The sun. [volume] (New York [N.Y.]) 1833-1916, 1899-06-04
THE SUN, SUNDAY, JUNE a, 1899.
TRUSTS. An INDEPENDENT pIkW
The Commercial Necessity of Trusts-Tho
Small Storkholdcrs' Rights.

The Commercial Necessity OF Trusts-The
Small Storkholders Rights.
To THE EDrron orTHE suN--Sir: should
like TO aav few words to those who are honest
in their denunclaton Of trusts. The prin-
cpe Of the trust or console a.ion Is right, even
II harsh criticism Is justified where advantage
Is taken of the present movement to foist GER
tain unworthy--nud some grossly orercnri-
talized -prorertics on the market. This abuse
was inevitable and shows the necessity for
Judging onch concern on Its individual merits.
With regard To the principle OF the trust.
both in civilization and In commerce. CONSOLE
dalton means the greatest pod for the great
est number" cardinal rrinciple OF good gov
eminent everywhere. No trust which stands
for n crashing commercial monopoly designed
TO enrich limited number of people by put
ting up prices. Of which the ultimate aim IL to
stlne honest correction and concentrate
In few hands particular branch OF the COM
merce and wealth OF the country. could long
exist In the United States. and for the comfort
OF our people II may be affirmed positively
that there IL no such monstrous creation ask
ing the sufriaEcs OF the American investor.
Wenever mention trusts" but the Standard
Oil Company Is quoted as glazing offender.
VOL. to be honest. If it were possible to bot
that concern out Of existence. to rehabiitate
the businesses it has absorbed TO nut back oil
L9y;rish gu9ty as Of old would the nsGole
It? And would they in the same way permit
cent. for the sake OF downing the Sugar 1'rusti
X we would benefit the many ii seems un-
avoidable that we must sacrifice the Few. Dur
UNFAIRLY uni ruined her largest Industry -aGrcu-
ture-and IMPOVERISHED one man out OF every
four for the henefit Of the remaining three hy
free 40 that her people might have cheap food.
A g INNER measure was never raised by any
Great Britain recognize the paramount value
of the principle involved that Lord Salisbury
has said. in response to q henrt-hroken apl'sal
from the farmers. that to retrace their steps
IN this matter would shake the throne OF Eng
land itself
ples-or prevents their cheapeninR-has TO
deal. not with corporations. but with peoples.
So much Tor the princinle of the trust. Now
let us consider who l. is that owns the corpo-
nsn b 2"o h"ors rm Eps f., Of
names Assuming that each stockhol rep
thnn $4,000 people depending more or less
for their support upon one CORPORATION. That
ton "f Great 70 BSn and re would S@5' proh"hy
he safe 70 say that the stockholders In English
corporations and those DEFENDING directly or
indirectly unon their stocks for support equal
In hunter the entire populat on OF the British
Isles. and in thi9 country those who attack
'''nNDlthlh'nS VIII lluu tH'.y iTe H''
lacking wealthy corIorations whose stock Is
hold by few persons. but the people at large
who have shared in the wider distribution OF
The next point Is: Will the large aggregate
rarltal Of contemporary trust; Gemoralize our
three good reasons why this Should not har.
uen. First because the announced capital is
purely nominal: second. Iecause the volume
OF money changing hands Ia not excessive.
and. third. none OF it Is going out Of the coun-
frpn ri which IN va bob a lam Cr
experience, In 1892 the Limited Liability act
was passed in Grea; Britain with the result Of
From 1892 to 1856 the nominal capita! Of the
public cornoratlons formed in England was
seGuent to Tint period the British public in
ySsIISd in I bard G Tm In such c9TnorStions
similarly invests a trhe of $3.50. 900 900 year
", which is an imnrovement upon even the for
mer figures. as we'll US an absolute answer TO
the INJURY whether after az experience Of
rrodtable. England is n" longer a natiHn Of
shonkespers: she is nation OF stockholders.
In 12 whep the 2Gd q REV
suit in nsni"" Possibly i did. but Il Il SO i
MOI come Til four wears later. which would IN
dictate that the change was favorable 70 the
oat by he fact that not~ Outstanding the three
extremely dull wears following the pnnic Of
1874 thc tOt1l value OF prOrertv in the United
Kingdom increased 40 PER cont. during tho
decade lssi1-lS1I.
Germauy's canltaizations Approximate 70
those If England and II Is noteworthy Tint
those countries which most favor tho incor-
pnratiun or consolilat ion principle are our
most dangerous rivals in busine.a-Iust as II
INCORPORATE our businesses we begin to ex-
mort manufactured sturs. 20 compete with
those counties in their own cities. and to be-
come n credit nation.
Did srace permit, i should like to dwell upon
the IMPROVEMENT perceUtble III these recent
rg2nIzatiYn- Of good class In the absence Of
bonded Indebtedness. in the provision Of annie
working capita and i'll the superior quality OF
the houses and individuals responsible for the
concerns. ! would also like to dwell upon the
gain. first. to our foreign trade certain tn ac-
,rue thcrcfrom viii the result Of better wages.
better times and CHEAPER food for the working
man. and. second. 10 our domestic trade. in
dspensin: with the midLleman. who Is a tax
4liEe.u!on producer. consumerand distributor.
] should Ike also to EXPRESS The hone tina rs
our railroad corporations are out the hand
maids Of commerce they will follow In the
Of consolidation among themselves to the
great gain Of their stockholders and OF the
public AT large.
In conclusion would say that more than
any other place on the face Of the globe consoli.
iation was inevitable here. There is no coun-
try IN the world where the same fury OF com
petition exists In business com petition ie-
Ultimate az we'll as destructive because 1t
Strings from the em6arklng Of business men
in o he nmr Of Il The %Sn rhsy
stand his business. aud TO the undertaking
him ir his rrlcos.
II will be very much better for the country
n large that a great many more OF the small.
struggling traders should become contcnted
employees with fixed incomes than that they
for existence 1t would greatly augment the
sum OF their hanpnass. J. SELwIS TAFT.
MoNTCLAIR. May 30.