The times., 1899-03-05
THE GOOD AND EVIL OF TRUSTS.
An Interesting Witness Before the
Industrial Commission


Theodore c. Search. Of Philadelphia.
I President of the National Association Of
Manufacturers, was an interesting witness
| before the Industrial Commission in its
rooms in the Bliss Building yesterday He
believed the product capacity of the manu-
| facturers Of the country was in excess of
the demand for home consumption, and
that manufactured goods are being ex-
ported in noticeable quantities. This was
true, especially, he had noticed as to cot
ton goods, shown in the fact that cotton
! mills in New England stand practically
idle for two or three months of the year.
THE hosiery interests" said Mr.. Search,
''are also beginning to export their goods
the first sign | have seen that anything
with wool in 1t could be taken out of the
country. There is a concern in PhiladeI-
phia that is busy manufacturing goods
exclusively for export
Referring to the consular service, Mr..
Search said he believed it to be rather
more a business than a diplomatic in
terest. His association has been agitating
the adyisability of the selection Of trained
business men for Consuls and he could
observe distinct business improvement in
the service. He thought that only trained
business men should be chosen for con-
sular places with civil service attach
ment and a tenure that did not depend
upon the change OF parties. The associa-
tion, as a result of its insstence that the
consular service should be regarded as a
part of the business equipment OF the
country, was able now TO understand many
things as to which in former times no
information was available. II the pro-
jected new Department OF Commerce, for
which his association is also pressing,
should be established he would expect to
see it put its hands on the consular service
right away.
Mr.. Search was doubtful as to the out
come of the movement for the establish
ment of trusts He was inclined to think
that it is still too early 10 make guess
as to the possible outcome OF these COM
binations He could not say whether 1t
was going to do good or harm, but he be-
lieved they would be more or less disas-
trous to the smaller enterprises, because
of the cheapened cost OF production
But" he added, Il don't see any help
for it."
He was not even quite sure that they
were forced by overcompetition. He had
an idea that they were largely speculative
They are growing to such an enormous
extent that the effect on smaller enter
prises might be to make it impossible for
anyone to 20 into business with limited
capital He was between two views as to the
amount OF public dissatisfaction that
would result from the spread OF the trust
system. The establishment of a trust in
volved great distribution OF capital. and
one of the results would be that many
people who never held any stock in man
ufacturing concerns would become inter-
ested as stockholders. OF course, the divi-
dends from the stock so held would not
yield them the income that would be de-
rived from the same investments in pri-
vate enterprise. but, on the other hand.
it was not 10 be forgotten that these great
trusts did the business of countless small
factors and would need n great force of
able lieutenants. and these lieutenants
would not be likely to render their SER
vices to them for less than they could make
out of business established by them
selves.
In truth" Mr. Search continued, Il do
not look on these combinations with much
favor. and do not even recognize them as
the natural evolution of economic cOndi-
tions They are forced rather than ne
cessity. They are growing here as they
grow nowhere else in the world There
are large aggregations of capital in for
eign countries, as we all know. but they
are not the results OF combinations.
The Krupp interest in Germany, for in
stance. has grown from a little seed. and
increased. enlarged, and spread with the
natural growth of its business"
On Monday the Commission will hear
NJ NJ. Garland. former President OF the
Amalgamated Iron Workers Association:
Dennis A. Hayes, President of the Green
Glass Bottle Blowers Association. and F.
p. Sargent Grand Master OF the Brother
hood of Locomotive Firemen.