New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-03-08
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The highly progressive persons "no SuPPVSo
they have discovered in combination means
of delivering the world from the influence o.
onupetitfon. as they look out on the present
nosition of the railroad business and the cop
ner and coal markets, may discover that the
world has not been created over again so much
| as they had imagined. The railroad combina-
ton proves more difficult to form, and less Ger
tain to be effective when formed, than its advo-
Gates have expected. Perhaps not much conf
dence Is dine TO the reports OF further disagree
nents and more -ate-cutting, but they serve TO
keep in mind the vital fact that q business only
sufficient to support three roeds is required by
the combination, in some parts OF the west 10
keep four roads alive. That might be possible
II rates could be fixed by tho combination at
It's pleasure. But the public takes warning
from the combination Of railroads. and so the
new Iowa schedule, and other acts Of commits
sioners Or Legislatures, stop the raising or
compel the reduction Of rates.
IL would be supposed that the copper panic
at Paris was deliberately intended 10 coerce
American companies into reduction OF tho
contract price, but for one fact. The suicide
of the president of great financial institution
was the Immediate cause, and could not have
been anticipated. He had protested that the
institution would be ruined il involved with
the copper syndicate, and nevertheless the d.
rectors had overruled him. A heavy run at
once threatened the very existence Of the in
stitution, and while the present. emergency may
be met, the financial power 10 help the syndi-
cate must be diminished. But these are mere
incidents The bottom facts arc three, copper
consumption has greatly diminished since the
price was raised. the production from mines
outside the control Of the syndicate has enor-
| uously increased and the stock Of old copper
all over the world has boen hunted out and
utilized. As q result. the stock held by the
syndicate has increased more than $4,000 tons
| in a single year-that H. the expenses Of the
undertaking have exceeded it's receipts for .
| year something like 81 100000.
| The combination Of coal companies was In
tended in like manner to limit production, as
| the only sure way to shut off composition and
| TO prevent low prices. But the mines are not
all owned or controlled by the combining par
ties. The outside operators increase in num-
Der when prospect Of better prices Is offered,
and also have power to increase their output
almost indefinitely. II the carrying companies
refuse TO transport any coal offered, the law
| and the Interstate Commission can be appealed
| TO, and common carriers can be required to
perform their duty to the public. So this COM
| bination also found on its hands at the end Of
the year an accumulated stock, said by one
authority to be the largest for thirty years, OF
least at the terminus Of the most important
transporting line.
| Combination, then, appears to mean moro
railroads, more copper mines, more coal mines.
The new roads and mines have power TO take
nearly the profit which the combining parties
attempt to secure, and yet TO get ahead Of
them in the sale Of services or products. The
combining railroads cannot get traffic until the
non-combining roads, which offer to carry at a
lower rate, have what they can get. The COM
bining mines cannot sell coal or copper until
the product Of tho non-combining mines has
been taken by the market. This is not COM
petition, exactly, but the combining roads and
mines are compelled every day to wish that
there were competition. A copper mine which
| can produce 90, 900 tons Of copper with profit
Of half million when the price is IL cents, IL
required to produce only 10000 tons with O
profit larger per pound but smaller in the az
gregate, gains no money, and meanwhile sees
new and dangerous rivals establishing theil
business. The end Of combination Is apt 10
be competition worse than ever.