The Carbon advocate. [volume] (Lehighton, Pa.) 1872-1924, 1881-05-14

Corporate monopoly at one time was a
subject of much interest in, business walks
but monopoly from the consolidation Of
several companies into one is becoming a
power Of much greater force and conse-
quenee. In the language of the New York
Commercial Bulletin, the great ground swell
movements of society advance slowly and
almost imperceptibly; but they come with
vast sweep that no power can resist; and
it is, therefore, wise to keep close watch
upon. them. Time was when the working
capital of society was infinitely subdivided
into small units. Each one of those units
was represented by an individual or firm;
and, on the one hand stimulated by self in
terest and on the other regulated by compe-
tition, their services to society were bene-
fcent and their rewards were exactly ad-
justed to the value of their services to So
ciety. That was the era of wholesome ind.
vidual competition. With the introduction
Of steam and machinery, new set of forces
came into play. Individual capital was
insufficient to provide the costly plant that
the new methods of production and trans
portation called for. A number Of individ
uals had to combine their means to provide
the capitapfor welding these new powers ::
and hence came the era of fjoint-stock enter
prise. Competition now assumed new
phase. 1t was between the corporation
and the individual and this phase has end
ed in the comparative extinction of indi.
vidual enterprise in all the more important
branchesof industry and commerce. Follow
ing this came an era of competition as be-
tween the corporations themselves. Huge
capital was arrayed against huge capital,
and the battle of the great corporations was
found fearfully destructive. There was,
perhaps, nothing in the nature of corporate
enterprise that absolutely necessitated this
sort Of conflict; but it was found so easy to
procure capital for imposing undertakings
aud the profits to their promoters were so
large that the supply of associate enterprise
ran far beyond what the community could
support, and hence resulted an invitable
conflict for business among them, which
only the strongest or the fl ttest could survive.
All attempts to control this destructive COM
petition failed; 1t might have been sup
posed that the heavy losses of the stock
holders would check the contribution of
capital to corporate undertakings. The crash
of 1873 showed how egregiously the corpOr-
ate employment of capital has been over
done. Some 1900 millions of railroad capital
suddenly shrank to about one forth of its
nominal valuation. The great coal com
panies were driven into suspension, or to
the verge of it. A host of iron manufaetur-
ing associations became bankrupt. Many
Of our textile manufacturing companies were
found to be insolvent and, generally, the
country was strewn with the wrecks of stock
companies. These fearful losses Of corporate
capital, however, put only momentary
cheek upon the investment Of capital in
these enterprises. So soon as tho nation
had recovered fpom the shock, and, through
painful economy, had accumulated new
surplus, the savings were eagerly placed at
the disposal Of promoters and we are to-day
again in the midst of another and unpre-
cedented corporate imitation.