The Ottawa free trader., 1889-07-27
TRUSTS---AN ABSURD PLEA.

TRUsTs---AN ABSURD PLEA.
The Chicago Inter-Ocean, while one OF
the ablest, is altogether the most dogged
persistent and INSCRIPTIONS of all Repub,
lican journals In Its advocacy and defense
of the robber system going under the
name Of high tariff protection. At the
same time, what seems like ludicrous In
consistency, the same paper has inaugura-
ted warfare on trusts-the Standard OIL
Trust, the threatened Salt Trust Beer
Trust, etc. all trusts, In short which pro-
pose 10 stand on their own bottom, without
depending on the tariff octopus to help
them out. Yet the funny part of 1t is, that
all the arguments which the /. o. hurls
agans. this latter brood Of trusts, applies
with exactly the same force If turned
against the high tariff bred animal. To
illustrate this, let us transcribe from the T.
o, of the 25th inst, an editorial directed
against the Standard OIL Trust, simply so
changing 1t as to insert, In the place of the
Standard Oil, a few OF the more prominent
tariff bred trusts. Thus:
1t is said by those who defend the sys-
tenn of trusts that the Oldest, the best or
ganized and most successful of them-the
cotton goods, wOolen goods and india rub
ber trusts 1--WE omit dozen OF others to
avoid unnecessary repetition) have made
the price Of the products in which they
deal lower 10 the consumer than 1t was
before passing under control of these great
monopolies; and not only this, but when
ever 1t appears to the management that too
large profits are being netted, they make
further reduction In price. Ill of which,
II true, constitutes no argument favorable
to the monopolies, and does furnish strong
argument against them.
For II these monopolies have reduced
prices to the consumer, II Is certain that
the reduction was the resnlt Of an enlight,
ened seliishness working in the minds of
the managers. They reduced prices from
one of two reasons, or from both. Either
they argued that reduction of price would
increase the volume of consumption and
so add to the volume of profit, or they
argued that if prices were not reduced to
the consumer the vast percentage of profit
would tempt the formation of other great
aggregations of capital to manufacture
and deal In the same articles, in which
event the original monopolies would have
to divide profits with the new, or buy
their plants at high price, or be forced
into open competition, which they had ex-
pressly combined together to avoid. Or
both these reasons worked upon the man.
agement.
1t Is plain that the cheapening result
would have had speedier and more effect
I've process without the monopolies than
through them. The inevitable cutting
down of prices which would have attended
upon unlimited competition would have
increased consumption in as large a ratio
as has the monopollstic management of tn
trusts. Besides which, 1t is reasonable to
suppose that more numerous and more
valuable Improvements both In methods of
manufacture and distribution would have
been made in fifteen years of competition
than In fifteen years of monopoly. The
force of competition has cheapened the
distribution of the wheat crop in greater
degree than monopoly has cheapened the
distribution of many manufactured pro-
ducts, And 1t Is also to be borne In mind
that the dread of competition eternally
penetrates the triple armor of these highly
protected monopolies. They have been
successful thus far, but not 80 successful
as the greed of their managers desires.
Were 1t not that the higher prices for
wooden, cotton and rubber goods might
cad to extensive importations from Eu.
rope the great monopolies would double
their prices Instantly. If the cotton, wool,
rubber or any other trust reduces the price
of what 1t deals In, 1t is not because 1t has
killed old competitors, but because 1t
breads the advent of new ones. Now, If
the fear of future competition reduces
prices, by how much more must the pres
sure of actual competition reduce them !!
The plea of low prices on behalf of trusts
and monopolies Is absurd.
There Is little use and still less satisfac-
ton In ban0yinp words with a liar But