The new dominion. [volume] (Morgantown, W. Va.) 1876-1904, 1899-08-30
BY a Wall Streer Bull.

The trusts are cutting considerable
of figure 10 the industrial world at
present, and the outlook is that they
will continue to do so for some time
to come. Many persons look upon
them and see nothing but financial
paralysis aud ruination ahead That
they will work evil cannot be denied
and that ruin to many people will fol-
low. there is not the shadow of a
doubt. But the danger from trusts to
legitimate business is not so great as
many people fear. This country is
not built on lines that are tended to
permanently encourage such illegi.-
innate aggregations OF wealth. The
trusts will be their own destruction.
A few years ago If concern was in
corporated with capital OF one mill
lion dollars il aroused comment. To
day companies are being organized
nearly every day capitalized at from
$50, 600, 600 TO 500, 600, 600, and little
is thought of the matter, so quickly
do we accustom ourselves to radical
changes. But the fact OF the matter
Is most of these enormous sums do
not represent money at all and are
only paper. Still that does not pre-
vent the trusts from threatening bus
mess and representing normal trade
conditions and their menacing danger
comes from this source. The actual
harm they do TO business will be but
temporary; the real harm they do will
be to fleece individuals Of hundreds OF
thousands Of dollars who have been
led into their nets by getting promises
of untold dividends.
No business, however profitable, can
yield dividends on more goods than it
can produce. No business. that it con-
Quoted hon estly will produce more
than it can sell. If it does its destruc-
ton Is soon and certain. Trusts say
that with combining they can produce
cheaper, and incidentally by restrict
ing the output, keep up the prices,
and thereby be enabled TO declare the
enormous dividends they talk SO glib
ly Of. And right there is where their
destruction will come in. This coun-
| try believes in competition and it is
this fact that will deal the death blow
to trusts. Say trust of any commod-
| ity is formed. All the mills are
bought up, he production restricted,
prices are kept up, and big dividends
declared. What is the result? The
spirit of competition is so great almost
Immediately outsiders seeing the big
dividends paid will enter the field and
the trust will inevitably go down.
Only few years ago cordage trust
was formed. 1t was one of the most
gigantic combinations ever thought OF
at that time. Everybody used strings
and cords and ropes and the stock
holders were dazzled by the enormous
dividends that were paid for short
while. The stock was the most gilt
edges on the market and fabulous
prices were paid for it. Where is il
now? 1t had every chance to succeed
that a trust could wish. Were per
son to offer a share of Cordage trust
stock for sale in Wall street today he
would be laughed at. Poor Alterbury
its president and originator, is known
no more in the financial business
world and is bankrupt. Many 9TH
ers lost their all with him, but just a:
much, and more, string and cord and
rope is sold today as ever. 1t wasn't
because people quit having these
things, but because the theory of the
trust is wrong.
Then there was the lead trust. II
was thought to control all the paint
in this country would be nice thing.
/ While it has Jared better than cordage
it does not control the paint output
of the country by good deal. II
does good legitimate business and
its dividends are paid promptly, but
they are not Of the gllttering magni-
tude people thought they would be
The Lead Trust is alleged to be really
a part of the Standard Oil Co., which
is said to be the reason for its contin-
ued existence.
! The history of these trusts will be
the history of all trusts. The only in
stances where trusts can succeed al
all is in those few cases where the raw
product sought to be worked up is
confined to one or very few locali-
UleS. IL 10 dDSulu w uuluk, DIS Sbdteu
above, that plants will yield revenues
on more than they produce and COM
petition will prevent them yielding
greater revenues than legitimate trade
will warrant. The trust is an inven-
tion that will yield big results to a
few for limited time and bring dis
aster to the majority who put Their
money into it, and finally collapse or
sink to its rightful level. Trusts will
do the country at large no permanent
| injury.