The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1897-03-05
THE BENEFITS AND THE EVIL

In the investigation OF trusts by
the LeXow committee in New York
the other day, Mr.. B. f. Thurber, who
for many years has been a leading
wholesale grocer in that city, and who
has spent great deal of time in study
ing the effect of large aggregations oil
capital upon society, gave few facts
that are seldom taken into considera
tion when such matters are usually
discussed. Mr.. Thurber found that
in spite of the grave apprehension on
the part of the public as to the bad
effect of the vast combination of CAPT
tai by railroad organizations, freight
charges have been reduced per mile
from 3.0S cents in 1865, to OH cents
in 1895. He found further that the
Standard Oil company had reduced
the price of refined Illuminating oils
to the consumer from PSI per gallon
in 1871, to 40 cents in 1895, and 6.S
cents in 1897. This of course is the
price in New York city, Third, he
found that the average price OF granu-
lated sugar for nine years prior to the
organization Of the trust" was almost
8 cents per pound, whereas the average
price per pound for five years since its
organization is bare fraction 81
cents. There is nothing in these
figures showing that the public has
suffered materially at the hands Of
these trusts and combinations.
Regarding the assertion that trusts
reduces the number Of men employed,
Mr.. James B. Duke, president Of the
American Tobacco company testified
that it had not. He showed that I'M
der the organized companies the num-
Der Of men employed in the manu-
facture of tobacco had largely in
creased. When the combination was
first made the number Of persons en-
ployed was $685., and these have been
increased to 9,l94 persons, all Of whom
are well paid. The history of other
combinations are much the same.
These are some of the features that
are rarely touched upon in the whole
sale condemnation that is INDUCED in
of such organizations.
There is one feature OF the trusts
and combinations that is often refer
J red to, that has been strongly brought
ought in the LeXow investigation,
and that is the evil Of Watered stock.
In the investigation of the sugar
trust, it was brought out that of the
S9S, 900, 900 of stock that the combiua-
tion holds, all but $40, 100000 of it rep
resented water. In other words the
combination is squeezing profits out
of the public on SIS, 900, 900 Of "water."
This represents very small fraction
of cent on a pound of sugar, but it
aggregated total profit of over S42,-
600, 900 in 1896. This evil of 'watered
stock" is great feature of all trusts
and combinations. 1t is the method
by which the greed of man perverts
great principle of advancing civiliza-
tion, that ought to prove beneficial to
the masses, to the great personal bene-
fit of favored few. There is no doubt
but that the public has benefited
from these aggregations of capital to
, greater extent then it realizes. But
| the full benefit of this advance has not
been realized by the masses. If legis-
lation can be devised that will meet
this evil of "watered STOCK" it Will
doubtless do more to meet the
troubles that are complained of from
trusts and combinations then all the
trust legislation that has so far, or is
ever likely to be devised, for no COM
bination in these days can put a price
upon an article that will realize such
a profit to it's members on an actual
capital of 100000 as is now secured
, upon a so-called capital of $98, OOO,OO
, If the water can be squeezed out OF
these organizations, one of the greatest
, evils will be met. This is the real
practical problem that confronts So
ciety in the matter of trusts, and it
; should not be obscured by the cry OF
the demagogue.