The times. [volume] (Richmond, Va.) 1890-1903, 1897-01-29
1Hn c1AMoR AGAINsr tRUsrs
Tho Combination Of Capital nnd Enter
prise Beneficial to society.

Tho Combination OF Capital ana Enter
prise Beneficial to society.
TO thc Editor OF the Sun:
sir,-rhe revived clamOr against trusts
the enactment of new laws IN many
States to punish combinations formed, IL
Is alleged, TO raise the prices OF articles
of merchandise. and the probable appoint
mcut OF a committee OF our own Lesl7ia-
ture TO Investigate the subject and frame
remedial legislation II necessary lmpei
me TO direct attention. as 1 have zone
many times in ;he past, to truths which
are as Old ana as common as the mis-
but are often strangely forgotten.
10 is as true Of business life as II is or
animal or vegetable. that IL IS the fitest
that must and does survive. 1t is dis-
passionate. pitiless. and answering law.
The fttest IN business means the man
or the company that can sell the best
thing at the cheapest price. The struggle
that in the animal world l. violence lh
business IS represented by competition.
The application of the law may seem
harsh I'm individual instances, and sym
pathy. outrunnng Judgment may at
tempt 10 interfere with II. But all such
attempts are alike fruitless and unde-
srable. fruitloss because they are an at
tack upon q law OF nature. undesirable,
because
the expense Of the many and compel the
entire community 10 pay high prices for
that which can be sold at lower prices.
II a man. q company or a trust can sell
anything no certain figure, no law
ought TO keep alive a feeble competitor
whose needs compel him 10 sell Ii high
er.
The tendency Of the rates Of return ON
all forms OF invested capital Is toward an
equality. III 10 is found that the profit OF
any business is greater than the profit
Of the average business capital viii seek
that business as water seeks level 1T
manufacturer making cotton cloth at
20 profit of per cent. ON the capital IN
vested inds that "a brother manufacturer
in the same street Is making knit stock
ings az a. profit Of per cent. on the
capital invested be will make stockings
instead OF cloth in h's factory. This
is the natural check which economic
laws afford with far greater efficacy than
pertains 10 amy act Of Congress or Legs
lature, TO unjust monopolies or 20 profits
beyond the bounds Of reason. Two or
three centurics ago obstacles to the play
Of such reactions might have been raised
by q tyrannicai monarch. hut such OBJ
sacles are rare in any civilized country
to-day. and least Of an in our own land.
where an avenues are open and where
every nun has chance. 80 monopoly
cln he maintained here which does not
undorsoil in tie Oren market every COM
potif0r. Tho economic history Of our
country IS full Of emls hcd corners traf-
fc agreements trust deeds. pools and
an sorts OF similar arrangements which
sought TO set aside this fundamental
law. and were them elves destroyed. The
only trusts. so-callod. which have lived
have justified their economic existence
by continual reduction Of prices 90
ihe consumer and 20 levels below that
attained Dv an their rivals. Such being
the case. 70 is evident that tho statutes
raesed ~ interfere with the legal eNis-
tcrce Of thee combinations are them
solves the laws in restraint Of trade.
They IRE based u00n the ignorant fel-
lacy that free competition necessarily
means many sellers or producers Of an
article. and that it nay not result a.
II often does. I'm the concentration Of
such SAFE or production in few strong
hands
The tendency Of an modern business IS
toward this economy of production and
these low prices. Tho chief Instruments
~ tho tendency gro two consolidated ana
dn1iy directed efforts by the trusts and
labor-sav.ng and times1vIu- machinery.
The benefits that thcr have conferred
, uron thc human race ere beyond All es-
timat0n. yet both hiV. encountered. fof
Identical reaeon the Interest opposition.
che hostility fl Labor" aving Inventions
las subsded aud n itr rise and fall may
be traced with fxac,ness the character.
/ progress. and Ultimate itio OF the hos
tiity 10 concentrations of capital When.
in the middle Of this century. machines
began 90 be multiplied bv which one
man could DO Tie work OF five or ten
men. noorle Who could not look beyond
superficial ana fugitive circumstances ass
serted that the now methods meant
| diminished numi or of employers ana em-
pl0ycd and finally. the elimination OF
on competition and the creation Of mo-
nopolIcs which would hold consumers az
their mercy. Tho opposition assumed
many forms-stringent laws. edicts Of
trade Unions riots. inccndiarism. ass1ssi-
nation-Dut II did not stay business enter-
prise ana the invcndvcness or the nm
man mind. Then II was found that the
| ilnacincd evils Gid not arrive, ana thit
! In their place IN fact. came advantage.
! Tho number Of obi employers was lor
| time, propcriionately decreased bur sim
! ply because some Of them wanted inc
! pnhlic 10 Joy them higher prices than
were asked hv their aeighbors. IT they
wore mon OF ordinary energy ana ihtelh-
| eenco they wont into other businesses.
and thorc succeeded. The number OF
| cmplcyeos. instead Of being lessened was
! Increased. and tic needs OF men instead
Of being filed 20 renieiion, were aus
menfcd and sharnorod fin thousand
| novel ways r. was discovered th2t mo-
nonolios might exist in theory. bot 10
their practical operation in free coun-
| Try was opposed an inexoranie ana auto
matte bar. Tho similarity Of this on
| position to that against trusts is obvious.
| Tie operation Of these great forces mas
| nrt wrought Injury. hut prosperity. ih
our oNn country. while the population
I has only little more than d0HA-la ~