Hutchinson gazette., 1899-02-16

un hmounb OF hvooh enormoutly kfueVeHl
than the actual valuation, owing 10 the
uncertainty OF the price which they
will be able TO realize for these shares
In the market, In tho organization OF
industrial companies therefore three
dollars or more In shares have been al.
loted for every dollar OF actual prop
Orty embraced In the combination.
Very often several plants are covered
with mortgages, which the trust, in
addition, is compelled TO assume, The
dlfliculty OF earning dividends upon
this frightfuIly expanded capi-
tallzation is asource OF great weaknesa
from the start, and as the poorer or lesa
OdVantageously situated plants arc
usually closed down In order TO restrict
production and makeit possible toreg-
ulato the prices the average trust is
handicapped with q large quantity OF
this "dcRd wood" At this same tlmeit
happens that the most effective COM
petitors In a given lime OF business de-
cline TO enter tho combination, the
weaker ones and those with obsolete
machinery naturally being the Arst TO
embrace the opportunity TO sell out by
entering the combination.
For time the trust, II II be not too
greedy, us In the case Of the Nail Trust,
has things It's own wny, as new compe'
tltors perhaps enter the neld but slow
ly, but In due course they do, because
they arc assured OF either being bought
up by the trust at their own price or
continuing In business TO take advan-
tNge OF the prices secured TO them by
the trust maintaining prices at leyel
high enough TO mako return on itS
unwleldly capital.
Thus from the moment OF It's organ
ization greedy trust has within Itself
the elements which nre destined TO
cause It's dissolution. It's only queS'
tion OF time and the length Of Its career
can be measured by the skill of It's man
ager and the amount OF premium
which II indirectly offers to new COM
petitor, We have had ample illustra-
tion Of the operation OF this law, and
In 10 there Ia comfort for tho public, dis
gusted as IL Is with the thus far vain
efforts to curb these combinations
through the power OF the government
and the courts,
1t is hardly necessary TO sny that the
word trust is no longer confined to its
original meaning, and that, strictly
speaking, there are today no trusts
thut is combinations Of corporations
with trustees" holding majority OF
the stocks. "Trusts" ARE outlawed In
the United States, and In nearly every
separate state. The object aimed ut
by trusts Is, however, accomplished Rs
effectively in other ways; for example,
by the consolidation by competing con-
Germs into one great corporation; or by
pools and agreements, with or without
penalties attached, between the COM
petitors in any industry The word
trust" as popularity used, now covers
all combinations or associations form
cd with view to control prices, mate
rials or wages
An idea Of the enormous growth OF
trusts in 1893 can be formed from q
glance ut the subioined partial list OF
trusts formed In that year. AS seen in
the table these ninety odd trusts have
u capital of between 81, 200, 900, 900 and
81, 300, ,0OO,O ,OO0 Their bonded indebted
ness will increase the total to over 81.
500, 900, 0OO A few comparisons will
enable us to grasp the meaning Of this
great capital
The total value of our wheat crop
for 1896 Is placed at 1910, sos, ,530--less
than one-third OF the capital Of the 1898
trusts.
The value of all horses in the United
States In 1897 was estimated at S45e,-
G40,30
The value OF our mineral products in
1896 was SO93,7l12ss.
The value Of our sheep in 1897 was
only $6702O,042.
The value of our milch COWS In 1897
was $500, 930,003.
The value of sugar consumed in this
country is now about S22O, 100000
year.
The total Of wages paid In the sugar
refining industry is about 100000
less than one six-hundredth Of the new
trust capital Of 1893,