The times., 1899-12-22

The Great Trust Question.
what shall we do with the trusts?" asks
the Engineering News" Of New York, as
the caption Of a very able editorial paper
devoted to the discussion of this burning
question. No satisfactory answer is fur
nished in the essay, but much interesting
information is The Engineering News
refers TO a study. made ten years ago, by its
editor Of the tendency then beginning to
be apparent that the progress Of invention
and enormous sggregations Of capital nee
essary to the prosecution Of modern en-
terprises would ultimately kill COMPETE
tion in industry and mercantile business,
and. in the mean time, render the problem
OF future social organization the most Sc
nous one economically ever faced by q
people. The result of this study and OF
events subsequent has led the investigator
10 The conclusion that the forces behind the
movement Of concentration and toward a
more OF less complete condition Of monop-
oily would not and could lot be arrested in
their course. and that the only hope that
they might not prove destructive 70 the in
terests. comfort, and perhaps the liberty
Of tho masses lay in their equitable ad-
justment 20 the common interest through
some method and system Of public con
troll.
The proposition that "the railway, the
loom, and the blast furnace and all the
ten thousand benefcent inventions that
have accompanied them have fostered the
growth Of monopoly, and have in some
fields made competition actually impossi-
bic, except under conditions which cause
more injury than benefit to the public" is
50 patent that il has been accepted by re-
cent economic writers generally. As the
Engineering News" remarks, 1t is not
too much to say that general and intel
ligent understanding Of this principle is
3 necessary precedent to any useful and
successful action by State or nation upon
the problems which the trust movement
presents" The laws OF evolution are
stronger than any that Legislators can
make or courts can eHfonce"i Thus, the
trust combinations Of a decade ago, de-
elared unlawful by the legislatures Of many
States and by Congress fell to the ground,
but the fall did not restore competition.
The trusts were followed by actual consoli-
dstion. as In the recent Addyston Pipe
case, where q pool Of independent corpo-
rstions was declared unlawful the deci-
sion Of the Supreme Court being. however,
anticipated by the corporate bodies involv-
ed, who merged their identity IN one COM
pany under a New Jersey charter. We need
not follow the narrative and argument Of
the Engineering News editor through
out His general facts and deductions are IA
mihar TO readers Of this journal already.
The particular point OF Importance which
he raises is the kind and measures Of State
or national control OF monopolies within
the ability Of the people 10 secure and
10 have applied. We quote:
IT is admitted on an hands that the trusts
and al rnon0polies have duties 70 the public
Their managers are much bound 90 observe
these duties as they are 70 protect the iEteres,s
q their own stockholders. Then why should net
the public have a direct voice in the manage
mentf II would not be 8 difficult matter 10 cite
cases where the voice Of the Government directors
u trusts cement might be 70 the direct
advantage Of the stockholders Of the trust,
vel as = benefit 70 The public.
The question may be raised whether such reg
u.atiou would be a constitutional procedure; but
The proper answer 70 this j., that IN the present
temper of the public, little difficulty should be
found IN making il The Supreme Court in lis
recent decision u the Pipe TrUgt case has drawn
a haiT-splittug decision % the effect that .'man-
uiactuie Is not commerce and that Congress
therefore had power 10 interfere with the
combinations by which the Sugar Trust was Great
60, while il had power, through the Antitrust
law 10 prohibit the combinations made by tie
nauuia cTurerS q cast-irCu pipe All such obst2.
cles 10 Government regulation may be avoided by
tie passage % constitutional amendment Civ
ing Congress the sole power 10 charter and 10
regulate al corporations doing business outside
the limits Of single State A national iucor-
porafion law + much needed as was the us-
Ilonal Bankruptcy law. Already IN the present
session q Congress an amendment has been pre-
scented having this end in view. Both political
parties sTe fglly committed 10 action Of some
sort for tie protection o the people from monop-
olies. il needs onll wise and intelligent leader
Elip 20 see some real progress made toward the
solution u The question AZ the present session
q Congress-"
Il Is no doubt desirable that the sug-
Festi0n Of constitutional amendment. as
above should be brought 10 the attention
OF our national legislators; but that they
wiz heed II. or. as far as q majority Of
them 4re concerned. attempt at present to
reach any solution Of the trust question
likely 10 obstruct the trusts in their mad
career OF absorption. oppression. ana the
reduction Of The common people TO eco
nomic serfdom, is TOO much TO expect The
Republican party rules the country, and
The trusts and monopolies rule the Repub-
lican party. While such conditions prevail
any effort on the part Of Congress Of an
honest sort to remedy the evil would be an
impossibillty.
In this connection. the outlook for the
American farmer, mechanic. and small
merchant mus be considered q lugubrious
one. They have nothing to hope from
the powers that be: while the one political
organization that might ofTer them a ban
ner under which 10 rally is rent with strife
oecasioned b. those who are even now try
Eng 70 half-mast il In advance Of the Presi-
dsnslal struggle next year and to drive
every patriot out OF slghr by insisting that
its folds shall be inscribed with the legend
Down with the American nagt"
A Collegiate Reform.
Vgesf Point cadets having taken mo ipi