Show CONTROL OF corporations judge peter S grosscup of the L noted stales circuit court of appeals w ho first came prominently into public uw by tho issuance of his injunction against the debs strikers in chicago and hla messana to president cleveland calling for troops has contributed a remarkably remark ablo article to the american magazine in which he advocates a plan which bo titles to i tie corporations he asserts that the people ot the country own its wealth ibay have no control of the cor oraie properties and then he pro aenis five propositions for opening the domain of corporate property to the immon cimmon c people first the beginning of ahe way out is national nar ional incorporation the only a la which the work ot on can go on is under the eye of one master instead of forty five masters resident roosevelt in a speech on hiis tiis southern trip devoted a good deal oi a t to federal incorporation second the new corporation must le constructed on lines of simplicity there never has been need from any mid m id financial or economic point of n foi the construe tons thai seem the order of the day fco overlying each other and of en so involved that one not an expert buying a security can locate ts buim two classes of securities ought case to be sufficient he that represents actual cash ota equivalent in prop rt security that may be is bided from time to almo as the value of the property actually increases and 10 cover such increased the corporation torp oration that cannot be financially launched 1 upon jibes thus plainly put before me eye ought not to be launched a all for here as elsewhere mys I 1 y mans not something essential to ic icis but something open to uses ot r i haa tho corporations success in the issue ot securities auch ab I 1 lave pointed out would not in elfere with any legitimate financial aped of ohp corporation the corpora i ian could still borrow money at stated es of interest issuing bonds secured ir mor ago upon the properties put bonds would be a part of the so that represented actual cash p id in or its equivalent in property and aci all time and through all v ange and consolidation such bonds OP her with the stock securities represented by cash or proper equivalent would be the fundamental securities on which interest or dividends must be paid before the sec and class of securities could share in earnings these secondary u s ahe increment of auie the increase in earning power ne good trill of the property as dis anguished ngui shed from the cash investment constituting the fundamental security durrf provision should bo mado to UP labor in ownership the se nr ie issued 00 account of increased balue should be issued only as the increase is shown not by prediction or expectation but by such experience as the tact and provision should oo 00 made that such securities may be divided equitably between the capital infested and the labor put in and ex be adopted to encourage corporations po rations that basis fourth the corporation being trus for its owners the government guiti be given opportunity to exercise a constant watch that the trust is exe anted under something KO the watch the government holds over tha national banks seeing to it ahat financial conditions are always correctly reported that no capability ot ibo corporation ig diverted to private gain and that transgressions meet with swift punishment personal schemes would be reduced to a minimum and what Is more corporate activity would be lifted to a higher piano of personal and moral cespon under euch supervision too corporations deriving heir existence from abo united states could be made to obey those laws elhat look to the of equal opportunity 10 all because they could be punished by the government for any form of dis or favoritism not simply by a fine but by possession taken by he government as the government now takes possession of recusant na lonal banks and euch possession con inked until the corporation was the law fifth provision should be made tor a government exchange or a private exchange under government supervision through which the securities of national corporations could be bought and eold in this way would be drawn a distinctly visible line between the securities of national corporations and securities ia corporations that to nationalize a line that would soon be understood as tho boundary between corporations that were willing to be faithful trustees of the owners faithful at the same time to their duties to the people and corporations that had inner and ulterior designs my own opinion ia that this distinct differentiation of tho national the hybrid corporation would in time lead every corporation engaged in interstate ter state commerce voluntarily to incorporate under tho national law A lust plan of organization and super dision being offered the people would not long permit the bank and insurance accumulations to be absorbed in corporations that refused the plan |