The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1910-07-31
BY JAMEs B. MORROW.

One OF the blunders Of the lawyers for
the defense in the 100000 rebating case
against the Standard Oil Company was
their early indifference concerning the
personal and professional characteristics
Of Edwin Walter Sims, the United States
attorney.
The case in the lump was made up OF
100 separate violations Of the law.
Considered as a whole. II seemed so
enormous as TO be unmanageable A
new man had come from Washington 10
prosecute in the name OF the government
"A Juvenile looking person, with long
and big-boned face and a short. dark
mustache that was more operate than
martial
However, o Dhysognomist would have
noted his cold-chisel Of chin. his clear.
healthy skin. and dangerous alert
ness and combativeness in his tobacco
colored eyes. It would have been on.
served also that he was sound. strong
and buoyant bodily. and that when he
walked he gave visible signs of going
somewhere.
Not Impressed by Him.
"a
10 Ne determined. So far. none Of his
achievements had been uncommon or
spectacular Doubtless the eminent prac-
utioners retained by the Standard cast
him into the melting-pot or their ex-
pert judgment along with the rest OF
NE governments inconspicuous and IN
tried lawyers. They overlooked the sug-
gestive incident of President RooseveIt's
choosing him especially for the employ
ment
In those days a group Of self dedicated
young men came and went atthe White
House. Clifford PinChOt was one OF
them Sims, having served an appren-
tceship under James Rudolph Garfield
had been personally tested by Roosevelt
against monopOistic corporations and
the seal poachers OF Alaska. The cases
Of the Standard and Of Walsh the
banker who is now IN the penitentiary.
were in the process of litigation when
he was suddenly and permanently trans
ferred 70 Chicago. A mountain of expert
mental work lay before him. BY
the sensational conviction he obtained.
though the fine was never collected. he
opened new era In railroad practice.
The law was in the book OF statutes-an
impotent piece Of good government print
Ing. Sims charged il with life and armed
it with destruction. The millionaire
shipper, soliciting advantages-compeI-
hing them. maybe-was shocked to dis
cover that he had been triling with an
explosive, with possible fines aggregating
enough to bankrupt him. Since then. as
Stunning Gn air OF moral grandeur. all
concerned have reprobated the iniqulties
OF rebatng.
Have you any opinions about corpora
tipns that YOU are willing 20 give-the
public?'' I asked Mr.. Sims.
Modern Business Necessity.
Il have views on the corporation ques-
ton as whole, which you may have
II you want them" Mr.. Sims answered.
lighting his pipe and smiling pleasantly.
''AIl sensible men agree, Of course. that
corporations are modern business
necessity. No single capitalist has money
enough to build a railroad. Corporations
are partnerships made impersonaL We
have always had partnerships. and we
shall always have corporations. 1 sup
pose Now, having made these trite OBJ
servaions. let me say that corporations
should be controlled. which is not new
declaration, either. I am not a Bourbon.
irdustrially or commercially. One should
go along with the currents of thought
and history. Very well. And vet II one
will reflect for a moment. he viii be
conscious Of the fact that the beginning
Of the rise Of prices in the United States
great business enterprises.
Combinations do increase the cost
Of things to the consumers thereof, be-
cause combinations are intended to be
monOpOhstic and are created. as a rule
in the hope Of controlling prices and in
fuencing production. We hear much
cant however. about the economies Of
operation. That phrase, now so common.
Is outside the question for the reason that
II is employed TO conceal real intentions
It sounds scientific, but It Is a trick with
language, and can be dismissed as q
polite fraud upon the buying public
Control All Necessities.
Everything householder eats, wears.
or uses in his home is. almost without
exception. controlled at some point by
combination We can follow our butter,
our eggs. our meat, our clothing and the
furniture IN our houses back TO the farms
and factories where they originate, and
easily prove the accuracy OF my state
ment. Somewhere, in each instance, there
VIII be an operating trust, or a secret
understanding Occasionally a retail
dealer determines to establish his own
% &c
finds the customary sources Of his sup
plies arbitrarily cut of Manifestly. the
combinations. now 80 universal in bust
ness. are helping 10 make everyday liv-
ing pretty dear. The cause is as provable
as an example in arithmetic.
Meanwhile. there is the tremendously
increased cost Of many things that is
occasioned by overcapitalzatlon. A fac
tory. let us say. is capitalized az 100000. |
and is paying it's shareholders 10 per
cent or $4,000 annually in dividends. The
directors. catching the infection Of the
age, reorganize and issue TO themselves
five shares instead of one. The capital |
is now $4,000, and policies are adopted
10 increase the yearly profits. The price !
list being the center Of interest. It is |
Immediately overhauled. SO the econ
omIes Of operation get into motion at
once
stock Again Boosted.
at the end Of twelve months or so |
the directors are pleased 10 report that /
the reorganization so conservatively ap- 1
preached and carried out has been amply !
justified by the facts. The next cautious /
attempt at high finance is again to is !
81 -, A.. |