The Columbian. [volume] (Bloomsburg, Pa.) 1866-1910, 1896-04-23


Production can be restricted only when
there is a complete or partial monopoly
Of sources Of supply or machinery OF
production. Monopolies 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
q product.
Second. BY more economic distribu-
tion.
Third. BY working only the best Oh
most favorably located plants.
Fourth. BY adoption Of the best ma.
Shinery 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 foi
raw materials.
The power OF trusts to advance prices
OF products and to reduce wages and
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 1t
possible to get rid Of the bad and to save
the good in them? If not, should we
destroy them!
trusts first appeared between 1860 and
1870, though some feeble efforts at COM
bination were made 200 years before.
They, however, attracted but little at
tention until about 1882. Since then
their growth has been remarkable. Out
Of 491 trusts, formed previous to 1894,
were formed between 1860 and 1870
(mostly railroad, telegraph and express
pools), 80 between 1870 and 1880, 327
between 1882 and 1890, and 178 between
1890 and 1894. One hundred and TWEEN
ty were formed in 1889 and 1890. This
list is incomplete, especially for later
years, but it indicates rapid growth,
and that trusts are usually successful in
increasing profits.
The nominal capital Of the Leather
trust is $l26, 900, 900; Beef, 800, OO0,.
900; Standard Oil, $97, 900, 600; Sugar,
$75, 900, 900; Rubber, $40, 900, 900; Cot
tcnseed Oil, $88, 900, 900; Lead, $780,
600, 900. These seven trusts have a NOM
inal capital Of over $500, 900. 900. 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, 900, ,000,.
900, and the Joint Traffic association
represents railroads with capitalization
OF nearly $4,000, 900, 900. According to
the census Of 1890, the true value of our
steam and street railways was $S, $685.
407, 1923; mines, quarries, etc., $1,2y1,-
291, ,579. Other natural monopolies-
teiegraphs, telephones, gas and electric
light plants, canals, docks, etc.--will
bring this total to about 1000, OOO,-
900. Fully two-thirds of the capital in
'OoeSo Ah shOoo hoouihA liiohOpOil6b III III
pools or some other form of trust. The
other third is not actively competing
with itself, for there never was nor never
will be full competition in any of these
industries Perhaps one-haf Of the &c.
189,397, 7S5 capital employed in manu-
factures in 1890 was and is in some
form of trust. 1t Is probable, therefore,
that about $15, 900, 900, 900 of our capi-
tai is not competing with other capital.
But this is about half of our total capital
Employed in productive industries.
Nearly all Of the remaining half, $18,-
27s. 252, 849, is employed In agriculture.
In all agricultural industries there Is Sc
we're competition. The farmer sells at
competitive prices; he buys at nonoom-
p4titive prices, or prices fixed by trusts
AID monopolies So literally true is this
settlement that it is difficult to think Of
any article sold from store or mill the
pSice Of which is not fixed to some ex-
tent by some one or more trusts. Often