New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-10-06
TRUSTS AND THEIR STOCKS.

Before long Congress will be in session again
and will be deluged with bills for various pur-
poses among others for the cxtirpatiOn Of
trusts II is not so clear 20 people of practical
knowledge as il once seemed to bu that these
organizations arc always perniclous to the pub
lie welfare Just as II used to be popularity be-
l.evcd that n railway pool was the most preda-
tory and harmful thing on earth, but now men
of great intelligence are praying Congress to
legallzc pooling as the only practical mode OF
preventing the greatest evils in transportation,
SO many are now found who perceive that n
trust which serves the public is a tremendously
effective machine. while the trust which does
not generally kills itself soon by creating COM
petition which it is powcrless to resist. But II
trusts TO bc suppressed. as the public has so
urgently demanded what Is the effective way Of
doing it? All sorts Of laws have been tried, acts
Of Congress and laws in various States. No
body can say that they have accomplished
much.
The industrial combinations are of two
classes Those which seek only the legitimate
advantage to be gained by bringing many
branches Of Il great industry under one control.
cutting off the cost OF separate organizations
and cheapening products so far rs to defy COM
petition. require large capital. which they OBJ
tain by issues Of stocks and bonds, but such Sc
curites are rarely objects Of active speculation
and are nearly all taken and permanently held
by those interested in the management or as in
vestors. But corporations of another sort look
to active trading In their securities n source
Of enormous revenue for those who control
them. Because they know better than anybody
else when dangerous competition Is about TO de-
stroy the profits Of the concern, or when such
competition Is about to be suppressed by
and broader arrangements, they are able with
entire safety 10 sell large part Of the stock at
one time with the certainty that 1t will fail
heavily and to buy rs large n part at another
time with the certainty that 1t will have great
rise
Tobacco stock sold on the goth ut 1928
Whether 1t will go higher or not 1t Is by no
means to the present purpose TO consider. but in
February Of last year 1t sold ut GIN. More
money several times over could have been made
by buying the stock which was formerly in the
market. or offered for sale by Spectators who
did not possess It, than the corporation will
earn by its legitimate operations In years
Sugar stock sold on the Goth at 11GIb but on
September 3 last year it sold NJ 1917 and on
March % ut 1901. The few men who could ac-
curately predict the course Of that stock could
have made many millions by the rise last year
and about ms much more by the decline which
has since occurred. Everybody knows that very
largo sums have been 50 made. and II Is the Gun.
rent report that some persons nj Washington
who have dOna much in the way of legislation
during the last five years 10 affect the value OF
the stock have been kept advised Of the oppor-
tunit!es for selling or buying with profit
TIE Obvious way TO destroy trusts If that sort
Is To make II unlawful for any exchange 10 per
Elit dealings In their stocks. to clear them. quote
them or allow any member 10 trade in them II
is about aa certain rs any future event cnn be
that the corporations which cannot milk the
I'ublic year after year by extensive stock opera
lions VIII hare 10 serve the public SO well and
faithfully us 10 shut out competition or else will
20 10 the bottom IT Il Is the chief end Of law
makers 10 destroy such trusts rs are pcrnIclous
because they seek quick and large gains rather
than the lasting success which comes only bv
hcneiitIng the public the slrcst way is 10 stop
dealings In their securities. And II II be an
swcred that Legislators are not able TO decide
which OF many corporations are of that cllarac.
ter, and would intellectually and most unjusily