The Saint Paul globe., 1899-11-28

In some instances this may not have been
a part of the original scheme; but the
present almost universal issue and sale
of common stock by trust corporations
makes 1t safe to assert that speculative
operations are intended, and certainly
they are going on as any daily newspaper
will show. The trust is organized and
operated to exploit the produce of indus
try, only incidentally, to introduce new
economics, and only then when it's own
interests require.
What to do with the trusts? With
some this question is closed on the spot.
Trusts exist for monopoly and specula-
tton, let them be mathematical. A long
continued series of outrageS persisted in
by the trusts might so incense and arouse
the people to result in constitutional
legislation for
THEIR UTTER DESTRUCTION.
This will not happen. The managers of
trusts are wise in their generation. As
sured in their expectations of unfailing
profit, they are the less desirous of eX~
cessive returns EXtortion does not in
the long run pay. The trust corporations
will fight hard for life, will die slow, and
possibly may survive indefinitely. Cor
poratiOns in some form are absolutely
necessary to existing civilization. Capital
must be aggregated under expert man
agement possessing what Blackstone calls
a kind Of legal immortality. Our existing
laws give great freedom for their forma-
ton, and concede the most ample powers,
and in practice We have ceased to eXer-
ton in earlier times effective but which
now remain almost q dead letter in our
statute books. There is a danger that
attempts a uprooting the trust corpora
ttOns may undermine the fabrics of cor
porations which do not monOpolize, and
whose agency is indispensable to society.
The problem of the day is then, not how
to annihilate but how to restrict and con-
troll the trust corporations. The charac-
ter, temptations and dangers of these OK
ganiZations are: MonOpolization which
vi ilyv nj
ton Of the market, the exclusion Of COM
petition and the closing of the doors of
opportunity to capital and labor.
The speculative characteristic means
that by over capitalization and watering
the promoters intend to take possession
of any increment of value which may
accrue from monopoly, and demand from
the public continuing dividends thereon.
The temptations to which institutions
thus constituted are open are to impov-
er1sh material and men, or to squeeze them
out completely, and seize and engroSS the
original deposits. To depress wages, re
duce quality of goods or services, restrict
output, eXtOrt excessive prices, Subordi-
nate services to exploitation and regulate
the volume of production to bull and bear
the market, TO use wealth. influence and
talent to corrupt legislators, judges, COM
mlSSlonerS and taxing authorities. The
last item may be dismissed with the re-
mark that it affects individuals, partner
ships and associations of many sorts
Trust managers have
NO MONOPOLY IN THE LOBBY.
Here come certain admirable persons,
comfortable bodies who do not feel re-
SponSlble for the universe, with the as
suring suggestion that there is no need
tics If they say the trust proprietors are
riding a little too high the laws of trade
VIII presently bring them low. They
know their own interests far too we'll TO
undertake to fleece or to deceive the pub
lie. They will never dare to refuse the
demands of organized labor. Their in
1erests 1T; run with those of the public
There is force in these suggestions To
hold their monopoly intact, trust corpora
uons will forego extortion and exert
themselves to render good service and
by wise and honest men. There are some
who hold to the conviction that a trust
can never so stifie and suppress competi-
ton as to maintain an air tight and CON
tnuing monopoly. This Is the view of
Prof. Clark, known to many men as
standing In the fore front Of American
economists. Portential competition, Prof
Clark says, will clip the wings of any
trust which scars too high. For myself
l cannot take this serene and comfortable
view, however sincerely and devoutly
could nope it might prove 70 be the true
one. 10 have our great industries carried
on by benevolent fraternities, desiring
only moderate recompense for the best
service, living the austere lives of holy
anchorites and devoting the surplus earn
ings to art, education, charity and re-
ii!glon Is an ideal not to be approximated
engineered by men of like passions with
ourselves, eager for the power and con-
sideration which comes from great
wealth. They are under the stress of
great temptations and feel themselves
JuStlned by the ancient and economic
creed Of the
DEVIL TAKE THE HINDMOST.
They need the moderating hand and
voice Of the law to keep them in the
paths of virtue. The state must control
ICt fR.fN1. 10
state The state will control them. There
is plenty of good doctrine and principle
to Justify her interference. The common
law for ages has detested monOpolies
Equally venerable is the doctrine that
whenever property is affected by a pub
lie interest it ceases to be sui iuris and
whenever trust corporation has com
pletely monopOliZed an industry it NAV
be considered and treated as having be-
come by its own act public institution
and agency. 1t is within the Just powers
of government to attach any requisite
conditions not only to the creation of cor
porauons, but to their continuance In
spite OF Dartmouth college decisions the
American people need not and thev will
not consent that their rights may be in
denniteIy chartered or contracted awav
by the government of a day How Wisely
to apply these principles is the task OF
our younger economists and statesmen
!ess 1et5ered than those passing off by
the traditions of laissez faire economies
Among the propositions now before the
public are such as these: Enlarged la
bility OF. stockholders, larger responsible
ity of directors and officials, prohibition
or over capitalization and stock watering
reduction of tariff when industry is mo,
nopolized, change in the legal character
OF labor contracts, progressive taxation
on income prohibition of buying and sell
ing their own stock. These I do not en-
ter upon. The difficulty of applying such
remedies under comfy of states and New
jerseys hospitality is apparent Thare
is a remedy which I have commended for
MANY years summed up in the phrase
Sunlight of publicity" '''e
GOV Lind followed Prof FolweU in
short address. Remarks were also made
by Mr.. A. c. Anderson and Mr.. ]. @
Reed. of Minneapolis - -