The sun. [volume] (New York [N.Y.]) 1833-1916, 1896-11-15
QUESTIONS OF THE DAY.
A n OF 7Ru>rS.
Their Value Tn Decrcnainx the Cost OF Fro
ductioa and Their Great DISTRIBUTION.

euNhh"A ~ NNue
To TIN EDITOR OF THE suN-Sir: Gigantic
corporations engaged In production OF distribu.
tion have rendered beneiccnt service to human.
fly whom controlled bv intelligence and integrity.
They have reduced the cost OF production and
distribution without lessening the rewards OF
labor, or, In other words, they have increased
the purchasing power of wages.
They have enabled the wage Garner. 90 he day
laborer, salesman, artisan, engineer, cashier,
lawyer, physician. inventor, tutor. professor,
editor, general manager. or president. to pur-
chase more of tho necessaries. comforts, and
luxuries of life with his daily. weekly, monthly,
or yearly salary or professional fees than he
otherwise could have done; therefore they are a
blessing to humanity.
Revenue reformers in this country have
denounced largo corporations engaged in
tenefcont production. called them trusts,
and charged them with robbing tho con-
sumner under the authority and with tho
sanction OF tho State. They declare them
to be the evil and legitimate fruit of the Amer
lean policy of protection, and would have us
adopt the fiscal policy of Great Britain NJ n
model for raising revenue; yet no industrial
nation in the world has so largo a number OF
gigantic corporations as Great Britain.
Gigantic corporations arc the legitimate and
beneicent fruit of the pressure applied by tho
consumer, on the one hand, for "a reduction In
tne cost OF prOuuCtlOn anu ulSLTlDutiOn, anu thb
artisan or wage Garner, on the other hand. for II
direct or indirect increase in wages. To meet
the demand OF both Glasses. labor-snving ma
ohinery has been invented and called into use.
scientific processes have been discovered mad
adopted, labor has been skilfully divided. sub.
divided, and systematically employed. and the.
percentage charge for expenses of management
reduced by an increase in the production per
capita of the employees.
The New York Central Railway Company is
as much n trust AS the Standard on Cos.-
pauy or the American Sugar Refining Com
pany. The railway company has reduced the
cost of distribution since 1t was organized, and
also improved the character of tho service rem
dered to the public in every feature. The vari-
Gus railways forming the New York Central and
Hudson Railway were consolidated in 1854.
The average cost of carrying n ton OF freight
one hundred miles in that year was S2.9J. whilo
the average cost of carrying it the same dis
tance In 1894 was IL cents, or less than one
fourth OF the cost forty years ago.
The Standard Oil Company has reduced the
cost of refined petroleum To the consumer, and
improved the quality at the same time, and in
addition lessened the cost of distributing.
The American Sugar Refining Company has
accomplished tho same results for the sugar
consumer. The refining of sugar costs the con-
sumcr less at the present timo than at any pre-.
Nioob y W. III ~ = " Nv ilsAiebIS. oii
the quality of the refined article never has been
surpassed.
To accomplish these benefcent results neither
of those two corporations has reduced the wages
Of its employees. The reduction in cost has
been secured through the introd uction OF eco
nomic scientific processes and improved me-
chanical devices, which cannot be prohtaU.y
employed except in gigantic establishments.
The New York Clearing House Is a gigantic
naaoofatinn rnrnnrntioo mr. haptipr trn-a NJ
banker has ever charged it with robbing those
who use its facilities, or. in other words, its Gus
toners. 1t facilitates the settlement of bank
balances with the least delay, risk, and cost.
The Cotton and Produce exchanges are both
gigantic corporations for facilitating the pur-
chase and sale OF cotton. grain. AID other agrl-
cultural products with the least possible de-
lay and risk and at the lowest possible cost.
The farmers. planters, and members of the ex-
changes receive the best in formation respecting
the present and future supply of cotton and
grain and the demand for them that organized
capital can obtain at a minimum cost.
A great public library is a trust in the same
sense, organized for the purpose of supply
ing books to readers at a low cost. thereby Sc
curing to the poor an opportunity of reading
which in the past had only been enjoyed by
the wealthy.
Telegraph and telephone companies or corpo-
"htoh eAS bAIobbtS " - AoA
the purpose of reducing the cost of distributing
They are called into existence in
obedience to the same force which compelled
the organization of the particular trusts chosen
for denunciatiou by the demagoGues.
The tall buildings erected at the business CEN
tres OF our great cities are trusts. In the same
sense, for supplying offices at a reduced cost.
The high price of land compelled their erection
TO meet the demand for a reduction in rents.
Tho cnnatructInn NJ n thnuSau6 offices unIar ona
roof admits of a reduction in the cost OF heating,
lighting, ~janitor service. and ground rent. and
therefore a reduction in the rent charge without
reducing the income or wages of the party or
corporation by whom they are erected.
Greenwood Cemetery Is n gigantic corporation
or trust for reducing the cost of b|urying the
dead. II each family lad its own graveyard
the cost would be enormously increased and
the public health endangered.
The Brooklyn City Railway Company Is u
gigantic corporation or trust for the transfer OF
passengers from one part OF the city TO- another
for q nominal fee. 1t transfers 400 900 passen-
gers per day at a per capita charge OF five cents.
II IL maintained its present service for 100, 900
shareholders, cOrpOratnrs. or customers per day
the charge necessarily would be 20 cents per
capita, unless the wages Of It's employees were
more persons using its facilities for transporta-
ton which makes possible n fye:cent fare with
nitude of is operations enables it to render an
improved service at a reduced cost to the CO.
0peratorb, ana IL i.OuD,uUD CoOptTatoTs uhtu lls
facilities, tho fare could be reduced to three
cents without reducing the wages paid.
Our great department stores are practical
gigantic corporations or trusts for the purpose
OF reducing the cost of distributing food. cloth
ing, furniture, and other articles. whether they
are controlled by a single Individual, n CO. part
nership. or a corporation. The greater their
magnitude. the more perfect the division of
labor. tho greater will re the reduction In the
cost OF distributing the merchandise which they
buy and sell.
The cooperative retail stores established in
Great Britain by wage earners forty years ago
for distributing the necessaries OF life at n re-
duced cost TO wage-eRTning consumers, are tho
model after which our gigantic, productive, and
distribntive, corporations or trusts are organ
lied. The low wages which British artisans
were compelled TO accept compelled them TO
devise some method for a red uctlon ~ tho cost
consumed. They found it in union, or co6porn-
ton. The same principle has brought about the
adoption. of the same policy In production and
distribution In this country ms well as in all
other Intelligent, industrial communities. IL
has call ed into. existence great orphan asylums,