The White Pine news. [volume] (Ely, Nev.) 1906-1910, 1908-12-13

! 70 lndt same proportion OF the con-
! troll and of the net assets in liquida-
ton. Each share would receive divi.
market at SO many dollars a share
instead of dividends of 50 much pei
cent, and would be quoted in the
market AT SO manw dollars a share
/ instead of being quoted in percent
age of its par value. Such share
would not, even by implication, hold
out any representation that any fixed
number of dollars had been paid in
on II. This method would thus rec
ognize in legal form what is now and
what for years has been the actual
fact, which is that no one cares or
inquiries how many dollars were paid
inon any particular shares What the
inquirer seeks TO learn, is not the
history OF the enterprise, but its pres
ent value. He is interested in de-
termining its earnings, its assets, its
prospects of future.
In many European countries, the
issue of such shares without par
value is permitted and their issue
here would bring theory in line with
fact, and make II unnecessary, in or
der TO accomplish legitimate end,
TO resort to grotesque subterfuge. as
Is now sometimes done.
Thus far as TO the protection of
investors: now as To the second
claim. that supervision of capitaliza-
ton is needed to protect the con-
sumer. This claim has, of course,
no direct relation TO investment; but,
as the argument on this subject shifts
nimbly from one limb of the discus
sion TO the other, il is necessary to
examine both II only hastily. The
theory here is that il will be possi-
bic TO control prices, by limiting them
to reasonable rate of return on
the apital-whateve that may
mean. What is reasonable is often
discussed. but never defined. Pre-
sumably, IL is intended that prices
shall be uniform. and that reason
able rates of return shall be uni
form. But that cannot be. Costs are
bound 10 vary widely, and the price
that means a bare living to one pro-
Queer r.eans afuuaLce 10 another.
IL is unavoidable as the proposition
that the property of the railroads be
valued, in order that their rates may
he kept down to point that will
give them but reasonable Erofit
~ own judgment is that what
Is needed in connection with corpo-
ration that appeal TO the investor is
publicity-such publicity of accounts
as will enable the intelligent seeker
To form fair judgment as to a com
pany's earning power and as to the
value of its assets. Such publicity
Is becoming more and more common.
More and more corporations are vol
UNFAIRLY reporting very fully to their
shareholders, and If investors will
but decline TO invest in companies
that give no intelligent account of
themselves, they will soon find that
they already have in their hands a
weapon powerful enough TO enforce
compliance even without legislation.
Suggested by this subject, it is
useful to consider in passing what is
implied by the recent enormous de-
velopment of government by commits
sion. and the insisfent demand for its
further extension. In its tendency
II is reversion to absolutism. intend
ed 70 be henefeent. but still abso-
lutism. lis advocates lose sight of
the fact that problems similar to
those calling for present solution
have at all times been the task of
the statesman and that the founders
OF our government, in giving To its
present form, selected that form after
long debate and consultation as best
calculated TO permit the abatement
of specific grievances, while yet safe
guarding and retaining the liberty of
the individual. This form was adopt
ed deliberately, with all previous eff
forts at government I'm full view We
are IN fair way to throw away that
experience of the ages, which as we
thought had by the founders been
skilfully summed up incur present
form of government.
We seem on the point of abandon
ing the well marked highway for the
elusive short cut. There is no royal
road to the solution of the problems
of a complex society. The main OBJ
stacles TO an off-hand solution lie in
the fact that We have only huban
beings To enlist in the work and II
Is characteristic of human beings.
along with many admirable qualities.
TO be self seeking, self conferred and
prone to mistake their individual
wills for the moral law. Moreover.
In coming TO particular decisions.
they do not always keep their own
purpose in view with sufficient clear
ness To know whether they are try
ing 10 yindicate an abstract princi-
pie or 10 redress a particular griev-