Cameron County press. [volume] (Emporium, Cameron County, Pa.) 1866-1922, 1899-08-24
DEMOCRAT DEFENDS TRUSTS.
Facts Which Should Abolish the Ter
rOrs Inspired by the
Trust Bugbear.

IL Is not easy 10 lTlSnlen llenTy NdI-
terson. He is a democrat who works
to promote the interests of the demo-
cratic party when he thinks it is right,
but is not afraid to take issue with it
when he believes IL is wrong. He has
no fear OF trusts, and does not hesitate
to say so. Notwithstanding the anti
trust hysteria which seems to have af-
fected so many democrats. He has an
object lesson right i'll his own town of
Louisville, in the shape of new and
extensive enterprise, and he draws
from it some conclusions that ought
to be of interest to those who are trem-
bling before the trust bogy. Mr.. Wat
terson says in the Courier-Journal:
"The fact that firm of 30 years expert
ence, and backed with ample capital, has
leased a building here and arranged to
begin extensive operations in the manu-
facture of plug tobacco is only another
proof that the big industrial combinations
have had their powers for harm eX-
aggerated. This factory is to be on
larger scale than most of those which have
been started in opposition to the attempted
monopoliZation of the trade, but 1t is only
one of many. 1t is an impossibility in this
country of colossal enterprise and abun-
dant capital for any syndicate to maintain
control of a business field in which profits
are large. 1t may be secured for time,
but it cannot be held.
1.-The tobacco consolidation, in fact, was
exceptionable, because the combination
was not required by failing profits or over
production. 1t is true, a trade war was
going on, but this was simply because the
American Tobacco company, not content
with earning 20 per cent. upon capitaliza-
tion mainly of water, by manufacturing
cigarettes, desired to monopolize another
equally lucrative branch of the trade. 1t
was case of colossal greed. Failing in
the attempt to drive his competitors out
of the field, the controlling genius of the
concern conceived the scheme of buying
them out. He succeeded in securing the
control of practically two-thirds of the
existing plug tobacco capacity of the coun-
try, but he could not, and he never can,
prevent the building of new plants and the
rush of fresh capital into field that has
been made more inviting by advancing
prices"
Mr.. Watterson points out important
advantages which the new factory will
have. 1t will not be obliged to earn
dividends on fictitious capital; it will
be able to produce chcaply, because it
will be satisfied with Legitimate man
ufacturing profit, and will have a plant
of moderate cost, equipped with all the
latest and most improved machinery.
On the other hand, the company or
trust with which it is TO compete has
had to pay eXorbitant prices for the
establishments it acquired, since the
owners demanded not only the actual
but also the potential value of their
business in making a sale. The conse-
quence is a concern with a capital of
$l0O, 900, upon which it promises to
pay dividends, while the actual worth
of its plant is not one-tenth that sum.
Probably, says Mr.. Watterson, they
could be duplicated for less. So the
prospect seems bright for the new
project.
1.-The new factory will be gladly welcomed
to Louisville, the greatest leaf market in
the world and the second greatest manu-
featuring point. Here the raw material is
cheapest, labor is abundant and transpor-
tation facilities unrivaled. If the demand
for plug tobacco is so good that consumers
will pay the trust an eXorbitant profit, a
moderate price will win more customers.
An independent factory will have powerful
assistance in building up its trade in the
undoubted prejudice against mOnopolies.
We have seen what this means already in
the vast increase of business that has come
to the factories left out of the combina-
ton. Their prosperity has been so great
| that one factory that was started in 1893
| with a capital of but 81 900 now has one of
| 81, ,000 900, and everywhere the trade of h-
| dependent concerns is growing. That WIN
be the case with the new factory to be es-
| tablished here, and we trust that it win be
| the case with many more. No man or set
/ of men has any right to take exclusive pos
session of any field of human endeavor, and
| luckily that is also forbidden by the natural
| laws of trade"
| Such facts as these ought to help
abolish many of the terrors inspired
by the trust bugbear. a trust simply
takes its chances like any other big en-
| terprise. 1t cannot monopolize every
thing in sight" even If it wishes to do
so. And if it eXacts too much it is pret-
| ty certain to inspire rivalry which will
bring it to terms. The trust Specter is
not half as awful as certain wordy
takers represent.-Troy Times.