Show qi q- q 1 f i i t ti INNOCENT Y SUFFER 7 g S FOR WATERING SIN Change in Present System Will One Side Harm Either Eithel or 01 orthe t the he Other Z DELICACY OF SITUATION I Effect of Radical Action Affecting I Stocks Will Vill Be Generally Felt BY DY THO THOMAS AS C SHOT SHOTWELL WELL rUn In Special to The Republican Herald 1 from International News Service r Now New York Oct Ocl 22 Belief 2 Belief is Js gaining ground Around In the financial community that the Die politicians are arc In earnest regarding tariff reform and enforcement of ot the thc laws Jaw compelling competition in busi busi- usi- usi ness Those who refuse to believe e this remarkable uhle proposition e s something something some some- IC- IC thing that is Js Just as dan dangerous erOus to Iny in investments In- In y vestments and that is that the e people will force the politicians to carry out a ar r radical program under penalty of or re- re from political life liCe If Jt the they fall fait need not Concern con con- to do so Tho Investor nce CNn cern himself 1 with the justi justice eC or 01 Injustice tice of such proceedings s. What ho needs to know is tho the effect such things will of his have hate on the market price ties The persistency with which important im un- Im- Im interests are selling more and moro more stock on every recovery of oC the market shows what view the they take oCr of oC the situation r Restoration of ot competition rna may i ito provo prove whole body Od to be the best beat thing thInS for the of oC the people in ill the end encl It Its Itz first effect ef effect ef- ef feet cannot help hut but ut be destructive to I If the big lj recovery of ot price corpora corporations compelled to reduce their are of prices th they will es earn rn less Jess scales u an on d ni i will hat have o tO be money Go n reduced r A general movement of this kind will reduce prices of all com com- t modules and when business Is readJusted readJusted read- read on th the lower level It will be dis- dis covered that the smaller dividends will buy uy as much of th the necessities of life ys as can be bou bought ht for the d dividends now paid Thus values will not bo be Injured although prices will an and since s security holders estimate their profits and losses on oft the ba basis ls of prices it Is inevitable that they must suffer considerable loss May Mar Make Persons who believe the stock stoel prices will HI be advanced along with the re recover recovery recovery re- re cover covery of business that smaller profits may make possible are liable to t make makela la a serious mistake The people In gen gen- cn- cn Jeral have worked themselves c es up to a 1 pitch of enthusiasm over reform that L will make them unwilling to let Jet e corporations cor r- r watered earn dividends on stocks There is Js an element of Injustice tice in this because most of or the holders r of those these watered stocks bU bought ht them Innocently for full value But how- how c er Innocent their holders ma nay may be It must be admitted that the capital those stocks pretend preten l to represent nt did not go o othe Into the enterprises cs It is also a an in- in ji therefore to make the public ed capital ra ray Fay dividends on this alleged Thus It will be impossible to correct the situation without doln doing lr justice injustice to either cither the the- public or to the stockholders It is a foundation principle of ot equity tl that at in cases where an injustice must be done to one of two Innocent parties that party pa must suffer who In theory uld C have saved saYed himself b by diligent ent inquiry even though actually he had no means of ot protection Under this rule of equity the sins of the stock must bo ho visited upon the Innocent In- In w Vf and trot not on the public Taft Recognize Point President Taft recognized this situation situa tion Un when whon In his message e to Congress hb r-ob pleaded for a a. federal incorporation incorporation- J law w. w saying that unless ono one was passed it Mould Quid be bo his duty to enforce the Sherman trust anti-trust law and ruin thousands thousands thousands thou thou- sands of ot business men and aud investors The President is in a delicate situation His Ills oath of office compels him to do doa a tJ thing ln that he lie himself says san will be a disaster He can however er take no other stand titan than the one he has taken without la laying himself liable to im- im V for malfeasance In office President Roosevelt had his moment momento o or of supreme test when the Steel trust Inan in inan inan an honest hOliest desire to stop a disastrous panic parle got ot his permission to purchase the Tennessee Tennesse Coal Iron company If J Roosevelt o had forbidden that purchase the tte panic would have ended In the como com- com o 1 te prostration of f all aU business with scores ores of banks and business enterprises enterprises enter enter- in the hands of receivers The panic would have stopped Itself BusinE Business Business Busi Busi- I nE ness S have recovered reco slowly and most roest of ot the evils now plaguing the financial w world would have been cured automatically Roosevelt through h his timed ill pity for business Interests postponed the tho time of ot trouble Taft Tall is the kind of ot man who realizes the logical o meaning of ot what the law Jaw com- com him to do do but Intends to do his duty even though he feels It rna may mean mead meanUs Us 1 is own political death A generation atom now Taft will loom up as the big fr figure in this age a e of readjustment Sines th the stool stol I market is under the influence of these broad questions df de national r policy It ft I U h. useless lo to point out particulars One can find man many fright snots scots In ln the thc situation just as one one oner r fInd ri many uninjured soldiers In the midst of n bloody battle The fact that the bri bright ht spots spot are there Is no noti ti proof f that the conditions justify ju op At the moment the market is under Influence nce of oC technical conditions that a pr prevent prent ent temporarily a resumption of oC the tho d swing swim This is fortunato fori for for- 2 for or or those Investors lo who were able VI i to tn 1 realize r the facts and protect themselves from further loss Joss |