The Louisiana Democrat. [volume] (Alexandria, La.) 1845-1918, 1889-11-20
PROTECTION AND TRUSTS.
rhey Are Children of the Same Parents,
Greed and MONOPOLY.

The passage relating to trusts in one
,f Senator Shermans speeches in the re-
cent Ohio canvass is filling the breasts of
some of the Republican editors with wild
delight. There is no particular reason
why it should, but it does. So long as
they are happy they refuse to inquire
whether their bliss is rational or IRA
tional.
Senator Sherman Is reported to have
demonstrated that protective tariff
does not encourage trusts and combina-
lions. He demonstrated it by saying
80, which is quite enough for the believ-
srs in his infallibility. Unfortunately,
when he had said so, he did not stop.
He went on to argue the question, and
to enlarge on it till he virtually ad-
mitted that the tariff may encourage
trusts.
AS to his argument, it consisted in the
statement that trusts exist in free trade
countries as well as in those where pro-
lection prevails. This is true, but it
only proves that the tariff is not the
only cause of trusts. 1t certainly does
not prove that protective tariff does
not encourage trusts. 1t would be Just
as logical to argue that rain does not
wet the ground because the ground Is
sometimes moistened with water from
bucket or hose. No intelligent man
maintains that trusts may not exist
without the aid of a protective tariff.
Any other device which excludes COM
petition will answer the purpose of the
trust.
Senator Sherman is not of the opinion
that trusts are private affairs with which
nobody has any right to interfere. On
the contrary, he takes strong grounds
against them. He says on this point:
81 believe these trusts and combinations are
against public policy, and should be declared
null and void II Is difficult to deal with them
by legislation, but yet it Is the duty of State
Legislatures to pass proper laws to prevent
these combinations. & When CORPORA.
tons engaged in a particular business combine
together with view to prevent competition
and to advance prices on the necessaries of life.
they become the enemy Of society, and should
be dealt with with bold strong hand"
SO far is well; but Senator Sherman
goes farther. Promising that sit is the
primary object of protection to invite
the fullest competition in domestic pro-
duction'-a statement which we shall
notice presently-he continues:
III such individuals or corporations combine
TO advance the price of the domestic product
and to prevent the free result of open and fair
competition, would without moments hest
tation reduce the duties on foreign goods COM
peting with them, in order to break down the
combination"
Why reduce the duties? Only mo-
ment before the Senator had said it was
agrave error to say that protective |
arllf encourages trusts, and yet he de- |
clares himself ready to reduce the |
duties, diminish the protection, in order
10 discourage, or rather to break them
down. How can they be broken down
Oy inc repeal or modification of laws
"hieh lend them no encouragement? In
proposing to break down combinations
oy reduction of duties Mr.. Sherman
surrenders the whole case.
I trusts are not always caused by pro-
lection, but both are parts of the same
system; they are alike the tools of
monopoly. Monopoly is not fastidious
ABOUT the means it employs 60 long as
Its end is reached. Many years ago
certain manufacturers of the United
states combined with one another and
with majority of both houses of Con-
gress Ito prevent competition and to
ADVANCE prices on the necessaries of
NE, and they succeeded. 1t is a
grave error to say that it was the pri-
mary object of these people to invite
competition in domestic production. The
competition which they combined to pre-
vent was foreign competition, it is true, {
out they would have sought to limit S
uomestlc competition also if they had
seen their way clear to it's accomplish c
nent. The best proof of this lies IN t
.ne TACT that they have since combined |
pr THIS very purpose. To allow free t
aomestlc competition was OF their sob g
lect;" they regarded it only as their a
n misfortune that they must allow it. t
once the constitution provides for free |
trade among the States, domestic COM i:
petltion can not be shut out by tariff. r
for many years the exclusion of foreign n
.ohpetitlon was all that they required. n
ior domestic competition is of slow p
s'o"sh IN branches of business which s.
lemand immense aggregations of capital a
anu enormous plants. But the greed of a
.nohopollsts increased even faster than n
competition, and the time came | p
'neh they were no longer content to OF
, !, even the moderate pressure of NJ
,omestlc competition. Hence the crea- al
aon OF the trust, which was relied on to tt
~ iof competition at home what pro- tt
had done for competition from ds
' : The trust is the outgrowth and it
no "mpanion of protection; the one is liz
ne complement of the other. Taken in
osesher' they form a complete system
y, VI excluding competition. As Senator
,neiinan and men of his class maintain
na' tue great industries of this country sy
' no' DC carried on without the aid of wi
~ present high protective tariffs. SC "
,ans y oi the combinations which the 81;
bar 'or uenounces boldly contend that
ney can not be carried on ,r;+hont
p sssoi lney have so long waged a sue, sh,
om ~ war upon competition that thew list
NV uo not hesitate to say that it is Nv
80 o'iVe TO the industries of the or;
.un'ry and must be eliminated. They
: luss as ready to assert and to prove Fla
'nelr own satisfaction, of course on
"a. trusts lower prices, as the protec- do,
0aists are to assert and to prove, also Hi
:, .nelr own satisfaction, that protec- ba,
" cneapens commodities. Both con-
- the argument in the same way: ta-
aen their efforts to keep up prices th,