The morning news. [volume] (Savannah, Ga.) 1887-1900, 1896-11-29
The Danrer From Trusts.

There is a very general agreement that
something must be done to put an end
to trusts. One of the great objections to
a high protective tariff is that it opens
the way for trusts. with a high tariff
on any article produced in this country
it is an easy matter for the producers of
it to form a combination and put up the
price of it to a point just below that at
which it can be imported and sold. The
actual cost of production counts for moth
ing, because by means of the combina-
ton competition is destroyed. 1t is true
that if the profits are enormous the trust
cannot last very long unless it has control
of the sources from which the raw mate
rial is supplied. The Standard Oil Com
pany fixes and maintains the prices of
it's products because it owns or controls
about all the oil-producing territory in this
country, but trusts of that kind are very
scarce. The most of them are like the
wire nail trust that recently went to
pieces. That trust was a combination of
all the wire nail producers in this coun-
try. Two Years ago nails were selling at
50 cents a key. 1t is doubtful If there
was any profit at that price. When the
trust was formed the price was advanced
steadily until it reached $40 key. At
that price there was an enormous profit
Every person who had use for nails was
virtually robbed. The trust was abandon
ed because machines of which the trust
couldn't get control were invented by
which nails could be manufactured for
less than so cents a key. Just as soon
as the trust lost control of the market
1t ceased to be of use to those composing
it. But who can say that another nail
trust will not soon be formed which will
include the new Matchmaking machines?
In the early part of the present cotton
season the cotton tie manufacturers form
ed trust and put up the price of cotton
ties. There is no tariff on cotton ties,
but the cotton tie manufacturers hoped to
make a large amount of money before
cotton ties could be brought from Eng
land and distributed throughout the cot
ton territory. The trust lasted only lit
tie while, because the importing of ties
began.
How to deal with trusts successfully is
q problem that has not yet been solved.
Some time ago we suggested that the
prices of articles controlled by trusts be
fixed. just as railroad rates are, namely,
by commissions. We are not prepared to
say the purpose of trust, which is Ia
gouge the people, could be defeated in this
way, but we think it could. Any way, that
plan of dealing with trusts is we'll worth
trying.
One thing is certain. It is that the feel
ing against trusts is steadily becoming
more bitter. BY means of them a few
citizens accumulate enormous fortunes.
which excite the envy of the poor. Some
way to prevent the accumulation Of vast
fortunes by such means must be found,
or else we shall have trouble of such mag
nitude as to threaten the overthrow OF
the republic. Careful observers thinl,
they already see trouble ahead on ac.
count of trusts. The fact that the people
are beginning to complain OF them very
seriously should be a warning to those
who make and administer the laws. Some
way must be found to either prevent OF
control trusts, or else we shall have troub.
| lous times.