The Democratic advocate., 1889-07-06
Trusts.

Hon. Vim. L. Wilson, of West Virginia,
has begun series of articles or trusts in the
Baltimore Sun, the first of which, OF rather
an Introductory character, was published on
Wednesday. Mr. Wilson is scholarly and
able, and no man in public life, perhaps, is
better equipped to discuss the subject. Trusts,
in brief, are combinations to control the man
ufacture and sale of certain commodities, to
crush out competition and maintain prices
The advocates of the Protective policy
that policy of laying high taxes upon foreign
goods, raw and manufactured, with the idea
Of shutting them out, and building up indus
tries and maintaining prosperity at home, and
laid great stress, in supporting their pohey,
and do yet, on the theory that while high
duties shut out foreign competition, the proht
in manufacturing would multiply industries,
and competition would result in cheap goods
The Democrats used to combat this theory
with the one that instead of multiplicity OF
industries cheapening prices and producing
general prosperity, overproduction would re-
sult and financial ruin follow. In short, that
intended protection, by high tariff or taxes
would defeat itself by competition.
These theories have both proved faulty in
practice. High tariffs stimulated manutac'
mring, but the machinist and mill operative
did not reap the advantage. The rather
they. while getting in the beginning higher
rate of wages, we're forced, together with
other consumers, to pay high prices for goods,
while the manufacturer pocketed enormous
nro6is. And when industries multiplied over
production occurred The market was re-
strieted, and when competition began to re,
duce profits. reduction of wages followed, with
consequent strikes and loekouts 1t was not
long before astute legal talent and corporate
creed found way out of the dilemma. The
trust was conceived, and they multiplied SO
rapidly that they now control many OF the
leading commodities of trade and are couiin-
ually forming to control others. All the
leading manufactures in a certain line are
consolidated under one management They
then reduce prices to so low point that
smaller establishments are forced to close and
90 out of business, then prices are raised.
The high tariff shuts out foreign competition
and the trust has annihilated competition at
home. No more goods are produced than
the home demand requires, and profits are
scaled in accordance with the greed OF the
trust. 1.-THE demand should be equal to the
fall capacity Of all the industries in the pool,
all are so run. If not, production is limited
by running short time or by closing some
establishments altogether. The profits are
all nut into a general fund, and divided out
according 10 the capital stock of the concerns
in the trust, to those that are not operated, or
run on short time, as well as those which are
operated to full capacity.
The trust was not dreamed Of by Clay, the
Father Of Protection, nor by his opponents
who believed any tax laid for other purposes
than for the needs Of government we're I'M
constitutional and unjust, and that eomPeti-
ton would result from high taxation and
stagnation would result from over production.
The trust, then, defeats the intended object
Of the advocates Of protection, on the one
hand, and removes the evil results predicted
on the other. Ills a serious question whether
or not trusts can be restrained or repressed
by legal enactment, bat there is no question
that their power to fiieh the people can be
restrained by reducing taxation to the require
ments Of government
Mr.. Wilson'S articles, no doubt, will attract
attention throughout the country; first, be-
cause trusts are objects Of deep concern to
the American people; second, because much
legislation to restrain aud repress them has
beeu proposed: and third, because Mr.. Wilson
Is an able lawyer, statesman of high ability,
aud has given the subject much consideration
as national legislator. He is nov serving
his fourth term ia Congress, and ranks among
the abIest debasers and deepest thinkers in
the House of Representatives