The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1906-08-20

value whatever. The railroad com
panies, the packing houses the gas
trust, the oil trust and all the other well
ganizations that control public utili-
ties or industries have followed IN j
general way along the same general
lines as the steel trust
This country is rich in natural re-
sources abevond the dreams of the most
fanciful mind and her people are by
Industry, intelligence and thrifty man
agement developing these resources as
no other country in the history OF tne
world have ever done, but is 1t wise, IS
1t prudent. IS it fair is it good business
sense. is it fully protecting the constr
tutiOnal right of every citizen to lie,
liberty and the pursuit of happiness Tor
the federal government to permit few
men to fasten rivet and bind on her
citizens a condition that partakes OF all
the essential elements of IN enormous
public debt, and which involves nothing
more nor less than an Indirect tax from
which no man. woman or child can es-
cape2 The remedy for over and nct1-
tious capitalization as well as the com
bination and the consolidation OF cor
porations for the purpose of destroying
competition seems plain and clear to ny
mind and I am of the unqualified opin-
ion that the Kansas delegation in con-
greSs should advocate ard If possible
secure the enactment of q federal stat
gagged in interstate business shall secure
a federal charter. and providing IN that
charter that no stocks, bonds or Securl-
ties can be issued without the approval
and under the direct supervision of the
department in charge. The charter
might also include among other condl-
tons Observation-Disclosures and anti-con-
solidatfon features, if after careful IN :
vestigation such provisions were deemed
necessary and advisable, the charter 10
be revoked on violation of its terms or
conditions. Does any one presume that
the u S. Steel company could have Sc
cured a charter from the federal gov
eminent for the purpose of buying up
the entirel steel industry Of America
with the evident intention of destroying
all competition in that line of business.
and in the event of the charter being
granted would the government allow
the steel corporation to issue and sell 800
million dollars of watered stock over
and above the actual physical value or
its property? Would the federal gov
eminent grant a charter and permit the
issue of securities by a railroad COM
pany for the purpose Of buying up COM
peting lines of railway if the transac-
ton was not consistent with the public
welfare2
THE national charter for the ma
tional bank has controlled absolutely
and satisfactorily to the corporations
and the government alike the issue OF
stocks as well as the consolidation of
all national banking Institutions in
this country for many years. and I
am fully convinced that a general law
that would apply to all corporations
engaged in interstate traffic can be
enacted that would control them as
entirely, efectually and as satisfac-
toriIy as the national bank law con-
trolls the national bank. Why I
would like to ask should not the pub
lie service corporations, as well as
every corporation doing an inter-
state business, be compelled to make
the amount of their capital stock.
bonds and securities equal to the
physical value of the property they
own in the same way and under the
same conditions as the national bank.
Why should a corporation be permit
ted to issue stocks. bonds and Sc
curities for the purpose or buying out
it's competitors and destroying com
petition to the detriment of the pub
lie welfare2 Why should corpor-
alton be permitted to issue stock that
is pure water and represents no value
whatever? Why should the farmers,
toilers merchants and consumers of
pay 10 or Is or 20 million dollars an
nually to public service corporations
to be paid out in turn as dividends on
watered stock for which these cor
porations have never received one
dollar in cash and from which their
property has derived no benefit what
ever? If the public wants a square
deal from the corporations why not
go to the very root of the matter. why
not remove the cause of practically
all the evil influences growing out of
corporate life? Is 1t common sense or
common honesty to give these COM
mercial giants homeopathic doses
and absent treatment in federal leg
islation when nothing short of a COM
plete surgical operation can or will
- ~, affr
wv. R. STUBBS."