The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1906-08-20
POLITICAL GOSSIP
Mr. Stubs Issues Another Long
Statement.
Nay Be Regarded as His Sena-
toriaI Platform.
SOLVES BIG PROBLEM.
Trusts Should Be Regulated by
the Government.
This Night BE Done by National
Corporation Law.
SOLVES BIG PROBLEM

W r. Stubs has given out signed
statement which Will doubtless be cen
strued as an effort to announce a plat
form for his senatorial ambitions. Mr.
Stubs says that the Kansas delegation
in congress should work for the enact
ment of a federal charter law for all
corporations. so that every. corporation
may be under government supervision
the same as national banks.
Mr. Stubs says:
The question of limiting the issue
Ct stocks, bonds. and securities of pub
lie service corporations engaged in
Interstate business to the actual value
of the property they own, including
reasonable and just allowance for ex-
pense of promotion, is indeed one of
the most important problems with
which the federal government has to
deal. During the past quarter of
century thousands of men In the
United States have accumulated indi-
vidual fortunes ranging all the way
from a million dollars uD to hundreds
of millions and aggregatng billions,
by the issue and sale of watered stock,
which means stock that does not rep
resent one single dollar of actual in
vestment in any property. and the en-
tire and sole value of which has been
created by the public paying high
enough rates to public service corpora
tons to not only pay the cost of main
tenance, operating expenses and inter
est on the money actually invested, but
also to pay dividends on this watered
stock and thereby give it q commercial
rating and market value. In most
cases this watered stock representing
no value whatever has been trans
ferred from the promoter to the in
nocent purchaser and has become
fixed public charge which amounts to
billions of dollars. and every man, wo-
man and child in America IS taxed in
proportion to the cost Of his food,
clothing. the home in which he lives
and the volume of his business trans
actions to pay the several hundred mill
lion dollars in annual dividends on
these enormous, fictitious, unearned
fortunes.
THE heart. soul and life blood of the
whole trust combination and consollda-
ton problem is also involved in the
question Of how and under what condi-
tons corporations should be permitted
to issue stocks. bonds and securities.
The consolidation of all competing in
terests and Industries. the destruction
and abolition of honest competition in
transportation, trade and traffic of all
kinds has been accomplished and was
made possible only by reason of the fac-
that the public service corporations have
the unlimited unrestricted, unquestfon-
able power and right to issue stocks,
bonds and securities in any denomina-
lions or amounts with or without in
trinsic value. and for any and every
purpose whatsoever right or wrong, and
hitherto have had the further right to
buy sell. barter, trade. own or control
other corporations. For instance, the
Z. S. Steel corporation did not own the
several hundred million dollars required
10 control the raw material. plants and
product Of the steel Industry of Ameri-
ca and probab bly, did not own one single
million in actual cash. 1t did what every
other corporation does that undertakes
a gigantic transaction involving enor-
nous interests. It issued bonds amount
ing to upwards of 500 million dollars.
which probably more than covered the
actual value of the property acquired.
It issued common and preferred stock
amounting to upwards of 500 million
dollars which was divided UP among
the Pre- moters of men interested in the
scheme. This 800 million dollars of stock
was largely. If not altogether. water
representing nc actual Investment or