The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1899-11-28


THE trust is here to stay" is the oft re-
peated remark of influential men inter-
ested in the large business combinations
known by the generic name Of trusts"
But are they? Many thinking men are
not SO certain on that point as those in
20 diViduals of9the Mark Hanna type. All
such industrial developments are pro-
gressivei they cannot stand still, and
there must be limit to the growth of
combinations. And then what?
The absorbent power of a trust must
depend largely upon the relation of It's
earning capacity to It's obligations. If 1t
Is able to pay its debts and declare divi-
dends from its earnings it can absorb
new enterprises as they spring up until
the time when its earnings fall below its
obligations. Then 1t must disintegrate of
its own weight.
Like soap bubbles, every trust carries
It's own bursting charge, requiring only
external heat to cause disruption The
disrupttve cause in the case of trusts will
be competition, and while there Is one
American citizen left with a dollar In
his pocket competition may be expected.
There are already some indications of
failure on the part of trusts to effectual
ly throttle competition and preserve a
clear field For instance, the trust
which thought 1t had complete
monopoly of the manufacture of
Q~h oI1
up the price of carbons to a fig
ure almost ruinous for its customers,
hnds today that 1t has a strong competi-
tor in the field, whom 1t cannot stitie.
prepared to do business on an eo1Iitab,a
business basis-and doing It,
The experience of the trust known as
the General Electric is another case IN
point After absorbing all the plants in
the country at the time of its organiza-
ton 1t finds today that there are almost
as many Independent plants in existence
as it bought out originally, and, as is
inevitable, the newest plants possess the
most improved machinery and are able
to produce more economically. The trl,st
cannot continue to buy up plants. There
is limit to its absorbent powers.
If the protective tariff were removed
from all staple articles the manufacture
OF which is controlled by a trust, the proc
ess of disintegration, by the widening
of the competition, would be more rapid
The only legislation requisite to break up
trusts and to prevent them in future is
such revision of the customs tariff as
will admit reasonable competition from
abroad where local competition is want
ing or not practicable at present
The statement credited by Congressman
Lorimer to President John Lambert of
the American Steel and Wire company.
is worthy Of note, and bears strongly
upon this question for the regulation
OF trusts. John Lambert, who is by ma
ture bluff and outspoken and is probably
as honest gentleman as ever slit COM
petttor's weasand-that is, of course,
meaning his business weasand NOT his
actual trachea-is so reported to have
said that the trade combinations want
government supervision. If Mr.. Lam
bert said so, there is the probability that
he may not have meant what he said
But it is just as probable that he did
mean it, for it is conceivable that any leg
islation directed by Republican congress
against CD trusts would probably result
in giving them a legal standing. To at
tempt to wipe out the trusts by some
drastic law is theoretically lovely thing
to contemplate and talk about, but il
might not be very easy or pleasant if put
in operation. Panic and ruin could verv
easily follow on the heels of such a law
even if the courts sustained 1t. which ie
doubtful
A law to prohibit trusts might have the
effect of preventing the formation of new
trusts and confirm the existing trusts in
their monopoly. The effect of retro
active clause in such a prohibitory law
would be exceedingly doubtful Such laws
are held by many sound Democrats to be