The Portland daily press., 1898-02-22
THE SPREAD OF TRUSTS.

New York Journal of Commerce.
The admitted general improvement in
business does not prevent the continued
aralgamation of industrial corporations
for monopohstio purposes. Almost every
day, we hear Of the formation of new
trusts" OF combines" and, if this pro-
cess continues to expand at the present
rate much longer. we shall soon witness
virtual extinction Of competition
through a very wide range of our various
forms of production. Tho onlysindustries
that are escaping this tendency are those
| the products of which are varied as to de-
tails Of style, taste, texture, quality. etc.,
of which dry goods, for instance, may
afford an illustration. In respect to these
the lack of uniformity of product makes
com bination difficult or impossible. In
theseyproducts, competition applies not
only to prices but also to various "details
which affect the salableness, and to them
the anti competitive principle cannot be
applied. But Judging from current symp-
toms, there seems to be no limit to the
extent to which the monopolistio prinoi-
Die may be applied to simple and uniform
products.
| These combinations have, as rule,
been resorted to as means OF escaping
competition and competition has evolved
this expedient because of its extraordinary
severity. That extreme severity Is due to
the Unprecedented increase of productive
plant consequent upon modern invention.
The existing plant proves to have pro-
ductive capacityEfar in excess OF our ut
most oonsumptive capacity; and the in.
evitable result has been process OF I'M
derselling which has involved producers
in long continued loss.
Industrinlists who have possessed the
most improved appliances may have
made moderate profits, but the Important
norton who could not equip themselves
with the most improved instrumental
ties have had the choice between ulti-
mate insolvency and retirement from COM
petition. These conditions have been
steadily growing in severity for many
years past; and there has perhaps been no
stage at which they we're more felt than
today. For the last four years, the pre-
yailing financial arrangements have been
credited with the depression that really
has resulted mainly from this factor OF
oyerproduction. But although we have
DOW GQU6reu upOu u btdU6 "a oOpAvC A0UAOA-
al prosperity, the evils of over-supply ana
non-remuneratiye prices have yielded but
little.
Manufacturers have thus had their eyes
opened as to the real nature OF their dill
cuIties more than ever before. They have
discovered before them but two alterna-
tive courses for dealing with their posi-
ton; either,to permit competition TO take
It's course until the least competent COM
petitors were weeded out by insolvency
and production thereby brought to normal
proportions with consumption; or TO
adopt the expedient of uniting their capl-
tails and making common cause. In otnef
words through sitting natural competl-
ton and regulating production through
an artificial monopoly. Iney nave pre-,
ferred the latter alternative, and hence
the large current increase in the list OF
trusts and combines.
.SThese organizations have spread silent
ly, but to an extent which few Will De
prepared to imagine. A compilation OF
the various combinations created With
view to controlling production and prices
il one way or another, made by On expert
for the Commercial Year Book lpub-
Iished at this Office enumerates 2oO OF
these organizations, with total OF capi-
tai stock and bonds aggregat1ng $500, :
600, 600. This total is equal to 56 per cent
of the entire capital credited to the manu-
features of the United States in the CEN
sus of 1890; but as the capital stock in
many cases has been freely issued against
such Pigments as goodwill and anticlpat-
ed profits, the above figures represent a
considerable amount Ut unqualified in
f1ation. The facts, however, are not the
less startling on that account.
Whatever may be the merits or dement's
Of the principle upon which this system is
based, theresare certain obvious reasons