"TRUSTS" IN LIGHT OF CENSUS RETURNS 167 



stances a fair dividend undoubtedly will be paid. The census 

 office did not make any estimate of the value of certain prop- 

 erty incidental and necessary to the carrying on of the various 

 industries noted above; for example, there was no way to 

 ascertain the value of mines, steamboats, and railroads owned 

 by some of the larger corporations. Such necessary adjuncts 

 of business should be set off at full value against the common 

 stock. The real value of the various plants seems to be about 

 41 per cent of the amount of stocks and bonds issued. 



While it is within the power of the promoters of consolida- 

 tion to set their own valuation upon the face of securities, the 

 market value is ultimately determined by the public. It is 

 especially interesting, therefore, to observe the attitude of 

 the public toward the huge volume of securities which has 

 been placed upon the market with all the advantages of ex- 

 ceedingly skillful manipulation. Exclusive of the Standard 

 Oil company and the Pullman Car company, which should 

 be regarded as exceptional, the par value of the preferred 

 and common stocks of 50 "industrials" listed among active 

 or inactive securities on the New York Stock exchange is 

 $2,463,553,708. The market value of these stocks, computed 

 at the prices current December 7, 1901, was $1,506,743,990. 

 It appears, therefore, that the public has promptly discounted 

 the- face value of the promises of these leading industrials by 

 the enormous figure of $956,809,718, and that it purchases 

 this class of securities (par $100) at the average price of 61.8. 

 This significant fact indicates that, with the lapse of time and 

 increase of knowledge due to increasing publicity, that part 

 of the problem of industrial combinations which relates to 

 overcapitalization is likely to become less important by reason 

 of the caution of investors. This will have an important bear- 

 ing on the consolidation of industrial interests in the future. 

 Already so much publicity has been given to the subject of 

 industrial combinations that investors who plunge into this 

 class of securities without due investigation and caution are 

 entitled to little sympathy. 



The total industrial combinations employed 23,000 man- 

 agers, superintendents, clerks, etc., and 399,000 wage earners, 

 including piece workers. They paid out during the census 



