WHO OWNS THE RAILROADS? 



BY SOLOMON HUEBNER. 



[Solomon Huebner, economist; born Manitowoc, Wis., March 6, 1882; educated at 

 the Universities of Wisconsin and Pennsylvania; instructor in commerce and insur- 

 ance at the University of Pennsylvania; member of the editorial committee of the 

 American Academy of Political and Social Science; appointed a collaborator for 

 the Carnegie institution to prepare a history of America's foreign trade; author of 

 various monographs on economic topics.] 



In a study of the distribution of stockholdings in Ameri- 

 can railways we touch upon a question which, as associated 

 with the fundamental institution of private property, has a 

 most important bearing upon our social, economic, and politi- 

 cal life. The ownership of property tends, above all, to create 

 a sentiment favoring conservatism. The greater the number 

 of individuals participating in the ownership of property, 

 the greater will be the number interested in promoting the 

 safety and conservatism of property, and the advancement 

 of industry. The effect of the diffused ownership of stock- 

 holdings, for example, upon our economic life may be readily 

 observed. Being owners in a great enterprise, the large num- 

 ber of smaller holders are thus prompted by self interest to 

 view economic questions from the standpoint of an employer. 

 In the industrial struggles between labor and capital, « widely 

 diffused ownership of stock may be of the greatest importance 

 in molding public sentiment with reference to the demands 

 of the contending parties. The holding of a single or a few 

 shares in a large corporation may not only cause the holder 

 to feel a greater interest in the welfare of his particular con- 

 cern, but may cause him, in a general way, to observe and feel 

 as a member of the employing class. Moreover, a large cor- 

 poration by widely distributing the ownership of its stocks and 

 bonds, especially if it be among an influential class, will thereby 

 safeguard its interests and privileges through an increased po- 

 litical constituency. Railways, for example, whose stocks and 

 bonds are held by thousands of holders may be expected to 



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