The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1899-08-29


the hands of the lawmakers. The
railroad commissioners in many states
have enlarged powers. The effort at
governmental regulation that looks
towards absolute control and the con-
t1ict between rights that are intra-state
and those that are Interstate, con-
ttnues and will do so until the Federal
supreme court definitely and with eN-
actitude decides the rule that will con-
trol the power of direction and guid-
5nce by the state authorities on the
one hand and the federal commission
and tribunals on the other. 1t is to
be hoped that the court of last resort
will soon settle the important question
OF what Is the basis upon which rea-
sonable rate shall rest.
TRUSTS.
The problems, legal and political
that are the most absorbingly import-
ant and likely to lead to far-reachng
results In law-making and statute con-
struction are those incident to social
ed trusts, pools and combinations i'm
manufacture, commerce and trade. The
legislative difficulty seems to be to
draw the line that should divide the
Objectionable trust or monopoly that
detes the natural laws of trade, from
the desirable corporation or the con-
>centration of capital productive of good
results. To strike down the one ana
not cripple the other Is no easy task
for the law-maker. Concentration Is
the order Of the day. Industries of i'm
portance and enterprises of magnitude
can only be carried on with success by
bringing together that aggregation or
capital and limitation of personal liza
billty permissible In the creation called
a corporation. This artificial person
has accomplished. in the gathering OF
the raw materials from the store houses
of nature; the making from them in
Shop, mill and factory. articles OF use
or ornament; the gathering of them
In mart store and warehouse to Vend
to the consumer and the distribution
of them by the numerous channels on
water and land more of substantial
advantage to mankind than any other
instrumentality. The century now
closing has seen during its hundred
years an advance on all lines Of pro-
duction, with corresponding benefit to
| the consumer, such as has been afford
cd at no other period in the worlds
| history. Corporations that have for
their purpose n lettering of methods
of manufacture, sale or distribution;
the cheapening of the making of the
article produced; the improvement in
the style or convenience of the finished
product; the economy in It's vending
and transportation, are a great good
to mankind and in them, legally con-
uuCltu, lHeIe is nduBII VI evil u our
race. No more disastrous calamity
could befall this republic, that largely
| by such concentration of capital with
| the safeguards thrown about the in
vestment. has kept for itself its own
: splendid market and is now capturing
| the markets of the world. than blow
| administered, either by statute or de-
! cisiOn, destructive of those corporate
interests that are honestly capitalized.
fairly based and legitimately managed.
AN ALARMING DRIFT.
Viewing the work of the lawmakers
| and the courts one cannot but feel
| some alarm at the drift of both, while
! realizing that the action of many OF
! the corporate creatures made by law
| are such as demand as to them that
halt should be called and their ag-
| gressiVe advances cease. even if their
| destruction must be ordained to stop
them in their career. The fear is that
| we may go to extremes and that in
wiping out the inlquitOus trusts we
may destroy the legitimate corpora
| tions. The public mind is excited by
| the yellow tinged articles of a partisan
| trust and the loud mouthings of blat-
ant politicians. seeking simply party
! advantage and keeping of power or the
| gaining of patronage to be dispensed.
! In platforms parties will vie with each
|
! combinations and with meaningless
phrases, full of sound and fury" seek
| to capture the votes of the groundlings.
| The evils that exist cannot thus be
| remedied. Laws framed in haste that
| are designed to obtain political ad-
vantage, or are based upon popular
| Outcry, or unreasoning prejudice, come
| usually to plague and torment their
| inventors. Adam Smith is right In
| saying that the occasions on which
| a government can help or intervene
| are, a certain well-defined province OF
| action excepted, exceedingly rare and
ought to be looked on with the gravest
| suspicion and permitted with the great
| est hesitation"
That evils exist that need legislative
| correction cannot be gainsayed.' Over
| or fictitious capitalization, mOnopolis-
| tic tendencies leading to the destruc-
| ton of fair competition. the decrease
of producing cost with advance of the
| price to the consumer, are wrongs de-
! manding a remedy; but the cor
rective cannot be safely applied
when unreasoning denunciation, flu
rious hostility and desire for partisan
gain rule the legislative mind, and
trucking to popular outcry sways the
| judicial decision.
EVOLUTION OF THE TRUST.
Nearly all the states have what are
| termed antitrust laws, and in them
! the term trust has received much en-
| larged definition. We recall when the
| term signified an organization by
! which the control of several corpora
tions was vested. by transfer of stock
| or otherwise, in a central committee or
| board OF trustees, who controlled or
suspended the work of any of the cor
! porations at pleasure, and could thus
! regulate production and defeat cOmpe-
| tition. thus controlling the prices of
! the necessaries and conVeniences of
| life. This surrenderng of the powers
| of a corporation, by it's own act, to
| the control of a trust was an act of
| legal hari kari and afforded ground
| for a forfeiture of its charter by the
! state. This penalty being invoked.
many corporations seeking results, not
to be permitted by way of trusts, form
| ed new corporations of great magni-
| tude that swallowed the smaller which
became extinct. 1t is estimated that
over 800 of these organizations have
been formed that have taken over the
| stock of many corporations, In all lines
Of Industry, with a capitalization OF
billions of dollars, represented by pre-
| ferred and common stock. 1t Is be-
! lieved that the preferred stock repre-
sents more in value than the property
purchased, and that the common
stock usually has no real basis of
value. Those who sell their plants or
stock to these enterprises, the glibed
| tOngued promoters who launch the
scheme and the persuasive bankers
who float the stock of the Over-capi-
taliZed venture are the ones who reap
! the harvest, while the gullible ones
OF the public who invest in the stock
are the losers.
| LABOR TRITSTS