The Confessions of a Monopolist - Softcover

This historic book may have numerous typos, missing text, images, or index. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. 1906. Not illustrated. Excerpt: ... CHAPTER VI I Enter the Coal Business, Become a Railway Magnate, and Discover the Secret of Monopoly 1 PRESUME few people understand why it is that certain business ventures achieve immediate success, while others plodding along the ordinary paths of industry end in failure. Some explanation of all this I had learned in my street railway and electric lighting enterprises. I had gotten an insight into it even as a boy, but the full beauty of the modern short cuts to success was revealed to me by the coal buiness. Up to 1895 my interests were confined to municipal enterprises and the banking business. About this time the United Trust Company, of which I was President, undertook the underwriting of an issue of bonds of the North & River Railroad. Through this I learned the explanation of the growth of monopoly in recent years. It is done in this way. The savings of the people, running into the millions, are deposited in the banks, savings institutions and trust companies. The latter enjoy immense powers under their charters. They can do almost anything. Thus entrusted with the people's money, they are able to use their savings as they wish. The bank is controlled by its directors. They desire to build a railroad, street railway, or consolidate some industries or coal mines. They organize a syndicate among themselves. They secure options on the property. They then arrange to secure a loan on mortgage. On this they issue bonds. These the bank or trust company, which the syndicate really controls, agrees to underwrite, or take off the syndicate's hands at par, or something below par. On these bonds money is advanced to buy the properties. Then the trust company sells the bonds to its depositors or customers at an advance, while the capital stock of the railroa...