The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1911-10-30
a 4 4. L. % y. e T. = T \
.GROSSCUP OFFERS|
CURE FOR BIG ILLS
Believes Corporations Should Be
Limited to Their Incomes
by Federal Control.
FoREsEEs A NEW PARTY
Except for Sherman Law, Old
FoREsEEs A NEW PARTY
Except for Sherman Law, Old
Ones Have Done Naught to
Curb Capital, He Says.

Chicago. ILL.,. October 29.-Juuge
refer s. Grosscup, who recently re-
signed from the United States Circuit
court bench described the disease from
"hicn ne said the country Is suffering.
and prescribed for 1t.
Neither of the existing political par
ties he said, has taken any sincere
stand on the subject OF trusts and COM
oihations. In both parties there arc
urge number of men who, either
through interest or education, think
the trusts ought to be left alone. In
ooth parties also are a large number
OF men who. honestly opposing the
them except destroying them.
Now, If We had all the men in one
party who feel that trusts and combi-
nations ought to be left alone, and all
the men in another party who feel
they ought to be destroyed there would
De distinct political alignment. But
such Is not the case. and both parties
SO iar so along densuncing trusts
III their platforms, and. with the ex-
ception of the Sherman act. doing
nothing in the way of legislation. That
condition of things must end.
The seat OF the disease is not big
business In politics, but big business,
left at liberty by politics to do as 1t
pleases in the great new industrial
neid. II the matter is not taken up
now and settled equitably. then a new
party will come into existence. just ar
the Republican party did in 1854"
Pointing out that the cry that the
initiative. referendum and popular cleo.
ton Of Senator'S will eliminate big bus.
mess from politics might prove Sub.
stitution in politics Of the fool portion
OF the community for the selfsh por.
tfon. Judge Grosscup continued by
asking: What is the remedy?"
I'm the first place, We must accept
economic conditions as they are. not as
we might wish them to be-" he said
These conditions require capital and
wealth in large aggregations. The
wrong In the present is not that it is D
large aggregation OF capital and effort,
but that In cases where 1t has grown
big enough to stiiie competition II has
imposed increased prices on the public,
and in consequence has divided pront
that did not equitably belong to 1t. II
is here that the disease resides.
The remedy is that when a trust
becomes so swollen that 1t stiles COM
petition II should be restricted to such
dividends. all things considered. aa
constitute fair return upon the nc.
tual investment. The right of the
without corporate grant. trusts and
combinations could not exist, and the
grant coming from the people. limi
tation could be imposed by the people
/ Favors Federal Control.
! THE second wrong in trusts az they
now exist is that their corporate pol
Icy has In effect set apart corporate
property as close property. in which
people at large cannot safely becom.
interested. The smash OF corporate
stock In Wall Street in the last two
months shows that our corporate pol
icy permits manipulation on every
! hand.
/ Which government, the national or
the State, shall be given the power 10
/ apply the principle? In the case OF
| the big so-called trusts such as the
packers or the Standard OIL, the bulk
OF whose raw material is drawn from
and the bulk of whose finished product
Is sold In States other than the com
panies' domicile. the principle should
be applied by the national government
through such processes as will make
1t practically compelling that enter
! prlses Of this kind organize as como
rations under United States laws.
AS to the railroads, make a valua-
ton of each OF the properties. reject
Ing the cost of reproduction as the
sole measure, but taking as the meas.
ure what IT fairly cost to bring these
railroads to their present condition,
i together with such increase in value
as the roads have shared with other
properties: then add to the valuation
thus ascertained, as time goes on, the
cost of extensions and such improve
nents as ought to go to capital &C.
count. and upon the capital that the
/ two thus constitute allow return at a
definite given rate, after making pro-
| visions for depreciation. maintenance
! ana the improvements that are rightly
/ charseable to operation, and not to
| capital account"
! Pointing out that stock exchanges
and boards of trade have become more
OF the nature of gambling institutions
than of marts of trade. Judge Cross
cup urged that their reform also should
be accomplished by legislation that will
restrict these exchanges to the legit-
| innate functions