New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1897-02-12
LIGHT ABOUT TRT SITS.

Ii NAV be worth while for investigators OF
trusts and trade combinations to give closer
study To the fact that these organizations almost
invariably come into existence during periods
of great depression. either in business generally,
or i'm the particular kind Of business organized.
for the purpose of defence against such I'M
usual strain. aud that they break down almost
invariably when better times come with pros
pect that there will he enough business for all.
so that competition between domestic producers
is less likely 10 be destructive. There are few
trusts or similar combinations which do not
illustrate the correctness of this general rule
The Standard oil Company was formed 10 pre-
vent disaster by business depression and eX-
cessive competition. but has been 50 managed
that il has not broken down. The Sugar Trust
was formed under similar circumstances, but
has burdencd itself heavily by purchase and
closing of competing works and has for years
given to the public no reports serving to show
whether 1t has been profitable outside OF opera
tons in the stock market or not. Each Of these
affects a special branch Cf business. not de-
pendent on or closely connected with others.
But the experience Of the last year in The iron
and steel industry throws a food Of light upon
the conditions which ordinarily surround such
organizations The steel Rail Trust. which has
years old having been organized in August. 1887,
but was completely broken in 1893. though after
ward reconstructed Evidently an organization
comprising no more than fifteen concerns nj the
outset. and recently no more than six distinct
competitors. can be more easily maintained than
Others which involve reconciling far more
numerous conflicting interests and in addition
this combination was conducted for years with
brought TO the direction of such organizations.
II is a striking fact that all the other combina-
tons in that great Industry the Steel Billet
Pool the Steel Beam Association. the two Wire
Nail associations, the Tinplalc Association. the
Bar Association. other combinations of more or
less defnitenesS or importance, with the great
coke and iron ore combinations were all formed
during the prostration of business caused by the
Democratic tariff revolution. and all OF them
have either completely broken down within
absut three months after the election in Novem-
Der or have been changed that they no longer
control prces This Is not an accident. The
fact that the Beam Pool has been revived for "A
time does not affect the instructiveneSs Of the
lesson. nor the fact that the Iron Bar Ass0cia-
zion still persists in trying TO get higher price
FOR iron than is everywhere paid for steel bars,
nor the fact that the coke combination claims
n price which is ia fact not regarded in some
large contracts The general collapse OF these
defensive organizations has distinct and eX-
ceedingly instructive message for those who
suppose that the public can be defended only by
strIpgent legislation against eXt0rtion through
trade organizations
IL IL not here the purpose to consider whether
such legislation is or is not practicable and use
full Whether much can be done for the public
good In that way or not. whether constitutional
difficulties are or are not 10 be overcome does
not affect the fact that natural laws Of business
tend with almost irresistible power to over
throw every combination which works against
the interests Of the people whole II Is
plain that in 1896. when the difference between
prices of Bcsscmer pig-iron aud Of billeis, as
stated by the Iron and Steel Association, was
So 60 per ion. and the difference between the
price OF billes and the price Of rails, according
10 the same authority. was 50 IL per ton. max
ing S15 Sc per ton between pig-irOn and rails the
public interest was not regarded. The result is
now plain. The same is true Of the nail com.
binafion. with equally clear results
The invitation TO new competitors, on the one