Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1899-10-23
TRUSTS and REMEDIES.
Early Monopolies Founded on Rsstric-
lions Of Trade.
TRUSTS OF TO-DAY FOUND MAIN
LY IN PROTECTIVE TARIFF
COUNTRIES = ABSURDITY OF
ATTEMPT TO ABOLISH TRUSTS
BY SNOWY BUT HARMLESS
PENAL STATUTES.
BY Franklin Pierce.


trusts Their prototype is found in the
monopolies which existed everywhere
before the present century and in the
medieval guilds. Before the nine
teenth century, towns, districts and
nations everywhere surrounded them
selves with walls of Legislative restric-
tions intended to keep out the monster,
Trade.
Nor are the reasons given in our day
for creating monopolies new. When
delegation from the indignant Com
mons begged Elizabeth to recall the
inatents which she had granted Great
ing trade monopolies, the willy queen
replied: .sSince was queen, yet never
did / put my pen to any grant but
that upon pretext and semblance made
to. me that it was both good and bene-
fetal to the subjects in general, though
q private profit to some of my ancient
servants who had deserved well. Ever
since the time of Queen Elizabeth the
rich and powerful have maintained that
high protective tariffs, monopolies and
trusts, were "good and beneficial to
the subjects, and have not been want
ing in finding pretexts and semblances
of reason to induce the ignorant'to be-
lieye in their contentious.
The movement toward commercial
freedoms in the nineteenth century has
set in with strong current, but it
takes deary time to teach the world
that no body Of men are wise enough
to enact. restrictions upon trade which
will be beneficial.
I propose in the short space allotted
to me to show wherein our American
trusts are the direct result of our pro-
tective tariff.
GENESIS OF THE TRUST.
The trust comes from our high pro-
steetive tariff as naturally as fruit from
blossoms IL a. single corporation
were manufacturing the entire product
of any protected article in the United
States, it is perfectly apparent that it
could sell its goods at a price just be-
low the cost of the foreign product, plus
the duty and engross the whole trade
of our people. In experience, however,
when an increase of duties is contem-
plated, MANY new corporations for
manufacturing purposes are formed,
and these rush into competition with
those already in existence. The result
Il; oil to Il
tion, and the selling price of manufac-
tured articles falls below the cost of the
foreign article, plus the duty, and the
manufacturer thereby loses a portion
of the benefit of his high duty. Now
the only way for the manufacturer to
avail himself of the full advantages of
the protective tariff, is by combining
the trade into a corporation, or asso-
citation, so as to fix the selling price of
his manufactured articles just below the
price of the foreign article, plus the
duty. The promoter of the trust can
not always unite the entire trade to
this end, but he can unite a sufficient
portion Of the trade with sufficient cap
ital to enable the trust to indiscrimin-
ately slaughter the weaker manufac-
turers who have not sought the shelter
of the combination.
Our protective tariff affords only an
artificial basis for trade. We deliber-
ately lay the foundation for the prices
of the nece5 saries of life in f1uctuating
legislation and then curse the combi-
nation and visit it with penal legisla-
tion because it seeks to protect itself
from the very conditions which the
high tariff legislation has brought
about
BUT FEW TRUSTS IN ENGLAND
Now, the remedy for trusts is to
make free trade, tear down the pro-
teetiye walls, and bring the sale of the
products of our trusts into COMPETE
ton with the rest of the world The
trusts would quickly fall to pieces un-
der such conditions.
but" our proteetionist says, this
is not SO. Trusts exist in free Eng
land, as we'll as in the United States !"
This statement is not true. Monopo-
lies and trusts have always existed
when fostered by high protective tar
IFS, and they have never existed to
any considerable extent where free
trade prevailed. An international trust
would be difficult, as we learned when
tlc iAtSIHdllUHdl OOppef Trust, uuQGf
the very best of circumstances went to
pieces in the eighties Trusts fixing
the price of the necessaries of life ex-
list only to a limited extent in Eng
land. Mr.. Wilhelm Berdow, an eminent
German writer on political economy,
writing in the Forum of May last, up
on European Trusts" says: ''As far
as England is concerned it must be
admitted that, Notwithstanding her
great industrial activity and Compel
Tive warfare not less than that of 9TH
sr States, the trust system has as yet
found but tardy acceptance in that
country This is doubtless due. in
some degrees, to the thorough applica-
lion of the prineiple<of free trade; for
It is we'll known that the largest trusts
are powerless unless their interests are
secured by protective tariff, excluding
from the home market the products OF
foreign countries
In France to-day, the conditions are
similar to those existing in England
prior to the beginning of free trade.
An army of French workmen are now
preparing to move toward Paris; and
in every country where protective tar