The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1911-12-21

equal
sale of its product that govern all the units or
decentralize the ownership refneries by
peing each to be managed by separate corporation.
which must sell its product according the equal price
law and finally turn the ownership OF the distributing
system separate corporation that must buy its
under the conditions imposed by the equal price
law. In principle this formula for establishing
efficiency competition will work with other primary
markets controlled by monopoly.
The Money Power also should be deprived of its
unholy special privilege to capitalize industry tho
basis Of taxing future generations through stock wat
ering This evil insofar it already EXISTS should be
done with by compelling all industrial units to be
capitalized the basis OF their actual physical value
and arriving this good will" should be taken
into consideration From the time this is done capita
lzation should allowed the physical
valuation of an Industrial unit. Capitalization should
BIO allowed against the increase in surplus each year as
this surplus will be created under efficiency
ton and therefore. will represent legitimate profit
Surplus in this case, that amount remaining in
business dividends have been declared from
the net profits of the business year. capitalization OF
such surplus is just. it represents money actually
earned and due the stockholders of corporation
this inasmuch it has been left in the business.
they have right to expect the same return that the
other money invested in the concern earn under
efficiency competition BY this method earning power
be egtmately capitalized the basis OF the pres
rather than the future and the selling price of
curties issued industrial units will approximate their
actual value, and their collateral value will always be
based fairly. In this way the Money Power be
deprived OF one method Of making 1000 profits
Through "watered stocks it is gobbing the natural
wealth at alarming rate and it be stopped il
the Of money monopoly is to be prevented.
Any trust that holds in it's control units of
than line OF industry should be dissolved Take
the Of the United States Steel corporation 1t is
a holding company that owns lands railroads and
steamship lines for the transportation of ore iron
smelling plants. steel billet plants, rail mills. sheet
on ad infinitum. The holding company should be dis
solved and these various lines of industry it
trolls should be corporations and subject tho
equal price law.
The railroads only partially freed from special
privilege. Relating has been abolished but long and
short haul rates. preferential rates discriminating in
favor of city against others and higher rates for
less than carload lots Of freight remain These show
how varied the branches Of special privilege They
should be eliminated by the application of the equal
price law as in the case of rebates and drawbacks
Then, with government having the power to fix maxi
rates. there should be objection the rail-
roads becoming the natural monopoly they should be
for the sake of greater efficiency The railroads also
should be through the clothes wringer of physical
valuation the water" should be squeezed from
their securities.
Speculation on the exchanges should come under
government regulation. Marginal transactions which
are based on as legitimate principle any involved
In mortgaging piece of real estate. should be regu'
lated as to margin required to purchase
securities and commodities in that Under
writing syndcates that undertake dispose of large
and small issues Of securities should also be regulated
by government to the end that efficiency competition
shall the profits from such business and in order
to prevent the issuance of wildcat securities Short
selling of securities commodities should be prohib-
tied absolutely It is standing incentive for desruc-
ton rather than construction Morgan is credit
ed with having engaged in short transaction
it is against his principles which, according to his
record in industry undeniably constructive He is
said have ousted the president Of large corporation
he controls because the man was found to be short
the stock OF the company.
Last and by means least the banking and
rency systems country should be reconstructed
that they may never more be monopozed.
A central reserve bank and bank of issue should
be established at Washington This bank moreover.
should be under the complete control Of government
There is just much safety to the freedom of this
nations individual citizens allowing private
prise control it's banking system there would be
in allowing Mr.. Morgan Mr.. Rockefeller ct al to
cruit and maintain the standing army and the navy
OF the United States. Dollars marshalled into
armies easily. if not so. than men. That IS
precisely the with the Money Power 1t con-
trolls greatest army dollars in the country and
conquering industry by the sheer force of its
horde
The laws regulating the banks of the country
should provide that borrowers shall be entitled to pro-
portonate credit and that the interest rates
they pay vary only according to the value of the
securities which the loans made In other
each line of industry the units shall be on an
equality as sharing proportionately in the avail
able credit of the nation and paying therefore, at the
interest provided the securities they offer
are Of equal value There must be discrimination
credit between large and small industrial units
Furthermore, to borrow an idea from that state OF
spendidy legislation Wisconsin, each bank
be required to account with itself with
"depositors insurance fund.- There should be credit
ed to fund amount equal to go of each banks