The L'Anse sentinel. (L'Anse, L.S., Mich.) 18??-current, 1899-08-19
DEMOCRAT DEFENDS TRUSTS
Facts which should Abolish the Ter
rors Inspired by the
Trust DuRbear.

1t is not easy to Brighten Henry Wat
to promote the interests of the demo
cratic party when he thinks IL is right.
but is not afraid to take issue with ii
when he believes 1t les wrong. lie has
no fear of trusts, and does not hesitate
to say 80, Notwithstanding the anti
trust hysteria which seems to have af-
fected so many democrats. lie has an
object lesson right in his own town Of
Louisville, in the shape OF new and
extensive enterprise, and he draws
from il some conclusions that ought
to be of interest to those who are trem-
bling before the trust bogy. Mr.. Wat
terson says in the Courier-Journal:
''The fact that a firm OF go years experi-
ence. and backed with ample capital. has
leased a building here and arranged to
begin extensive operations In the manu-
facture OF plug tobacco Ia only another
proof that the big Industrial combinations
have had their powers for harm ex-
aggeratcd This factory is to be on a
larger scale than most OF those which have
been started In opposition to the attempted
monopolization OF the trade, but II Is only
one OF many. II Is an impossibility In this
dant capital for any syndicate to maintain
control of business field In which profits
are large. II may be secured for a time,
but II cannot be held.
THE tobacco consolidation. in fact, was
oxceptionabe because the combination
was not required by failing profits or over
production. II IL true, trade war was
going on. but this was simply because the
American Tobacco company. not content
with earning 20 per cent. upon a capitaliza-
ton mainly of water, by manufacturing
cigarettes. desired to monopolizc another
equally lucrative branch OF the trade. 1t
was IA case of colossal greed. Failing In
the attempt to drive his competitors out
OF the field the controlling genius Of the
concern conceived tho scheme Of buying
them out lie succeeded in securing the
control of practically two-thirds OF the
existing plug tobacco capacity of the coun-
try, but he could not, ard he revcr can.
prevent the building OF rev plants and the
rush of fresh capital into a field that has
been made more inviting by advancing
prices"
Mr.. Watterson points on; important
advantages which the new factory will
have. 1t will not he obliged 10 earn
dividends on fictitious capital; il will
be able to produce chcaply, because it
will be satisfied with Legitimate man
lliacturing 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 exorbitant prices for the
establishments il acquired, since the
owners demanded not only the actua
but also the potential value Of their
business in making sale. The conse-
quencc is II concern with capital OF
$l00,0O0 900, 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 be 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 in
| the world and the second greatest manu-
| featuring point. Here the raw material Is
| cheapest, labor Is abundant and transport
| tation facilities unrivalcd. lf the demand
| fer plug tobacco Is so good that consumers
| will pay the trust an eNorhtant proiit, IL
| moderate price will win more customers.
! An Independent factory will have powerful
| assistance in building up It's trade in the
| uEdoubted prejudice against mOnopolies.
We have seen what this means already In
| the vast Increase of business that has come
| to the factories left out OF the ccmbina-
ton. Their prosperity has been so great
! that one factory that was started In 1893
with capital of but $1,000 now has one of
! 81. 900, 900. and everywhere the trade of h-
dependent concerns IL growing. That wiz
be the case with the new factory to be es-
tablishcd here. ard We trust that IL WIN To
the case with many more. No man or set
of men has any right TO take exclusive pos
session of any field Of human cndcavor, and
luckily that Is also forbidden by the natural
laws of trade"
Such facts us these ought 10 help
abolish many of the terrors inspired
by the trust buebear. A trust simply
takes its chances like any other big en-
terprse. Ii cannot monopolizc every
thing in sight even If il wishes to do
so. And if ii eXacts too much il is pref
~ certain TO inspire rivalry which will
bring it to terms. Therust specter is
not half rs awful rs certain wordy
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