Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1906-06-10
MODEL OF A CORPORATION
Federal Judge GrOssCup Tells About His
Remedy for Present Evils
soGE GOOD CORPORATIONS IN EXISTENCE
cites . Few that Have PeOpleised
Themselves - Buccaneers Must
BE Checked and the Finan-
ciaI streams Purihed.

Judge Grosscup of Chicago contributes
second article TO the June number OF the
American Illustrated Magazine, in which
he details his plan for corporation control.
In his first article, who Shall Own Amer
ica?" the Judge came out fatty for ma
tional incorporation Of trusts. The present
paper goes further along the same lines
Judge Grosscup is against government
ownership except in the case of some mu-
inequalities and their public utilities. He
declares that the remedy for the trust
problem lies rather in public control
through individual ownership. and in this
article, which he calls THE Rebirth of the
Corporation" he endeavors to show how
with foundation OF national Incorporation,
the problem would begin to solve itself
THE corporation" he says, lis no sin in
itself. Ownership Incorporated Is no sin
IN itself The corporation, as the legal
method Of welding large masses Of indi-
vidual resources to a common end has been
one of the most helpful agencies OF mod
ern life. But the corporation left to do as
II pleases-emancipated from all care as to
its character and birth. and all watchful-
ness of its conduct Afterwards the cause
of the great sin that has grown up within
the vast property domain covered by cor
porate ownership"
PFOprietOrshtp by the Few.
The resulting monopoly of proprietorship
by the few to the exclusion of the many,
he argues also Is not because the actual
wealth of the country is owned by the
few. 1t is still owned, he says, by the
people, but the people at large have been
content to deposit that wealth on financial
streams, which in turn converge in the
great money centers. and. once there. these
streams are turned again, in ono form or
another, into the great corporate enter
prises, the ownership of which is not re-
turned to the people. Five men, for in
stance, having an enterprise costing $4,000
900. take those millions out OF the stream
In the form Of loan, securing It by a lieT
on the enterprise To the stream they give
back the bonds representing the cost; to
themselves they issue the stock represents
ing the proprietorshlp. And thus ali the
possibility of the growth Of successful en-
tcrprise goes, not to the many who fur.
nish the capital nor in large part to the
man, who supplies the idea, but chiefly tC
the few whose advantageous position at thu
confluence OF the stream enables them, t
the exclusion of all others. to lay hands
upot the cargoes as they come down.
This. Judge Grosscup declares, Is re
sponsible largely ''for every extortion ii
the way of prices, both those paid anC
those taken, that has been practiced," be
cause II has bred the disposition and givel
to the go-as-you-please corporation unex
ampled opportunities to make paper for
tunes actual by any device at hand. Ye
the corporation is the only structure Il
sight into which to gather and exercis
the creative energies of American industris
progress. Shall it be remodeled fror
within? he asks or torn down from with
ILL 81. 10 RRI.
remedies are of two kinds-general publ
ownership or the biting and refining @
the corporation in the matter Of conspir
spies to control prices.
Public Ownersbip of Utilities.
AZ to public ownership even Of publ
utilities Judge Grosscup says he is nc
sure that as long as the clay hall sha
have franchises to vote the gray wolves
can be kept out, and it may become Ell
sential. in the interest OF clean city goV
eminent, II for other reason. to civ
up the otherwise undoubted economic az
vantage OF private operation under publ
control. But as 10 general public ownei
ship, the people OF this country still hay
II in their power so to reform and +,
construct the corporation policy OF II
country, and as between the corporate
thus reformed and even restricted publ
ownership the latter is to be opposed ar
strenuously opposed.
Government CONTROL" says Judge Gros
cup. never gets. and in the nature
things never can get all there IL, or Il
best there IL. In human capability. tt
government may compete with private Of
terprise in getting capable men, but 1t HI
not thus far shown anything of the c.
pacity of private enterprise to assil
the right man always to the right Mac
That kind OF seeking out and watchfu
ness few government departments posses
The men In charge OF government depar
ments may be intelligent and well inte
toned. but they are in today and out t