New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-11-04

Certain assumptions are made in nearly all
current discussions regarding so-called trusts
which must be eliminated before Il sensible or
profitable result can be expected. one IS that
prices of manufactured commodities were nor
nal, wholesome and consistent with the highest
general prosperity when the rush Of consolida-
ton began This IS VIGOROUSLY the reverse Of
the fact Attention has been repeatedly called
10 the truth that most of the great corporations
had their origin in desire TO get rid Of connpc-
tition which had proved ruinous. In scores Of
cases the success Of proposed consolidation was
due 10 the great embarrassment of Industries
in consequence of such competition and the I'M
natural depression of prices and curiaiment of
profits which il had caused As this is an es
sential fact in the whole discussion, few com
PARSONS Of prices are needed to refresh the
memories Of those not engaged in manufacture
Most Of the great corporations with which TINS
industrial revolution began were IN the iron and
steel business. The Federal steel was the ear
lest and was formed in August and incOlpo-
rated in September 1898 and substantially the
lowest prices ever known in that great indus
try were August l. Nominany prices averaged
about ! per cent lower in September. 1S91 but
owing to quick prostratlon following little in
1895. Immediately following and directly con
nected with this came the other great consoda-
tious in that industry. which has enlisted a large
share Of the capital taken for industrial corpo-
rations the Cambria in November the Tin Plate
IN December, the steel and Wire and Pressed
Car in January. the National steel and Car and
Foundry IN February. Until The latter part Of
February the advance In prices OF iron prod
ucts. as IS well known. was relatively small and
very Irregular. and in every branch the ncces-
sity for scf-defcnce was urged rs the control
ling motive for consolidation. But it was not
until March, 1899, that the earliest OF the wool
len combinations formed. and the lowest
prices recorded for years in woollen goods were
reached in that month. The wOrsted c0mblna-
ton followed the next month. Similar coinci-
dences could be given in great number, and In
general the prices prevailing when new comhi-
nations were made up by securing options were
IN almost every instance far below those OF any
PROSPEROUS period in the past and such that
many Of the works were closed and unable 10
do business.
II Is an assumption quite as unfOunded that
such exceptionally low prices were consistent
with public welfare The dleness Of many
works with thousands Of hands. the restriction
Of demand for materials which depressed prices
Of wool pig iron ore and others. we're by COM
petent observers reckoncd al the time proof Of
an unequal and III balanced development which
kept back full prosperity in all industries 10y
hindering the revival of some. Always fair
prices with living profits il every branch. are
best for the country because only by such con
diiions can further development be encouraged
\ third assumption * that the advance I'm prices
since Industrial corporations were formed ha.
been at their arbitrary pleasure, for the purpose
Of extortng undue profits from the public The
sufficient answer has been repeatedly given.
| With quotations and proofs. Prices OF the