The San Francisco call., 1899-05-04
TRADE COMBINATIONS.

= LOSELY following the movement started in
| San Jose to form combination of prune
- growers along lines similar to those which have
led the of Fresno to prosperity comes
the undertaking OF enterprise to form association
OF California packers for the promotion of that
industry 1t will be seen therefore, that it is not in
the East alone the advantages OF such combinations
are appreciated California has learned the lesson
and has profted by it.
All recent experience proves that in a considerable
number of industries something is gained in economy
by every enlargement of the unit of control Three
or four small railways that improbable when
operated separately become valuable property when
converted into trunk line and placed under sim
gle management Small mills and factories that have
ceased to be paying investments made profitable
when combined in a single corporation and operated
that basis
This experience has taught the industrial and com
nercal world the expediency of forming large com
bnations wherever possible, and accordingly in all
the progressive nations of the earth such combna-
tons common 1t seems to be destined by
the working of unavoidable law OF economic de-
velopment that certain industries must be carried on
hereafter upon large scale Only by great combi-
nations of capital by the establishment of large
plants, and by purchasing supplies and selling
products at wholesale rates. can such lines of business
be conducted proftably in face OF the intense com
petition of times
The only question of doubt in the matter is to de-
termine what industries be proftaby developed
in that way. Up to this time the teaching of expe-
rlence seems that most rural industries are most
profitable when conducted on a comparatively small
scale. An orchard of thousand acres rarely yields
as much in proportion OF ten acres, nor have
the big ranches OF many thousands of acres been as
prohtaby worked small farms. On the other hand
most manufacturing work has been found be profit
able exactly in proportion the extent of the plant
and the annual amount of the output.
The line OF separation between the two classes of
work, however, cannot be drawn along that which
distinguishes farm work from factory work There
kinds of rural industry like that of sugar
producing, that be best carried on when under
taken upon large scale, and on the other hand
there several kinds of manufacturing work that
are better managed in small shops than in large fac
tories
The prevailing tendency of the time, however, is
toward the formation of large combinations, and it
would appear that frut-packng is one of the trades
that be best managed in that way, 1t is an in
dustry that is exposed to the egitimate competition
of aduterated sophisticated fruit preserves, it has
to contend against the practice of false labelling
which prevails to such extent in all parts of the
United States, and, finally, it is trade that has to
seek markets in all parts OF the world and therefore
needs large capital or a thorough system of CO.
operative management for its full development
Certain it is that California must follow the great
States of the East and the nations OF Europe in this
respect her industries will be crowded to the wall
despite any protection that tariff give. AS was
recently stated by Governor Flower of New York
any combination which enables an article of staple
to be placed upon the market cheaper rate to
consumers is to be profitable if judciously man
aged. That is the principle which all great COM
binations for industrial enterprises have been made
and its soundness ndisputable