Fair play., 1899-02-11
IT CREATES TRUSTS.
New Jersey Furnishes Examples Of
the MISUNDERSTANDING Eff
fects of Protection.

fects of Protection.
One of the evidences of marvellous
prosperity during the year lately
closed. due, of course, to the magic Of
the advance agent" and his followers,
is seen in the activity of the New Jer-
sey trust mill. This is an evidence to
which the organs of the administration
do not direct attention very often or
with expressions of pride and exulta-
ton. They indulge these feelings, OF
course, but they prefer not to be very
ostentatious about il owing to the pre-
vailing prejudice against combinations
in restraint of trade.
The fact has found its way into print
that of the great combines organized
a. corporations under the free and easy
laws of New Jersey 16 have an aggre-
gate nominal capital OF S6l6, 900, or
an average Of over $3S. 10000 each. The
scope of these aggregations 10 stitie
competition is plainly indicated by
their national" american" and "con-
tincntal" names. They mean to be lit
orally the whole thing" in their re-
spective fields. The smallest capitali-
cation in the lists. 600, ,000-is that of
the United Brewers company, which
is too modest TO pretend to be conti-
mental or even national.
These combines of 1898 find them
selves in very select circle OF older
ones which have the honor and pleas
ure of skinning the public under the
laws of New Jersey. Sixteen of the
earlier members of this circle have an
aggregate capital of S592, AS 900, or an
a, erage of more than 1000, 900 each.
The aggregate capital of 81 combines
is Sizes, 400, GOO. The interesting state
mrnt is made that the stocks of COM
binc corporations organized under New
Jersey law to the amount of more than
- ,OOO. COG, 900 does not represent dol
lar OF investment in New Jersey. This
shows how obliging the state is in facil-
itaiing the organization OF conspiracies S
r2ainst coiSumers. 1t should be stat
ed. however, that the state is not al
together unseliish in this matter. for
i, is collecting tax on about S2,270 .00O,-
0G) OF stock representing capital OF
which the great bulk is invested outside
of the state. During 1s9S the state de-
rived revenue of 81, ,35?,l9S from cor
poration fees and taxes, or about
enough TO pay the cost OF the state
government. IT must be admitted that
in This case the "foreigner"-that is,
somebody outside Of New Jersey--pays
The tax.
Eu; it appears that the legislature OF
that state has under consideration a
measure which may drive the business
o. manufacturing corporations into
some other state. y bill has been in
troduced changing the tax from $40 a
year for each million of capital stock
of any corporation over $5,0O0,O00 10
$500 for each million over $4,000, 900, or
nearly six and half times as much.
The Jersey legislators may think
they can collect the additional tax for
the reason that the trusts cannot re-
organize under the laws of any other
state without incurring disadvantages
from which they would suffer more
than they would by paying the addi'
iionai tax. But some other state may
enter the field with an accommodating
!ay and much lower tax and compete
for the business of manufacturing 6
trusts with good show of success.
But however that may be. we may eX'
-rct the combines to multiply and
thrive as long as motive to their or
ganization is supplied by our tariff
laws. Of Tie 80 great combines above
referred to all but five are protected by
duties ranging from 80 per cent. up
ward. and all but two are protected by
cur tariff or other laws TO some extent
Y republican congress has refused to
deprive of protection III any degree the
Industries which combine TO stifle com
petition and exact from the American
the last cent allowed by the tariff, while
thev are selling eagerly in foreign mar
krts. where they have no protection. al
prircs determined by competition
against the whole world. So long as the
republican party remains in power
nothing will be done To harm the trusts
Any steps taken against them Will b'
fer uopular effect only ard so directed
that no trust will he hurt. Chicagt
Chronicle.