The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1899-09-29
COCHRAN ON TRUSTS.
Speaks at Central Music Hall,
Chicago, Before Large
Audience.
VIM. ]. BRYAN WAS AN AUDITOR.

Advocates Publicity in the Form of Trusts
Says Secrecy Shelters Fraud-He Be-
Iieves Trusts an Inevitable Step in the
Industrial Evolution - Surveys the
Whole Field of Capital and Labor.
Bourke Cochran, of New York, spoke
as follows before the conference on
trusts and monopoly at Central Music
hall, Chicago: "Mr. Chairman, Ladies
and Gentlemen: The precise question
which we have been called to consider
is the effect upon the general prosper
ity of the community Of combinations,
whether of capital or III labor.
"a combination may be good or bad,
according to its effect For instance,
a combination for prayer is a church.
All good men would subscribe to the
success of it. A combination for bur-
glary is a conspiracy. All good men
would call out the police to prevent it.
Any industrial system which operates
to swell the volume. of production
should be commended; anything that
operates to restrict it should be sup
pressed.
The Opposing Contentious.
''Some contend that the tendency of
these combinations of capital is to
cheaper the product, others say that it
is to raise the price of product. The
test is to ascertain whether the combi-
nation of capital fourishes through
government aid or without it, for my
friends, you must see that any indus
trial enterprise which dominates the
market without aid from the govern
ment must do so through cheapening
the product, or as it is commonly
called by underselling competitors. An
industry which at one and the same
time reduces prices and swells it's own
profits must accomplish that result by
increasing the volume of it's produc-
ton. On the other hand, an industry
which dominates the market by the
favor Of government, direct or indirect,
cannot in the nature of things, be
forced to cheaper prices because if it
could dominate the markets by under
selling competitors in an open field
without the favor, it would not need
the government favor. The interfer-
ence of the government would be an
injury and not benefit to it.
The Other Kind of Success.
IAN industry or combination of cap
1tal, or anything you may choose to
call 1t, that dominates a market
through restricted competition, that
delivers the consumer to it on it's own
terms, necessarily depends upon mar
row output and large profits, extorted,
not from the eXcellency of it's service,
but from the helplessness of those with
whom it deals.
Nov there are three ways in which
ny1A ir,AA H.,
OF individuals in this country. One is
by patent laws. 1t is my purpose, la
dies and gentlemen, tonight to try and
emphasize the points on which we can
agree, and If possible by some sugges-
tons to extend the scope and field of
our agreement, but waste no time upon
questions which cannot possibly be set
tied by this conference, and on which
this conference can have very little eff
feet. Therefore / will not waste time
in discussing patent laws.
''The other means by which the gov
eminent interferes is by tariff. Now
l believe that every person can con-
cede, whether he believes in high tariff
or free trade, that so far as trusts are
concerned, the tariff operates to favor
them in this way and in this way
only. 1t operates to restrict competi-
ton in the production of any article
to those engaged in it in this country.
But If trust or combination is to be
formed, manifestly it aids tho enter
prise where the field of competition is
originally limited. Under a condition
of free trade every article which is pro-
duced is exposed to the competition of
the whole world. If you rely upon the
combination to suppress competition,
manifestly it is easier to make COM
bination between the producers in one
country than in all countries, and to
that extent the tariff favors trusts.
Impartiality Demanded.
"A government cannot be just and
generous at the same time, for if it be
generous to one it must be oppressive
to another. If it does a favor it must
have victim. And that government
only is just and benefcient which has
neither fayorites nor victims. The
most that you can expect to make of
a perfect government is a just one.
That is to say, an impartial govern
ment. Government is always Just
and always beneficent when it is alb
solutely impartial, but not merely
must its own hands be impartial, but,
to paraphrase Lord Bacon, "the hands
Of its hands" must be impartial. Not
merely must it's law be impartial. it's
courts impartial. it's executive officers
impartial, but the agents that it en-
powers to discharge functions assem-
tally public must be impartial in that
service to every human being within
the limits of the state.
Public Hatred of Corporatious
N"While am on the subject, l think
it wise to advert to what many call
a phenomenon-that is, the public
dislike and distrust or hatred of cor
porations. Ladies and gentlemen. I
don't share that hatred or dislike, but
/ understand it. / don't think it is
wholly justified, yet l think an ex-
animation of the history of corporate
management will show some justifi-
cation. We have heard much about
over-capitalization as one of the evils
to be treated in this conference. In
one sense think over-capitalization is
a matter of no public moment. In
another 1 think it has a serious as.
pect. 1t matters very little how I
capitalize an enterprise in itself. If
/ capitalize it at 100000 and it is
earning $4,000 year the public
would Immediately put the shares at
100 per cent. premium, and that would
be quoted at 200. 1t would make no
difference whether 1 capitalized at