The herald., 1896-12-03
MARKETS OF THE WORLD
Local. Eastern AM Foreign
Commercial Dealings
WALL STREET SPECULATION
Burning Corn Instead of Coal Reducing
Surplus
The Casualty and Liability Insurance
Rates Being Raised-Trade Combina-
tions Have Bad Effect in Canada

There seems to be a determined effort on
the part of producers to reduce the surplus
stock of corn by using it for fuel. Min
nesota and the Dakotas will join Kansas,
Nebraska and Iowa in substituting corn
for coal this winter The high price OF
coal this year is making corn more desir-
able than ever for fuel. Soft coal costs
the Minnesota and Dakota farmers from
$l.75 to $5.25 q ton, and anthracite from
$3.50 to $11; consequently corn at present
prices is cheaper than either.
The low price of corn is also tempting g
foreigners, as the following table of eX-
ports will show:
First ten months of 1898. 49, 424, 435 bu
First ten months of 1S94........ 3S645, ,219 bu
First ten months of 1885,. AZ 1881, $40 btl
First ten months of 1896 ....... .10S 554, ,l9 bu
These figures are given out by the bureau
of statistics of the treasury department.
Mexico is buying large quantities of corn
from us this year, and England and Ger
many are also in the market.
BY exporting it. using it for fuel, con-
vertng it into beef and pork, the large sur
plus left over from last year and the great
crop of this year, are gradually being re-
duced. 1t is a slow process, but it counts
in time.-Kansas City Packer.
A London exchange says: "a compact
with the object of raising rates has been
formed by the leading casualty and liza
bility insurance companies of the United
States. II comprises the United States
Casualty, the Employers Liability, the
Union Casualty, the Standard. the Fidel-
tty and Casualty and the London Guaran-
tee. These companies declare that they
lost money last year. and that all the COM
panies which went into competition at re-
duced rates failed. They will still have
to contend, however, with one company in
California, the Frankfort of Germany,
Lar IL tr1v 1,a1l Il.
action in doing so delayed the promulga-
ton of the new scale of rates, which took
effect on the 18th inst An advance of AZ
per cent. such as this scale discloses, should
enable the recalcitrant Frankfort to put
its rates on a paying basis much below the
tariff of the ring. and still to get the bulk
of the business on the Pacific coast, where
the premiums reach about $25O,0O0 annu-
ally
The conditions in Canada have proved
peculiarly suitable to the growth of trade
monopolies, and many staple commodities
are produced under their control. If the
old adage that competition is the life of
trade be true, then trade in Canada lies
in the throes of death. There are monopo-
lies in England one the continent and in
the United States, but in no country, per-
haps. have more determined efforts been
made to put down competition than in
Canada. All "monopolies' 'or "combina-
tions" do not come within the same class
Incy may DE UlVlueu INTO Two groups
first, a combination of producers IN which
all interests are merged in a common un-
dertaking; second, more or less formal
agreement of those engaged in the same
business to restrict competition. A combi-
nation of the first class need not necessar.
lily be opposed to the public interest. The
saving effected through Il union of pro.
ductive forces may lead to IL reduction o
prices. and result in a benefit to the pub
lie. There are companies in Canada, form.
ed by an amalgamation of firms that were
working without a profit, who have sue
cessfully accomplished the feat of reduc
ing prices, and at the same time making
dividends for shareholders. If combina.
tions of this class We're prepared to com.
pete fairly with such rivals as remained
i'll the field after the amalgamation, or who
began business after the combination had
been formed( there would be little ground
for criticism. But possessing q prepon-
derance of the trade there is apparently
an Unsuitable desire to swallow up all the
business of the country The trade must
buy all goods from the combination under
penalty of paying additional prices for sup
plies not purchasable from independent
manufacturers. In some instances 1t is
case Of buying all combination goods or
no combination goods, the company refus-
ing to sell any products to traders who buy
from Independent manufacturers.-Tor
Monetary Times.