The sun. [volume] (New York [N.Y.]) 1833-1916, 1899-12-29
A DEFENDER OF TRUSTS.
INTERESTTNG ADDRESS BEFORE THE
ECONOMIC AssOCIATTON
Prof. Sherwood says Our Future Economic
Supremacy May Largely Depend ON
the Trusts-Their Influence In tho De-
yeIopmcnt of Undertaking Genius"


Supremacy May Largely Depend on
the Trusts-Their Influence in tho De-
yeIopment of undertaking Genius"
ITHACA. N Y. Dec. 2S.-The whole OF this
mornings session OF the American Economic
Association was taken up by three addresses
on the problems arising out OF trusts and their
attendant com binations Of canital. Probably
the question has rarely been deait with In so
short space OF time by az many men whose
long study. experience. and whose learning
make them particularly well qualified. The
first paper OF tho morning was one by the Hon.
Charles s. Fairchid on THE Financiering OF
Trusts" and this was followed by paper by
Prof Sydney Sherwood OF Johns Hopkins Uni
versty on The Influence OF Trusts In the De-
vclopment OF Undertaking Genius
Prof Sherwood said that he intended TO deal
only with one feature OF tho question which
was to him particularly interesting. and. he
thought, very important. This no defined as
the result Of the modern tendency In training
industrial giants. capable OF handling and
managing Immense enterprises and OF compre-
hending the various details OF a great indus
trial enterprise. Owing to the complex and
much larger organization OF modern In
dustry. which the speaker thought tho
trend Of the times demanded. there
WINS a demand for genius to head the enter
prises. The costly wastes OF modern produc-
ton" he said. are duo to the scarcity OF able
leaders OF enterprise. II Is the function Of the
trust to get rid OF the weak entropreneur. The
trust has been brought about through the
natural efforts Of progressive industrial or
ganizaton to procure for its head great under
taking genius. Upon this alone can the trust
depend for its life. Our future economic SUI
prcmacy will probably largely depend upon the
trusts. The wise policy Is to increase their
possibilities for good. while at the same time
diminishing their possibilities for evil through
governmental legislation"
In the discussion OF this paper Prof j w.
jerks OF Cornell University expressed ths
view that perhaps the very argument which
Prof. Sherwood used in favor OF the
trusts and like immense combinations
might be used on tho other side. Ho
thought that the argument that the trust
ulacturer or retailer was available against the
trust. since IL took from the young men OF the
country the opportunity to build up n business
for themselves. and would put the whole con-
troll OF industrial enterprises into the hands OF
In replying to this Prof Sherwood said that
he thought the criticism baselcss. for the rea-
son that tho very result which Prot. jerks
keep most young men from hazardous enter
prises." Prof. sherwood said. will he the
lage clerk. MS soon as no has a credit OF $50
10 SET up n business for himself"
The last feature Of the programme was an
address by Mr. James u. Dill Of New York city.
Com bina,ions which May become Danserous "S
He characterized I'll" greatest danger 10 be
from fictitious over.cnpitaliztton. which. ha
said. was as dangerous TO the honest corpora
tons themselves as TO the public at large and
that those corporations which are bnsed on in:
tegrity desired more than any one else to find
remedy for this fault. lie added:
There l. more danger 70 the public. as well
as to corporations, IRON the tendency to In
duge in wild denunciation and IN the at
tempts 10 procure hys'ericnl and unwiSe
legislation against CORPORATE capital. Against
whatever evil Is threatening or existing from
corporate evolution to-day there Is hut one in
falible safeguard. and that is an en-
seaT n Of the wRce s ETn
tion and based upon an honest desire to do
what is right. You must first educate
OF his constituents. but he can never vote in
advance Of them. You must first educate tho
public, aud then they will force the legislator
to apply the remedy. And now a. to the REM
edy. There Is hut one known TO me. and that
is publicity Require every corporation to
record. Let the exact place 1t occupies bs
known and II Il ~ undescrying OF public faith
1t will evade the law or fall.
The speaker then went on to say that the
economists had so far educated the corpora
ton thnt they coul now II eet on this common
potato business. and that no looked. though
almost against hope. to see Congress- or some
State pass n law which should eff.ctually make
New Jersey he said thnt while such leg-lA-
ton had been attempted IL had been unavail-
ing
roads was discussed and the following papers
were read: Railroni Relief and Beneficiary As:
the. Long island Railroad: Railway Charters.
by DR.. b. H. Never. University OF Wisconsin:
pIffGultt"s in Ad!Hs,ing R Mnna by Prof Henry
OF the Interstate Commerce Commission,