New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-06-25
DISAPPEARANCE OF THE TRUSTS.
THE INDUSTRIAL. MoNoPoLIEs WHICH HAVE
TAKEN THEIR PLACE HARDER TO
REGULATE BY LAW.

From The Providence Journal
II is curious circumstance that just at the time
when antitrust talk is at its loudest and when
there many indications that opposition 10 trusts
be made an IN eRg boSd Se pracca
disappearing. We have adopted the rather DUBIOUS
practice of speaking Of ordinary monopoes
numbers in operation at this time; But as Tor real
ard oil Trust has just secured another charter and
is be changed into ordinary corporal ton at the
earliest moment The great monopolies and com
binations about which so many complaints are now
heard and whose capitalization amounts to many
thousands of millions Of dollars are as mnch mere
corporations as any of our railroads They are
instead OF parts of industries. They maintain
prices be sure. just trusts are intended to do
companies nor by alliances between corporations.
but because they have acquired actual ownership
The fact is that the trust plan of business organ;
! ization has proved failure. partly because or
those inherent defects in which were pointed out
| in these columns ten or twelve years ago wnen tne
cause OF the laws that have been passed against It,
are three ways BY which WS Of
| them have now become impractcabe in this coun-
y the 9G and to bee d The The s
! union in agreement to maintain prices. Our courts
! the maintenance OF prices by agreement between
companies that are by law independent and sep,
arate has always proved ineffective In the long run
/ because men cannot be counted upon to Keep such
agreements when they have a chance TO pr9 ron oy
breaking them. contract that the courts WIN NOT
/ recognize and that the contractors VIII not abide
| nv Is OF course. worth nothinR
| After many years of futile experiments with that
plan a second method of attempting TO prevent COM
petition and maintain prices was devised InIs was
! ing the shares in each OF a number or companies
| in one central body Of trustees who thereupon
and properties as one, though the legal and cor
plan began with the Standard oil Trust and went
on without much interference or even puonc al.
tentlon for some years. But when the number or
such trusts began to multiply the defec,s oil the
Of ~ from 10
| One after another the States passed laws pro-
hIbting In greater or less degree restricting such
| nrganiIations and decisions obtained from
tbs comrts declaring that companies could not com
/ bine i'm this way. as TO get all the advantages
OF sepa ate companies and yet all the ei'iehcy ana
| profit OF a single management .
| Under the combined effect OF these adverse laws
and court rulings the trusts nave sraSduauy oeen
| IL now about to disappear. Agreements TO main
tain prices and trusts 70 mana be
third nan OF trying to accomplish the same result
Is now being undertaken THIS plan IL simply to sell
ment TO maintain prices: II is not a trust new
corporation is formed which buys up all the Other
old companies IN given line of business, pay Ing
for them with either options OF stock or with cash
| The sale is a complete and legal as any ordinary
| nitude and in the opportunity II gives the new
| owners to fix pri ,es as freely as trust could II
common OF late aud against which the aid Of egls-
laton is being invoked and the attention OF politi-
Plainly II is going to be more difficult form OF
! combination to deal with than those that have
TO maintain prices by agreement cannot reach thee
new companies, because they Involve no agree
ment The decisions and legislation against trusts
cannot affect them, because the new company IN
each case IS n owner. with as good aud com
p,n eIe plants for example and Was operating
them as one piece OF property. And the formation
two men in the same business can be forbidden 10
sell out to each other.