New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-08-04
COMBINATIONS AND PRICES.

profound but natural misunderstanding rs
10 the influence of new Industrial combinations
on prices Is likely to mislead very many people
I'm future to their own harm and perhaps 10 the
harm OF the country. Men Of intelligence and
reading habits. who consider themselves well
Informed and take n wholesome interest in the
DEVELOPMENT Of the country, have been observ-
ing certain facts:
First-There has been this year n wonderful
reorganization Of Industries through several
hundred consultations
Second-There has been this year remarka-
bic advance in prices of manufactured products.
Third-The advance in prices has been espe-
ciallv great In those Branches OF industry In
which consultations have been most numerous
and effective.
Fourth-Tn numerous cases the advance In
prices has been ordered by the consolidated
corporations without apparent increase In pub
lie demand for the products so advanced.
1t is natural that men who have observed so
much and no more. should be inclined to CON
Guide that the rise in prices has been mainly
the result Of arbitrary demand by corporations
formed for the express purpose Of stopping com
petition. and thus securing higher prohts Tor
their work. This would not be n sin II II were
civilized society because he seeks 10 get as good
prices as ne can for his grain or cotton, nor the
workingmnn because he seeks by lawful means
TO get as good wages as he can for his labor.
The manufacturing and mining concerns Of the
country had been. beyond all question, pushed
by years Of prostraton into such severe compe-
ttfon with each other that their profits In many
lines were not commensurate with their risks.
1t is essential TO the public welfare that the re-
turns for risk. enterprise or labor In such
branches should be sufficient TO stimulat"
healthy growth. But the question is whether
the conclusion Is warranted. How many men
have observed the other essential fact?
Fifth-The advance In prices has generally
begun and been compelled 10y rise In prices OF
materials which no combination has controlled.
The rise in prices OF wOollen goods began
with higher prices for raw wool. Nobody pre-
tends that the wool growers are so combined or
united as to control prices, and they had in fact
been putting down prices on each other ana on
the speculative holders ever since the great rise
in the fall Of 1897 came to a disastrous end.
This year the rise was largely influenced by so
great an advance in prices abroad that about
twelve million pounds Of wool were exported
from this country. Again the rise In iron ana
steel products was largely the result OF de-
mand for pig iron so far exceeding the supply
that prices nearly doubled within few months.
Scarcely any manufactured product has risen
proportionately as much But there has never
been an association or combination Of any sort
which controlled n large share OF the pig iron
nroduction In boots and shoes no combination
has yet been found potent, and the advance has
been less than in leather, while the advance In
leather has been less than in hides, which any
farmer can produce and no combination can
control The copper combination was powerless
to lift prices by restricting the production, but
London raised them by speculation. The smelt-
ers could not raise the price of lead, but an OBJ
stinate strike of laborcrs accomplished that for
them. The silk market is controlled In Asia,
and goods here have by no means risen In COM
harrison with raw silk nor have the products OF
copper and lead risen in comparison with the
prices Of those metals
These facts have TO be taken into consldera-
ton by candid men who seek the truth and wish
IN be right All the evils that combinations
have caused, whatever they may be, should be
frankly recognized and fully weighed. But it Is
most dangerous self-deceptIon for intelligent
men. who ought to lead the public opinion OF
tIeir country. to form n conclusion regarding
tbe influence of combinations upon prices with
out considering carefully and well the indepen-
dent advance in materials which combinations
do not control the causes Of that advance and its
legitimate influence upon prices Of finished
products.