The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1899-04-01
Trusts Do Not Cheaper the Cost OF What
They Control

When against the trusts the alOloSS Tor
this nsdious method of robbng The people tell us that the
trusts cheaper the the articles controlled by them and
therefore confer benefit The answer to this is hrst that
is true and second that if true the cheapeng
of any commodity would be dear obtained by the process of
destroying a opportunity for Independent energy or COM
petition and the throwing of employment the vast mum
of who have been engaged in those factories that the
trust shuts down.
The trusts formed destroy competition and enable
the manufacturers of the article controlled be free from
the competition which has existed prior to the formation OF
the In every instance of two things follows the
price of the commodity is increased when Is
deemed prudent to do So the price prevailing the fona
of the is maintained though the of producing
may be greatly reduced If it did not keep up the price Of
the article above the price under sharp competitions the trust
would fail of it object The Standard Oil Company has been
able pay wonderful dividends because controlled most OF
the of supply and could sAe competitions If it has
increased prices it has prevented the natural reduction
which has followed in nearly everything else The cigarette
trust being the only purchaser of certain grades of to-
bacco fixes the price suit ITSELF the reduction in the prices
paid the farmers already by of the trust being estma
ted at twenty-five per 1t takes at both ensrom the
producer and and that is why with visible
of eight million dollars pay big dividends upon capital
stock of seventy million.
Referring the increase of prices caused by the trusts the
Monroe Enquirer gives these figures:
Owing chiefly the power of combined capital, iron
prices have advanced sharply in the past few months and re-
suits far reaching Nails markedly higher adding to
the of constructing farm buildings and fences In the past
three months the tin plate has thrice advanced its prices
andsis said to pay enormous dividends on tory-sX mi
lions of capital stock largely The stove manufacturers
have planned 10 per advance, which added
of $4,000 5000 annually the American people
The wire has been equally active increasing the
Of finished goods Since the beginning of last December wire
has advanced $13 per which manufacturers of wire
fences formerly bought $50 costs them $43 and
they be forced advance their prices far
mers."
Writing the contention relates sugar leather and
rubber, the American Wool and Cotton Reporter says
"he Sugar Trust organized in 1887. In 1880 the
price of hard g1anulated III the New York market
$50 cents per pound In 1887 it 602 cents In 1894
the average price touched 412 From 1880 to 1887
elusive the price fell 3s9 per From 1S87 to 1894 in
elusive period of equal length with the foregoing the de
cline 311 per 1t appears therefore, that the forma
ton of the Sugar Trust did accelerate the downward ten
dency of prices but the contrary had considerable in
uence in staying it, Furthermore, the price has risen since
1S94- touched 4.97 cents in 1S9S-though from August
l. 1894 July "a 1897 sugar admitted free into
this country, instead of paying duty as formerly
he average export price of sole leather in 1880 233
per pound In 1898 it had dropped to 10 cents Ia
that year the United States Leather Companyknown the
Leather rus-was formed The following table shows the
average price Of sole leather beginning with that period
Cents