The Washington times., 1930-07-07
Copyright. 1880. by Universal
Service, Incl
BY MERRYLE S. RUKEYSER

NEW 1OENGA, OhAJ - SAAS
significant events Of finance
are frequently undramatic.
The changes that alter the
way that plain men and wo-
men live come quietly and un-
4obtrusively. For example, since
the war there has been q radi-
cal change in the character OF
ownership in the United States.
Title to corporate property has
tended to pass out Of the hands
of an oligarchy of the super
wealthy and to be diffused
widely among the multitudes::
Referring to this quiet gradual
process, T. N. Carver, sagaciouS
economist of Harvard Univer'
sity, described the trend as the
present economic revolution In
the United States"
Employees Get Stock
The broader significance Of
the offering today Of 2,O00.-
900 shares at $25 a share (ot
which 400, 900 have been reserved
for officers and employes) OF
Hearst Consolidated Publica-
tions, a new holding company
embracing 10 of the most sue
cessfu newspapers in the
Hearst chain. the lucrative
American Weekly, and the
American Newsprint Company,
Is that it is a step toward the
naturalization of the great
newspaper properties hitherto
owned solely by William Ran
dolph Hearst.
Recognizing the sociological
advantages of partnership with
patrons and employees, Mr..
Hearst has set up a new cor
porate device to make the new
community Of interest feasible.
Far more important nation
ally than the sale of $50, ,00O, 900
of securities with the co-opera-
ton of a strong banking group
is the Endorsement placed by
Mr.. Hearst on the newer ten.
denotes of finance.
Touch Lives Of People
Emulating the great public
utilities which have successfully
engaged in customer ownership,
Mr.. Hearst has applied the
principle to great coalition of
industrial enterprises. If news
papers may be considered in
duStrialS.
Though technically indus
trials, newspapers are of neceS-
sity impregnated with a public
interest, and touch the lives Of
the people far more intimately
than So-called public utilities
and, in my opinion, more sig.
nificantly and intimately than
many of the institutions Of
government itself.
Moreover, though the public
accept monopolistic public serv.
ice institutions because there is
no choice, the public in its
newspaper preferences exercises
freedom of the will. Newspaper
calculations are founded on the
habits and voluntary preferences
Of the public.
In most cities, the public can
choose between at least two
newspapers, and in the larger
cities it has a wider choice.
Accordingly, huge calculations
through the year are proof posi-
tive of consumer acceptance.
the intangible which profit
makers in all Industries Sedu-
lously seek.
An Essential Business
In times of recession, there is
an increased tendency on the
part of investors to seek out
securities Of corporations en-
gagged in essential businesses.
Newspaper making is one Of
these. There is no disposition
at any stage of the cycle to dis
continue or postpc - newspaper
reading.
In an era of high prices,
newspapers bizarrely have per-
SiStently sold f~ below the
cost of production, being sup
ported to a large measure by
revenues from advertisers.
Emphasizing the distinctly
customer ownership phases of
the financing. Mr.. Hearst has
arranged to make available the
new Z per cent cumulative par
ticipating preferred stock (par-
ticipatlng up to 10 per cent?.
at the cashiers office of any
Hearst corporation, as well as
at any Of the offices of the
National City Company. the
Bank of Italy. Crocker First
National Bank Of San Francisco,
Anglo and London-Paris Ma
tional Bank Of San Francisco,
Continental Illinois Bank and
Trust Company Of Chicago, and
Bank Of America of California.
In addition to stresSing the Gus
toner ownership side, Mr..
Hearst has invited his business
executives, editors. special
writer's, reporters. copy readers
and the whole miscellany of
10000 persons directly depen-
dent on the Hearst activities
for a livelihood. to subscribe on
the easy payment plan over "a
months.
Impressive Earnings
The proposed issue is render
ed attractive by the splendid
record Of earnings over q peri.
cd of years of these properties.
which represent the cream Of
the most, important chain Of