The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1899-12-20
What to Do with Trusts.


problem, Is competition the life of
trade? and wrote book, "Monopolies
and the People" embodying the de-
ductions to which his studies led him
This book has recently been reissued in
revised form and the article above mem
DIGEST Of it.
There need be no longer" says Mr..
Baker, the shadow of a doubt that the
trusts are with us to stay. The fac
tory system Of production, the raN,ray,
the department store-these and a hun
dred other outgrov tbs of this century,
have created a new economic system,
and one in which free competition, the
panacea of the old school of political
economists, can no longer apply. 1t fol-
lows from this that the policy of re-
preston cannot solve the trust pro-
blem. Statute laws can no more create
anew the days Of free and universal
competition than they can abolish the
railway the cotton mill and the cleo
trio light" The question, our author
thinks, is one of intelligent regulation.
on this point he says:
Under the old system of free COM
petition, prices were regulated by the
law of supply and demand When
there is only one source of supply, how
ever, those who control it can fix prices
to suit their own pleasure, and can base
them on what the traffic will bear
to use the common phrase. In this way
they may receive a compensation far
greater than that to which they are
equitably entitled. The disappearance
Of competition in many branches of in
dustry is a matter of deep concern to
every man. Freedom and independ-
ence are sacred words to Americans;
hut economic freedom and economic in
dependence of the individual cannot
exist if monopolies are allowed to carry
on their operations without hindrance
and tax the public at their pleasure.
Evidently, the only agency which has
the power to intervene to prevent this
is the government; and it is now clear
ly established in all civilized countries,
that in every case where the existence
of a monopoly is proved, it is both the
right and the duty of the government
to intervene, either for the suppression
of the monopoly or for it's supervision
and control"
In the matter of the trusts, if it
| should be decided to subject them to
government control to prevent the
evils of discrimination, oppression of
their employees, and eXorbitant charges
to the public for their products, in
| what form can that control be exer-
| Cised without transgressiOn of the
! rights of the trust owners, but with eff
| fective protection to the public? Mr..
| Bakers answer to this question is a
! somewhat radical one; he holds that
| the time has come when the state must
control some of these great monopolies
from the inside, through direct repre-
sentation upon the boards of directors.
| The legal right Of the state or the ma
tion to do this" he adds, seems en-
| tirely clear. A corporation is an arti-
fetal person, created by process of law,
and subject in every respect to the re-
|
that created it. We have engaged in
a great experiment in permitting the
| unlimited formation of corporations
| to conduct business of any and every
sort The experiment has brought
large benefits, but it has brought seri-
Gus evils as well. 1t is entirely within
the power of the state to take steps foI
the reform of these evils by the inn
position Of any and every restriction
| upon corporations that may seem best
1t is admitted on all hands that the
| trusts and all monopOlies have duties
to the public, Their managers are as
much bound to observe these duties
as they are to protect the interests OF
their own stockholders. Then why
should not the public have a direct
voice in the management"
The readiest answer, of course, would
be that such public representation, be-
ing political in origin, would prob
ably be corrupt, But Mr.. Baker re,
plies; Let us fully realize the fac
that the public must trust somebody
All these great industries must he car
ried on by men to whom must be grant,
ed powers greater than those possessed
by many a prince of feudal days. w,
have gone far past the days of indl
vidual ownership and control of tn,
great industries of modern life. Ou
railway presidents and managers, tn,
men in charge of the great manufac
turing consultations, and many othe
like captains of industry do not owl
the properties in their charge. The,
are simply trustees for the actual own
ers. The whole edifce of modern in
dustry and commerce has for its cor
ner-stone fidelity to trusts reposed d
Without this every wheel would stop
1t ought to be as easy to find homes
trustees to protect public interests a
private"
The experiment of public representa-
tion on boards of directors of water
light and traction companies would h
well worth trying. 1t would give tn
public at least the pleasure of imagin
ing that it had the chance to knoy
what, was going on behind the curtain
of these monopolies.
The Southern cotton planters hav
, been aroused on the subject of expans
ion and the political doom Of states
men from cotton growing district