davidaulloa/AmericanStories huggingface dataset:
The Oskaloosa herald., 1906-10-25
Evil Of Watered Stock.

Evil Of Watered Stock.
Every corporation should be required
to have its capital stock paid for at par,
in money, before it is authorized to trans
has too often been accepted as legal
tender for stock, and it should be de-
clared the counterfeit it is. The evil of
oVer-capitalization has still another Sc
rious phase. 1t furnishes an illegitimate
motive for excessive prices. 1t is per-
fectly natural for the members of a cor
poration so organized to endeavor to pay
dividends not only upon the real capital
invested in the business, but also upon
the baseless stock which represents moth
ing but the audacity of promoters and
the weakness of the law.
Need Of FderaI Action.
These suggestions would be idle If there
were no practicable remedy for the OBJ
vious wrong. There is no hope of at
tanning uniformity through legislation.
The state in which the greater number of
these companies is organized secures a
revenue from them more than sufficient
to defray the expenses of it's state gov
ernment, and seems easily convinced of
the Justice of its laws. I believe the
question is national one, and that the
time has come to nationalZe 1t. 1 recog-
nize the difficulty of amending the con-
Stitution of the United States; but 1 know
that whenever the people are sufficiently
in earnest, 1t can, and will be done. Be-
fore corporations which are to do bust-
ness throughout the country, and in
which the people of one state are quite
as much interested as the people of an
other. are permitted to oganiZe, they
should be compelled to show that their
capital stock has been paid for in money,
and that the real value of the property
they acquire is as great as the stock
which represents it.
Positive Remedies Needed.
am unable to agree that we can cure
whatever evils may exist in these organ
izations, by publicity. Their affairs are
already sufficiently public so that every
The Oskaloosa herald., 1906-10-25
The Lobbyist an Evil.

At this point must be permitted to re-
fer specifically to one phase of corporate
interference that ought speedily to disap-
pear under the righteous Indignation OF
honest men. The professional lobbyist
has, / regret to say, become one of the
features OF legislative assemblies: he has
become a stencil in the nostrils of a de-
cent community: and he ought to be
driven with the lash of scorn. pursued
by the penalties of the law, from the
presence OF every official and from the
precincts Of every legislative body in the
republic. Do not understand me to surg
gest that the halls OF legislation should
the corporation. The right Of petition is
as sacred as 1t Is venerable; and through
II the wants. objections. or complaints ot
all who are interested in public affairs
should be made known with absolute
freedom; not only so, but the right to a
fair and impartial hearing before appro-
pirate committees should be sedulously
preserved The lobbyist, however, who
is for anything or against anything for
hire, whose mission II Is to promote one
measure or defeat another. who haunts
the chambers OF legislation and taints
Ats atmosphere with his corrupt designs,
who sends for members for interviews in
the cloak room, who carries a tally sheet
and watches the roll call, who shadows
the members at their homes and hotels.
injecting at all hours and all places his
poison into the public service, Is a crirn-
tnal whose approach is an insult and to
whom the doors OF the capitol should new
er swing inward
The Oskaloosa herald., 1906-10-25

fact that he had wealthy corporations Tor
clients at the time, when the farmers OF
this state organized to break DOWN tne
graat harbed wire trust that was levy
Inc upon them exorbitant and unreason-
able prices, Governor Cummlns oio not
hesitate to be employed by them, ana ne
prosecuted their case Win sreaS ssair atgov,
and ability to successful terminauon.
IA rbed wire, in consequence, 1eli IN Prlce
several cents per pound. Farmers OF Lnas AZ
period will well remember the savns -
ffhem. I built about that time hfteen miles
of fence upon which the saving 10 me
was about $500. l cannot forget TINS val
1ahle service rendered to the farmers OF
this state. l.. 49, ,a,,slatura
as an Independent republican; l was mo-
then intimately acquainted Will nm, alu
| must confess that my preluuices ,,es w.
much against him. The temperance 9ues-
tion was prominent at that time ana our
views did not harmonize upon IL; l aIso
knew that he had been employed py tne
railroads as a civil engineer. ana at tne
tima of his election, was employed as at
tnrnev for a great railroad corporation. L
cIassed him with other corporation az
torneys whom had known TOT yeSI,;sts yeS1s S
nrofessional and unscrupulous Lobbyists:
TThe session of the legislature was not
half over, when I discovered my mistake
and found that had made wrong es-
innate Of the man; l found tnat WINE ~ ne
was ALWAYS loyal to his clients as an at
torney. he also was loyal to the people o.
Iowa as a legislator. / soon dlscoyeree
that he was a falr man anu Sope.DtnS
ioot,np at ali sides of public questions,
and had the honesty and courage TO aa as
yocate the adoption of such measures as
eDneared TO him to be right. He rendered
valuable service, in helping to s,an frame IIe he
was. upon my recommendation, appointed
member of the conference conlmittfSee zee
that put the finishing toucnes upon ~ enaI
law, and he voted for It upon us nhni iii
passage, and thanks to his veto OF q t,,na oil
careiessiy passed by the last legislature;
the Of 1sS stands today Se 1t wat set az az
Nv &c ever met in a legislative hall. The
railroad lobbyists were much bed @ePe sur
nr,sed that he would not stultify himser
by stopping to cooperate with them LII
their disreputable methods.
After he had taken the oath OF ornce nee
as governor. he fully p,tI appre,etiatea cast!ne inc
mon him. He realized that with all the
people Of Iowa depending upon nln,I r,as ne
had never before such a clientage Tnae
has performed his Sfsia1 snt duties %e 90ss as
those which were pleasant, with signal
ability and fairness. no one can deny
The Oskaloosa herald., 1906-10-25

Is said, and believe 1t to be true, that
more than 50 per centum of the stock Of
every trade combination now in existence
Is pure fiction, and the opportunity to
gamble upon the stock exchange In worth
less stocks has been uppermost In the
minds OF those who have been most active
IN bringing together thsse organizations.
The Oskaloosa herald., 1906-10-25
Efforts To Defeat Him.

Many a man has been defeated for a
public office by railroad influence Tor a
less offense than the smallest or which
Governor Cummins was guilty, and 1t Is
no wonder that orders went out from
Wall street to their political henchmen In
Iowa that this man must be defeated for
a denomination at all hazards, by fair
means or foul. We have never before
seen in Iowa anything to be compared
with the depraVed, corrupt and shameless
methods resorted to by them in the late
campaign.
For lack Of legitimate grounds for op-
posing him, stories are told of his in
creasing the taxes of the people, and ex-
travagant expenditures of the public
funds, both of which disappear like
snowflake in the month of June when the
truth is told. Governor Cummins did not
go into this contest blindly or willingly.
He realized that all of the railroad cor
poration influences of the state, with un-
limited funds at their command, would
be brought into requisiuon in an attempt
term, feeling that he could not afford to
make the sacrifice. He earnestly urged
others for the nomination, but as war had
been declared against him by the corpora
tion managers the general voice Of the
people from all parts of the state de-
continue the work that he had so well
begun. One of less courage would have
Shrunk from the task, but duty has been
his guiding angel in his official work.
In my opinion it Is the duty of every one
of u.s. who desires to have the state gov
porations, to give Governor Cummins our
hearty support regardless Of party affili-
ations. Unless we stand by a public Of
ficer who is faithful in the performance Of
his duties, how can we expect public
officer to stand by our interests in the
future2
The Oskaloosa herald., 1906-10-25
Further offends Railroads.

He found that the assessment Of rail-
road property had not keptpace WIN WIN rs us
road property had not KEEP. pace "lth us
increase in value. and it has been Jus 9usrGy rG
came a member of the assessing poara.
This increases the taxes of the railroads
about $4,000 per annum and relieves LEY, a 3tna
er taxpayers to that amount. Thls alone
would be sufficient to incur forever the
displeasure of the railroads put ne s,g gave ,s
further offense by vetOing bill, whlch II
it had become law would have orought
disgrace upon the state by making II
rendezvous for legalizing corporation
abuses. ..
He again provoked their wrath by urg-
ing the legislature to abolish the free pass
which it did to a certain extent. II Is
estimated that about $4,000 of transpor-
tation a year was distributed in the state
for the purpose of influencing pubic SEN
timent in favor of railroads.
He also visited President Roosevelt with
other western governors, and urged MIN
to emphasize his recommendations Tor
giving the interstate commerce commits
sion increased powers and he also appear
ed before the United States Senate COM
mittee and made an unanswerable argu"
ment in favor of such legislation.
The Oskaloosa herald., 1906-10-25
RIGHTS AND DUTIES OF CITIZENSHIP
AS PRESENTED BY IOWA'S GOVERNOR

ADVANCED GROUND TAKEN GOVERNOR cuMNs IN HIS NAUG
uRAL ADDRESS ON QUESTIONS WHICH MUST BE MET.
Tus-curbins onopoy-co
porations Railroad Lobbyist.
The Oskaloosa herald., 1906-10-25
Corporations.

There is another thought which Is d.
rected more to the creation of whole
some sentiment than to the enactment OF
laws, to which I must draw your atten-
ton. He who honestly makes, has the
right to safely keep, whether It be one
dollar or a million dollars; yet there are
certain incidents of wealth and espe-
oially associated wealth. which ought to
receive the serious consideration of those
who have the welfare of their country at
heart Wealth gives to him who owns or
controls II power for great good and for
great evil; 1t gives him power to erdow
schools, found libraries and relieve want
but II also gives him power to seduce
and coerce his fellow men and this power
should be most jealousy scrutinized
Wealth, and especially incOrrO~a'e e
wealth, has many rights; but il should
always be remembered that among them
is not the right to vote. Corporations
have, and ought to have, many prvi-
leges; but among them is not the privI-
lege to sit in political conventions or oc-
cupy seats in legislative chambers Cor
porations as such, should be vigorously
excluded in every form from particina-
ton in political affairs. Here at least
the rich and the poor as individuals
should meet upon a plane of absolute
equality. The conscience and intelligence
Of the natural man must be the sole fac
tors in determining what our laws shall
be and who shall execute them.
The Oskaloosa herald., 1906-10-25
AN INSINuATIoN.


Claude Porter: his first term In
office of the discovery Of the fact that the
railroads in politics?
COMPLETE ANSWER.
B. address, 16 1902:
Corporations privileges but them
privilege conventions in
excluded
every from participation n political anairs
The Oskaloosa herald., 1906-10-25
Took $1o,oooyooo Too Much.

Dividends are paid by the railroads on
at least twice as much capital as was
ever invested in them by the stock
holders. More than one-half of the stock
issued by them is water, fo- which no
legitimate payment was ever made.
The railroads in Iowa are capitalized
and dividends are paid on more than
twice as much as was ever invested in
them by the stockholders. We have heard
great complaints of the evils of absentee
ownership, and the excessive amounts
taken from Ireland by the English and
from Cuba by the Spanish, yet we are
suffering from the same thing right here
in Iowa. Wall street took in net earn
ings from the railroads in this state last
year, after paying all expenses of opera
ton, all taxes and large amounts for
betterments, over $l00OO,OO0 more than II
was legitimately entitled to.
Dissppoints Corporation Managers.
When we fully realize the situation, we
understand why the railroad corporations
made such desperate effort to control
the nominations oil our state ticket this
year. And this is the most important
matter that we have to deal with at the
coming elecion. / hope the voters will
not permit themselves to be misled.
In my diagonis OF the case / find this
to be the situation here Governor Cum
minis has proved a disappointment to cor
pnration managers. Notwithstanding the
The Oskaloosa herald., 1906-10-25
Railroads Dislike Roosevelt.

The men who have got control by hook
or crook of the great corporations of the
country, are bitter in their opposition to
President Roosevelt. He has proved
troublesome man to trust monopollStS.
They were not content to let him remain
as governor of New York, and they at
tempted to shelve him by making him
vice president of the United States, but
in this their efforts were thwarted by his
proVdential elevation to the presidency,
and when they endeavored to defeat his
nomination in 1904, the only man in whom
they had hopes of succeeding with was
prOvidentially removed They are de-
termined that another man like him shall
not go to the White house. The contest
Is now on between the people under the
lead of President Roosevelt on one side,
and the corporations, under the lead of
unscrupulous men, on the other side.
Other questions should be subordinated to
this until it is settled whether we are to
have a government of the people,by the
people, for the people, or govern
ment of the corporations, by the corpo-
rations and for the corporations; whether
the great work which President Roosevelt
has entered upon shall be continued and
carried out to successful termination
or not. This is the paramount issue now.
The work that Is necessary to be done
is only just commenced. The rate bill
passed by the last session of congress Is
only one small step forward. The work
must not stop until the corporations are
under complete control.
The Oskaloosa herald., 1906-10-25

intelligent man understands in a general
way of what they are composed, what
they are doing, and what they are earn
ing. 1t is well enough to require them
to make statements, and submit to ex-
animation, but If we are to limit our reg
ulation to mere publicity, the outcome
will not justify the attention We are be-
slowing upon the subject.
| reCur to an expression of a moment
ago, that competition is the force upon
which we must rely to regulate the
prices of the products of industry. for
I cannot consider with complaCency the
alternative to which we would be driven
If competition were eliminated. I sin
Cerely hope that we will find sufficient
protection against the efforts to monOp-
OliZe or unduly restrict the field of COM
petition. in the natural impulse to enter
a profitable business; and if these cor
porations, however large. can be put and
maintained upon a lawful basis, I con-
fidently believe that industrial mOnopolies
cannot endure.
The Oskaloosa herald., 1906-10-25
LARRABEE SAYS
VOTE FOR CUMMlNS


several years the most beneficial enects
resulted. The supreme court OF the JIM
ted States, in 1897, decided that the COM nt-
mission did not have authority 70 ~
rates and the railroads at once TOOK au-
vantage of the situation. .ooo =.
Their increase in mileage from 1883 10
1898, for nine years, was 1875 per cent
Their increase in gross earnings. 1913 per
cent.
Their increase in net earnings, 22.5 per
cent. ,oo, -
Their increase in mileage from 1881 TO
1906 for eight years, was 49, per cent =
Their increase in gross earnings o4''
per cent
Their increase in net earnings, 81 per
cent.
1t will be noticed that after the de.
cision of the supreme court in 1887 that
the interstate commerce commission did
not have the power to make rates; that
the railroads advanced their income over
10 per cent for each of the eight follow
ing years. Until the enactment OF tne
law approved June 80, 1906, and which
took effect the 2Sth of August last, there
was no law whatever upon the statute
books of the United States to limit the
railroads as to what they might charge.
The Oskaloosa herald., 1906-10-25
Seek Complete Control.

1t will be seen from this that the rail-
roads have had the unlimited power OF
and that they have exercised 1t with
free hand, especially since the year 1897.
Were this their only offense it might
have been tolerated little while longer;
but nothing less than complete control
of national and state governments would
satisfy them. They made large contribu-
tons to the campaign funds of both of
the great political parties, and they de-
manded obedience from them in return.
The condition was becoming intolerable,
when President Roosevelt asked that rea-
sonable restriction be placed upon them.
1t is an open secret that majority OF both
houses of congress were opposed to the
measure, but under the strenuous de-
mands of the president law was passed,
embracing perhaps the minimum restric-
tons that would be accepted by the peo-
pie upon the subject
Omaha daily bee., 1906-07-24
UNION PACIFIC STOCK FORGED
Common Turns Up In Wall
street


NEW YORK. July 2S.-Discovery OF
forged certificate for fifty shares of conf
mon stock OF the Union Pacific railroad
was announced this afternoon by George
W. Ely, secretary OF the stock exchange.
According to Secretary Ely the certificate
is numbered 1858 and is dated September
H. 1906. 1t is in the name OF Marvin j.
Hannah bearing what purports to be the
signatures OF Il. II. Hartman and Alex
ander Millar, without official title and the
seal OF the Union Pacific company. Mr..
Ely said that It is not known whether or
not there are any more forged certificates
In circulation. The price of the Union Pa
clnc common stock Is s147s5 per share.
Alexander Millar. secretary Of the Union
Pacific Railroad company, said:
II do not believe It is a New York for
gerry. 1t appears to be bungllng western
job About ten days ago a western bank
informed us that a man had appeared at
the bank with a certificate for Atty shares
OF Union Pacific common and desired a
loan on It. The bank officials were not
satisfied as to the regularity OF the certi-
hcate and inquired from us about It. They
sent us a description OF It, which con-
/ WINGED us that 1t was spurious. We SO
notified the bank However, while we were
| In correspondence with the western people
| the man who wanted the loan withdrew
the certificate"
Omaha daily bee., 1906-07-24
GAS ORDINANCE PUT ON FILE
Measure Requiring COmpany's Plant
Removed from City Before
the Council.

With zimman obJecting and Bridges, the
father of the measure, absent, the general
council committee voted to place on file
the ordinance requiring the gas company
to move its manufacturing plant outside
the city within two years. Most of the
councilmen had looked over the plant and
said they thought it unreasonable to drive
the gas company away from the location
where It has heavy investments. Zimman
said that by expanding t2S,0OO the company
could remove the greater part OF the al
legged nuisance, and while he did not favor
the ordinance as drawn, he thought II
should be held as a club in negotiations to
compel the corporation to make the Inn
provements.
Despite the written protest OF W. s. Shoe
maker, once supposed to be a candidate
for the place, the majority agreed 10 pass
the ordinance creating a second assistant
attorney at salary of 5000 year Shoe
maker did not object to the place but
said $3.50 a year was big enough remunera-
ton. AS J. NJ Morrow, the man whom the
city attorney has picked out for the place
! has refused to take II for less, a ruse "a
| land Mr. Shoemaker himself was smiled
Jackson and three others voted against the
| ordinance.
| zimman tried TO have the telephone fran
chise matter brought up and settled, but
the telephone committee asked for and re-
ceived two weeks more time 10 Obtain
data for report that is to be made.
Omaha daily bee., 1906-07-24
POWELL HAS NEW SYSTEM
Chief Inspector of Grain Exchange
Devises Reforms in Keep
ing Books.


Chief Inspector George B. Powell OF the
Grain exchange is developing as rapidly as
possible a new system for carrying on the
work of the department. He is arranging
for new methods of keeping books which
will be much more satisfactory than the
old when Il comes to looking up market
data a year or two back. Separate books
for weights and inspections will be kept
and separate records Of inspections in and
Inspections out. The present books snow
inspections for any one day, but fail to
designate which are receipts and which
shipments
The factor which r. to be most important
in the reorganization OF the ONCE and
which will do more than anything else to
secure the recognition Of Omaha weights
| and inspections in the markets OF the world,
is Mr. PowelTs plan to have the deputy
weighmasters made responsible 20 the Grain
exchange instead OF the elevator companies,
as at present. Under existing conditions
each elevator has a deputy weighmaster,
responsible to the owners of the elevator
and paid by them, but his returns OF weight
have 10 be accepted by the ONCE OF the
Grain exchange. The new plan is for the
exchange to hire and pay the deputy
weighmasters and have them entirely under
| the control OF the department of weights
| and inspections. This would call for the
payment OF a certain weight and inspection
! Zee by the elevators on each car, thus pro
viding funds for the payment Of salaries
| by the exchange.
The plan would give the necessary unit
formity to the operations Of the depart
ment The elevators are said TO have al
ready agreed TO II and Mr.. Powell expects
to have It in operation within a short time
Omaha daily bee., 1906-07-24
ENGINEER FIGHT IN COUNCIL
MembeEs Heretofore Opposed 20 Pres
ent Incumbent said TO Have
Withdrawn Their Objections.

The acceptance OF Andrew Rosswater
as city engineer by the council is now re-
garded as certain at the city hall and ar
rangements may be made for the confirma-
ton Of the OFFICIAL in the regular way
instead of permitting him to hold over
by reason OF the failure of Jesse Lowe
to qualify for the place.
Councilmen Davis, Elsasser, McGovern
and Hansen are said 10 have renowned
their opposition 10 the reappointmenL
These, with Zimman, Bedford and Jack
son. who have stood by the mayor, consti-
tute a councilmanic majority which can
swing anairs 10 suit itself regardless of
the hold-over claims.
Mayor Dahlman has been informed by
lawyers who have looked into Engineer
Rosewater's contentious that the latter Is
correct and that he IL entrenched in the
position for three years to come.
There is a disposition in the council
adverse to trying to elect another man
for engineer and precipitating litigation
which may involve public works and the
functions performed by the engineering
department The councilman who opposed
Rosewater have no engineer OF high stand
ing ready as a good substitute and the
absence OF q strong candidate has All
along embarrassed them