The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1899-05-08
Defender of Tru.ts.
Waco Times Herald.

Mr.. Tarver OF Laredo, member OF tho
house OF representatives, has put him
self on record as favoring trusts His
definition of trust after having Careful
ly studied the question" is given in an in
tcryiew as follows:
1t Is in the abstract simply an ag-
gregation of capital under one man
agement for the purpose OF straighten-
ing and widening and deepening the
channels of trade In order TO brings
the producer and the manufacturer
into closer relations and thereby rea-
lie better prices to the producer end
lower prices to the consumer, which
has been contunded by all II the great
writers on political economy to be tho
correct and proper course 10 be pur-
suod and upheld. 1t 10 only neccs-
sary to cite the result Of the opera
tons OF two Of the largest and best
equipped trusts known at the present
time, viz. The Standard Oil company
and the great American Sugar Trlst,
which have succeeded in the hrst in
stance In reducing Kerosene oil from
81 per gallon to less than 90 cents Ter
gallon, and In the second instance
giving the consumer third more sugar
Tor dollar than was the "ase before
this great trust controlled the sugar
market.
MIR. Tarver has not studied the question
carefully enough to detect any evils grow
ing out of the advantages .laimed for
the trusts, namely, the reduction OF the
price of commodities to the consumer.
The power to arbitrarily control the price
Of their products enables the trists to
throttle individual enterprise and lessen
the scope OF individual endeavor. To- Cp-
erations of the Standard Oil Trust offer
an illustration OF the point. Thnt the
standard Oil company has reduced The
price Of oil to the consumer is true; hat
IL has been enabled to do this by reason
of the economy OF concentration of man
agement and aggregation of capital is
also true, but the reduction of the price
of oil Is not the only result of the COM
bination, although 1t is about the only
beneficial result. That company by lis ag
gregation Of capital and extensive organ
ization tor the distribution of Its products
has been able TO drive others out OF the
business, thus preventing the employment
OF vast capital and many laborers. such
power has been successfully exercised in
nearly, If not quite, all the cities and
towns in Texas. TIE method is well
known to the merchants. Those who buy
from rival companies are refused oil by
the Standard OIL company aud If perma-
nent arrangements are then made for
supply from the rival company the Stan-
It's regular customers in that town. be-
low the cost Of the oil OF their compet-
tors, thus driving the rival companys Gus
toners out OF the market. In the mean
time, by reason Of the success of the trust
In STRENGTHENING and widening ana ,leep-
ening the channels OF trade II is enabled
"a raise the price or oil at other points
where there is no competition, 50 as TO
cover any loss that may be incurred in
teaching its rival and the merchant who
has encouraged competition, a lesson that
neither ever forgets Such power is dan
gerous and can always be depended upon
TO levy tribute upon the people whenever
II is necessary. The trust can not con-
sistentiy plead the cheapening OF its pro-
ducts to the consumer The trust is the
outgrowth OF a tariff system whose most
effective plea for continuance has been
that 1t enabled American Industries 20 Sc
cure better prices, and in answer to the
tariff reformer's claim that the high prices
were tribute levied on the people the
answer came that the people could afford
to pay higher prices II the Industrial insti
tutlonS or the country were stimulated to
increased activity, because every citizen
enjoyed the effects of general prosperity.
Now that some of these Industrial insti-
tutions have grown to such magnitude that
they are able by combining to destroy COM
petition through their power TO lower
prices, their apologies enter a plea OF
economy, fand claim as defense. the
oheapening OF products to the consumers.
Free trade would lower the price Of all
commodities and would not be nearly so
great detriment to American enterprise
as are the trusts This IS. however, not
offended as a plea for free trade. The
POINT Is that. II we are commit, 10 a
policy that has for its foundation the
claim that general prosperity rAsGlts frorA
Tie ability OF the industrial institutions
TO maintain prices why shoill we reverse
mat policy because some OF those insttu-
lions nave grown to such giant proportions
as to be able TO reduce prices. Protection
TO American industries Is Just as neccs-
sary when their prosperity ard existence
are threatened from giangtic combinations
within as when the attack comes from
the ''pauper labor institutions without.