The sun. [volume] (New York [N.Y.]) 1833-1916, 1892-07-16

WITH vi CupltWl buhiNitnp w 'heeNO
vestment. though tho margin OF profit DO
| so narrow that feebler concerns could not
| afford to run for 1t.
Hence this consolidation OF previously
| connecting establishments In every depart
mcnt OF business is going on STEADILY anu
the tendency will Increase as time goes on.
Tho laws of trade forco down prices TO
minimum always and everywhere. They
drive down the percentage OF proht
and keep values closer and closer
to the cost OF production. II the
profits of n department OF production
are extraordinary. competition rushes In 10
bring them down to the regular level. ltls
placer, which n fow arc not allowed TO work
alone after they have demonstrated ts rich
ness. man may get monopoly OF
manufacture for n limited period by
patent, but otherwise there Is no monopoly
in n manufacture; and tho moro profitable
n patcnt is, the more it tends to stimulate
other and moro eillcacious inventions.
The talk about trusts and combinations
OF productive enterprises being monopolies
md injurious to tho public welfare. Is the
talk of Gemagogues. IL Is nonsense. Ihcy
arc for the benefit OF tho public. Ihcy
occur because they arc necessary 10 low
prices, and because low prices mako them
necessary. They arc OF further advantage
to the public because they tond to produce
stability of prices and to prevent violent ana
damaging fluctuations In them, though the
decrease in tho cost OF production made
possible by such combinations has Its
natural Offset in turning the course
of prices downward and not upward.
They are also OF benefit to the
workmcn. Their greater strength gives
greater security to the men employed. The
laborer is sure OF his hire. When pay day
comes, he will get his wages. 1ie
does not have to take the risk involved
In working for q feeble concern. Security
and stability OF wages. therefore. &C.
company consolidation. Instead OF hav-
ing to submit to the whms. the vacillations.
and the bad business judgment insepara-
bic from the old system OF many bosses.
he works under tho leadership Of the high
est business ability obtainable.
This good fortune tho workmen Mt Home
stead enjoyed to the utmost. Tho great
capital Of the CARNEGIE company enabledit
to introduce the most costly improvements.
whereby the turnout OF production was
increased and the earnings of the operatives
correspondingly augmented. The men could
make more than those employed at small
err establishments. They made the largest
wages in tho trade. and moro than twice
as much as iron and steel opera
tives receive in England. Their pay
was sure and regular: 1t was high.
and their employment was steady.
Such were tho great advantages Of CONSOLE
dation to them. The advantage to the
company was that 1t could make money
even with very narrow margin OF profit
ternuse OF tho vast output. Both sides
were the gamers
They also enjoyed the advantage Of
having at the head OF the business o man
like Mr.. FR1CK. whom Mr.. ODoNNELL de-
scrihes as one OF tho greatest business men
OF his day. A small and poor concern could
not have afforded to hire man Of an
ability 80 extraordinary. for such ability
commands high price. and must have
large field for its exercise. The great Cen
eralwho can command great army. Is rare.
and he serves not only the State whose
commission he bears. but also. and
not less. tho interests Of the men
| under his command. Their lives are
safer under him than under an interior OFF.
cor. He looks better after their welfare
and makes their exertions moro effective.
| II his discipline is severe. so much the bet
ter for them. They cannot succeed without
such discipline. and without It their lives
are IN the greater peril.
II Mr.. FRICX managed the business at
| fairs Of the CARNEGIE mills with coDsum-
mate ability, he served the interests Of the
men employed not less than those OF the
company employing them. II he made the
enterprise profitable. all hands shared in the
benefits. and at this time when the iron and
steel business is. as Mr.. FRICK testified on
| Thursday before the Congress commit
tee, j." more depressed than at any other
time in my knowledge" they were espe-
cinlly lucky In being under man Of special
ability 80 extraordinary. When the fog is
thick and the breakers are nigh. the ship
and the ships crew need a masterful pilot.
Such ability naturally tends to great es-
Establishments like the Homestead. 1t has no
opportunity for Its full exercise In a small
business. and small business cannot pay
for 1t. 1t Is also the more requisite at a
period like this. when sharp competition ne
cessitates the most skilful management.
At Homestead 1t was joined with vast re-
resources OF capital and appliances. and
thus it enabled the workmen to mako the
highest earnings in their trade.
Never before in the history Of the world
Was the demand for extraordinary and
special ability In management so great and
SO urgent as 1t is now. Never before was
commanding ability In the individual so
sure to command. That Is the genius most
Of all needed at this period OF necessary
and salutary consolidation OF labor and
production. The leaders are few. but the
followers are many. Never before. too.
we're the perils to society from mutiny and
disorganization 90 terrible as now. Never
before was law 80 necessary and the swift
punishment Of Anarchy 80 essential.
Our Citizen Sailors.
To-day tho Naval Battalion Of the New
York National Guard will embark on tho
receiving ship New Hampshire for Graves