Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1889-02-14

which they are based is said to be entirely
false. Legislation is recommended that will
abolish every form of trust in the State.
ESPECIAL TELEGRAM TO THE DIsP ATcH.l
| COLUMBUS, February 13-The Legisla-
tive Committee appointed at the last session
to examine into the subject of pools and
trusts, have completed their work and pre-
pared report to submit to the Legislature.
After preliminary explanation as to the
work of the committee, they refer to the fact
that much had been done by other Legisla-
lures and by Congress in the way of secur-
| ing information, and say:
Your committee, therefore, met from time
to time, and as complaints were brought to
their notice proceeded to investigate; and with
this report we hand to the General Assembly
the testimony taken in investigation of the
coal combination and of the school book syn
dicate, and with the same will be found the
contract with the school book publishers
which is for the first time made public. In re-
porting your committee has divided the subject
into three parts: First. Combinations in Ohio;
second. Cause and effect of same: third, Re-
Your committee finds that combinations of
different forms are in existence and that in
many industries the tendency is in this direc-
ton. Coal combinations exist in several parts
of the State, and are from the necessity of
their product such as effect most directly,
quickly and certainly the interests of the peo-
pie.
THE OIL MONOPOLY.
The investigation of the Standard Oil Trust
by the New York Senate Committee and by
Congressional committee shows that four COM
panies-the Consolidated Tank Line Company,
the Island Oil Company, the Standard Oil
Company and the Solar Refining Com
Your committee also finds that
combinations exist in the manufacture Of
wood screws matches, straw board, flour
sacks, twine and cordage, oatmeal and other
articles. The most common answer to the in
quiry of your committee of those engaged in
combinations as to the reasons why these COM
binations were formed, is that competition has
become so strong and fierce that to continue in
business in the competitive way means ruin;
that many kinds of business, because Of COM
petition, are being done at loss. and that only
by combination can reasonable pronts be
secured.
Another and common reason given is: "1t Is
the tendency of the times; it is inevitable and
comes as a natural step in the progress of
events" and for the reason that by combination
higher standard of economy can be reached
and cheaper production obtained. Your COM
mittee are of the opinion that no such condi-
tion exists, nor is ever likely to arise in contra
proved maxim of business, that competition is
the life of trade, and that any departure there
from is fraught with danger, and will inevita-
bly, lead to disastrous results
A FALSE DOCTRINE.
Your committee, therefore, utterly repudiate
the theory advanced by these combinations
that they are the natural result of the progress
of the age, or that by combinations of the char
acter referred to, higher standard of econo-
reached cheanor production
tained, because the incentive to cheaper pro-
duction is lessened when competition ceases.
There can be no doubt that the evils resulting
from combinations have already reached a
point to Justify stringent legislation on the
subject, and your committee suggest in view of
that tendency to combination, that it is but
Just to the producers and the consumers of
Ohio that the General Assembly should affirm
its position on the subject and that it should
be done now.
The most common form of combination is the
simple agreement, verbal or written. to fix and
maintain prices at a certain point. While this
form of combination works injustice to con-
sumers by unjustly advancing prices, it is short
lived, and because of advantage gained by
some members over others, the agreement is
soon broken. The next form, an agreement on
prices, the violation of which is enforced by
fines or forfeiture of money deposited. is
stronger, but in both of these forms of combi-
nations the principle of self-interest remains
and by reason of the fact that some one of such
combination is sure to reap greater advantage
themselves the elements of destruction, and it
was this fact which led up to that form of
combination called the trust in which all the
elements OF self-interest are eliminated, and
each member of the combination, in proportion
to his share, received his proportion of the
benefits.
POWER OF A TRUST.
The question of what to do with incoming
competitors was met by the trust. Under the
combination a new firm entering the field might
not affect the greater portion of the members
of such combination. but would affect some,
and such members affected would not agree to |
new competitors becoming members of such |
But by the trust the location of |
new competitors would not be a question. We |
must conclude that the form of combination |
known as the trust is the most dangerous and |
should receive the most careful at |
tention.
An examination of sworn testimony in reports |
of combinations, giving the form of agreement, |
will readily show that the underlying principle |
of the trust is the community of interest, and |
can be expressed by the term pooling of earn
ings or profits by competing concerns: With
out this feature the existence of such forms of |
would be impossible, and it is to
this feature of such combination that your
would ask especial attention of the
General Assembly.
THE REMEDIES.
The committee have considered the general
idea prevalent that the remedy against trusts
is in the forfeiture of charters of companies in
Ohio. who shall become members of such COM
binations. The opinion that the forfeiture of
charters would work cure for trusts arises.
we think, from the fact that many companies
by this State have, under such char
ter, been granted franchises which in time have
become of great value. and which, in case of
their charter being revoked. would revert to
those who gave them, as in the case of street
railroads.
But in the case of private corporations no
such situation exists. As no loss of property
would ensue some form of association would
be found, and under such form the trust wouJd
be continued. Your committee recommends
such legislation as will prevent any combina-
ton by competing concerns, the result of
which shall be to fix prices, to restrict produc-
ton. or for pooling of earnings OF profits. and
that proper penalties be provided for violations
of such law.