The morning call., 1893-05-24
LIKE A HOUSE OF CARDS.

LIKE A HOUSE OF CARDS.
The collapse of the whisky trust follows
the collapse of the cordage trust Five
leading distilleries, all located at Peoria.
have Withdrawn, and though negotiations
are pending between President Greenhut
and their owners for their return to the
fold the opinion appears TO be that they
will stay out. a vivid light is thrown on
the trust busin SIS by the story from New
York that tspeculators suspect the secession
of the Peoria distllers to be part of bear
movement to depress whisky stock, of
which the trustees are said TO De short
The trusts seem to be doing for them
selves that which the laws failed to accom-
plish. 1t appears that cardinal error
was made by the promoters of the trusts
in neglecting to provide for a working cap
ital. The various properties were ac-
quired and put into the trusts at set val
uation. and thus far all went along
smoothly; but when the trusts had to 60
into the market to buy raw material it was
discovered that they had no money. They
were compelled to go to the banks TO bor-
row and to pay for their purchases with
acceptances, which were taken to bank
for discount. Thus it appeared, when the
cordage trust went to pieces, that every
large bank in New York, Philadelphia and
Cincinnati was full of cOrdage paper. The
trust had been doing business on borrowed
money, and when its credit was blown up
on, not only was it unable to meet pressing
demands, but it was left high and dry on
the strand. President Greenhut declares
that the whisky trust is In no such straits
that it can meet all demands on presenta-
tiou, which may or may not be the case.
| The sugar trust may have made profit
enough since its organization 10 provide a
working capital. Its leading members
have capital enough of their own to carry
! it on. But other trusts are not so solidly
planted.
! The Peoria distillers say that their dis
pute must 60 into the courts for adjust
ment. and that it is the present fashion
for courts to decide against trusts when
they can. They are right. The other day
a court in Illinois decided that the owner
of an elevator who had stored corn for a
| temporary trust in that commodity had no
claim for the use of his elevator, and now
still graver decision has been rendered in
| New York. A trust was formed in GER
tain commodity. One manufacturer re-
| fused to go into the trust, whereupon those
who did go in flooded the country with
circulars declaring that they would sell to
no one who dealt with the recalcitrant man
ufacturer. He was in effect boycotted.
lie brought suit for damages, and. under
the direction of the Judge, the jury gave
| S150.O00. 1t is going to be pretty hard for
trusts to do business under such dissbili-
/ Dba eli ha.
application in this State. Ii is not so Ions
since merchants IN San Francisco were
warned that if they imported goods from
the East by way of the Horn they could
not expect to get the same rates for their
all-rail freights as their rivals enjoyed.
When Mr.. Rockefeller and his associates
dissolved the Standard Oil trust they knew
what they were about. The Standard Oil
was probably the richest corporation in
the country. 1t had the ablest financiers
at its head, and they were advised by The
wispst lawyers. In the preliminary skir-
mishes it won easy victories. Yet, when
nobody expected. Rockefeller struck his
flag and surrendered-the Standard Oil
dissolved into its original element. Might
not that BE- good example for the other
trusts to follow?
Under the varnish and embroidery of
statute law The great fundameu tai princ-
pies of national law lie anchored. Those
principles assert the right of all men to
| life, liberty and the pursuit of happiness,
and deny to every man the privilege of
seeking his own gain to the detriment of
others. The trusts may or may not have
conformed to the provisions of the code,
| but they certainly were organized in oppo-
sitiOn to tie broad general principles of
equity. a combination which relies for
its profit on the establishment of a monOp-
poly in a commodity required by the public
is in itself a wrong and an injustice. and,
though it may be difficult to discover what
particular law it infring~s, 1t is at such
variance with the spirit of all law that il
must carry in its bosom the seeds of death.
This is the view which Rockefeller took
after he had made his millions, and when
he saw the trust system expanding.
Those who deride his example may per
haps have reason TO repent their obstinacy