The intelligencer. [volume] (Lexington, Mo.) 1887-1891, 1888-03-17
-gcEhlg latelllaRnfrr:
%gIIlOIAL aI1Y AND OguarY pAptR.
TaG TRUST" INVESTIGATION


"tn, q restrictive tariff secures II
.ai'uih market to certain great pro-
queer, 4 hey are shrewd they will
'1""u1HE TO control the market and
'-@U!atg prices. This is monopoly ia
ITS most odlOus form, and il is the nat.
'lI aul legitimate result oi a high
protective tariff. The argument for
'l-h "A tariff, Indeed, has been that it
lovers prices by stimulating domestic
competition. The answer to the arg,l-
t"1nt ~ The trusts which are now rap
i'iy organizing ALI over the country,
""u whose nature aud purpose are
disclosed by the investigation which
~ "a lately held in New York. 1t is Il
plausible argument that if foreign com
lehtloh III the sale OF certain products
- excluded from IA country, the enter
PRISE OF the protected producers will
lead TO u brisk rivalry, and to the main
tenance OF IL price for the domestic
product below hat of the foreign pro-
uuct with the duty added. So far as il
goes, the argument is plausible. But
II is not available even then unless it
eau be shown that the uniform result
IL IL supply those who are not protect
81 with the domestic product ut u price
~ low ms The foreign product without
the DUTY. This is because the higher
price is u tax upon the unprotected
buyer Tor the benefit OF the producer,
aud Il tax for which the buyer receives
40 consideration.
The argument, however, which is
only plausible and not sound in the
case supposed, disappears at once when
in consequence of the protection prices
are regulated by Il monopoly. The
tendency of invention of every kind,
snd OF the whole industrial and mater
lal movement of the age, Is TO associa-
ION ana organization upon the largest
scale. The great dealers outbid the
little ones, the vast companies and cor
poratlouS absorb individual enterprises.
Lot tue production and the consump-
tlOn OF sugar, tor instance, in this
country he accurately known, let the
comparatively few great sugar houses
be computed, aud the tariff be deter
inlu9G, and some bold and cOmprehen-
Hivc mind will perceive the practicable
ny OF a vast combination which, with
due regard to ali the facts, will rom
lse an average advantage beyond that
ui separate and competitive activity.
Ihis scheme, which seem startling.
and would have been impractiGable at
other times and under different condi-
tious, becomes practicable under ex.
lsliug conditions in Il country from
which the competition of the world is
excluded. The very domestic rivalry
which is stimulated by exclusion of the
foreign product under the marvellous
development of invention results in
immense over.production. The situa-
INnEt l. urNHi.s.1 Tln lN-,.,N.. a.-a.l
- not adequate for the supply. The
foreign demand is practically shut of,
and II human ingenuity can secure to a
monopoly of production II similar
monopoly Of price, the problem il
solved.
\ pOwcr then arises which is new to
tho law, which destroys competition
and controls prices both of labor and
Of the product Of labor. The object of
TIC late Investigation was TO discover
tho precise character of this power.
Great corporations, partnerships, aud
companies are creatures of the law,
aud are regulated by the law. But
combinations may be formed under
smooth names and aspects which are
practically cUmspiracies, and hostile 10
public policy. They are in this sense
puCIir enemies. Private persons and
Individual partnerships and associations
arc helpless 10 contend with them.
TuGre is no public duty more impera-
tive Than 10 ascertain their character,
their methods, their effects, aud TO de-
wise Il remedy for the injuries to the
public welfare inflicted by them. The
relation between such monopolies and
the high protective policy, which was
substantially n var measure, will be
treated in every detail in the political
campaign OF this year, and the ,argu-
inuut drawn rom the huge trusts,
which are aimed at the destruction Of
individual enterprise, which is the
source and the reliance OF American
character and greatness, will not be
the least powerful. A system which
fosters the growth of such m%onopolies
need only TO be fully exposed to be cor,
rected by the American people.