property equivalent
e would be the fundamhntal securities
/ on which interest or dividends must be
D paid before the second class of securi
= ties could share in the ealnings-thest
e secondary securities representing The
!, increment Of value, the increase il
: earning power, the good will of TIM
e property, as dis inguished from thu
s cash investment constituting the funda
d mental security.
n "The securities issued on account o
IS increased vai..e should be issued only a
s. the increase is shown, not by predic
o ton CT expo ctaticn, but by such ex
lie perience as proves the fact. and pro
e vision should be made that such securi
J. ties may be divided oquitably betwee
y the capital invested and labor put in.
N "The corporation being trustee fc
IS its owners, the government must b
IN given opportunity to exercise constar
watch that the trust is executed
s, Under supervision, something like tt
to watch the government holds ov9r ii
ne national banks seeing TO it that fnal
ly cial conditions are always correctly r.
T. ported, that no capability of the co
lie paration is diverted to private gain, al
a that transgressions meet with swi
r. personal schemes wou
re be reduced to minimum. Under SUI
n supervision, too, public utility corpor
or tions, deriving their existence from IL
Sc United States, could be made to OBJ,
" those laws that look to the giving
lis equal opportunity to all, because tn