The representative. [volume] (St. Paul, Minn.) 1893-1901, 1897-10-27
REMEDY FOR TRUST ABUSES.

REMEDY FOR TRUST ABUSES.
Byron w. Holt. of New York. in a re-
cent speech before the Boston Reform
Club, presented a startling array of figures
showing the enormous profits Of the sugar
trust under the operation Of the legislation
secured at Washington in it's favor. He
said that the retail price of granulated
sugar, which constitutes about nine-tenths
of all the sugar consumed in this country,
is about 513 cents a pound. or 1S pounds
for 81. When a family invests 81 in sugar
1t pays about 55 cents for sugar and As
cents for tariff. At present out of this IS
cents the government is getting about 20
cents, the reflners' monopoly 20 cents, and
the sugar growers and wholesale grOcers
the remaining five cents Next year, VIXEN
the refined is made from the raw sugar
on which the present duties have been paid,
the government will get about 25 cents and
the refiners about Is cents. OF the $1S
which the average family will spend for
sugar this year $40 will go for sugar, $4 so
to the government, So to the sugar trust
and so cents to sugar growers and whole
sale grccers. AS sugar account amounts
to about 5000 OOO,O 600 a year. the sugar trust
sugar tax.
1t will be seen that the sugar trust is
getting by far too large a proportion Of
the sugar duty. Consumers, knowing the
revenue necessities Of the government
would pay the duty with equanimity If they
knew that proper proportion of it was
going into the national treasury. 1t was
reported at the time the tariff bill was
pending that the trust was able to get
about what it wanted at the hands Of con-
I gress, ane-thig znppeurs- have proven
true. 1t accounts in great measure Of the
rise of more than $50 per share in the sugar
trusts common stock.
In discussion Of the remedy for trusts
the Boston Commercial Bulletin truthfu!ly
| remarks that lone of the worst features Of
the trust system is the influence which
these vast aggregations of capital can and
do exert on legislatures. This is the danger
Gus factor in the trust system; the others
are temporary and sooner later must
succumb to the natural laws of trade
The Bulletin further remarks, that the
difficulty to start with Is the facility with
which corporations can get charters in
states where the corporation laws are
most lax whether they do any business
there or not; and suggests that the people,
as the best antitrust weapon in their
hands, compel their legislatures to limit to
a moderate sum the amount Of stock and
bonds which any corporation may issue,
and also to prevent the issue of any stock
or bonds which have no actual basis Of
value behind them.
The people of the United States of c, urso
in hni
through their power to elect the state
legislatures and the members Of congress
The only question is If they can be suf-
hciently aroused to use this power. The
prevention Of capital watering is the one
most important reform upon which they
should insist; it is, in fact, the key to the
whole reformation Of trust abuses Com
bnations Of capital for legitimate purposes
II upon an honest basis. are not inimcal
TO trade. On the contrary, they are pro-
motive OF enterprise and development But
combinations to squeeze ilegitimate profits
out OF Watered stock and bonds representing
little or no cash outlay, become an oppres-
slve burden upon the consuming public It
II their 'nvariable tendency to resort to
congress or the state legislature for enact
ments which will give them advantage
over capital invested in a legitimate man.
ner and only at it's actual value Reform.
to be effective. must begin at the be-
ginning.
The foregoing taken from the Trib-
une, contains many grains of Populis;n
curiously mingled with childlike SIM
plicity and Republican logic
1t frankly admits the Populist con-
tention that concentrated wealth cor
rupts our law makers, makes our laws,
and through these laws oppresses the
people
After stating that "one of the worst
features of the trust system is the in
fluence which these vast aggregations Of
capital can and do exert on legisla-
tures," it makes the childish and illogi-
cal assertion that "the people Of the
United States of course have the reme-
dy in their own hands, through their
power to elect the state legislators md
members of congress"
How can it avail the people to elect
state legislatures and congresses, when,
as the Tribune admits, the trusts have
the influence" after their election.
The peoples power to elect is the
shadow. The trusts power to 'inf1u-
ence," to formulate and control legisla-
tion is the substance. The peoples
power to elect is phantom, the trusts
power to make laws is reality.
Dir0t legislation, and that only,
would reverse these present conditions
and give to the trusts the phantom and
to the people the reality, which they
rightfully should possess. E. A. T.