davidaulloa/AmericanStories huggingface dataset:
The Lake County times. [volume] (Hammond, Ind.) 1906-1933, 1907-04-23
Has Business" in Canada.
CINNAMON BEAR AT LARGE
Farmers and Oil Workers Having
Some Unsual Sport for the
HOoSieP State.

Muncie, Ind, April %. = Farmers
and oil workers near Smithfeld are
enjoying a genuine bear hunt. There
is a cinnamon bear at large in that
vicinity, which has been seen many
times. and fear Of which is keeping
people home at night. The animal has
its den in a swamp extending along
the river in a neighborhood known as
Hickory camp. The swamp is a verl-
table jungle, and it is the same place
where a timber wolf was killed year
ago. The bear was first seen last Mon
day by James Pittsford and Mr.. and
The Lake County times. [volume] (Hammond, Ind.) 1906-1933, 1907-04-23

had qualm like shame before his
moral superiority to me. We were
plodding along on about the same
moral level; but he had assembled to
that level, while I had descended to
1t. There were politicians, posing as
pure before the world and even in
the party's behind-the-scene, who
would have sneered at Docs "con-
science" Yet to my notion, they,
who started high and from whatever
sophistry of motive trailed down into
the mire, are lower far than they
who began deep in the mire and have
been struggling bravely toward the
surface I know a man who was
born in the slums was pickpocket
at eight years of age, was a boss at
45, administering justice according to
his lights. I know a man who was
born what he calls a gentleman and
who, at IS. sold himself for the 'hon-
ors" of high office. And once, after
he had shaken hands with that boss,
he looked at me, furtively made wry
pocket handkerchief!
The other part of our work of prep
aration = getting the Wall street
whales in condition for the "fat-fry-
ing"-was also finished. The Wall
street Roebuck and / adventured
was in a state of quake from fear
of the election of the scourge
of Cod" as our subsidized socialist
and extreme radical papers had dub
bed Scarborough-and what invalu-
able campaign material their praise
of him did make us!
Roebuck and l went from Office to
office among the great of commerce.
industry and finance. We were re-
ceived with politeness everywhere
But not penny could we get. Every
where the same answer: I'VE can
not see our way to contributing just
yet But if you will call early next
week-say Monday or Tuesday
four or five days away-"we'n let you
know what we can do" The moet
ardent eagerness to placate us, Il,
keep US in good humor; but not a
cent-until Monday or Tuesday.
When l heard Monday or Tues
day" for the third time my suspi-
cions were aroused. When I heard
it the fifth time. l understood. Wall
street was negotiating with the other
side, and would know the result by
Monday, or at the latest Tuesday.
The Lake County times. [volume] (Hammond, Ind.) 1906-1933, 1907-04-23
..Gnarding the Grave OF Els Mife.'

Terre Haute, Ind, April ga COM
mission has been called to pass upon
the mental condition of a man regis
tering as Lon Teacher, who spenta day
walking like a sentinel in a church
yard cemetery. saying he was there
to guard the grave of his wife. No
body in the neighborhood knew him.
and his name was not familiar.
The Lake County times. [volume] (Hammond, Ind.) 1906-1933, 1907-04-23

fooled or fooled with. If he's elect
ed he'll carry out his programme, SEN
ate or no senate-and no matter
what scares you people cook up in
the stock market" To this they made
no answer beyond delicately polite
insinuations about being tired of pay
ing for that which was theirs OF
right / did not argue; it is never
necessary to puncture the pretenses
OF men of affairs with a view to
saving them from falling into the err
ror Of forgetting that whatever
right" may mean on Sunday, on
week days it means that which a
man can compel
| returned to Fredonia and sent
Woodruff east to direct a campaign
of calamity bowling in the eastern
press, for the benefit of New York,
Boston and Philadelphia captains of
industry" At the end of ten days 1
recalled him, and sent Roebuck to
Wall street to confirm the fears and
alarms Woodruff's campaign had
aroused. And in the west / was
laying out the money 1 had been
able to collect from the leading men
of Minnesota, Illinois, Ohio and west
ern Pennsylyania-except quarter
The Lake County times. [volume] (Hammond, Ind.) 1906-1933, 1907-04-23
and he saw it turn in at a gate

and he saw 1t turn in at gate
way.
Whose place is that?" he asked.
The old Gardiner homestead" was
the answer. President Scarborough
lives there"
De Milt did not discuss this rather
premature emitting of Senator Scar
borough He said: "Oh-Tve made
mistake descended and sent his
trap away. Scarborough's house was
quiet, not a soul about, lights in
only few windows. De Milt strolled
in at the open gates and, keeping
out of view, made a detour of the
gardens, the lay of which he could
see by starlight. He was soon Fl
line with the front door-his man
was parleying with a servant. "Evi-
IDENTIFY he's not expected" thought
my client Of publicity.
(TO Be COntinued).
The Lake County times. [volume] (Hammond, Ind.) 1906-1933, 1907-04-23
CHAPTER xxi.
MostIy About Money.


went up to New York, to find con-
fusion and gloom at our headquarters
there
Senator Goodrich had subtly given
the impression, not only TO the work
ers but also to the newspaper men,
who had given it to the public, that
with his resignation the Burbank
campaign had fallen to pieces. And
/ fear you'll have some difficulty in
getting any money at all downtown"
said RevelI, the senior senator from
New York state, who envied and
hated Goodrich and was therefore, if
not for personal reasons, amiably dis
posed towasd me. They don't like
our candidate"
Naturally" said l. That's why
he's running and that's why he may
win
"Of course, he'll carry everything
here in the east The only doubt was
in this state, but / had no difficulty
in making a deal with the opposition
machine as soon as they had sound
ed Scarborough and had found that
If he should win, there'd be nothing
in it for them-nothing but trouble.
] judged he must have thrown them
down hard, from their being so sore.
How do things look out west?"
Bad" said l. Our farmers and
working men have had los of idle
time these last few years. They've
done too much of what they call
thinking"
Then you need money!" asked
Revell, heightened his sly. SNUG old
face.
we must have four millions, at
least. And we must get it from those
people down town"
He shook his head
Il think not" was my careless re-
ply. when they wake up to the
danger in Scarborough's election, the
danger to business, especially to their
sort of business, they'll give me twice
four millions if l ask it,
What do you wish me to do?"
Nothing, except look after these
eastern states. Well take care OF
the west, and also of raising money
here for our campaign during Octo-
Der out there"
Can I be of an service to you in
introducing you down town." he
asked
Mo. thank YOU" said l. have g
few acquaintance there. I'm not go
ing to fry any fat this trip My FIRE
isn't hot enough yet"
And / did not. i merely called or
two of the big bankers and -four
heads of industrial combinations ant
one controller Of an ocean-to-oceaI
railway system. / stayed a very few
minutes with each. just long enough
to set him thinking and inQuirins
what the election of Scarborough
would mean to him and to his elias:
generally. IF you'll read his speech
es," said I to each, you'll see he in
tends to destroy your kind of bust
ness, that he regards it as a brigahd
age. He's honest, afraid of nothing
and an able lawyer. and he can't b.
The Lake County times. [volume] (Hammond, Ind.) 1906-1933, 1907-04-23
FROM DOWN
THE STATE
Telegraph News by Direct
Wire from All Over
Indiana.

indianapolis, April %. - According
to papers published ut Toronto, Can,
Oscar A. cCigarette') Baker made no
attempt to conceal his identity when
he was arrested there last week as
the result of a scheme of Edward
Sourbier, ex-sheriff of Marion county,
to bring him back to indianapolis to
face a charge of attempting to bride
an Indiana lawmaker to vote against
the famous anti-cgarette bill. which
was enacted as a law by the legislature
of 1905 Instead, Baker appeared to
take some delight in making himself
known and laughing in his sleeve be-
cause the Toronto police were forced
to give him his liberty
Admitted His Identity.
Baker was arrested at the Iroquois
hotel, Toronto. where he had regis
tered under the name of J. L. Law
renee. He readily admitted that he
was going under an assumed name.
and that in reality he was the much
wanted Cigarette" Baker, of Indiana
legislature fame After a conference
held by the aresting officer, the crown
attorney and the judge of one Of the
Toronto courts, it was announced that
Baker could not be extradited, and he
was released, there being no charge
pending against him for violation Of
the Canadian laws.
His Opinion of the SoIons.
"Yes, l am Oscar A. Baker" the
fugitive is said to have told a newspa-
per man, with which introduction he
proceeded to take "a fall OUT of legis-
lative bodies generally. cit is a fact
that $1,000 reward was offered for my
apprehension on a charge of attempt
ing to bride 9 member of the lower
house in the state legislature of Indi-
ana in 1905. In view of the graft, IT.,
responsibility and general 'cussedness'
of legislative assemblies in these days
of grace. I can't think the charge is
very awful.
! Has Business" in Canada.
There has been no disguise; there
has been no secrecy, and no attempt
at concealment / have business in
terests in Canada, and have been in
London, Montreal, Quebec, Chatham
and I spent nine months in Hamilton.
Is there anything sensational
or of great moment to the public in
what have told your" And the news
paper man who had been questioning
the alleged bribe-giver shook his head
The Lake County times. [volume] (Hammond, Ind.) 1906-1933, 1907-04-23

without the use of pills. purgatives
or drugs of any kind, can and do
stipation-cure them to stay cured and
restore the patient to a state of per-
feet health and happiness, such as they
constipation, no matter how bad 1T is:
I can show you how to cure yourself
right in your own home without the
use of drugs Constipation is cured
for all time when cured my way. Fill
out free coupon below and mail today.
Watson's weekly Jeffersonian., 1907-05-23
BY VIII Payne in Ebe1yb0dy's Magazine.


price of the product You copiously
water the stock of your combination,
You put up the price of the product
sufficiently to pay dividends on the
bogus stock. Then you say, "This
capitalization is legitimate, because |
can earn good dividends on it," Thus
do able financiers lift themselves by
their own boot-straps.
1t is by no means necessary to have
all the trade in given line in order
to gain monopolistic control over the
price of the product Said Mr.. Have
meyer of the Sugar Trust: 1T goes
without saying that a man who pro.
duces eighty per cent of an article
can control the price by not produc-
ing" And in other ways, too The
Steel Trust hasn't even eighty per
cent Of the trade; but the rail pools,
pig iron pools, and so on, of which
it is member, have more than eigh-
ty per cent.
Take, now, the strictly typical case
of the American Tin Plate Company,
organized by Judge Moore in January,
1899. The tin plate industry in Amer
ica was created by the Mckinley tar
iff of 1890 and is often pointed to as
a signal instance of the benefits of
high protection. There is a general
miscOnception respecting the tariff. A
high protective tariff in itself is not
much good. Indeed it is often inju-
rious rather than beneficial, because it
stimulates competition. To get the
benefit Of the tariff you must monopo-
lie the protected commodity. The tar
if is merely lever. A lever without
a fulcrum will boost nothing. Monopoly
is the fulcrum We shall see more
Of this hereafter.
The Mckinley tariff raised the duty
on tin plate from one cent pound to
2.2 cents. The price of tin plate ad-
vanced to $575 a box. This price
yielded a profit of 100 per cent to the
manufacturer. To build a practicable
tin plant required no great investment.
The unit is a mill" plants being Of
ten-mill or twenty-mill capacity. An
investment of four hundred thousand
dollars would build a plant, the cost
being $4,000 mill" Naturally, cap
ital flowed into so attractive a field.
Tin plate plants multiplied. Presently
they began to fight for business. The
price of tin plate dropped from $5.75 to
$3.50 a box. Not only that 100 per
cent profit, but all profit disappeared
as it usually does when ruinous
competition is left free to do its work
Tin plate concerns were pushed to
the verge of bankruptcy This, of
course, was the trust promoters oppor-
tunity Judge Moore took the matter
in hand, and brought thirty-nine plants
into a combination, the combined ca
pacity being 272 mills.
At the accepted average of $4,000
a MILL the investment in these plants,
allowing some leeway would have been
about $12,OO0,OOO, which estimate
agrees with other evidence in the case.
The promoters supplied some cash for
working capital. Thus, including good
will'-in losing business-there was
nearly enough value in sight to cover
the $1S,000,000 Of preferred stock that
the American Tin Plate Company is
sued. The company also issued $685.
100000 OF common stock, all water,
Watson's weekly Jeffersonian., 1907-05-23

UoA W Pf'oo, duu Cu0 az Hills, WHICH
could barely support capitalization
of say, $15,OOO,OOO, excluding good
WILL" before the consolidation, now
handsomely supported the new capital
ization of $46,O00,000. Judge Moore was
able to argue that the capitalization
was legitimate because the company
could pay good dividends on it.
Carnegie Mixes War Medicine.
In the next year and a half six 9TH
er trustlets in the steel trade were
organized, watered, and fioated on the
same plan by Gates, Morgan, the
Moores, and others. Like the tin plate
concern they added nothing tangible
to the industry, simply buying up and
consolidating existing plants. Expect
ing monopolistic control over the price
of products, they inflated the capital
zation of the plants by $20O,0O0,O 900.
Judge Moore and his associates then
proposed to buy out Mr.. Carnegie on
the basis of his earning power. They
failed to raise the money and the deal
collapsed. This annoyed Mr. Carne-
gle. With a hostile eye on the trust
let's, he began to mix war medicine.
IT he had fought, the water would
have poured out Of trustlet stocks
in manner resembling a cloudburst.
In order to protect over two hundred
millions of bogus trustlet capitaliza-
ton it became necessary to buy out
Carnegie. Mr.. Morgan rose to the oc-
casion and the United States Steel
CorpOration-otherwise known as the
Steel Trust-resulted.
The American Can Company.
The big trust, in taking over the in
t1ated little trusts, added $4,000, 900
of water. That is, in exchange for
their watered stock, it gave it's own
stock to an amount greater by $74,373,-
O35 than the total of the stocks ac-
quired For example, in exchange for
$46,OOO,OOO of American Tin Plate
stock-about $3O,OOO,OOO water-the
Steel Trust gave $62,OOO,OOO of it's own
stock
But. by taking in Carnegie, the big
trust made monopoly even more Sc
cure, and is able to earn a handsome
return upon its capitalization.
OF course its members object to the
word monopoly They say that the
prosperity of the Steel Trust is due
solely to good times; that anybody
with good plant can do about as well
Let us see. A little while before the
organization of the Steel Trust the
Shelby Steel Tube Company was form
ed. 1t had fine plants-admittedly
none were better. 1t was the most
modestly capitalized of any combina-
ton i'll the iron and steel trade. 1t
had rival in the National Tube Com
pany, a Morgan promotion, but the
original Shelby plant had been a good
money-maker. The Shelby Steel Tube
Company however, owned no supply of
steel billets, and so must buy them
in the market. The Steel Trust took
in the National Tube Company; took
in also the chief sources of supply for
billets, thereby leaving the Shelby in
the sadly unmonopolistic condition of
having to buy its raw material from
it's chief competitor. So the Shelby
sold out to the Trust. But, observe
there was no imitation Of capital here
in Nynh % fAr NhAI
Watson's weekly Jeffersonian., 1907-05-23


you and I, our children, and our chill
drens children unto the third and
fourth generation. We carry this
Old Man of the Sea upon our backs,
and bequeath him to posterity High
Finance has grown so bold that it
raises the ancient cry of vested
rights" and demands this tribute as
a sacred privilege. See how the game
is played: Unscrupulous schemers is
sue heavily Watered securities; with
the bland cunning of the gold-brick
manipulation they boom and initiate
them; at their highest price they deft-
ly exchange them for the nations
savings. When exposure comes and
an outraged public threatens to prick
the bubble, they are in a position to
say, "You are cutting your own
thrOatS. The securities are yours"
These creators and vendors of bogus
wares refuse to obey the laws as
definitely as did the robber barons Of
old, who seized the land, subsidized
the church, corrupted the bench, and
right of ruling their interiors. Do we
want to come to this? Are We to have
vested aristocracy supported by i'm
pOverished masses? Mr.. Payne's ar
ticle which strongly points the ques-
ton, is one of two that will disclose
some astounding features of recent
brigandage)
In the past eleven years there have
been listed on the New York Stock
Exchange new securities-stocks and
bOnds-to the amount of twelve and
half billion dollars, not including gov
ernment and city bonds.
Of this total, twenty-five per cent, or
three and a half billion dollars, in
round figures, is just water-a bogus,
fiat creation representing no legit-
mate investment of capital in the
properties against which the securi-
ties are issued.
There is a popular impression that
stock-watering is a monopoly of the
"industrials" or trusts. This is a mis-
take. Railroad securities listed since
the last big panic include more than
fifteen hundred million dollars Of pure
water. When the railroads argue that
they are entitled to earn a fair return
upon the investment" they include
this bogus billion and half.
Recent listings on the exchange do
not, of course, completely cover the
ground Much bogus capitalization
was listed before 1896. Much is not
listed at all, but handled "on the
curb" And in the railroad field, es-
pecially, not all inhations Of capital
can be traced directly in the listings.
But even three and half billion cOun-
terfeit dollars, passed on an easy pub
lie in eleven years, will do for
test.
William II. Moore, John w. Gates,
Jacob H. Schiff. and other financiers
have recorded the opinion that stock
watering is an essentially harmless
pastime. The current Wall street ar
gument is that a concern should be
capitalized according to its earning
power If capitalized in excess Of
earnings, the market value of the stock
will shrink. If the earnings will pay
more than the going rate OF divi-
dends on the capitalization, the mar
ket value Of the stock will advance.
Watson's weekly Jeffersonian., 1907-05-23

water CndQ USUAL. but CudC is uOI uld-
terial. The company took in all the
good plants. The steel trade was
booming 1t ought to have made
enough to support the capitalization.
But it didn't. The packers are large
users Of tin cans. They object to mo-
nopoly prices for their own consump-
tion-possibly because they know SO
well how these prices are made. They
took to manufacturing their own cans;
then cans for others. In a word, the
American Can Company could not sup
press competition. 1t could not get a
monopoly. Hence, it could not support
it's bogus capitalization. Last year it's
earnings were equal to barely five
per cent on the preferred stock; moth
ing on the common. The preferred
stock sells at about fifty; common at
about five. Stock-Watering cannot
flourish under competition.
Mr.. SchWab, in a rather famous
statement, pointed out that there was
no water in the capitalization Of the
Steel Trust, because it's deposits of
iron ore were worth the whole amount
of common stock issued or, in round
numbers, $5OO,O0O,0OO. A brief exam
ination of the facts in the case will
prove instructive.
CarnegIe's Misjudgments.
In 1892 Henry W. Oliver, of Pitts
burg, owned big iron mine on the
MeSaba range in the Lake Superior
region, which was incorporated as the
Oliver Iron Mining Company. For a
long time the steel trade in the north
had drawn its raw material from the
mines Of the Lake Superior country, as
it does today. Yet nobody, generally
speaking, thought much of iron ore
property. There were vast deposits of
it in sight. To develop them required
comparatively little capital. In the
best mines, like divers, the ore was
simply scOoped up from the surface
with steam shOvels, at cost for labor
of five cents ton. The notion of mo-
nOpolizing iron ore would probably
have struck the average business man
about like the notion of monopolizing
sand.
The Carnegie Steel Company was, of
course, the largest consumer of ore.
Oliver saw the advantage of an alli-
ance with this consumer, which would
insure him big, steady output of ore.
With such an output assured he could
get good contracts with the railroads
and steamships for transportation. He
agreed with Henry Clay Frick, chair
man Of the Carnegie Company, to give
that company one-half the stock in the
Oliver Iron Mining Company in con-
sideration of loan of 100000, to be
secured on the mines, the money to
be spent in development work And
Mr.. Carnegie vetoed this proposition.
He wrote:
'If there is any department of the
business that offers no inducements, it
is ore. 1t never has been very profit
able, and the Mesaba is not the last
great deposit that Lake Superior is
to reveal"
Enter the RockefeIIers.
You see, he thought a monopoly i'm
possible, and he preferred to buy his
raw material 11pdar oOpopot;tiuo oooJ;
The Semi-weekly leader. (Brookhaven, Miss.) 1905-1941, 1907-11-30
EnnObIing Sentiment.

The Leader acknowledges re-
ceipt from Gov. Vardaman. on
Thanksgiving morning. OF a beau
tifully printed official copy of the
Governors Thanksgiving Pro-
clamation, with 'sthe great seal Of
the State of Mississippi stamped
thereon in gold bronze. This
proclamation, as a literary pro-
duction alone, is ofthigh merit, but
it does credit to our Chief Execu-
tive's heart no less than to his head.
The following sentences deserve
to live through the ages to come
Let US understand that service
to man is the highest service to
God, that humanity is the core of
religion, the core of the spiritual
fact; that fraternity in action is
the holiest Of all ideas lis the
spirit of all gospels and the full
fillment of all revelations. =
The brutal doctrine of the sur
yiyal of the fttest must give way
to the Divine theory sof fitting
all to survive, and the Golden
Rule must displace the Rule Of
Gold.