New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-04-08
INDUSTRIAL COMBINATIONS
B. B. THuRBER ARGUES IN SUPPORT OF
TRUSTS.
CONVINCED BY STUDY HE SAYS. THAT THEY

CONVINCED BY STUDY. HE SAYS. THAT THEY
ARE A BENEFIT TO THE PUBLIC.
Washington, April IF. B. Thurber. president OF
the United States Export Association in testifying
to trusts before the Industrial Commission to-
day. took positive ground in support OF trusts.
saying that he had at first been prejudicod
against them. believing that they would oppresa
the public with high prices. Il had" he said. no
conception that they a natural economic devel-
opment consequent on the development of the great
forces which now control the world-steam. cleo
trcity and machinery-or that there any
rational basis for their existence. But careful
study OF their effect. ranging period OF years.
has materially modified my opinion"
Taking up the history OF trusts he said they
began with the consolidation OF tho railroads into
trunk lines. The fear had been that the combna-
tons would result In exorbtant rates for Transport
tation, but this had not proved TO be the lie
quoted figures to show that on the contrary there
had been u reduction. Between 1865 and 1895 there
had been reduction from SO 0S n ton for carrying
a ton OF freight mile 70 cents. This reduc-
ton" no said, amounting to three-quarters OF
the average rate OF 1865 was exceeded by that I'm
plce OF but few even OF those articles in the manu-
Aac'uro oi winch new inventions have worked the
most radical changes. The entire transportatio
performed by the railroads OF the United States
curing tho twelve years ending June go 1884, was
equivalent TO moving l3G,799577.S22 passengers and
W'sS5.8S2.SSS tons OF freight one mile Had rates
aVerasing as high those OF 1852 been collected
o' tHis frame tho railroads would have earned
|-ez9oiS'4o9 moro than they actually received"
Under the consolidation effected by the Standard
VII company oil had deprecated in price from 25.7
cohts gallon In 1871 TO 81 cents In 1898 and s,mI
lar condition was shown as the resuIt ~ tho rora
'on OF the Sugar Trust due 10 the purchase Of tho
IA" material at a cheaper rate than individual re-
hners could get 1t. Mr.. Thurber suggested that
s snese are types OF many in the evolution of in
oustrles' That there have been instances OF hard
snip and injustice attending this evolution cannot
Do uouDted.' he admitted. but II is ooualv cer-
tAln that the total results Ia We been beneficial 70
the pubic at large and TO the interests of the Ia
DorlhS classes especially, who constitute the ma
'orlIy' AT some stages OF this evolution this re-
marx was, perhaps not true The action OF these
forces was so rapid that men were thrown out O.
employment faster than wants were created and
industries widened. Labor however soon followed
the example which capital had set of organiza-
uon' and during the last decade the organization
OF labor has progressed faster than that of CAPITAL
anu mas FORCED a division OF larger share of the
profits OF industry for labor than at any previous
period Of history. In other words profits of capital
nave been steadily decreasing while those OF labor
and especially organized labor, have steadily in
creased"
Mr.. Thurber closed as follows:
The only trusts which have succeeded for any
ie a, OF time nave been those which have been
gins OF profit, relying upon large turnover and
the economies resulting from the command OF large
capital lntelllgenuy administered The truth OF
TINS Is Illustrated by innumerable failures I'm trust
organizations to control prices, recent illustrations
OF which are the Straw board Trust the Starch
trust the Wire Nail Trust and the old Steel Trust
Ihere are trusts so called, in nearly branch
OF business. and there Ia good and bad In all but
the good so far predominates that such aggrega-
lions OF capital should be encouraged, accompanied
by safeguards against abuses. The only additional
safeguards needed for stockholders and invest
ors, whose interests often sacrificed through
lack OF publicity. The average investor is the chief
sufferer. SO far as the interest OF consumers is
concerned Il Is amply protected now, first. by com
petition. and second. by the common law, which, II
invoked. VIII nuliify any contract in restraint of
trade ana any unreasonable combination is sub
Ject TO indictment for conspiracy Special trust
statutes are not necessary, although many have
boon enacted.
l am not interested in trusts. except as a student
OF their poiuco-economic features. but am salts
fed that we must have this organization Of indus
Try II We would keep up with the procession in tho
march for the worlds trade There 40 OOoO O)
possessing larger purchasing power than any
similar number elsewhere. and n larger producing
power because command the great forces OF
nature and OF brain power embodied in machinery
10 greater extent than any other nation. with n
consuming power Of 100000 have a producing
power OF 100000 Our problem is TO keep our
labor and capital continuously and remunerativeIy
employed by preserving our home market and
reaching out for place 10 dump surplus
emong the other 1856 10000 each OF whom has
some wants