New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-04-14
THE NEW COMBINATIONS.

The American people find 1t hard to know the
truth AS TO some matters. not because truths
are concealed but because untruths, sent out in
swarms for sensational or partisan OBJECTS, can
not be distinguished without investigation for
which most readers have neither time nor OPP
portunlty In discussing the new phase OF IN
dustrial development lists of combinations, or
trusts are published which are widely mislead-
ing. Even the most innocent compiler seems to
think that his list will he the more valuable II
1t includes as much as possible, while those who
wish to excite prejudice for partisan or specu-
lative ends often oxaggerate as far as they can
A little attention to the general object will help
readers to strike out from published lists and
dismiss from their attention a large number OF
combinations recently formed
The phenomenon to be considered is not the
mere transfer of the business of a firm to q
corporation That has been going on for many
years, has involved no industrial change Of con-
sequence and has nothing to do with the con-
soidation of different works under one control,
by the trust form or otherwise. The Park Steel
Company, taking the business Of Park Bros. &
Co., has no place in the list Of combinations.
Corporate reorganizations for the purpose Of Sc
curing larger powers or larger capital in han
ding the same works by the same men, such as
the Cambria and Bethlehem companies, have no
place in such a list of combinations. New COM
panies formed to develop inventions or proc
esses, whether based on patents or not, do not
consolidate anything, and have nothing to do
with the tendency to combine industrial works,
so that such concerns as the Severy Process
Company, the Marsden Company for utilization
of cornstalks, the Compressed Air Capsule Com
pany and several electric companies whether
their capital be much inflated or not, have no
business in a discussion Of industrial consoli-
dations
Neither Is it at all new thing that the street
railroads, the breweries or the gas works Of any
particular city tend to unite, for such unions
have been going on many years, and concern
only purely local demand and traffic. If they
obtain a complete monopoly within one city it
has nothing to do with the general business of
the country, nor do such unions within one mar
row field of action test in the least degree the
usefulness Of consolidating works hundreds Of
miles apart, and dependent upon different
sources Of supply and different kinds Of de-
mand, under a single management. If what Is
called the new philosophy Of industrial develop
ment is to be honestly and fairly considered,
local gas, brewery and street-raroad consolida-
tions must be left out Of the question But this
excludes more than a dozen new companies
with capital much exceeding 500, 900 which
are used 70 swell almost all lists of industrial
combinations.
There are enough new consultations left for
any candid and honest scrutiny which do illus
trate and test the principles involved They are
formed by consolidation OF works In operation
for the purpose Of resisting or suppressing pre-
vious competition, they aim at greater or less
control Of markets throughout the country for
certain products and they claim that union Of
widely separated works In different industrial
conditions under one management will secure
important economies In production and dlstr-
button. The aggregate of the new securities
issued by such combinations is not as large by
more than $1,000,000,O00 as some lists have rep
resented. and II properly restricted to the stocks
actually issued, not including those not issued
but authorized TO meet possible contingencies. Is
smaller than the smallest yet published. and vet
covers about 81 ,3000000O0 since January l.
Of which about $SjO,000,000 IL common and
S450000000 preferred stock. Exact figures can
not be given, because as 10 many COMPANIES
only the amount OF stock authorized Is vet
known and therefore necessarily included
though the amount issued is I'm MANY cases
somewhat smaller. With last years issue there
are over S2OO0.000,000 Of these new stocks
afoat which represent the new departure I'm in
dustrial development, and the value of which
must depend largely upon the soundness of the
cries not yet fully tested In the comparison Of
prices given In the Money and Business" mr..
ficle on Monday stocks were included amount
ing 10 S442ooO,OO0 for old companies and
S44oooooOo for new companies. though most of
ihe new stocks have not yet been sufficiently
distributed and quoted TO indicate a tendency.
But more than the entire common stock OF
Steel and Wire was sold in one week, more than
twothirds of Continental Tobacco, more than
half Of Sugar. Federal Steel and National Steel.