The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1899-01-13
THE ANTITRUST AGITATION.


There seems to be a revival of the anti
trust sentiment throughout the country, ami
twenty or thirty Legislatures will soon be
graphing with the problem which has thus
far resisted solution. Demagogy, the bane
of American politics. accounts for much of
the demonstration; nevertheless, many peo-
pie believe there is nothing but evil in any
combination to regulate production and sus-
tain prices. There are trusts and trusts
and the first thing to be done by those who
propose to study the subject is to separate
harmful from what may be called beneficial
trusts There is the Standard Oil Company
1t is so well managed that it is able to
monopolize the business and to make the
prices. If the truth is told it is able to in
duce oil inspectors to pass an inferior quail
ity for a superior. 1t pays little heed to
state laws and frequently defies courts 1t
is able to control much of the oil producing
territory and has been guilty of manipulate
ing prices. On the other hand, the Stand
ard has revolutionized the industry 1t has
given the country very cheap and very
excellent article of oil. The American Sugar
Refining Company is another trust. 1t is
a real trust, because it was organized for
the purpose of limiting the production and
controlling the market. 1t has been able
to carry out its plans for several years
Dealers must sell the companys sugars at
a price made by it or sell none. 1t is the
nearest the actual trust existing in the
United States. There are other trusts which
not only propose to regulate production to
the demands of the market but they have
undertaken to reduce wages very material
ly. OF this class of trusts is the nail COM
bination, whose branch at Anderson pro-
posed. it is alleged, to cut wages from 10
to 30 per cent. Such trusts are evils. and
the States should devise means to suppress
them.
There is a class of trusts which have been
organized to curtail production If all of a
certain class of factories should be operated
at full capacity the market would be hope
lessly overstocked; so, without reducing
wages for the same labor, the output is linn
tied. In Columbus, o., a test case is in the
courts to determine whether or not labor
unions are Illegal combinations or trusts
under the antitrust law of that State In
a certain sense organization to confine the
employment of labor to the membership of
societies is as much a trust as to limit the
production of wire nails. A tacit agreement
among a number of retailers to sell a par
ticular grade of merchandise at a fixed
price is regarded by some persons as trust
or combination to maintain prices.
The only distir 1tion which can be made
in the framing of law is to have it's pro-
visions apply to combinations which are
clearly attempting to monopolize the trade
wages and Furnishing dealers who purchase
Of other competitors. as the two great trusts
of the country have done. Thus far the
most effective remedy for the trust is the
trust itself. Several combinations that were
powerful few years ago have gone to
pieces in bankruptcy. The nnseed oil and
Irvine trusts are examples Their weak
ness lies in the purchase of all the compet-
Ing factories by agents representing the
combination, for which an exorbitant price
is paid. Then a considerable portion of the
factories are closed TO become a dead loss.
while those that are kept in operation must
earn sufficient profits to pay interest on a
large amount of dead property The Sugar
Trust Is an Illustration. TIE managers
closed a large part OF the rehneries, which
figure in the capital stock and bonds for
much more than their actual value. The
trust has been compelled to earn money to
pay dividends on stock and interest on