The times. [volume] (Richmond, Va.) 1890-1903, 1892-02-10
INpr.rnIAL coMHINArIoNs


We take the following well considered az
ticle on industrial combinations from the
New orb sun.
The mos. important feature o. the weeks
news. exec 10. perhaps. 90 nllNluais WHO Aa'e
STOCK market. mas been the ammo NAccinl hl o- 81
number OF new ugEre fatous OF capital ln-
Fesicl I'D industrial ca erfIl-e,- GLOWING
closely ugOu the vote DI Tic stockholders OF
the American sugar helners Company 60 add
sltJttUJ 90 Its old s,0NuDl share ISSUE,
thp two great electro su.llr cOmpanies-fAe
l0ison oi This city and the lh9m5oH-ii0usion
OF BOs.On-Lavo agreed t0 "a consultations sef-
oral OF the largest l.lOgIauhiuE concerns -n
the country have formed q business cOmDlna-
ton. the cotton presscra ana tue rice cleaners
Of Now Orleans have Joined forces. anu the
al0nal tCriaEe Company reports that 10 mas
Gently tahtu IN. OF ls about tp take ODD. the
remaining manuiacte3e5 ~ coIaate. iaes.n-
and tWlne. ln the United STATES, Wnch 'afe
hitherto held aloOf from 10. Special aue n-
has been called l0 the Distllers and laitle
Feeders Trust by transactions n It's ot'cera 10
its stocks. winch are NOT iayorablF viewed by
those who have lort money by them; 2 ulS an
fnraclte coal combination ls talked about. ANA
Chicago Gas Trust certificates, though
not SO prominent ln the luDIc eye as
fney were fortnight or So ago are
still tOleraby conspicuous. Altogether tie
AFFAIRS OF these enterprises nave, lor tne mo-
ment taken precedence OF those OIL railroads,
ami their merits as money-Making instrument
talltlcs are ml.e actively discussed. 40 would
seem that. slucelH the ease Oi railroads aE-re-
l-uon earliest began, It hag also earliest ended
The force unleil.lns Do is. indeed. rs pos eriul
as 30 ever was. Dut Do nnds little lett upon which
10 exert itself. All tie small companies that
could Ae merged ia greater ones haze long since
-uccumlct fu Their Ialo. ltaFint int Irla 90
few sd g. each q ie 90 MAINTAIN Do cir against
us brethren. Lut none DIG enough iO swallow
them The nlu t.ial COMPANIES are now 40 the
midst Of the process. and with them it has Set
some time 60 continue.
10 repeat what nave often said upon pre-
vi0us occasions. this formation ~ o9n aniss
with hg CAPITALS and the Absorption 1en
of sm3l er ones. eKclte5 no alarm IN II Flua.
Ii is not the quantity OF money IN concern
lhat makes il formidable. but the dogles OF ln
tcHectuai ability thar directs It's ehalrs-and
great ability in business IS as rare as ary 0tlcr
great mental or physical endowment. b @
j. . natural mt " growth % AE4r gated capl-
tai, resulting rom the natural nm atoms OF
the human mind Most men cannot carry on
enterprises of more than certain magnitude,
Just as they cannot INT more than q certain
weight The attraction OF EraVtatiOn. the
strength Of bone and muscle AMI the nutrltve
lower OF food cOmulnc O. fix the bodily size
and strength OF the human race a. what
10 Is, and only change lu those constituent
forces VIII allow change III the dominant type.
steam and electricity. d. / true, enable men %
accomplish much more ~ finance trade, and
manufacturing than they could century ago,
lust as ia ages OF winch BIOLOGISTS tell Us, when
different atmosphere and different food sup
Plies exi Ell 0n this earth plants and animals
grew 10 an enormous SIG compared TO that
which have already aIycrtet. that railroad
combination has pretty nearly come % an end.
results from THIS law 81 nature, and 10 VIII n0t
fan 10 ylndlcate itself lu mo case OF industrial
enterprises. The original impetus which they
receive from their founders VIII eventually cX-
pend itself, and then. l1o the other corpora
lions, they Will settle down into lOg-trot OF earn
IN salaries for their oncers aud making
moderate dividends.
ltIsnot without reason that the promoters
OF these great industrial combine ions solicit
lr Ha
ground that the larger lac business they'do tie
less VII. be the ratio OF panse- 90 gross profits
TINS, e. q general truth. nobody can dispute.
10 has been Illustrated over and over again IN
commercial history, and many an immense for
tame remains % ear WlIuess 10 j.. still
against This advantage must le Offset the ten
oency Of al concerns not managed exclusively
Tor The tenent ~ the managers 10 avoid taking
risks and & adhere 10 stere0tYUed Irecedents.
TINS eventually brings their dividends down 20
an amount TAR less than that earned by private
persons ~ the same Inc. aud 10 q point Just
enough above the rate OI interest on borrowed
money 10 compen.atc Tor the additional risk
ATTENDING them. This has been the experience
OF investors IN railroad stocks. and i vii be
that OF hose VINO buy the inlustria.s.
Tor tho present, however. investments in IN
dustual companies are yielding handsome re-
turns and are tempting purchases. All that IL
lacking % recommend them 20 cautious peOrie
u the absence OF trustworthy knowledge of the
companies affairs and Of confidence in those
VINO conduct them. When ! frst mentioned
themfour years ago. | said that they we're fair
CANDLES for those who could afford 20 loss the
money they pat into them IL that should DO
their luck. Experience has demonstrated thar
nv estimate was. on the whole. correct and
while some or the stocks which were then com
ing on the market have urned ont Iailv either
from nl5managennent or from dishonesty the
malopty have done well, anu can be sold al a
considerable profit
As 70 the opportunities which the industrial
stocks AFFORD FOR unfair Stock Exchange opera-
lions, which Is cha gei against this class OF in
Nestments as peculiar defect. nothing could
be les, well founded Those who Condemn an
gar refneres. Lead Trust. Disti ers and Cattle
Feeders Trust and Cotonseed Oh Trust stocks
as mere gambling counters manipulated by
sharpers for the purpose OF preying upon the
pubic; must be very inexperienced IN the ways
OF wall street or else must vi fully misrepre-
sent the facts. fr m the commencement OF
railroad building sh res IN railroad companies
have been dealt n sleculsiiyely. aud &
man need not he as old as | am 10 re-
member Fisk and Goulds operations in tho
99.d Lrie. railroad stock against Daniel
Drew and Commodore Vanderbilt, and the
5 own alternate cornering and let |
ing out OF New York Central stock until IL
suited his purpose TO maze II a conservative |
Investment His son William III ulayed |
a Ike game with Western Union Telegraph |
stock. and the street was so often deceived |
With rumors OF the companys approaching