786 Gubernatorial Messages 



probably not a little farther. Such laws will them- 

 selves provide the needed publicity, and the needed 

 circumstantiality of statement. We should know 

 authoritatively whether stock represents actual value 

 of plants, or whether it represents brands or good 

 will; or if not, what it does represent, if anything. 

 It is desirable to know how much was actually 

 bought, how much was issued free; and to whom; 

 and, if possible, for what reason. In the first place, 

 this would be invaluable in preventing harm being 

 done as among the stockholders, for many of the 

 grossest wrongs that are perpetrated are those of 

 promoters and organizers at the expense of the 

 general public who are invited to take shares in busi- 

 ness organizations. In the next place, this would 

 enable us to see just what the public have a right to 

 expect in the way of service and taxation. There 

 is no reason whatever for refusing to tax a corpora- 

 tion because by its own acts it has created a burden 

 of charges under which it staggers. The extrava- 

 gant man who builds a needlessly large house never- 

 theless pays taxes on the house ; and the corporation 

 which has to pay great sums of interest owing to 

 juggling transactions in the issue of "stocks and 

 bonds has just as little right to consideration. But 

 very great hardship may result to innocent pur- 

 chasers ; and publicity by lessening the possibility of 

 this would also serve the purpose of the State. 



Where a trust becomes a monopoly the State has 

 an immediate right to interfere. Care should be 

 taken not to stifle enterprise or disclose any facts 



