The Press Friday, February 26, 1926. Companies and Capitalists.

Press, Volume LXII, Issue 18626, 26 February 1926, Page 14

The Press Friday, February 26, 1926. Companies and Capitalists.

[ During recent years the periodica! discussions concerning the method of taxing companies have taught many people who had thought otherwise that a big company is iiofc necessarily a big " capitalistic" concern in the sense in which capitalistic is generally used by Socialists. When Socialists talk of the " capitalist" system they convey to their army of followers, as they intend to, that the " masses " are " ground " down " by a small group of wealthy robbers. It would not greatly injure the " masses "if " Capital" did consist of a few billionaires, because these billionaires would not be able to consume so very much more wealth than ordinary people in fairly good circumstances. They would use their billions for the promotion of trade and industry: they could hardly use them for anything else. But, as a matter of fact, most companies are financed by the savings of crowds fj of small investors. In a recent "Economist" sqme statistics on this point are quoted from a publication issued by the Liverpool and District Economic League. The following list shows the paid-up capital and the number of shareholders in each of several very large com-, panies:—

Paid-up Number Capital, of etc. Holders. Cotnpanv. £ Midland Bank .. .. 31,976,830 57 250 Lloyda Bank .. .. 14,372,956 30,663 National Provincial Bank 9,479,416 41,603 Westminstat Bank .. 0,051,718 69,832 Barclays Bank .. .. 15,692,372 51,011 Bank of Liverpool and Martins, Limited .. ■ 2,348,000 11,300 British Dominion Insurance Company, Ltd. 1,092,896 3,500 Prudential Insurance Co., Limited .. .. 1,200,000 5,353 Royal Insurance Co., Ltd. 2,339,772 11,100 Phojnix Assurance. .Co., ' Limited .. . • 1,005,000 8,179 Cunard ' B.S. ' Company, Limited .. •.. 10,956,189 27,100 Peninsular and Oriental

Staam Navigation Co. 6,832,518 9,99 V Mersey Docks snd Harbour Board '" .. 33,614,000 42,240 Courtaulds, Limited .. 20,000,000 -43,826 Thomas Tilling, Limited 608,848 2,600 Vickers, Limited ' .. 33,929,290 73,382

John Barker and Co. .. 2,380,000 12,253 Harrods, Limited •■ 5,915,000 33,253 Selfridgo and Co., Ltd. 3,114,560 18,000 J. Lyons and Co., Ltd. ~ 6,845,833 25,834 Liverpool Gas Company . 8,163,090 6 > 25i London, Midland, and Scottish Railway .. 406,428,175 308,023 London and North-East-

ern Railway .. 364,871,121 252,951 Southern Railway .. 148,000,000 90,000 Great Western Railway .. 146,694,466 135,103

The average holding in each of the last four companies is between £IOOO and £2OOO, but in all but four of the remainder the average is less than £4OO, and in 13 cases it is less than £3OO. The figures, as tho " Economist" note,-illustrate very clearly and usefully the extent to which the finance of British business is built upon the savings of the "small man," When the Socialists arc attacking " Capitalists," they are really attacking, not only people who are often people of moderate means, but the habit of saving and investment.