South Bend news-times. (South Bend, Ind.) 1913-1938, 1919-01-31
Mr.. Erskine's Address

OGl uiIeClOTS. Officers ana employees,
TO express our appreciation of this
splendid gathering of men from
I every activity and every walk of life
\ in the city of South Bend. 1t is a
democratic gathering kind
\ like best-and the kind which, unit
ed in purpose. always accomplishes
best results We meet in the spirit
4 Of friendship. with bonds OF COM
munity interest and devotion TO an
unselfish purpose. namely. a COM
munity service.
Real service must be unselfish,
| impersonal and beneficial TO all con-
! cerned. and / assure you that our
motives are Of this character I
come 10 you as the official repre-
sentative and trustee of the Stude-
I baker business, which has operated
continuously in your city for two
| generations. during good times and
/ bad, during prosperity and adver
sity, but always with an honest pur-
pose and an intense desire to possess
your friendship, confidence and re-
| spect. This desire, if possible, is
stronger today than ever before.
THE impression which sometimes
prevails among the unthinking that
corporations have no souls is unqual-
ifiedly wrong. corporate entity is
but an organization Of individuals
bound together in legal form to do
business conveniently. and the cor
porate form of organization is the on
ly form which permits thousands of
persons 10 participate as partners in
large business affairs. The world
leadership which American industry
has attained in the past two dec
AIDES is due to and would have been
| impossible without the corporate
form of organization. because no in
dividual, no family or no small
/ group Of persons, however rich or
I able they might have been, could
have furnished the billions Of capital
+ that has been and is today invested
in American industries.
People Are Owners.
These industries belong to the
people, and not TO capitalists. bank
ers, wealthy families, or the captains
OF industry who operate them, as
/ is sometimes enormously imagined.
I
\ their savings into the stocks Of our
corporations TO the extent of billions
OF dollars, and il is their money and
their property which comprise the
I corporations of America. These cor
porations are therefore orphans. in
/ the sense that they belong TO no.
body. but instead belong to every
/ body.
For example. 1O6,911 stockhold-
ers own the Pennsylvania railroad,
! 72,779 persons own the United States
Steel corporation and millions more
own the other corporations of the
country.
What is true Of American cor
poratiOns in general is true Of the
! Studebaker corporation in particu
| lar, which is owned by 4,O51
different individuals. including its
employees and people living
! in South Bend and elsewhere
throughout theh world. who
have invested their savings in our
stock because they believe in its
safety. the honesty of its products.
and the integrity of its management.
"Out of 2.S36 common stockhold-
ers. 1,S43, or 60 per cent, own so
shares or less. while PSI. or per
cent. own from 81 TO 100 shares.
Thus. 1904, OF "a per cent, of our
/ stockholders own 100 shares or less.
and only 742 individuals. or % per
cent, own more than 100 shares. In
\ the case Of our preferred stock, out
/ OF 1.215 shareholders, S34, of 20 per
cent. own so shares or less. while
las. or u per cent, own from 81 to
/ 100 shares. Thus. 1882. or s. per
I cent. own 100 shares of less. while
/ only 1S3 persons, or Is per cent.
own more than loo shares.
Wants Employees Stockholders
"I call your attention TO the fact
that the Studebaker corporation be-
longs 10 several thousand individ-
\ uals. because II is commonly sup
posed that ownership and control of
the stock is vested in certain inter
ests. The facts are that the largest
I holdings Of stock owned by any in
/ dividual or interest is less than
per cent. OF the outstanding capital
stock. which today amounts 10 800
! WWV.NWU u NOlillAlOi STU oAAA 49,
| 775,OO0 OF preferred stock.
/ Several hundred of our employees
own stock in the corporation, and
| the dix Actors look forward with ap-
proval 10 continued increase in the
number OF employe stockholders.
even TO the point. If possible. where
/ collectively they will own control of
/ IT, While all Of our officers own
stock. none of them are large stock
/ holders. and each one OF them holds
I his position by reason OF his ability
10 serve the general interests OF all
the stockholders, and for no other
| reason.
1T is my privilege tonight TO tell
YOU the details OF the corporations
plans for the erection OF a new auto
mobile plant IN South Bend that will
when completed have required an
/ investment OF over $4,000. 600, and
involve the employment Of from
IL, COO TO 5000 additional employees.
About 20 per cent. OF the new
buildings have already been erected.
/ so per cent. more will be erected
/ this spring and summer and the
remaining 80 per cent rapidly there
after
/ ssRv Ian 1920 we exDect