The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1912-05-02
INCREASES COST
Trust Busting Does Not Relieve
Consumers Burden.
Harvester Makes Yelled Threat
to Attorney General.
PERKINS POCKETBOOK HIT
Complains That He Put Up
Money in 1905.
Many Similar Instances During
Presidential Campaigns.
PERKINS POCKETBOOK HIT

liam B. Mckinley, who is directing the
campaign for the denomination of Presi-
dent Taft. is contained one sentence of
which the meaning may not be grasped
by a superficial reading. Mr.. Perkins
says: What more could a sordid and
selfish corporation man want than to
have his corporation dissolved on pa
per in such a way as TO bring fncreas-
ed profits to inside stockholders and
increased cost to outside consumers,
as in the case of the Standard Oil
and the Tobacco companies?" At a
swift reading these lines would seem
to imply that no permanently benefi-
cial results. to the public, at least, had
been secure,- through the enforced dis
indignation of the Standard Oil and the
American Tobacco company. But there
seems to lie behind this statement a
deeper meaning 1t is one that is re-
lated in an indirect way only to the
prevailing presidential politics.
Within the past year reports have
occasionally been heard in financial
circles stating that if the international
Harvester company were compelled TO
disintegrate in the manner command
ed by the supreme court in the Stand
ard Oil and Tobacco company cases
and by the detailed arrangements
which were afterward sanctioned by
the lower courts. then the Harvester
company would be compelled to distrib-
ute among it's stockholders a great
body of assets exactly as the Standard
Oil and Tobacco company have done to
their stockholders. Some of the esti-
mates have fixed the money value of
the securities which would be thus dis
tributed at about so million dollars
None of the estimates mas named a |
much smaller sum than this. No one |
in authority in the Harvester COM
pany, however. has made any state |
hoC Of
public which would convey the impress |
sion that in the event of the disso- |
luton of The Harvester company, stock |
of the approximate value of so million |
dollars. or anywhere near that sum,
would be distributed among the stock |
holders Of the subsidiary companies
when they became independent
Yet there is reason to suspect that |
in the long continued negotiations be- |
tween the representatives of the Har-
vester company and the attorney gem
eraI at Washington it was disclosed to /
the department of Justice that what /
ever the other effects of the dissolution
of the Harvester company might be,
one inevitable result would be the dis
among the stockholders of the
subsidiary company, of stocks and
other securities held by the Harvester
company of value probably as much
as so million dollars. 1t may also have
been intimated that it is not unlikely
that there would follow an increase in
the capital in the form of stock divi-
lends Of some of the now-subsidiary
resembling in manner-al-
though, of course, not in amount-the
recent 20 million dollar stock dividend |
planned by the Standard Oil company
Of Indiana.
What the Inference Was.
Probably the inference which it was
presumed the attorney general would
1raw from this statement was that the
dissolution of this company and the
# its assets would ineV-
tably be followed by an increase in
he cost to consumers of some of the
Of these now subsidiary COM
1anies.
Some who have been informed of the
'utile negotiations at Washington be-
,ween the Harvester company's repre-
among whom was it's
eading counsel-and the attorney gen. :
.ral, are now persuaded that Mr.. Per- ,
tins meant, when he wrote the SEN
fence above quoted, that dissolution
would materially and visibly enrich the {
inside stockholders and the suspicion Is I
strong that the assets which will be I
divided after the dissolution are of the /
money value of about so million dol !
aTs.
Probably the government at Wash
ngton looks upon a statement of this
Kind precisely as it Is understood toll
ook upon the recent division of assets
owned by the Standard Oil and Tobac-t
20 companies among the corporations 7
hat were subsidiary to these two
companies, as an unavoidable incident
n what the government regards as an
Imperative work of reformation of
corporation methods, but, after all +
'nly temporary incident not going g
o the fundamental principles upon Y
which enforced dissolution is to be h
justified. +
The Campaign Contribution. l.
In another part of Mr.. Perkins let
er to Congressman Mckinley he s
makes public the fact that he was APP t
)ealed to by George R. Sheldon. the Y
of the national Republican a
committee in 1908, to lend enough s
money to make 1t possible for the 4
committee to pay its floating debt. He h
lid lend fifteen thousand dollars, re G
eiving in acknowledgment thereforI
note signed by Mr.. Sheldon as treas r
Irer. That note, Mr.. Perkins says, has h
lot yet been taken UP. If it is neverI
,aid then he will be compelled to add
he fifteen thousand dollars to a like
mount which he contributed to the =
lational Republican campaign fund in r
eos.
Yet this is not an unusual exneri-
nee, although not at any time before :
las there been public acknowIed p :
nent of a transaction of this kind. =
The late Cornelius N Bliss, who was E
very skillful pleader for campaign I!
unds and who was treasurer of the I
national organization for y
everal campaigns prior to that of l;
9OS, found, when balancing the &
looks after the campaign of 1882, e
hat the national committee owed a S
God many thousand dollars TheI
ebts were incurred for printing
Ierica1 work and various honofable
ccessories of national campaign. i.
ar. Bliss felt in honor bound to see T
hat these debs were paid. since many C
I them were obligations to merchants e
nd others who could not afford to b
ose the money. He therefore went to a
everal men of wealth and induced c
hem to join with him in signing and h
ndorsing a note. The discounting OIL e