The sun., 1919-08-10

sively of wood is the reason why so
few workmen comparatively can af-
ford to own their homes. Wood means
large repair costs, large depreciation,
large insurance, small amounts OBJ
tainable on mortgage, considerable
taxes. But with all concrete there are
no repairs, no insurance. b high
amount obtainable on mortgage, no
final depreciation. This Is proved b.
the fact that m italy there are In.
Vulnerable concrete villas still in good
condition which were built in the time
OF Julius Cesar.
"And now to go back to the trolley
question, let us consider who is the
chief loser II the trolley company,
which makes homes outside the city
possible, fails TO make money? LIS II
the public or the magnate7
at lie the public. Magnates do not
continue in enterprises after they have
been perfected, for then the securities
have been sold to the public. They
take their profits and go into other
things that promise large pioneer re-
turn.
THE men who build up the great in
dustries Of the United States are not
satisfied with the and per cent.
profits that the ordinary investor, who
invests only and does not share the
work and risk OF building, gets. The
original promoters distribute the stock
and bonds.
These land in the vaults Of savings
banks. where the people who ride on
the trolley cars deposit their money, or
in the safes of the insurance COM
panies, which the men who ride in the
trolley pay for protection Of life and
property. and in the hands OF the
small investors. who try to get for
their savings an income a little larger
than that paid by the savings banks.
In fact, the people who ride upon the
trol,eys directly or indirectly own their
securities.
OLD Evils Disappear.
"In some cases the magnates con-
tinue to manage the companies, and
in most instances manage them well,
but from these managerial positions
the people who own the securities
easily could turn them out. There was
| a good deal OF bad financing in the
past, but of late years, with various
safeguards, and now with commissions
| of several kinds to protect stockhold-
ers there is little IL any mismanage-
ment OF the old sort.
Zone thing always puzzles me about
| the public. Why doesn't 1t protect IT.
self? 1t locks its doors at night to
keep thieves out. At the inception OF
the trolley development the public
could have insisted upon rules which
would have prevented all abuses. They
had votes. Why do they sleep on their
rights? What Is the use Of repub-
Lean form of government In which
votes count II the people do not use
them to make every one play fair7
Whose fault is 1t that some pro-
moters made more money than their
proportion? Do the public think the
politicians are going to take care of
them? II they think this forever they
| will be fooled forever.
1.-THE recourse of a public seeking
protection can be found in associa-
lions, referendums, public meetings
Individual 'kickers, the newspapers
and the courts. Public opinion manu-
| featured In this manner must be the
basic foundation Of a true democracy:
the politicians and political bodies
supply only the formula thereof.
But I want to say. none the less
that the public needs the magnate
He and the coterie of engineers around
him are very valuable assets to the
United States. He builds our rail-
ways. our ships and factories, he digs
our mines. he starts new industries
we owe him everything. He ventures
everywhere and takes enormous risks
He Is the pioneer.
HE wants and often gets big profits
He perfects the industry until 1t only
pays a normal profit and then sells
out to the investor-to people Of small
means, or their trustees, himself re.
firing from 1t. He would be unhappy
in the humdrum of normal operation
He is a creature OF ceaseless activity