Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1890-02-02
rconREsroNpENcE OF THE DISPATCH. I

1coRREsPoNDENcE OF THE DIsPATCB.l
NEW YORK, February Late informa-
tion from Washington is to the effect that
Senators and Congressman have decided
upon full inquiry into the uses and abuses
of the gigantic trusts that have been formed
in every State of the Union during the last
u months. The work of rattling the trusts
will soon begin with Vigor, and the echoes
of the bombardment will reach every corner
of the land. How many bills on the sub
ject Senators and Congressman have to offer
it would be hard to say, but there are at
least so that will be showered upon the
Lower House. And it is somewhat signif-
cant that the first bill offered in the Senate
this session-by John Sherman-related to
the abuses of trusts. The question of the
legality of these great monopolies will also
demand the attention of the Legislatures of
the various States. In fact, all signs point
to an avalanche of bills upon the question,
and an inquiry into the matter that will
prove of the deepest interest to both capi-
talIst and workingman.
So far as Congress is concerned 1t seems
probable that a committee of inquiry will
be formed to take testimony and go into
the question thoroughly. In New York
State the question of the legality of the
trusts is now pending before the Court of
Appeals. How many hundreds of millions
of dollars are involved in the controversy
only statistician of the ability of Edward
Atkinson could tell The one point, how
ever, upon, upon which there is no doubt is
that the entire matter is going to be thor
Cughly sifted.
A TRUST EXPLAINED.
How many persons know what a trust is?
Some of the men who have made a study
Of the question were asked to solve the
problem. Perhaps the best posted man is
Mr.. S. c. G. Dodd, and it is not at all un-
natural, for he is the father of trusts. 1t
was Mr.. Dodd who drew up the agreement
under which the several corporations COM
posing the great oil trust were wrought
together. He is now the solicitor of the
Standard Oil Company.
To the writer the other day he spoke of
trusts as a fond father would speak of a
favorite child.
It is simply question of association. The
real question underlying it is whether there
shall be limit to the number of persons or the
amount of capital that shall be associated to-
gether for business purposes Ny opinion is
that the right of association should be free and
unlimited. both as regards the number of per-
Sons engaged in any enterprise and the amount
Of capital necessary to conduct the business.
To my mind, 1t does not make a particle Of diff
ference whether the method OF conducting a
business takes the form Of a copartnership, an
association, trust or corporation. The form
is unessential. Any combination may be used
for bad purposes; but Notwithstanding all that,
the trust is a power for good, and is absolutely
necessary in the conduct of our modern bust
ness,
HELP THE PUBLIC AND woRKINGMAN
Trusts do not help capitalists so much as they
do the public. They help the public by cheap
ening the cost of manufacture and transporta-
tion. In this way they are enabled to sell goods
at lower figure by reason of doing a larger
business thus obtaining a sufficient remunera-
tion from small profits. The cost of doing
large business in comparatively much less than
the cost of doing only a small business. As |
regards the benefits of trusts to the working
man, as far as my experience goes-I speak |
only Tor our own company-we pay more than |
the average wages. The workmen have con-
slant employment and receive cash payments |
weekly. Every man has chance to rise by |
promotion In the business. Most of our eX-
peTienced men, who are drawing very |
high salaries, began as ordinary workmen. |
AS TO the legality Of trusts. 1 do not care to |
speak for them all. But the Standard Oil |
Trust is legal il a copartnership is legal It |
was the first trust formed and l myself drew
up the articles of agreement. That was in |
1882 and they had always been kept secret |
until within two years ago when the nature of |
the contract became known. Other trusts |
have been formed on the same lines but thew |
differ in very essential particulars The prin-
cipal difference between trust and a corpora |
tion is that while the latter has a franchise
from the State and is authorized by law a |
trust is simply combination of indiyiduals
and, having no franchise, is not authorized BY |
Law,
THE SUGAR TRUSTS DEFENDER.
Mr.. John E. Parsons is a lawyer of re- |
nd dofa dad fho -
fight for life in the suits brought against the |
North River Sugar Refinery, and which are |
still pending. He said:
To cover the subject of trusts in a satisfac.
tory manner would require much time and oc- |
cupy much space. The gist of what is erro- |
neously called trust is that the stock of sew |
eral corporations is pooled so that all the stock
holders in any one company also become stock |
holders in all the other companies. L have |
always maintained that this form of combiua-
tion for business purposes was in strict COM
piiance with the law, and was not opposed TO |
public policy in any way. The benefit to the |
community Ii that which always results from |
any great combination of capital Political |
economists have long recognized the fact that |
to reduce the cost of production will, in the |
end, lower prices. Without such combinations |
any one can see that there would be no rail- |
roads telegraphs or any other improvements.
The law itself in providing for the jncorpora- |
6on Of companies, encourages com binations of |
capital because corporation is constituted for |
the very purpose Of combining a large number |
of small holders into one considerable aggre- |
gate. Trusts and large combinations of can't |
tai are beneficial to the nottingham. becanse |
when, through excessive competition or any |
other cause, business is done at a loss the |
operatives in the end suffer The interests of |
capital and labor are identical If by anymethod |
of combination business can be done at a |
profit the result will be that the EMPLOYERS will
be able 70 pay thei- employees, and so long as
70 furnish employment to a large number of |
workers. Otherwise in the long run, it will he |
impossible.
ANDREW CAREEGIE's OPINION.
Andrew Carnegie has very decided opin-
ions. When asked for his views he said he 1
had often expressed himself on the matter. |
His views remained unchanged, and time |
was fast proving the correctness of his asser. |
tions.
'They come like shadows and so DEPART
quoted Mr.. Carnegie. The genesis of the trust
is az follows: A demand exists for certain /
article beyond the capacity of existing works |
20 supply it. Prices are high and profits |
tempting. Every manufacturer of THAT article |
Immediately proceeds to enlarge his works and |
increase their producing power. In addition /
70 this the unusual profits attract the attention
Of his principal managers or those |
who are interested in a greater or less /
degree in the factory. These communicate |
the knowledge OF the prosperity Of the works to |
others. New partnerships are formed and new |
works are erected, and before long the demand |
Tor the article Is fully satisfied and prices do /
not advance. In q short time the supply be- |
comes greater than the demand. and prices be- |
gin TO fall They continue falling until the /
article is sold at the less favorably stu
ated OF less ably managed factories. and even |
until the best managed and best equipped fac |
tory Is not able to produce the article at the |
prices at which il can be sold
Manufacturers have balanced their books |
year after year only to fnd their capital re- /
duoed at each successive balance While con-
tlnuing to produce may be costly, the manufac-
fureF knows too well that EtoppRge would be i