The labor world. [volume] (Duluth, Minn.) 1896-current, 1912-08-17
BIG BUSINESS.

Sometimes people ask what is Big Business. AS
the term is employed now it evidently means gen.
orally business which enjoys special privileges from
the government. 1t means also business which, be-
cause of it's very nature peculiar circumstances in
it's rise and growth, through monopoly or through
it's relations with other businesses practically
trolls it's own field and charges the public
accordingly.
An illuminating example of this kind of big bus
mess is afforded by the express companies The
report of the interstate commerce commission,
after it's special investigation terms the four big
express companies "a family affair." AS an ex-
ample the peculiar organization and growth Of
Adams Express Co. may be considered.
There are seven managers of the company, d.
rectors they would be called if it were corpora
tion who own less than per cent of the stock but
control the whole company very effectively the
less. They vote the largest block of stock in the
hands Of any single holder, the holder being the
company.
To take just two of the directors as proof Of the
family affair." quality, one is member Of j. P.
Morgan & Co. and director in II railways; the
other banker and director in Is railways. It
looks though railroads at least ought not
to treat the Adams harshy. However, probably just
to guard against any such danger, express COM
panies railroad stock about as freely as rail
roads own their own stock Then if they pay the
railroad too much for transporting their cars they
share in the extra dividends the railroad earns
thereby. 1t grows very interesting It takes to
turning round itself until you aren't just sure
where you are in the arrangement. Adams express,
for instance holds 100000 of Pennsylvania
stock, and Pennsylvania presumably is almost an
other name for Adams Express And Adams is the
company that the Pennsylvania lines.
One begins to why it is that the railroads
and the express companies are lenient with each
other, why it possible for the Adams holders
when they reorganzed in 1866 to issue to themselves
100000 shares with assets of only $37 share, and
nevertheless find that paying interest on these shares
did not begin to exhaust the profits. AS matter
of history the company began to issue bonds against
itself part Of it's dividends and is now practically
paying dividends 100000 worth of bonds,
about ten times it's capital in 1866, and all of this
is dividends
This is big business, big it is confusing to try
to follow it's growth. The report of the Interstate
commerce commission thinks it is too big If the
rates now charged by the express companies are
too high in this day of increased cost of material
and operation is it not probable that this business
has been fattening too fast for very long time
No other conclusion is possible.
Unfortunately the bowls one hears about inter-
terng with legitimate business do not usually state
just how far business is legitimate. When like the
express business, it locks itself up so closely with
other interests that the only limit to it charge is
what the people are willing to dig up when they
have to- it is too strong to be left to itself Some
thing has to happen, despite the bowls.