Morning journal and courier., 1890-03-05
POOLS AND TRUSTS.

FOOLS AND TRUSTS.
 These Two Objects Of Public Suspicion ana Dread made to Appear more An- nocsns by Profsssor Hadley-Lecsure East Night - Ancient Pools and Trusss-NOshinG New Under she Sum New Haven as the Birthplace of American Trusts.
 Tho sixth of tho course of Mechanic lec- lures was given last evening by Professor Arthur T. Hadley on the subject "Pools and Trusts--one that in this day is of vital inc | tersst to everyone and treated by MT. Hadley | In . masterful manner. Tho hall was filled l by the largest of any of the audiences that has e yet attended the course of lectures. The substance of Professor Hadley's remarks l are as follows:
 Something like twenty years ago the pub- lIc began to be exercised by newspaper ac- counts of some kind of . new wickednsss, and with vague ideas the people began form- ing opinions of the new iniquities that were growing up. Just 90 soon as the public had become used to pools and had enacted laws against them then, about Ave years ago, they again become afraid, this time Of trusts. The
 
 ing of attenuation because 1t was open and frank in its purposes, but the latter was beyond forgiveness because of its hidden methods as a means to suppress compete tion.
 A pool is type of contract and . trust is type of agreement, both with the same end in view, namely, to control prices. Is this something now that 1t should arouse 50 much newspaper tslkl Go back as far as we may in history, instances of this kind may be
 Ths story of the Standard Oil company, formed twenty years ago. is substantially the story of Aristotle concerning Phales, the philosopher, and his obtaining corner in olive oil.
 There arc instances of this kind all through ancient and mediaeval history. The metal syndicate has predecessor also in the time of Aristotle in one man who obtained control of all the iron in Syracuse and thereby was invited to leave the city. Nor was this con. solidation and monopoly peculiar to the Greeks. There was ono Joseph who for sev- on years had . corner in wheat down in Egypt. ,
 About 400 years ago, in a district in Ger many, beer went down to seventeen cents . barrel (smiles)-I'm surprised to see so many in the audience appear to be up on the beer question Qaughter)-when the brewers came together and agreed to put up the price to twenty three cents barrel.
 Pools and trusts are no moro justifable or unjustifable than they were 400 or LOGO years ago. From the individual standpoint they have always presented advantages, but competition, like the question of prohibition, preferred it on the other side. In order to
 understand the question of pools as it is or ought to be discussed in the newspapers,
 critical light than we would have done 100
 years ago. We to-day can't rely on oompeti-
 ton alone as could have been done 100 ysara
 ago, though the theory of competition is
 beautiful. Competition is unable in this
 day of large concerns and great mauufaotor-
 ing interests to prevent wide fluctuations in prices and unsteady markets, which arc very , that is wrought. Fluctuations in the iron industries may be taken as an example.
 In 1878 iron cost three times what 1t did
 in 1878, and in tho latter year many fur
 naces were stopped; hence resulted an iron
 famine Then prices went up, the purchas- CTS were hurt, and as necessary rule an unnecessary number went into the business, and as another result the price of iron was in
 1886 or '87 one-half the highest point reached iu 1881. Pools and trusts were the result of the attempts to meet these fluctuations of competition.
 | A simple way of trying to avert the dan- ger of selling below cost of production is that
 
 tunately this can't be effective. What was done to make it effective was, as in the case of railroads, to divide the traffic, and this was . pool. The effect of this is, at first, that any irregularity of one party does moi
 give riss to mutual suspicion, though in war and readjustment. A good result was obtained in. that 1! stopped the fluctuations, but . bad , result also was tendency to leve prices upwards. Laws were passed prohibit
 ing division of traffic, and this leessned thu good that might have resulted and intensified the bad. A pool is e contract with admin. n istrative force enough to make it binding t A trust is an agreement, system of con :. solidation, elastic enough to take in Q wid . range.
 # New Haven, If 1t wishes the honor, may
 claim to be the birthplace of the -m0derI # system of consolidation, by the formation O tho Diamond Match company here some ysaxs ago.
 Most all large concerns are stock compauis a run by management elected by the votes o the stockholders. There is e modern ten
 dency to form what 10 called Q "voting trust'
 to keep the company under permanent D management. The idea came early to tn "a Standard oil company that if this could b fsctive in others in their relation toward on T another for controlling the business of th s country; that ia, all governed by ono con v trolling idea, for promoting permanenoe !. harmony, and avoiding taxes Imposed by tn '' various states and legislative interference
 The number of trusts in this country exist ls ing in this way is exceedingly small, nc ,. more than half dosen. But the posaibili ties and powers of secrecy arc unlimited. What is to become of the protection of th . public, threatened with the fuctuation o Il prices, discrimination for places and vast If capital, of competition and tho exorbitan ' prices of unchecked trustsi Large plant 'f have made free competition out of the ques 70 ton. Tho danger from trusts is not 90 gres is e commonly believed. The ruin of the ooY
 per syndicate and the wise methods of th
 Standard on company may give grounds ft
 tho assertion that wise combination vi a find its interests near those of tho peopl, 1. The desirable thing is to put the right ma
 in power, but this is another difficulty.
 Fools and trusts may be regarded as onl or temporary and bridging over the time Il he . better method is established, about whis "a 1t is hard to foretell. When we have indu = try managed in this centralized way in '. manner that Is best suited for the interes
 of all, then we will have solution of Il
 problems of the trusts that are to come