Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1906-11-24
GROSSCUP ON CORPORATIONS
Chicago Jurist Addresses the Knife and
Fork Club Of Kansas City,
PROPER REGULATION ISSUE OF HOUR
lie Says Law Must BE So Changed
as 60 Protect Consumer and
Investor from Greed OF
Promoters.

KANSAS CITY, Mo, Nov. 23.-.Unlted
states Judge Peter S. Grosscup of Chicago
was guest Of honor and the principal
speaker at a dinner Of the Knife and Fork
club In this city tonight Judge Grosscups
theme was the lessons Of the New York
election. He began by saying that tho re-
lation of corporations to. the public is the
question Of the time and that. the large
vote polled by Mr. Hearst is indicative Of
the deep interest that the people are taking
in the necessity Of reforming the structure
and limiting powers Of these creatures of
the state The speaker also said that the
popularity Of Mr.. Bryan and the strength
of President Roosevelt with the people are
duo largely 20 their position on this great
question. He concluded:
am not attempting in detail to point out
the exact structure Of the American cor
poration, as Il should stand when recon-
structed, some OF the principles on which
the reconstruction should take place can be
particularized. Tho reconstructed corpora
ton. for instance, should have no pace in
10 for those schemes of spoiatIon that,
within OF without, plunder the people whose
capital has created II, and whose patron
nge must support It. In the reconstruc ed
corporation the securities issued must BE-
related in some way to the values actually
put in In the reconstructed corporal on
not only must the officers be trustees of the
stockholders held 70 the strict accounta-
bility to which Individual trustees are now
held, and denied the privilege as individual
trustees are now denied. Of making profit
out of their trust; but the administration
Of the trust, as in the case of individual
trustees, must be constantly kept under the
eye of some tribunal of the government.
And in the reconstructed corpora don, tang
ible Inducements ought TO he given to the
workman, the clerk, the omplOye OF every
kind 70 secure proprietorship.
All Depends Upon Public.
| ] shall not attempt to point out IN detail
how existing corpoi atoms shall be brought
I into the new regime. Considering, however,
/ that existing corporations depend largely
on the public from time to time TO take
| their securities, the probability is that, as
I n matter Of self-interest-in many cases Of
| life or death~existing corporations could
| be compelled to conform their organization
/ to the reconstructed forms prescribed by
/ government for otherwise they would b. .u.iL
| themselves rs suspects. Then, TOO. WITHIN
/ the respective powers of the nation and
| states TO prescribe the kind Of collateral
than banks, insurance companies and saw
/ ings institutions shall not take for loans
/ the nauon and states cOuid oNert ieVei los
/ toward the new order of things that could
! not be resisted, for nearly every great cor
! poration is u heavy borrower from these
! financial reservoirs of the people 3 wealth
ri, am Rot gong lar INTO me oetsis S, az al az
| election. The lesson of the New York cleo
| tion is that, without doubt, II Is the rela-
| tion of The corporation to the people thai
/ is the question Of the hour, that upon that
question voters by the tens Of thousands
! viii leave the party into which they were
| born 10 go to the party they believe viii
| hereafter best represent thenl that, in
| vnlving as Il does. the deepest instincts
Of humou nature tho question is one thai
| cannon dba iaid aside. that will not die q
4 natural death. that the duty and the tasl
ftof the hour IL to. definitely turn the
/ thought of our country n the right dlrec
tion settle upon tho right aim, confiden
| that when the right aim Is adopted mean
will DC found through the resourcefunes
! Of the American people to rebuild th'
! corporation on lines that will make II al
institution among republican institutions
on foundations that are republican. fAnC
some day, to some men, willfbe given til,
/ strength to successfully summon TO thi
undertaking the good sense and the con
! science of the American people.