New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1890-02-02

define the lines by asserting that when the oDJect
of the association is |" to promote the interests
and add to the profits Of the associates, human
selishness is such that it may legally be inferred
that this object will be accomplished in an unlaw-
| full way, and therefore such an association Is
illegal. Far better to have decided, not without
precedent, that all combination is criminal. than
to have resored to so peculiar process Of reason
| ing to find all business association illegal.
MODERN CONDITIONS MAKE COMBINATION
NECESSARY.
The magnitude Of business associations cannot
| be limited until the magnitude of business is
limited. AS business increases and markets widen,
greater combinations of capital will be required.
and the magnitude of business associations will
increase Any attempt TO limit association will
be as Intellectual as attempt to limit the tides.
| II combinations are formed, as no doubt they
have been and will be, for evil purposes, or II
| evil effects are produced by association, the law
| must direct its attention to the remedy OF the
specific evils. 1t is vain to hope to eradicate them
by destroying or limiting the right of association
| No association, call it trust what You may,
Is defensible unless formed for legitimate bust
ness Their legitimate purpose and effect are that
of increasing production, opening wider markets
of manufacture and sale, adopting the latest i'm
provements and best methods of business, and thus
giving to the public the best product at the
smallest remunerative prices. This is the le-
gitimate purpose of trust and every trust formed
and operated upon any other idea is doomed to
inevitable failure. 1t is a mode of business re-
curing too great an investment Of capital and
involving too many risks to be resorted to for
the mere purpose of "cornerng." Trust GER
titicates are not as available corporate stocks
for the purpose Of speculation, and should not
be used for that purpose. Where this is
desideratum trusts already formed will find they
have made q mistake and dissolve and reorganize
as corporations Trusts have not revolutionized
business. as many suppose. IL is some eight years
since they began to attract public attention, and
cannot learn that dozen actual trusts have
ever existed. For reasons above stated, some havo
dissolved and reOrganized in other forms. There
are innumcrable trade agreements and arrange
ments now popularity called trusts. They have
always existed, and always must exist, II Dusi-
ness is to continue. The price OF everything In
market is, TO some extent regulated by dealers,
and in the nature of things it cannot be other
wise. Competition is a species Of warfare, ana
no law can compel men to continue at war when
it is for their interests to agree. No law can
prevent two country grocers from agreeing at
what prices they will sell sugar, or two neighbor-
ing farmers from having an understanding as to
the price at which they will sell their wheat.
Long before trusts were heard Of the wholesale
price of every foot of rope every pound of hard
war every square of glass, in fact of every
article of importance in trade. was. TO some
tent regulated and fixed by dealers associations,
committees, or some mode of trade arrangement
or understanding. Notwithstanding this we'll
known and long-continued system Of business,
prices have gone down and not up The reason
is plain People who invest capital in a business
strive to make that business permanently sue
cessful To that end it is to their interest TO
keep prices at the lowest profitable point in order
both TO encourage consumption and to keep out
competition Large sales with small profits
better than small sales with large profits. Every
advance of prices lessons the number of consumers
while it invites competition of producers Poten-
tial competition is effective in preventing ex-
tortionate prices actual competition.
The influence of trusts on business has not
differed from that exercised by partnerships and
corporations Since the petroleum trust was
formed petroleum has decreased in price-the
product is safer and better-the output has in
creased-exports have increased in spite of foreign
competition which would have ruined our for
eign trade but for the power Of aggregated cap
ital in producing business economies IN the
manufacturing and marketing of our product.
The business has given employment to con-
stantly increasing force Of workmen, who obtain
constant employment. sure pay, and above the
average wages. Every intelligent workman has
a chance ito rise Hundreds are drawing large
salaries who began ordinary employees En-
ployment is anxiOusly sought by the better class
of workmen and strikes are almost unknown.
Competition has not been destroyed. The
amount of oil refined to-day by competitors of
the trust exceeds the total quantity refined at
the time the combination was formed.
ILLEGAL METHODS SURE TO END IN DISASTER
Other trusts. it is claimed. have shut down
manufactures and put up prices. In so doing
they may have done very wise thing. or may
have been guilty of foolish. immoral and illegal
acts 1t all depends circumstances. II the
price of the product was so low that manufactures
were losing money. it no crime to curtall
production and stop selling at loss. Competition
may be carried on until the weakest are ruined.
workmen thrown out of employment and creditors
unpaid, or the inevitable may be foreseen and
prevented by agreements. arrangements COM
promises and associations. 1t Will De serious
day for business when such agreements, arrange
ments and combinations are prevented by law
IT. however. trusts have attempted to extort an
unjust price for products they adopt an illegal
policy sure to end in loss if not in ruin
My antitrust readers may say that the adj
mission here made that combinations may be in
strumcntal in unduly restricting production and
in extorting unjust prices, even for limited
time. is a yielding of the whole question; that
this is what they particularly desire TO prevent.
/ am glad to meet such reader on common
ground Men are seldom far apart in their views
of right and wrong when once the questionable
subject is clearly defined. Few sane persons will
assert that those combinations are either bene-
fetal or legitimate which are formed not for
the purpose of carrying on lawful business, not