New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-01-12


fend It's works against competition by ability 10
producc cheaply. Whether all the hopes enter
tanned will be realized cannot he affirmed, OK
course. but there is no room to dispute the fact
that the hope which brought most Of the COM
hIn,nr concerns into the agreement was that
competition could be resisted through cheaper
ing production by the unison OF various inter-
ests hitherto liable at any time to work against
each other.
Examination OF many other combinations that
have recently been formed or are In process OF
formation shows that in nearly all cases the
same lnducement is leading the various works 10
unite. Connection has been particularly fierce
since the capacity Of producers became so great
that. in addition to unprecedented domestic de-
mands. heavy sales for export could be made.
In ten months Of last year 1000 tons OF pig
were exported, over 12,0O0.0O0 pounds OF iron
and 42.00O.O00 pounds Of steel bars, 2o2'ooo tons
OF rails. $4,000, 900 pounds Of wire rods 36,ooo,-
600 pounds Of sheets and plates. $4,000 tons OF
structural forms. about 135.0O0.0OO pounds OF
wire 52000O0O pounds Of nails, Sl2.0Oo,o~
worth OF machinery, about SGOOOW0 worth or
cycles and nearly as much OF builders haru-
ware, and over SO, 100000 worth of other iron
and steel products. A rise in the cost OF pig or
billets. such MS the enormous demand threatens,
would force most concerns which do not COM
mand their own supplies to quit the manufact-
urc for foreign markets, and to close part or the
whole of their works. In like manner such
rise would cause advance In intermediate prod
ucts. which are necessary materials for the
sheets and plates. wire and nails. machinery,
cycles. hardware and various other manufact-
ures for those who do not command their own
materials.
Consolidation Of interests under such cOndi-
lions Is n matter OF self-defence and necessary
to insure continuance Of work and is anything
but hostile 10 the public. Not single combl-
nation has yet been formed which embraces all
competitors and gives a monopoly OF produc-
ton. some concerns in every branch preferring
an independent position because already pos
scssing or certain TO command the requisite sup
plies Of materials, or for other reasons. When
any one Of these combinations HOSTS It's prices
above those which the cost Of material makes
reasonable II is almost invariably crushed by
withdrawal OF buying and by the undertaking
OF competitors, rs the Wire Nail Trust was
broken down when It raised the base to 81 50
last March The point Of peril Is reached for
every such combination the instant II begins to
tax the public more for its services and products
than they are reasonably worth. II may he
granted without hesitation that M other times
combinations have been able to tax the public
unreasonably for n considerable time, and such
cases may occur again. But they become far
less probable as the capacity Of works increases
so that 1t can he fully employed only by retain
ing n considerable foreign demand Nor Is this
true only Of the iron industry. The leather
manufacture cannot afford to lose an export de-
mand for over $4,000, 900 worth OF leather IN
ten months. The copper-works cannot afford to
lose an export business of S27 100000 In ten
months The expansion Of American trade with
other countries thus becomes constant and
powerful preventive OF abuses OF the power Of
combinations In domestic trade.