New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-04-17
THE REMEDY FOR MONOPOLIES.

An inherent weakness of trusts. pools and
other combinations - maintain an arih01l
piicc for products or services i iordbly Mus
trated by the experience of the WhiSlicy Trust
Not lons ago il will be remembered, this com
pany through it, president Indignantly denied
the assertion that it was in any financial danger
through the purchas, Of dsfileIcs started T.
compete with it. But AT the recent annual
meeting the same president officially stated that
the policy Of buying up all the dls.llcrcS start
cd T. compete with the company had involved
heavy expenses and loses; that 1t only en-
couIaged more competitors tO enter the held :;
that the company ought in future 70 refuse -
purchase competing concern at any price. ana
that a large issue Of bonds was Necessary =
enable the comIany 10 meet Obligations. NJ a
meeting on Friday the issue of bonds was an
thorzed and it was decided that IN future the
company would buy ~ more concerns. bu'
would try to kill off competition by putting
down the price of the product.
This is no new experience. 1t has been The
fate OF almost every combination designed TO
cxtolt money from the public by maintaining
unnatural prices for products or fJr services.
Il is not long since the Sugar Truss was for-ci
10 make such TENS with Mr.. Sprcckel> that
his costly refinery AT Philadelphia was virtually
bought for more than il cost. He had put up
the works solely because the artificial price of
sugar maintained by the trust offered cXcop-
tional attractions for capital employed in tina:
blsincss. Whether the competition was profit
abb, {, him CT moi. the trust found II ~ 60 ~
that il preferred I, make comp 0mlsc. But
every such performance lessons the profits of
those engaged in combination, by incrca>in.
the number Of those who divide them. Rail
road combinations have had exactly the SINE
result. The old trunk line pool was highly
profitable, and it seemed likely 10 live a long
time, because building a new railroad takes
wears and involves the risk of many millions.
But the great profits realized were a sufficient
jnducomeit The West Shore and Nickel Plate
were built at enormous expense by a combna-
ton Of capitalists who felt certain that they
could either divide the profits Of the pool or
force purchase Of their roaI>. After Il pro-
longed war of rates even the powerful New
York Central found i, eypedicnt TO buy up the
new competing lines, and paid such a price that
the prjli,s and dividends Of that company nave
been distinctly reduced for many years 10 come.
Strictly speaking this was the price it paid
for the exceptional profits realized while the
pool lasted.
The same principle extends to almost all
other branches of business. For some months
there has been wheat corner at Chicago, and
the controlling spectators, by securing great
part Of the elevator room, held the public by
tho throat and were able to make the price what
they pleased l,nt now it is announced that
Armour, the great packing king, has nearly
completed an enormous new elevator, which
will be ready for use May |, through which q
vast quantity of wheat can be empticd on the
clique. Monopoles Of labor are not exempt
from the same risk. Whenever any trade sue
ceeds in establishing for its services an cxcep-
tionaly high rate OF wages it is suddenly as
sailed from all quarters by an invasion of
hands, some from distant lands. some from
other occupations here and some who have
left that particular employ ment years ago for
other business, but come back 10 it because
of the higher wages Obtainable Many strike
has ended in disaster because the supply OF
new and competent men proved so much great
er than had been expected.
All combinations To extcrt from the public
unnatural returns for services or products have
this radical weakness. They invite kind Of
which is certain in the end 70 cut
down their profits, no one can tell how much,
and which often leaves the business over
crowded as to be depressed and comparatively
Improbable for many years. This is the natu-
rel remedy against . monopolidng tendency,