The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1906-10-19
BOGUS CAPITOL
PUTS BURDEN
ON POOR
When Plunderbund Water
Stocks Prices Rise to
Pay the Dividends.

The methods OF the gentlemen who
are working tooth and nal, for the
success of the republican ticket In
New York are such as to make repub-
iican Success necessary TO theiG They
gre al la unit for Charles e. Hughes,
says the New York American.
Every time a corporation unduly in
creases its stock, bogus capital or
water is created, the people are taxed.
The prices of commodities are in
creased that dividends may be de-
clared on fictitious capital The peo-
pie have to pay the increase demand
cd. No one can escape the tax.
as a result, the purchasing power
o.. the dollar is reduced, or even cut
in two. The laborer, instead of get
ting dollars worth for his work gets
but so cents worth.
Stock watering enriches those who
arc already rich and impoverishes the
poor 1t makes easy the robbing Of
the many by few. II is responsible
for most of the great fortunes which
have been accumulated in the last two
decades in the United States.
Turning Paper Into Money.
Certificates of stocks and bonds are
manufactured at the cost only OF the
eIgTossing and printing Corporation
mpnagers are not prohibited by exist
ing laws from issuing these cert!fi-
Gates for their own benefit. They dis
pose of the certificates for actual
money. A few individuals gain mil
lions of wealth simply by distributing
eIgrossed pieces of paper which have
cost them next to nothing.
The concentration of wealth in a
few hands is one of the evils that con-
front the country, and 1t is one for
which stock watering is directly re-
sponsible The cause, however, is not
generally recognized, for the reason
that the subject is one to which but
little thought has been given. The
average person has but a dim notion
of either the methods or the effects of
stock-watering.
The following statistics show the
extent TO which the evil has grown
The corporations of the United States
are overcapitaliZed for not less than
eight thousand million dollars. This
Is equal to one-tenth of the total
wealth of the country.
Far Exceeds Our National Debt.
1t is nine times greater than our na
tiOnal debt II is a thousand million
dollars more than the value of all the
crops raised in the United States this
year.
1t greatly exceeds the value of all
the lands and buildings in the city of
New York, which are assessed at IS,
500,000,000. 1t is over so per cent.
more than this stupendOus array OF
wealth. It is three or four times as
much as all the money in circulation
In the United States.
The Interstate Commerce Commits
sion has recently reported that the
steam railroads of the United States
have total capital stock of s13.S00,-
100000. They are bonded for fur
Their vast sum. A large proportion of
the capitalization is water. Even the
street railways of New York City have
$500 ,000, 900 of water In them.
The Steel Trust has over one thou
sand million dollars of water in its
capitalization. The overcapitalization
of this one corporation alone exceeds
the national debt by $75,000,000.
People Are Becoming Wise.
That the people are beginning 10 ap-
preciate the wrong done by Overcapi-
talization and to understand that bur-
densome taxation is the result, Is
shown by the following extract from a
Raucac panar tho EoDor;o r,yotto