The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-07-13

There is a good deal Of demagcgy and
much ignorance in the present cry about
trusts. There are combinations which seek
to control the distribution and price of an
article Those managing them are intent
on making them monopolies. The so-called
Sugar Trust is one of that sort. 1t does
not seek to limit the supply for the reason
that it is not a producer in the real sense,
but its object is to monopolize the refining
and distribution of sugar in the United
States. 1t proposes that no dealer shall
sell sugar who does not purchase his stock
of the American Sugar Refining Company.
1t cannot advance prices beyond the cover
Of the low limit of the present tariff be-
cause to do so would be to bring Germany
and France into competition.
Consider another case: An article of
prime Importance, under existing con-
dtions, can be put upon the mar
ket far in excess of the needs
or the capacity of community
to consume. Suppose each owner of
factory or mill pushes production to the eX-
treme The first result is the fall of the
price to a figure where there is no margin
for profit. Soon wages are cut to enable
the competitors to sell at the lowest price.
The next thing which follows is the suspen-
sion of the competitors who are financially
the weakest. Such competitors lose all, the
men whom they employ are turned TO idle
ness. and their plants fall into decay Often
hamlets built up by such industries fall into
rIliO 10 10
stocked prices are declining, so there is no
profit to the dealers. If those engaged in
this production should enter into agree
ment that each should curtail his product
so that the aggregate would not exceed the
normal demand, the transaction would be
denounced as trust, but if such a COM
bination could insure fair employment for
it's help, a reasonable profit for producer
and distributor, would it not be better than
the indiscriminate production which in
wolves all who touch it in loss?
Take the production and marketing of
soft coal. The business is profitable to
very few. Unless all reports false,
wages are insufficient to give comfortable
living. The trade is generally unsatisfac-
sumes one year with another. can be esti-
mated with comparative accuracy. If
price could be made upon the basis of fair
wages and reasonable remuneration for
handling, and the output limited to con-
sumption, the conditions of the trade would
be greatly improved. The present strike is
not due to the exactions of the mine OPP
orators, but to the ruinous competition
which has cut wages and destroyed profits.
Unless the output can be limited it will be
useless to advance wages with the eXpecta-
ton that it will stand long. If the mine
representatives could select a board to pro-
rate, on a fair basis, the amount of coal
needed among the sections producing,
prices could be sustained which would af-
ford fair wages and reasonable profits The
price would be higher than at the present
time, but it would no longer represent
losing business and inadequate wages.
Such an arrangement would be denounced
as a trust, but does it not present features
which lead to the conclusion that there can
be combinations made to insure a healthy
condition in production and distribution,
which would be better for producer, dis
tributor and consumer than the losses con-
sequent upon fierce competition and an
overstocked market?
Such a combination as will insure ade-
quate production and fair prices may not
be possible until more is learned of such
matters. Thus far, it may be added, COM
binations have SO advanced prices that
fresh competitors have been induced to en-
ter the field, bringing about the worst re-
suits of competition and ending in the col.
lapse of the so-called trusts. The cause of
the short lives of trusts is the greed of the
managers for large profits. They are evils
which bring upon themselves swift destruc-
ton. If however, taking warning from
such examples, a combination could b.
made insuring fair wages, a moderate
profit and an output suited to the market,
need it be denounced as the chief wicked
ness of the age?