Ceredo advance. [volume] (Ceredo, W. Va.) 1885-1939, 1899-08-16
DEMOCRAT DEFENDS TRUSTS
Facts Which should Abolish the Ter
rorsNinspired by. the
- a. Trust BagScar.

II is not easy TO Tighten Henry Wat
terson. lie is democrat who works
TO promote the inteSests of the demo
cratic party whae be thinks il is right,
but is not a.,'aN~ro take issue with il
when he believes il rs wrong. lie has
no fear of trusts, and does not hesitate
10 say so. Notwithstanding the anti
trust hysteria which seems 10 have af-
fected so many democrats. He has an
object lesson right i'm his own town OF
Louisville, in the shape OF n new and
extensive enterprise. and he draws
from il some conclusions that ought
to bcof interest to those who are trem-
bling before the trust bogy. Mr.. Wat
tersons says in the Courier-J ournal:
The fnct that n firm OF 80 years cxperi-
ence. and backed with ample capital. has
leased building here and arranged to
besm extensive operations in the manu-
facture of plug tobacco Is only anether
proof that the big industrial combinations
have had their powers for harm cN-
aggerated. This factory is 10 be on a
larger scale than most OF those which have
been started IN IMPOSITION TO the attempted
monopolizction OF the trade. but IT is only
one OF many. IL Is an impossibiity in this
country OF colossal Enterprise and album
dant capital for any syndicate TO maintain
control OF a business field I'm which profits
are large. IL may be secured for a time
but II cannot bc held.
The tobacco consolidation. I'm fact was
eNceptionable, because the combination
was not required by failing profits or over
production. IL is true. "A trade war was
going on, but this was simply because the
AmericJ Tobacco company. not content
with Gaming - per cent upon n capitaliza-
ton mainly OF water by manufacturing
cigargttes desired to monopolize another
a. hTN ~ .af 10 II
was/a case OF colossal greed. Failing in
the Iattempt to drive his competitors out
OF Che field. the controlling genius OF the
concern conceived tho 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 row plants and the
~Fush 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 he Obliged To earn
dividends ON fictitious capital it will
he able 10 produce chCaplN. because il
will be satisfied with legitimate man
ufacturing profit, and will have 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 eNorbitant prices for the
establishments it acquired, since the
owners demanded not only the actual
but also the potential value of their
business in making sale. The couse-
quence is IL concern with n capital Of
$l00.OO0,000, upon which il promises to
pay dividends, while the actual worth
of its plant is not one-tenth that sum.
Probably, says Mr.. Wattcrson, They
could he duplicated for less. So the
prospect seems bright for the new
project.
The new factory will be gladly welcomed
to Louisville the greatest leaf market I'm
the world and the second greatest manu-
featuring point Here the raw material Is
cheapest, labor is abundant and Transport
tation facilities unrivalcd. If tho demand
for plug tobacco Is so good that coEsumcrs
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
urdOubtcd prejudice against mguOpOlics.
We have seen what this means already In
the vast increase OF business that has come
20 the factories left out Of the cGmbina-
tion. Their prosperity has been so great
that one factory that was started In 1898
with a capital Of but 81 900 now has one Of
$lO1O,OOO. and everywhere the trade Of In
dependent concerns IS growing. That via
be the case with the new factory 90 lie cs-
tablishcd here. and we trust that IL WIZ be
the case with many more. No man or set
OF men has any right 10 take exclusive pos
session Of any field Of human eudcayor. ard
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. \ trust simply
takes its chances like any other big en-
terPTise. IT cannot monopoijzc every
thing in sight even if it wishes TO do
so. And if it eXacts too much il is pref
bring it 10 terms. The trust specier is
not half as awful as certain wordy
takers representations Times.