The diamond drill. (Crystal Falls, Iron County, Mich.) 1887-1996, 1899-08-19
DEMOCRAT DEFENDS TRUSTS
Facts which should Abolish the Ter
rors Inspired by the
Trust Bugbear.

IL is not easy to brighten Henry Wat.
terson. He il a democrat who works
to promote the interests of the demo-
cratic party when he thinks il Is right,
but is not afraid to take issue with il
when he believes IL is wrong. lie has
no fear Of trusts, and does not hesitate
10 say SO, notwithstanding the anti
trust hysteria which seems to have af-
fected so many democrats. lie has an
object lesson right in his own town OF
Louisville, in the shape of new and
extensive enterprise, and he draws
from IL some conclusions that ought
to be Of interest to those who are trem-
bling before the trust bogy. Mr.. Wat
terson says in the Courier-Journal:
THE fact that firm OF go years expert
ence, and backed with ample capital, has
leased building here and arranged 10
begin extensive operations In the manu-
facture or plug tobacco Is only another
proof that the big Industrial combinations
have had their powers for harm ex-
aggerated This factory Is TO be on a
larger scale than most OF those which have
been started In opposition TO the attempted
monopolization OF the trade, but II Is only
one OF many. IL is an imposslbllty In this
country OF colossal enterprise and album
dant capital for any syndicate 10 maintain
control of a business field In which profits
are large. IL may be secured for time,
but II cannot be held.
The tobacco consolidation. In fact. was
exceptionable, because the combination
was not required by failing profits or over
production. IL is true, trade war was
going on, but this was simply because the
American Tobacco company. not content
with earning 20 per cent. upon capitaliza-
ton mainly OF water. by manufacturing
cigarettes, desired 10 monopolize another
equally lucrative branch OF the trade. II
was a case Of colossal greed. Failing I'm
the attempt TO drive his competitors out
OF the field. the controlling genius OF the
concern conceived the scheme OF buying
them out. lie succeeded in securing the
control OF practically two-thirds OF the
existing plug tobacco capacity OF the coun-
try. but he could not, and he never can.
prevent the building of new plants and the
rush Of fresh capital into field that has
been made more inviting by advancing
prices"
Mr.. Watterson points out important
advantages which the new factory will
have. 1t will not be obliged to earn
dividends on fictitious capital; ii will
be able to produce chcaply, because il
will be satisfied with legitimate man
ufacturing profit, and will have plant
OF moderate cost, equipped with all the
latest and most improved machinery.
On the other hand. the company or
trust with which it is 10 compete has
had to pay exorbitant prices for the
establishments il acquired, since the
owners demanded not only the actual
but also the potential value OF their
business in making n sale The conse-
quence is n concern with capital OF
100000, 900. upon which il promises ia
pay dividends, while the actual worth
OF its plant is not one-tenth that sum.
Probably. says Mr.. Wattcrson, they
could be duplicated for less. So the
prospect seems bright for the new
project
'The new factory will be gladly welcomed
to Louisville, the greatest leaf market In
the world and the second greatest manu-
featuring point. Here the raw material Is
cheapest, labor is abundant and transport
tation facilities unrivaled III the demand
for plug tobacco Is so good that consumers
Will pay the trust an eNorbitant profit, a
moderate price will win more customers
An Independent factory VIII have powerful
assistance IN building up It's trade In the
undoubted prejudice against monopolies.
We have seen what this means already In
the vast increase OF business that has come
TO the factories left out OF the combina-
ton. Their prosperity has been so great
that one factory that was started IN 1898
with a capital OF but 81 600 now has one of
81 200. 900. and everywhere the uade OF M
dependent concerns is growing That WIN
be the case with the new factory 20 be es-
tablshed here, and we trust that 4 WIN be
the case with many more. No nan or set
OF men has any right TO take exclusive pos
session OF any field OF human endeavor. and
luckily that Is also forbidden by the natural
laws OF trade"
Such facts as these ought To help
abolish many of the terrors inspired
by the trust bugbear. A trust simply
takes its chances like any other big en-
terprise. Ii cannot monopolize every
thing in sight" even IL il wishes 10 do
SO. And IL il eXacts too much il is pref
~ certain TO inspire rivalry which will
bring it to terms. The trust specter is
not half as awful as certain wordy
takers represent.-Troy Times.