New-York tribune., 1898-12-22
Az ERA or CONSOLIDATION.
From The Iron Age.


Wearied by years Of reckless competition. with Us
frghLful effect upon annual oalance-sheets, manu-
facturers are listening approvng.y 10 the wi!es OF
ducers have pretty well exhausted every combina-
ton pooling and sales-handling scheme imagina-
bic. and have found them all wanting. Some OF
them nave enabled manufacturers 70 secure tair
profits for while but usually their lie was i'm
position than it had been before
The conviction has been growing among manu-
interests as comprehensive as possible Will bring
relief. After exhaustng every effort 20 reauce
costs. they realize that relatively enormous SAVINGS
can be effected by d central management. notaoly
IN the direction Of the purchasing OF raw mate
rials and supplies IN the clstriputon o. procuS5V
and In general expenses Theoretically no more ad-
mirable undertaking could De devised Practically
tne majority OF such consoldato.ls mus tahe ~
individual plants. not on me basis OF tner actual
worth but Oh the basis OF their capacity tor mis-
chief. Usually the consohdaton stars Oh WIZ d
burden OF capital paid out 70 placate or clear olt
OF the way concerns controlled by parties person
recklessness created b, financial irresponsioillty
Sometimes high prices must DE- pald because owners
are really !oath 10 part WIN ene!t Pfob@r,,y 49,.
While this often applies 70 consultations kept
frequent in the case OF The concerns Which are 10
enter into the ranks Of the 'ndustria.s' To ne
commissions and Of manp Hating stocks after tney
part with The first step IS usually 70 induce
Spectators to jump in for turn, relying upon
them 10 aid in finding more permanent lodgement
for the securities
industry involved IN more ways than one. IL Is
natural that in order 10 make the good showing
needed 20 help the marketing OF stock underwritten
by the bankers the power 70 advance prices Is lib
orally exercised. This induces fresh competition.
only often backed and guided by interests which
have just sold out at good proht. In this way an
unhealthy exnanson OF capacity takes place with
all its attendant evils
Another effect more general In It's character. is
that every now Consolidation adds 20 The alarm
which the public feels at this movement, which Is
steadily growing In strength. However little this
may weigh with the individual Interested IN con-
solliation. Il is serious matter 70 the different
Industries al large since II Ia only TOO likely 70 ind
expression in adverse legislation. he IL fiscal
eral In that all Will be made 70 suffer with
those against whom such legislation Is aimed
The fear IL often expressed that the power WELD
81 by consultations r. apt 10 oe arbitrary and de-
strctive smaller interests and that their 'orma
tion means A permanent advance in values. We do
Germs unhampeie Cd Dy unwieldy organizations. can
specially proffab bic terri'o-y or par'icu
lsrly tempting Ines IN which they can do prosper
Gus business They have always In their favor that
feeling Of antagOnism against large aggregatons
whlch exists in the minds OF buyers. To the small
the really dangerous consultations are
those which steadily reduce prices sharing econo-
mics with the consumers. These. however. are the
exception rather thar the rule.
In one great industry consolidation has been pro
crossing for many years and 20 some extent me
experience in II NAV serve guide. The rail-.
roads OF the United States have come more ana
more into hands of enormous interests Yet
rates OF freight have been steadily lowered and ac-
70 the public have Improved from
year 70 year Is n llkelv that this VIII be the
experience In the manufacturing branches alsoY