The Washington herald., 1914-03-27
SMALL SAVERS MAKE
GREAT CORPORATIONS
Frank I. Hulswit Says the Money
Trust" Is Composed of Limited
.Wage-eamers.

The money trust" OF this country N,
not composed of the men and institutions
which are popularly believed to control
the money supplies OF the world. The real
money trust consists OF that portion Of
the people who earn a little but who
save a little also"
Frank T. Hulswit. president Of the
United States Light and Railways Com
pany and one of the best known of public
utility operators, in an interesting inter-
view yesterday, furnished some sugges-
tive figures TO support these statements.
The source OF supply OF capital re-
quirement.' said Mr.. Hulswit, ''is the
people who have in small sums. Contrary
to the generally accepted belief. support
for new enterprises which require large
amounts of capital does not originate
with the men and the institutions which
are popularly believed to control the
money supplies OF the world. 1t lies with
the great mass OF small savings which. in
the aggregate, make up the huge sums
which industry and progress demand for
investment every year. And capital Is in
evitably drawn to that quarter which
promises the greatest profit to the in
vestor. always provided the security of
the investment Is assured.
The great river of capital has its
sources in every civilized country of the
world. The mechanic. the artisan, the
schooI-teacher. the shopkeeper-every
hand that is turned to production and
which spends a little less than Is earned.
pours its offering into the rivulet. and
from the countless thousands OF these
small streams the river Is formed. The
people OF Cedar Rapids, Iowa, for in
stance. ride to their daily tasks on the
street cars made possible by the contribu-
ton of capital from a teacher In Zurics.
Switzerland: a frugal mechanic Of Bir-
mingham, England: a forehanded engine
driver of Glasgow, Scotland: a peasant Of
France, whose centimes have been hoard
ed one at a time: a shopkeeper Of Lon
don. and the thousands like them in every
country OF Europe and in every State Of
these United States.
"A study of the records of ownership
Of the securities of the corporations OF
the world would be beneficial to that
theory of economics, rather than the ap-
plication of a workable principle. In the
last analysis the money trust of which
we have heard so much. Is formed of
that portion of the people who earn a
little, but who gave a little also They
own the industries and the utilities OF
the world. They are the source of the
power. and il the power is to be de-
stroyed a soodly portion OF the best Of
tns "Orlu people Will stHer, LOT tney
are the money trust
Fortunately those whose intent is ex-
pressed in the effort to tear down and
destroy are in the minority; they carry
with them a very great many who do not
stop to think and reason, or who think
and reason superfically. IL at all. But
when they do stop to study and learn.
they will inevitably desert the propa-
ganda of destruction: the majority OF
the people mean to be fair
Mr.. Hulswit furnished some detailed re-
suits of a study of a specific issue of
bonds, to which he had access for full
information. "Of the total issue of these
bonds" he said, ''25 per cent are owned
by men and women whose income is less
than 5000 or 1900 per annum. A very
large proportion OF them are single men
or women (the ownership Is ABOUT equal
ly divided between men and women).
Twenty per cent OF those whose income
is less than the taxable amount under the
income tax law are residents OF the
United States. Their average holdings are
s2,354. Out Of a total OF 3S who are
exempt there are but seven whose hold
ings are more than $4,000 and 217 own one
bond each Of the face value OF s,00o
Residents Of foreign countries-Engiand,
Scotland, Ireland, France. Holland.
Switzerland. Italy. Spain. and Cuba hold
quarter of a million Of these securities
There, too. the small savings Is heavily
represented. nearly 50 per cent owning
one bond of 1900.
Banks and trust companies hold better
than Is per cent of the total issue for
investment account, and various partner
ships hold about 10 per cent, also for in
vestment, and because II represents re.
serve capital which can be easily and
quickly realized upon in case Of need. In
dividuals subject to the income tax
by reason of a large income hold about
40 per cent Of the issue. but the average
holding is only ABOUT $4,000.
What is true OF this corporation is
true of every corporation in business in
the United States. The owners of the
corporations are the people who save.
and the men who manage the cor
porations are no less the servants OF the
people than are the men who enter Do
litical life with that high-sounding
phrase on their lips