The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1910-11-22
REGu1ATTNG CORPORATIONS


For some rather unaccountable rea-
son a large portion Of the public, or
rather a large share of their political
representatives and the newspapers they
support, are concerned in an effort to
regulate through federal governmental
agency only the railroads of the land
and their earnings. AS. a matter OF
fact, though, there are any number of
other large corporations in the nation
doing an interstate business almost
exclusively which pile up earnings each
year that make the profits of the rail-
roads look like the proverbial 80 cents
in comparison.
1t was only a week or so ago that
large mail order house announced
special dividend of $1O,O00,000 on cap
italization of $3O.O0OOO0. More recent
ly the American Tobacco company de-
clared it's regular quarterly dividend
of 10 per cent. During the six years of
it's existence, this company has paid
out 165 per cent in dividends on a capt
tai stock that is alleged to be more
than half water Other of the big
corporations, the Standard Oil COM
pany included, do equally as well. 1t
is also a notorious fact in financial cir
cles that the capital stock of most of
the big industrial concerns, which pro-
duce and distribute the necessities of
life, contains much more water proper
tionately than the several railroads OF
the country which are in the stock
watered class. And yet there is not
much if any agitation for the control
and regulation of these corporations.
Smash 'em uu" is the only cry that
is directed against them. And the eff
forts which have been made by the fed
eral government to put some of the
big corporations out of business or pun
ish them for violations of the Sherman
antitrust law have not been very sue
cessful. 1t seems impossible to break
them up effectively. and if perchance'
any one of them is dissolved, it's COM
ponent parts go ahead doing the same
kind of a business on the same sized
capital, divided up though it may be,
and making the same kind of large pro-
fits that were made before.
1t is a growing conviction with many
discerning people that the large cor
porations, the trusts" are here to
stay, that they are the result of
natural evolution in the business world.
Hence the right and only sensible way
to treat them is to regulate them. and
not to try to put then: out of business.
The Sherman antitrust law, or some
thing like it, is undoubtedly needed to
provide for their punishment and the
punishment of their managers when
they commit overt acts against the
common good. But the Sherman anti
trust law is no sense a regulatory
measure. Some such is needed. Presi-
dent Taft has already suggested fed
eral Incorporation law, and will I'M
doubtedly press it again in his forth
coming message to congress. Legisla-
| ton of that sort would appear to be
needed and it ought to be quite as COM
| prehensive in it's provisions for the
regulation Of the large industrial cor
porations as is the present Interstate
commerce law. If it is right to squeeze
the water out of the railroads, if it is
right to regulate them to the extent of
| saying what their earnings should be,
it is also right to squeeze the water
out of the stocks of the other big in
dustrial corporations and regulate them
just as stringently. Such legislation
will hold water in the courts, too, for
the supreme court of the United States
| has already decided that state legisla-
ton to this end is valid in the case
| against the big gas company of New
| York city. The New York legislature
! passed a bill reducing the price this
company could charge for gas. The
company protested that such legisla-
! ton was confscatory. 1t was proven
that under this reduced price of gas
the company would still be able to earn
dividend of per cent. The supreme
court of the United States decided that
| this being the case. the legislation in
| question was not confiscatory and it
sustained the law and the case against
/ the gas company.