Fort Worth daily gazette. (Fort Worth, Tex.) 1882-1891, 1889-01-28
ABOUT TRUSTS.
A Statement From One OF the Foremost
Merchants of the United States.
Current Legislation and acknowledgements
ton VS.. OBSERVATION-DISCLOSURES OF Fran
els &. ThurbeF.
Railway Law Journal, January 5.


The following statement is made by
Mr.. Francis B Thurber, the head of the
house of Thurber, Whyland & Co. of
this city and one of the foremost mer-
chants Of the United States. to the com
mittee of the New York state senate, ap-
pointed TO investigate "trusts'' at the
session held in this city December - /,
1883:
Within the last twenty years, and es-
pecially during the last ten, great
changes have taken place in the produce
ton and distribution OF products, due
chiefly to the increasing use Of steam !,
electricity and machinery. Steam and
machinery have enormously increased the
power to produce as well as TO distribute
products, and electricity has greatly as
sisted in leveling values throughout the
world. If a scarcity exists in any part
of the world the news is flashed TO the
favored points of supply-upder
the ocean and around the
world overland steam hurTies
supplies TO the points where they are re-
qured. Ingenious inventions in ma
chiuery have invaded every department
and have revolutioniZed the conditions
which ruled twenty, or even ten years
ago. These forces have enormously in
creased competition, both in production
and distribution--in many cases TO an
unreasonable and TuinOus extent. The
law of self preservation mas, il efforts to
cOunteTact this, compelled cooperation
OF combination, sometimes to neutralize
extreme competition and sometimes TO
effect economies which were possible only
by doing things on 4 large scale. Com
bination is not necessarily wrong. 1t Is
only the abuses Of power which are wrong
and should be guarded against. For in
stance. laborerS combine in trades unions
or other forms of organization to prevent
the force of competition from compelling
them TO sell their labor at un
reasonably low rates; capital COM
Dimes for the same purpose. Neither
is wrong unless the combination does I'M
reasonable acts Manufacturers and
dealers do the same, ana during the last
ten years especially the law of competi-
ton working 20 extremes has compelled
them 10 combine. Almost every branch
of business has its organization, some
times. for one ostensibIe purpose and
sometimes for another, but all having
more or less the same object-mutual
benefit. Newspapers combine to collect
and sell news; insurance companies to
prevent the selling OF insurance at ruin
ous rates. railroads combine for the same
purpose rs regards transportation and
SO long as they do not use the power thus
acquired unreasonably it is not only not
wrong, but under the conditions
now prevailing is an absolute
necessity. a careful study of
this subject during the last fifteen years
has changed my views materially; there
was time when il seemed TO me that
combination would overcome the force of
competition; that monopolies would be
created, and capital would Cypress labor
and the public, but the experience of the
last few years has shown that 1 over
estimated this danger, and that in the
long run the competition of capital with
capital viii protect the public interest.
Indeed, the share that capital receives
in the profits of production and dIstrihu-
ton is generally lessening, while
that of labor is increasing. There
may be exceptions TO this rule
regarding combinations of capital, but
such exceptions cannot last long, for
other capital will be attracted to those
lines and SO increase production that
prices will be soon lowered. There may
also be exceptions TO the rule as regards
labor; for instance, in uncrganiZed and
crowded occupations wages may be
pressed down TO an unreasonable point.
But these are exceptions again which
prove the rule. l append herewith a
table showing the average wholesale
market prices of the principal food pro-
ducts in New York for the last eighteen
years, which shows THAI nOtwith-
standing occasional sharp fluctuations
occasioned sometimes by combinations
and sometimes by the conditions of supply
and demand, prices as a whole have
largely declined:
NEW YORK WHOLESALE AVERAGE PRICES IN
LARGEST lots FOR LEADING FOOD STAPLES FOR
EIGHrEEN YEARS.