The times. [volume] (Richmond, Va.) 1890-1903, 1899-08-24
THURSDAY. AUGUST - 1899
WHAT or TRUSTS ?

We have received certain intorrocato-
ries from the Secretary Of the civic Tcde-
ration Of Chicago. asking our opinion as
TO the probable effect Of industrial com
biuaiions Tho letter and it's reply were
intended to be- II desired confidential. but
we think that the more that is known on
this subject the better. and that what
concerns the interests OF an the people
should be treated at large. We shall.
therefore give our replies TO the Ques-
tions en- full
Should the combination Of producing
agencies DE expected 10 increase or &C.
crease the cost of production? If either.
ought Il therefore 20 be beneficial 10 500
ciety or she reverse?
TIE combination Of producing agencies
may be expected TO decrease the cost OF
production and such results win be GER
tainly beneficial to society.
II the effect is to decrease tho cost Of
production. 20 what extent win the con-
suncr profit by such decrease2
The effect Of tho decrease Of tho cost
or production win inevitably inurc 10 the
benefit Of the consumer. the wen under
stood law being that low prices make
large sales and widen1 the market, in
surfing trade and increasing profits.
REGARDING the combinations ms channels
for the employment Of capital, do YOU
consider that the placing on the market
OF large amounts OF share capital in such
combinations Is O thing TO be desired or
does IL contain any dangers either 90 On
ire individual investor or (b) the fnan-
cial system Of the country?
The placing on the market OF large
amounts OF share capital in Industrial
combinations IS decidedly desirable IT
gives a wider interest I'm manufacturing
enterprises and distributes the profits OF
such enterprises. The dangers are. rs
in tho case Of Insurance companies. di-
vided. but the individual investor ln this.
as IN every other enterprise. must exer-
else his own Judgment as ITO what is
likely to be a reliable and profitable in
vostment and what is not. Some indus,
trial combinations have unquestionahly
superior attractions and merits over
othors-all are not the same.
As 70 the erect on thc financial system
OF the country. these Industrial combina-
lions are likely IL be smaller borrowers
than the industrial concerns Of which the
combinations are composed So far the
schemes Of consolidation have almost
universally provided for largo working
capital for the express purpose OF en-
aiding the company TO avoid borrowing.
Tho effect on the financial system will
then bo through the drafts made by IN
dlvidual stockholders upon their stock in
bank and in this the banks may be pre-
sumcd 20 De well able to take care Of
themselves. A noticeable fact IS that
most Of these combinations are organized
upon stock and without bonded debt
This would enable the corporations to
romaln solvent even though IL should
cease 90 pay dividends, in which case the
loss 20 private individuals would be dis.
tributed over presumably a wide range.
and would not cause a suspension OF the
corporation.
Rcgardlng tho combinations as en-
bAHAtAa 81 AANNAf hNaA FAtNAtN Nr tAtlt Gle
fcct on WAGES or ON the condition Of the
wagc-caraer7
The effect Of the Industrial comblna.
tions would be in the direction Of an in.
crease Of the wages OF employees. certainly
10 give them the maximum that the bust
ness would permit. No Industrial corpo-
ration desires a quarrel with its work
men. and would avoid st by all means
It Is only when forced 10 do 50 by losses
IN business that wages are attacked. II
the result 81 the combinations is 70 secure
a profitable business. the workman would
be sure 20 share in that, al least 20 the
extent Of standard wages and constant
employment
What is likely 10 be the result OF the
process OF combination on the wholesale
and retail dealers. or middlemon. and
how win society De affected by such re-
SUIT
The result % the process Of combina-
tons will likely be 70 dispense with the
services Of many middlomcn. Gheraby
causing. IN measure. a change Of their
occupation. as 80 often happens 20 work
men when a labor.saving machine Is in
vented and used IN place Of men. Society
wiii not lose the services Of displaced per.
sons. but their energies VIII. in due time.
10 applied In other directions. possibly