The Superior times. [volume] (Superior, Wis.) 1870-1912, 1897-10-16
The Truth About Trusts.

IL he truth ABOUT trusts.
Gunton's Magazine for October con-
talns an article under the above cap
ton by Ex-Governor Roosevelt L.
Flower, of New York, which was writ
ten as reply to some Criticisms made
by various journals upon some remarks
he had made about trusts, and also 10
show that trusts are not, or at least
many OF them are not, what they seem,
when properly understood. At the out
set he states the general view of the
majority IS to their economic effect upon
the community:
"The constant movement of capital
toward larger aggrcgatlons IN productive
enterprise, concentrating the prOduC-
tive power of the community III rcla-
lively smaller number of hands, and
the crowding Of smaller individual pro-
duccrs out of the ranks of capitalists
into the domain of wage or salary work
ers. is regarded as an economic injury
to the community, and its consequences
upon society are very generally assumed
to be in the interest OF the few. 1t Is
treated as the enemy of personal and
political freedom and contrary to the
the spirit of civilization
He then proceeds to show that there
are, in the main, no grounds for this
belief:
Let me ask" he SAYS, "what is the
economic tendency of capital? 1t must
be admitted that the tendency OF mod
ern capital Is toward the organization
of larger concerns, bringing greater
productive power under single man
agement Is this an arbitrary, artiti-
cial or natural economic tendency? If
it be an arbitrary movement of capital,
brought about hv artificial devices, it
may well be feared; bnt il it Is a neces-
sarv economic tendency inherent in
the advancing movement OF society, we
NAV hesitate before proclalmlng 1t i ma
tionaI evil or menace.
THAT it Is not an arbitrary move
ment, controlled by artificial or even
conscious devices is evident from the
Tact that it is as universal as the pro-
greSsive tendency of society Without
Il single exception, so lar as know, IN
the industrial history of The world
the advance of civilization, that
Is to say, the increase of material well
fare, is everywhere accompanied by, if
not attributable to, this concentrating
tendency Of capital. Where this tend
encv is less noticeable, as in Africa and
Asia, the other attributes of welfare and
progress are wanting, IN those countries
where this concentrating tendency of
capital has been most marked, progress
in all the phases of a superior ciyiliza
ton has been most conspicuous.
The universal nature Of this move
ment proves lis naturaineSs; aud l think
this tendency is economic. 1t moves in
this direction on the principle of SELL
preservation. Capital has but one func
ton, viz, to aid in production. 1t is
only an economic tool. The self-pres-
ervation Of capital in any industry de-
ponds upon its ability 10 produce wealth
as cheaply as its competitors. Unlike
other forms oi wealth, capital once in
vested can never be recovered except
through It's earnings. l. 1t fails to be
produciive, it * lost: hence its very eN-
isten2e depends upon its profitable
.mplovment. Profitable employment
means It's relatively efficient Use as com
pared with all other capital with which
1t completes IN serving the community
ChraplV and well.
In thi. struggle for self-preserva-
ton and profit. the natural and ncces-
sary tendency is L. increase its produc-
in,,r,,,,;,,., +ha n,,,1itv If ,L. ,,,.,ra,. -.
the world. Capital can never be made
profitable except by accomplishing one
Oh 'h'et RESULTS.
The history Of concentrated capital >
he says, "iS the history of productive
economy ana eiiltiehcN. ana ne then
goes on 10 cite instances where
rapital concentrated has ,,nnroyeJ thn
f"''i'S Va -'"''S an" l'"u'th prices.
Cotton, which IN $50, cost seventeen
CENTS now costs four cents and so
.I,r. -, NIL, IL, -
-'''' 90
ana woo" Pfoauots nave been reduced
80 To 90. and III some instances 50 per
cent. while in the class Of industries
t,il ;.,,
- ''''7 '' y, '''''' ''''' en-
'''''"' OF "h'N To sn'a'' extent prices
','' 49, -" ~ al ''''''7 Nae INC
s'''''e w
Since 1850, when machine methods
were instituted, tifty-eight classes OF
products, mostly arlculturaI or raw ma
teriai products, IN winch the concen-
l'auoh OF 'afi'ai anu use OF machinery
was very Sllght, have increased i'll price,
~ ~ tls.lsn