The morning news. [volume] (Savannah, Ga.) 1887-1900, 1899-03-17
pREPARINC ron DISASTER.

In our Geographic reports yesterday
there were announcements of the forma-
ton Of four trusts. one was a trust IN
knit goods. one in bicycles. one in shoe tops
and one was an international trust COM
pany. The formation Of four new trusts
a day, however. is not SO unusual as to
excite comment The prospect Is that be
fore many months about all OF the indus
trial enterprises and businesses of the
country viii be organized into trusts.
1t is not clear yet which of these trusts
are the work of promoters and which
the products Of sound business sense. In
view of the many millions of shares which
plants the suspicion is excited that the
promoters are making a regular business
in organizing trusts, and are taking their
compensation in shares of the concerns
which they organize
The marketing of these shares of trusts
has hardly begun. They have face value
of thousands of millions of dollars. Slowly
but surely they are being unloaded on the
public. In most OF the trusts a very good
showing of earnings will be made doubt
less for year or two, but eventually.
particularly if there should be hard times,
dividends will cease. and the bottom will
drop out of the combinations 1t will then
appear that they were enormously over
capitalized, and that they were never
worth more than a small fraction of what
tbav were ranresepted IN he
Then there viii be a season of trouble.
and very great trouble, because of the ex
tent 10 which the business of the country
is in the clutches of trusts. The misery
in many homes a few years ago from
wrecked railroads win be as nothing in
comparison TO the misery that will follow
the passing OF trusts into the hands of re-
ceivers. And when the receivers and the
lawyers have had their fees allowed by
the courts, there will he little left for the
stockholders. AS a general thing nova
days courts seem to think that it is their
special duty to help receivers and lawyers
accumulate fortunes from wrecked cor
poratlons and business concerns.
The laws against trusts are practically
ignored. But little effort is made to en-
force them. Those whose duty ID is to
enforce them seem TO feel that they are
powerless. The fact probably is that the
great majority of those whose duty 1t is
to make laws against trusts and those
whose duly it is to enforce the antitrust
laws are, to a greater or less extent, in
terested in trusts. Assuming that this is
true, no further explanation Is needed foC
the failure TO check the progress of trusts.
People who are in the habit of carefully
inquirng into the solvency of enterprises
before investing in them will hesitate
long time before putting money into the
Shares of some of the trusts which are be-
ing formed They cannot help seeing that
the plants which are being consolidated
are valued far above the amount for which
they could be duplicated. Competition is
sure to come and then these trusts, whose
shares are watered until they have but
little intrinsic value, will collapse, and re-
ceivers will be called in to take charge of
their remains. Most of the trusts are good
things to let alone particularly those
which are the products of professional
promoters.