The Bennington banner. [volume] (Bennington, Vt.) 1858-1894, 1888-08-30
WHY TRUSTS ARE FORMED.
THEY HAVE MUCH TO DO WITH
WAGES BUT NOT WITH TARIFF.


An Explanation of the Causes That
often Lead TO Business COmbInR-
IIons--An Address by MIR, Harris
horn.
E. A. Hartshorn delivered vigorous
address before the German Harrison and
Morton Club at the Troy Republican
Club rooms last week, on the subject oil
trusts, consultations and combinations
Mr.. Hartshorn spoke at considerable
length. He read from the Presidents
message as follows;
at is notorious that competition is toe
often strangled by combinations quite
prevalent at this time and frequently
called trusts" which have for their OBJ
ject the regulation of the supply and
price of commodities made and sold by
members of the combination. The peo-
pie can hardly hope for any considera-
ton in the operation of these selfish
schemes"
Now, gentlemen" said Mr.. Harris.
horn, Il can assure you from an expert
ence of more than twenty years of prac-
teal business and constant personal con.
tact with business men, that no indi.
vidual firm or corporation will enter
into trust and surrender its position tc
a competing establishment 80 long az
there is a reasonable hope of profitable
business outside of such combination
1t is not so much to make large profits
as to avoid large losses that trusts are
formed. 1t is only when large losses
and certain bankruptcy are staring bust
ness men in the face that combinations
are formed. Can the President point
out a single trust formed here or IN Eu-
rope which was not born OF dire neces
si,y Let him do go if he can; but un.
ill then let him cease official Censure OF
men who help to make our country
what it really is, the pride of the whole
earth.
II am not here to defend or commend
trusts. | am in no trusts and never have
been, but can assure you that more thar
once | have suffered from disastrous
competition in business when | would
have gladly submitted to the aid of 9th
ers for relief-however unpleasant the
treatment.
1T is fair to presume that a manufac
turer will at all times purchase stock tC
the best advantage and keep existence
expenses at the lowest limit. Their
what remains to be done when by sharI
competition prices have gone below cost,
To shut down or to go on cutting prices
is ruinous, and there is but one avenue
of escape, and that is 10 reduce wages
Is there any comfort or satisfaction in
that ? Not ray Of hope or comfort
and if the ruinous competition can be
stopped wages need not be reduced
Where then ia the curse of the trust oil
combination The President must give
answer.
What follows trust or combina-
tions A cut in wages. | have never
heard Of it. What then A reasonable
advance in prices to ensure living mar
gins and regular supply of the articles
produced. Suppose the Iuinous cutting
goes on and but one establishment eur
wives. How will the operatives and the
public fare then ? Any better than I'M
der a combination No, sir; not half a;
well, for the meanest man usually holds
out the longest in the fight.
When Southern California and Flori-
da began to produce oranges largely, the
fruit was sent in great quantities to GER
tain cities to perish unused. What was
the relief ? How could steady supply
be furnished and fair prices obtained
BY combination or trust to regulate
shipments. Is there anything vicious
about that ? If so, did the tariff have
anything TO do with it? Absolutely
nothing.
That's about all there is in the trust
business. MIR. Blaine says free trade
merrie' England is plastered over with
trusts. He tells the truth. That coun
try was filled with combinations dozen
years ago. | was there and tested the
situation by actual business transactions
and know the fact, No, gentlemen
trusts whether right or wrong, good OF
bad, are not fostered by tariff laws
Free trade and protection have very lit
tie to do with trusts.