The Democrat. (Scotland Neck, Halifax Co., N.C.) 1884-1896, 1896-04-30

means for causing prices to advance
Production can be restricted only when
there is complete or partial monopoly
of sources Of supply or machinery OF
production. Monopoies are of two kinds
Natural and artificial. Natural depend
upon the limitations of nature artificial,
upon the limitations or restrictions OF
legislation. Mines railroads and tele-
graphs are natural monopolies. Patents
and copyrights produce artificial mo-
nopolies. Natural monopolies, however,
are often strengthened by tariff and 9th
or trade restricting laws
Cost of production may be lowered
First-By reducing the cost Of selling
product.
Second. By more economic distribu
ton.
Third By working only the best or
most favorably located plants.
Fourth By adoption of the best ma
chinery and methods previously IN use in
any Of the plants,
Fifth By, better utilization of ma
terials and the saving of waste products.
Sixth BY reducing wages.
Seventh. BY reducing prices paid for
raw materials
o. The poYsr 9f trusts t t4 Rd5yanes prisf
cost of raw material is very great. The
exercise Of such power is considered
harmful and is unlawful. The power of
trusts TO reduce cost of production in any
of the first five ways mentioned is also
very great, and its exercise is considered
beneficial to mankind. Therefore trusts
are potentially both good and bad Is it
possible to get rid of the bad and TO save
the good IN them? If not, should we
destroy them?
In the modern sense Of the word
trusts first appeared between 1860 and
1870, though some feeble efforts at com
bination We're made goo years before.
They, however, attracted but little at
tentiOn until about 1892 Since then
their growth has been remarkable. Out
Of 49l trusts, formed previous to 1894,
We're formed between 1860 and 1870
(mostly railroad, telegraph and express
poOls), 80 between 1870 and 1880, 327
between l $50 and 1890, and IS between
1890 and 1894. One hundred and TWEEN
ty were formed in 1899 and 1890. This
list is incomplete, especially for later
years, but 1t Indicates a rapid growth,
and that trusts are usually successful in
increasing profits.
The nominal capital of the Leather
trust is $l26, 600, 900; Beef, 500, 900, :
600; Standard Oil, S91, 900, 600; Sugar,
SO, 900, 600; Rubber, $40, GEO, 600; Cot
tonseed OIL, SIS, 600, 600, Lead, $780,
coo, GOO These seven trusts have nom
tnal capital of over 5000, 900, 600. None
OF these trusts depends mainly upon nat
ural monopolies. The Anthracite Coal
trust now represents railroad and min
ing interests valued at over 81 600, 900, :
600, and the Joint Traffic association
represents railroads with a capitalization
OF nearly 8, 900, 900, 600. According to
the census OF 1890, TIE true value of our
steam and street railways was IS, $685.
40i ,323; mines, quarrieS, etc, 81 ,2Y1,-
29l, 5a9. Other natural monopolies-
teleSraphs, telephones, gas and electric
light plants, canals, docks, etc will
bring this total to about $12, 900, OOO,-
coo. Fully two-thirds of the capital in
vested III these natural monopolies is in
pools or some ether form of trust The
other third is not actively connecting
with itself, for there never was nor never
industries. Perhaps one-half of the So, :
1889 I65 capital employed in manu-
features IN 1890 was and is in some
form OF trust. 1t is probable therefore,
that about $15, 600, 600, 600 of our CAPT
tai Is not competing with other capital
But this Is about half of our total capital
employed III productive industries
Nearly all Of the remaining half, S13,-
go 2o2, 649, IS employed in agriculture.
In all agricultural industries there is Sc
we're competition. The farmer sells at
competitive prices; he buys at noncom-
petltlye prices, or prices fixed by trusts
and monopolles So literally true is this
statement that it is difficult to think of
any article sold from store or mill the
price OF which is not fixed to some ex
sent by some one or more trusts. Often
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