The Helena independent., 1890-03-19
nnM 4 Tnr,r nrEKNTEs.

HOW \ TRUST OPERATES.
The Chicago Tribune Of recent date
contained an interesting and instructive
article on tho oatmeal trust, which has
existed under the style of the Consoli-
dated Oatmeal company since May T.
1857, and which will expire May /, 1890
probably 10 assume by some process Of
transmigration a new and possibly n
more vigorous being. This trust has,
Tor small Affair." done some wonderful
things. II has deied state laws for the
suppression Of trusts, such rs the Iowa
and Illinois statutes on this subject, and
il has bought of or trampled out all
competition, SO that the managers have
been able TO advance the price Of meal
from $3.50 TO $40 barrel. The con
sumer, however, has not suffered, for
the retail price to-day is the same as il
was three years ago. IL would be folly
To expect, should the trust take new
lease Of life next May, that the effect Of
the combination will not soon lie felt by
the consumers; that il has not already
so been felt is due TO the fact that the
middlemen, and particularly the whole
salers, were enjoying profit n togo her
out OF proportion to the cost price Of the
commodity.
The trust originally was composed of
four milling firms in Ohio, four in Hi
nois and three in Iowa. Since its organ
ization il has taken in another Illinois
mill, which WAS built for the purpose Of
selling out TO the trust, and some little
concerns in Iowa and Minnesota whose
owners showed a disposition TO make
trouble. More than that, il has paid
agents Of milling machinery regular sal
aries not 10 sell oatmeal machinery, and
il has paid the editor Of the American
Miller, at Chicago, 5000 year to pub
llsh an advertisement inviting CORE
spondence on the subject Of antitrust
oat milling and bending his intellect TO
the task o' dscouraging would be in
yestors from entering the field.
The first move of the trust, naturally,
was to reduce the output, and under
the head OF rentals. which was the term
employed for payments To millers for
shutting down their machinery. the
books Of The Consolidated Oat Meal
company show payments in one year To
the amount of Sll2,7OO. That the trust
could cnsily afford 10 pay this sum will
he seen when il IS shown that 10y the
advance Of $3.50 barrel. which the
trust compelled the wholesalers to pay
for meal, the added profit on the output
of 100000 barrels was S2,1O0,0OO O year.
1t cannot he said for the trust that it
was necessary to enable the millers TO
exist, for il is known that the year prior
10 the formation Of the combine the oat
meal milling firm of Douglas n Stuart,
Of Des Moines, earned $4,000 above
operating expenses, and other firms
profited in proportion, Nor can il he
alleged with truth that the effect Of the
trust has been TO increase the roycnue
OF the farmers who produced the oats.
The price Of oats is To lay as low as il
ever has been. II is the old story Of the
dressed beef combine over again. In
fact, no good purpose has been served
by the trust. III il pursues its policy q
step further it will oblige the middle.
men 10 advance the price TO the con
sumer.
The Consolidated Oat Meal compuny
is only one Of the genus trust, n devil
fish that is extremely difficult TO deAl
with by legislation. The tendency oI
lawmakers is to attempt too much in
the direction Of suppressing trusts, and
the consequence is, as has been shown
in the case OF the Missouri statute on
the subject, that constitutional limita
tions are overstepped, and all is lost
Highest honors await that statesman
who shall devise n means Of suppressing
trusts without interfering with the li6.
erty Of the subject and the freedom Of
trade between the states Of the Union.
MANy and devious are the methods of
the lottery managers TO entice the agile
coin from the pocket Of the citizen into
the Golfer of the gambling corporation.
Church folk, of whatever creed, are gen.
rally opposed 10 lotteries or other al.
legged games Of chance, and to that par
tcular element the lottery sharps re.
Gently directed their allurements. Pre-.
missing that many churchmen would not
question the proprety Of what a clergy
man did, the agent Of the lottery caused
il to be published as coming from DE
troit, Mich, that clergyman of the
Episcopal church in that state (bu'
whose name nor residence was no
given had bought n fractional part Of !
ticket in a lottery, and that the ticke
had drawn a capital prize, which gay,
the clerical investor the right to draw
upon the company for something lik,
$4,000, Quite an interesting story wa
told OF the clergyman's maneuvers {,
obtain the money without disclosing hi
identity 20 the company or the public
To compensate for the fact that th
story lacked that guaranty Of authen
ITCHY that name and address woul,
have given, the story concluded witt
tho etatamapt that aRt,Lt De-. D,sh.,