The Topeka state journal., 1899-03-28
A DEFENSE OF TRUSTS.

Perhaps all that can be said in de-
fense Of trusts. and more than future
developments may warrant, is embodied
in Henry CIews' current weekly
Financial Review Mr.. CIews says:
There is a great deal of current dis
cussion about the so-caIled trusts now so
rapidly being formed. The name of these
industrials would be more appropriate
If called trade combinations. as they
are really not trusts The preponder-
ance of argument seems to be, as far as
publicity is given thereto, a raid against
them. 1t is not. therefore, inappropriate
to set forth many points in their favor.
ITO state the case of the combna-
tions in plain and simple terms, the OBJ
ject sought to be obtained is to put
various interests belonging to different
parties together so as to form a large
concern represented by stock capital
without personal liability having in
view reduction in expenses, greater
efficiency, and production on larger
scale, and the realization of greater
profits without advancing prices. When
a number of small individual plants are
thus united for a common object under
efficient official mana cement the ex-
penses are materially cut down. With
the increased capital which this method
admits of better machinery is secured,
with better results in meeting foreign
competition, which adds largely to this
country'S exports. In this way this
country has. during the past ten years,
increased its ability to compete sue
cessfully with Great Britain and other
European countries; thus, in the seven
months ending February 1, our exports
Of manufactures increased 14.3 per cent
while the total exports, including man
ufactures. increased only 43 per cent,
and the exports of all articles excepting
manufactures but S.3 per cent. That we
would never have arrived at this pitch
of prosperity in manufacturing without
capital combining for this very purpose
will be seen more clearly if instead of
seven months in one year we make the
comparison for the past ten years, TAX
ing seven months ending February l for
each year of the ten"
Here follow figures intended to bear
out the foregoing. The great Wall street
broker then adds:
People who take a narrow view of
the subject talk about the system
throwing men out of employment. To
my mind 1t is evident that there must
have been far more money spent in
wages when the manufactured exports
were $1S2, 100000 than when they were
only SIS. .000, 600. ten years previously.
More than double the value of material
by nearly three millions worth certain
Iy could not be moved by less mum ber
of men, 1t probably required more than
half as many more, namely, SO per cent
and during this period labor itself has
only increased % per cent, thus leaving
the workman better off than before the
combinations began to make such prog
ress in the Improvement of machinery.
Can anybody imagine that the rail-
roads could employ an army of 500, 900
Workmen at good wages and that 1-1o0
part OF a cent per ton per mile would
make the difference beteen dividend and
no dividend to certain prosperous roads
If the principle of combination were not
worked extensively in the railroad in
dustry? AS similar arguments apply to
other Industries with equal cogency 1
consider 1t unnecessary to multiply ex-
amples, as anyone can do so for himself
simply by opening his eyes, looking over
the Industrial field, past and present
coolly rejecting on the situation. and
without permitting political prejudice or
newspaper senSationaliSm to cloud his
reason or distort his common sense. One
OF the results inSeparable from COM
binations. no matter how selfish the pro-
moters may be, is that they make every
thing that they produce cheaper to the